Fashion and design brands company H&M Group announced the launch of a new partnership with zero-carbon industrial heat solutions provider Rondo Energy, aimed at applying Rondo’s industrial decarbonization solution to help address the emissions footprint of H&M’s supply chain.

Founded in 2020, California-based Rondo Energy provides solutions to address emissions from industrial heat processes. Industrial heating uses high amounts of energy, often from fossil fuel-based sources, in order to transform materials into products such as metals and plastics. Rondo’s Heat Battery turns intermittent renewable energy sources including wind and solar energy into continuous, high temperature heat, enabling the replacement of fossil fuel-fired boilers.

John O’Donnell, Founder & Chief Innovation Officer of Rondo Energy, said:

“Producing and finishing fabrics requires large amounts of low-cost energy, which makes our brick batteries a perfect fit. Today, coal delivers most of the heat and most of the carbon pollution making fabrics, because it’s always been cheap and simple to burn. But the world is changing. Region by region around the world, wind and solar power are becoming cheaper than fossil fuels. At Rondo, we’ve created a simple, practical tool to harness those new energy sources.”

Under the new partnership, H&M and Rondo said that they will explore opportunities for factories in H&M’s global supply chain to use the Heat Batteries to replace fossil fuels with clean heat and power. Applied to the fashion industry, Rondo said that its Heat Batteries could replace most fossil fuel use in fabric production, and cut the carbon footprint of our clothing by nearly two-thirds.

H&M also announced an investment in Rondo Energy through its venture arm, H&M Group Ventures, and that it is joining Rondo’s Strategic Investor Advisory Board (SIAB). Rondo launched the SIAB in August 2023, alongside a $60 million capital raise, with current members of the board including Rio Tinto, Aramco Ventures, SABIC, SCG, TITAN, and SEEIT.

Eric Trusiewicz, CEO of Rondo Energy, said:

“Rondo is thrilled to be working in partnership with H&M Group to explore how our technology can be of use in their supply chain, and to have H&M as an investor and member of our Strategic Investor Advisory Board.”

H&M Group has set a goal to achieve net zero emissions by 2040, with interim targets to reduce absolute Scope 1, 2 and 3 emissions by 56% by 2030. As with most fashion retailers, Scope 3 value chain emissions, or those outside of a company’s direct control, account for the vast majority of the company’s emissions footprint. According to H&M’s 2022 Sustainability Report, Scope 3 makes up nearly 99% of the company’s emissions. Of these, over 60% derive in supply chain areas including fabric production, garment manufacturing, raw materials and transport.

Laura Coppen, Head of Sustainability Investments at H&M Group Ventures, said:

“Rondo is H&M Group Venture’s first investment in decarbonisation technology. The company’s thermal battery energy storage has the potential to help factories electrify, which is key to achieving our climate targets. We look forward to working closely with Rondo and the broader ecosystem in scaling decarb tech.”