Iron Fuel Technology operates rather like a rechargeable battery, but with regard to generating heat rather than generating power. Controlled combustion of iron powder produces high-temperature energy that can then serve a number of diverse functions across various industries.
The financing will be used by RIFT to develop its first commercial production facility, from which iron fuel will be supplied to multiple industrial customers integrating Iron Fuel Boilers into their heat processes.
In mid-2025, RIFT signed its first commercial contract with Kingspan Unidek, one of the customers participating in the project. RIFT’s ambition is to be operational in 2029.
The project is expected to deliver approximately 340 GWh of industrial heat per year. Over a 15-year lifetime, that amounts to roughly 5 TWh of decarbonised heat, resulting in more than one million tonnes of avoided CO₂ emissions.
“We are proud of what the team has achieved so far” said Mark Verhagen, CEO of RIFT. “Over the past years, we have demonstrated that Iron Fuel Technology performs reliably in an industrial environment. With this financing, we are moving into the next phase: preparing and executing our first commercial project.”
The funding consists of an 83.1 million euro Series B round led by PGGM, with participation from Invest-NL (supported by the InvestEU programme), and regional development agency Oost NL. Rubio Impact Ventures, BOM and the Energietransitiefonds Rotterdam also participated. In addition, we have been selected for a 30.7 million euro project under the EU Innovation Fund.
Industrial heat remains one of the most challenging parts of the energy transition. Sectors such as food processing, chemicals and building materials require continuous high-temperature heat for their production processes. Currently, this heat is largely generated using fossil fuels, primarily natural gas.
For many applications, electrification is not readily deployable due to high temperature requirements, large power demand and limited grid capacity. A scalable, CO₂-free alternative is therefore essential.
RIFT provides this alternative through a circular energy carrier based on iron. By replacing natural gas in industrial heat processes, high-temperature heat can be generated without direct CO₂ emissions.
In addition to the Series B round, RIFT has been selected for a 30.7 million euro project under the EU Innovation Fund. This fund is one of the European Union’s key instruments to support large-scale innovative decarbonisation projects.
In this funding round, 61 projects were selected out of 359 applications. Being awarded this support underscores the European relevance of Iron Fuel Technology and its role in reducing industrial CO₂ emissions.
The Innovation Fund is designed to help bridge the gap between demonstration and commercial deployment. Its support strengthens the execution of RIFT’s first commercial project and reflects confidence in the scalability of the technology.
This milestone marks the transition from demonstration to commercial realisation. With the financing secured and European support in place, the focus now shifts to execution.
Over the coming years, RIFT will develop its first commercial production facility and work toward operational deployment in 2029. With a team of approximately 75 people, the company is advancing the commercial rollout of its circular iron fuel system in energy-intensive industries.
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