Eindhoven-based RIFT secures €11M to decarbonise industrial heat

Eindhoven-based RIFT (Renewable Iron Fuel Technology), driven by its vision of a sustainable future through clean energy, has secured €11M in a Series A round of funding.

Invest-NL, PGGM (on behalf of the Pension Fund for Healthcare and Welfare), and Oost NL invested in this round along with existing investors Rubio Impact Ventures, Brabant Development Agency (BOM) and Energy Transition Fund Rotterdam (ETFR).

Remco Westerbeek, Investment Manager at Invest-NL, says, “Industrial heat is a sector that is one of the largest sources of greenhouse gas emissions worldwide and is difficult to make sustainable. RIFT’s iron fuel technology can help companies reduce their CO2 emissions without major infrastructure adjustments.”

“Our investment in RIFT therefore fits in perfectly with Invest-NL’s mission to support innovative solutions that accelerate the energy transition.”

Existing investors Rubio, BOM and ETFR add, “CO2 reduction is a key part of our investment philosophy, as we believe that sustainability and innovation are essential for a future-proof economy. We are therefore proud to have been able to support RIFT’s industrial pilot phase from close by.”

“The Dutch ecosystem offers a solid foundation for companies with high impact potential, such as RIFT, to realise their ambitions. We are convinced that RIFT will play a key role in making the industry more sustainable and look forward to the next steps with great confidence.”

Capital utilisation

RIFT’s technology uses iron powder combustion to generate high-temperature heat without direct CO2 emissions, making the process circular by converting rust back into iron with hydrogen. 

The funding will support 2 GWh of durability tests at RIFT’s pilot facilities in Arnhem and Helmond and help finalise the company’s first commercial contracts, paving the way for full-scale commercial implementation of its iron fuel technology.

Mark Verhagen, CEO and co-founder of RIFT, says, “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.”

Enhancing the sustainability of industrial heating

Three friends—Mark Verhagen, Vincent Seijger, and Lex Scheepers—founded RIFT in 2021 after collaborating on iron fuel technology in their student team, SOLID of the Eindhoven University of Technology. Working closely with Prof. Philip de Goey from the Metal Power Consortium, they aimed to commercialise this “promising” new clean fuel.

RIFT makes sustainable heating solutions for industries such as food and beverage, pulp and paper, ceramics, and special chemicals, which face pressure to reduce fossil fuel dependence but often lack viable alternatives.

The company has developed an iron fuel technology designed for easy implementation without major infrastructure changes, making it economically competitive with fossil fuels. This technology addresses challenges faced by other sustainable energy solutions, such as hydrogen and electrification.

By burning iron powder in a specially designed boiler system, RIFT generates high-temperature heat of up to 2,000°C while producing no direct CO2 emissions. The combustion process results in rust powder, which can be converted back into usable iron powder using hydrogen, creating a fully circular energy system.

Additionally, the iron powder can be safely transported over both short and long distances, similar to the logistics of oil or coal storage and distribution. The process also generates minimal nitrogen emissions, significantly lower than those produced by burning natural gas, thereby enhancing its sustainable impact.

Robert-Jan Smits, Chairman of the Board of TU Eindhoven, says, “As a university, we are very proud of RIFT. It is great to see the confidence of investors in this TU/e ​​spin-off. The idea of ​​using iron as fuel came about at our university via Professor Philip de Goey, who started a research programme that led to the creation of RIFT.”

“Investing in startups and scale-ups like these is crucial to optimally utilise the knowledge we possess in the Netherlands – the only raw material we still have. Many green TU/e ​​startups in the Brainport region are leading the way in the development of clean technologies that are essential for the enormous transitions our country is facing. It is essential that these startups are given the opportunity to grow in the Netherlands.”

The Breakthrough Energy Fellows Programme

RIFT’s recent funding follows its graduation from the Breakthrough Energy Fellows Programme, which provided two years of funding and guidance. This support helped the company achieve technical and commercial milestones, positioning it for further growth.

Ashley Grosh, VP of Breakthrough Energy, says, “We selected RIFT two years ago for the Breakthrough Energy Fellows Programme due to their groundbreaking innovation in iron fuel technology. By tackling one of the biggest challenges in reducing CO2 emissions—decarbonising industrial heat—RIFT’s solution offers a breakthrough for energy-intensive sectors.”

“RIFT has distinguished itself by building a strong team and achieving both technical and commercial milestones at a rapid pace. We are excited to see what the future holds for the team and their technology.”