Netherlands-based cleantech startup RIFT announced that it had raised €11 million (USD $11.9 million) in Series A funding aimed at advancing its technology to decarbonize industrial heat.

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. While solutions to replace fossil-based energy sources have emerged, including renewable energy, electrification and hydrogen, many are not available at scale for industrial use due to current grid limitations.

Founded in 2020, RIFT provides Iron Fuel Technology, which operates like a rechargeable battery for heat generation. The solution’s self-enclosed system burns iron powder in a boiler, creating heat at varying temperatures, producing hot water, steam, or hot air in a process that avoids direct CO2 emissions and maintains ultra-low NOx emissions.

RIFT believes that its system will decarbonize industrial heat, reducing 1 Gigaton of CO₂ annually from 2050 onwards. A test program in the Netherlands community of Helmond saw the system heat 500 households in 2022 and 2023, with minimal amounts of CO2 emissions measured, according to the company.

The company said that the new capital will be used to complete durability tests and finalize initial commercial contracts of its iron-powder-based renewable heating system.

Investors in the funding round include PGGM (on behalf of PFZW), Invest-NL, and Oost NL, who joined existing shareholders Rubio Impact Ventures, the Energy Transition Fund Rotterdam, and Brabant Development Agency (BOM).

RIFT CEO and Co-founder Mark Verhagen said:

“We have engaged a strong consortium of both public and private parties who not only provide us with capital but also crucial knowledge and experience in sustainable value chains and infrastructures. This is essential for large-scale implementation and allows us to complete the final testing phases for commercial application. This collaboration increases our chances of a successful rollout and brings us one step closer to our ambition of reducing global emissions by one gigaton per year by 2050. We are ready to make a tangible impact in the industry.”

Remco Westerbeek, investment manager at Invest-NL, added:

“RIFT offers an innovative, sustainable alternative for industrial heat, a sector that is one of the world’s largest sources of greenhouse gas emissions and difficult to decarbonize. RIFT’s Iron Fuel Technology can help companies reduce their CO2 emissions without requiring extensive infrastructure changes. This investment aligns perfectly with Invest-NL’s mission to support innovative solutions that accelerate the energy transition.”