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RIFT has secured €11 million in new growth capital
Startup makes energy-intensive industries more sustainable with iron fuel technology
PGGM, Invest-NL, Oost NL, and existing shareholders Rubio, Energietransitiefonds Rotterdam, and Brabantse Ontwikkelings Maatschappij (BOM) are investing in the scale-up of the promising startup RIFT, which works with iron fuel technology to make industrial heat more sustainable. In addition to capital, the consortium brings valuable experience and expertise.
Eindhoven, October 17, 2024 - RIFT (Renewable Iron Fuel Technology), a startup that decarbonizes industrial heat, announced today that it has completed a financing round of €11 million. Pension investor PGGM (on behalf of Pensioenfonds Zorg en Welzijn), Invest-NL, and Oost NL have joined as new investors. Existing shareholders Rubio Impact Ventures, Energietransitiefonds Rotterdam (ETFR), and Brabantse Ontwikkelings Maatschappij (BOM) are also participating in the investment round. With this new investment, RIFT will carry out 2 GWh of endurance tests at the existing industrial pilot facilities in Arnhem and Helmond. Additionally, the capital will be used to secure the first commercial contracts. This is the final step before the technology can be commercially rolled out.
RIFT, originating as a spin-off from the student team SOLID at Eindhoven University of Technology, focuses on making industrial heat in sectors such as food & beverage, pulp & paper, ceramics, and specialty chemicals more sustainable. These industries are under increasing pressure to become more sustainable and reduce their reliance on fossil fuels, but often lack viable sustainable alternatives. RIFT offers a sustainable heat alternative with its iron fuel technology that is implementable. The technology is easy to implement without major adjustments to existing infrastructures and is economically competitive with fossil fuels. This provides a solution to the challenges other alternatives, such as hydrogen and electrification, often face.
Mark Verhagen, CEO & co-founder of RIFT: "We have managed to bring together a strong consortium of public and private parties, who not only provide us with capital but also crucial knowledge in the field of sustainable value chains and infrastructure. This experience is essential for large-scale implementation and enables us to complete the final testing phases for commercial application. This collaboration increases the likelihood of a successful rollout and brings us closer to our ambition of saving 1 gigaton of CO2 annually by 2050. We are ready to make a tangible impact in the industry."
Less CO2 Emissions and a Circular Process
RIFT's technology uses iron fuel, where iron powder is burned in a boiler system developed by RIFT. During combustion, high-temperature heat of up to 2,000°C is released, without any direct CO2 emissions. The byproduct, rust powder, can be efficiently converted back into usable iron powder using hydrogen, making the process fully circular. Additionally, iron fuel offers logistical advantages: the powder can be transported easily and safely over both short and long distances, similar to the storage and distribution of oil or coal. This gives the technology the potential to serve as a global alternative to fossil fuels. Its sustainable impact is further enhanced by minimal nitrogen emissions, which are significantly lower than those from burning natural gas.
Follow-up to the Breakthrough Fellows Program
The investment comes at a perfect time. Recently, RIFT completed the prestigious Breakthrough Energy Fellows Program, which supported the startup for two years with funding and advice. Ashley Grosh, Vice President of Breakthrough Energy: “We selected RIFT for the Breakthrough Energy Fellows Program two years ago because of their groundbreaking innovation in iron fuel technology. By addressing one of the biggest challenges in reducing CO2 emissions – decarbonizing industrial heat – RIFT's solution provides a breakthrough for energy-intensive sectors. RIFT has distinguished itself by building a strong team and quickly achieving both technical and commercial milestones. We are excited to see what the future holds for the team and their technology."
About RIFT
The Eindhoven-based startup RIFT focuses on commercializing its innovative Iron Fuel Technology to decarbonize industrial heat. Founded in 2020 by Mark Verhagen, Vincent Seijger, and Lex Scheepers, the company offers a scalable and cost-effective alternative to fossil fuels in industrial heat production. RIFT currently operates with a motivated team of more than 50 professionals. Together, they are committed to achieving the ambition of reducing 1 gigaton of CO2 annually by 2050 – equivalent to approximately seven times the current annual emissions of the Netherlands. For more information: www.ironfueltechnology.com.
Tim van den Brule, investment director bij PGGM Infrastructure investments: “Deze investering die we doen ten behoeve van Pensioenfonds Zorg en Welzijn past heel goed in de ambities die het fonds heeft uitgesproken: met goed renderende beleggingen meetbaar bijdragen aan de energietransitie. RIFT loopt voorop met zijn technologie die over enkele jaren grootschalig moet kunnen bijdragen aan het CO2-vrijmaken van industriële processen, maar ook aan het verduurzamen van warmtenetwerken zoals dat van Ennatuurlijk dat sinds 2014 onderdeel uitmaakt van de beleggingen van PFZW.’’
Remco Westerbeek, Investment Manager at Invest-NL: “RIFT offers an innovative and sustainable alternative for industrial heat, a sector that is one of the largest sources of greenhouse gas emissions globally and is difficult to make more sustainable. RIFT’s iron fuel technology can help companies reduce their CO2 emissions without requiring major infrastructure changes. This makes our investment in RIFT a perfect fit with Invest-NL’s mission to support innovative solutions that accelerate the energy transition.”
Ian de Graaff, investment manager at Oost NL: “In addition to the benefits for the sustainability of the industry, the solution from RIFT is also circular; the iron powder can be reused multiple times. In a time of scarcity of raw materials, it is important to handle this carefully. This leads us to believe in RIFT’s solution to accelerate the heat transition of the industry. We are proud that with this investment, together with pension fund PGGM, several ROMs, Invest-NL, and the market, we can contribute to RIFT’s mission.” Oost NL invests through the Perspectieffonds Gelderland, a fund from the province of Gelderland.
Existing investors Rubio, ETFR, and BOM add: “CO2 reduction is an important part of our investment philosophy because we believe that sustainability and innovation are essential for a future-proof economy. We are proud to have closely supported the phase leading to RIFT’s industrial pilots. The Dutch ecosystem provides a solid foundation for companies with potentially significant impact, like RIFT, to realize their ambitions. We are convinced that RIFT will play a key role in the sustainability of the industry and look forward with great confidence to the next steps.”
Robert-Jan Smits, Chairman of the Board at TU Eindhoven: “As a university, we are very proud of RIFT. It’s wonderful to see the confidence from investors in this TU/e spin-off. The idea of using iron as fuel originated at our university through Professor Philip de Goey, who started a research program that led to the creation of RIFT. Investing in start-ups and scale-ups like this is crucial to optimally utilizing the knowledge we possess in the Netherlands – the only raw material we still have. Numerous green TU/e start-ups in the Brainport region are at the forefront of developing the clean technologies that are desperately needed for the enormous transitions our country is facing. It is essential that these start-ups are given the opportunity to grow in the Netherlands.”
