Scottish process heating technology for Munich

22.04.2026

Source: E & M powernews

Scotland's Exergy3 wants to expand from Edinburgh to Munich and market its technology for industrial process heat.

The Scottish company Exergy3 plans to open its European headquarters in Munich in the second quarter. The company has raised EUR 11.5 million in seed funding for this expansion and to drive forward the commercialization of its proprietary technology for the decarbonization of industrial process heat, the company announced.

The Edinburgh-based technology provider is developing a modular thermal energy storage system that converts surplus renewable electricity into process heat. According to Exergy 3, the system can provide temperatures from 50 to 1,200 degrees Celsius and cover applications in industries such as food and beverages, chemicals, pharmaceuticals, fertilizers and cement.

Exergy 3 recently announced the commissioning of the "world's first low-CO2 distillery project": At the Annandale Distillery in Edinburgh, excess wind energy is used to generate temperatures of up to 530 degrees. These are converted into steam in a Cochran boiler and used to distil whiskey.

In connection with the expansion, the company refers to the high costs of grid congestion management measures in Germany. The Exergy 3 technology can make this surplus energy available for industrial processes in a targeted manner and at the same time contribute to the decarbonization of industrial heat. The Scots are combining their market entry with the expansion of production capacities and the planned implementation of the first large-scale industrial projects with industrial partners.

An investor from Bavaria also involved

The seed round was led by the French company Axeleo Capital. Other investors include the public venture capital investor Bayern Kapital and Singapore-based Kibo Invest. According to the company, previous investors Scottish Enterprise, Zero Carbon Capital and Old College Capital also participated again.

The planned location in Munich is intended to bring Exergy 3 closer to industrial customers and partners in Europe. By the end of 2027, the company says it wants to build up a team of around 15 employees there and collaborate with universities in the region. "Bavaria offers us an ideal environment: a strong industrial base, a high density of energy-intensive companies and access to excellent specialists," says CEO Markus Ronde. "This enables us to work close to our customers and build local supply chains."

At the same time, Exergy 3 also intends to expand its activities in the UK and double the number of employees by the end of this year.

Author: Katia Meyer-Tien