RIFT secures € 11 Mn in Series A funding round

PGGM, Invest-NL, Oost NL, and existing shareholders Rubio, Energy Transition Fund Rotterdam (ETFR), and Brabant Development Agency (BOM) invest in the scaling of the promising startup RIFT, which is working on the decarbonization of industrial heat with its Iron Fuel Technology. In addition to capital, the consortium brings necessary experience and expertise, essential for working towards commercial implementation.

Eindhoven, October 17, 2024 – RIFT (Renewable Iron Fuel Technology) has successfully closed its Series A funding round, raising €11 million. Pension investor PGGM (on behalf of the Dutch healthcare pension fund, PFZW), Invest-NL, and Oost NL have joined as new investors. Existing shareholders Rubio Impact Ventures, the Energy Transition Fund Rotterdam, and Brabant Development Agency (BOM) are also participating in the investment round. With this capital, RIFT will conduct 2 GWh of durability tests in its current industrial pilot facilities, located in Arnhem and Helmond, the Netherlands. Additionally, the investment will be used to finalize the first commercial contracts. These are the final steps before technology can be rolled out commercially.

RIFT, a spin-off from student team SOLID at Eindhoven University of Technology, focuses on decarbonizing industrial heat in sectors such as food & beverage, pulp & papers, ceramics, and special chemicals. These industries are under increasing pressure to achieve net-zero emissions and reduce their reliance on fossil fuels, yet they often lack feasible, sustainable alternatives. RIFT offers a solution through its iron fuel technology, which is easy to implement without significant modifications to existing infrastructures and is economically competitive with fossil fuels. This addresses the challenges faced by other alternatives, such as hydrogen and electrification, which often encounter obstacles.

Mark Verhagen, CEO and co-founder of RIFT: “We are proud to 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.”

Circular process without direct CO2-emissions
The technology utilizes iron fuel, which involves burning iron powder in a boiler system developed by RIFT. During combustion, high-temperature heat is released at temperatures of up to 2,000°C, without any direct CO2 emissions. The byproduct, rust powder, can be efficiently converted back into usable iron powder using hydrogen, making the process completely 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, potentially providing a global alternative to fossil fuels.

Follow-up to Breakthrough Fellows Program
The investment comes at a perfect time. Recently, RIFT graduated from the prestigious Breakthrough Energy Fellows Program, that supported the startup for two years with funding and invaluable guidance. Ashley Grosh, Vice President of Breakthrough Energy, said: “We selected RIFT two years ago for the Breakthrough Energy Fellows Program due to their groundbreaking innovation in iron fuel technology. By tackling one of the biggest challenges in reducing CO2 emissions—decarbonizing 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.”

Investment in global leader in iron fuel technology
Tim van den Brule, investment director at PGGM Infrastructure investments: “This investment on behalf of PFZW, the pension fund for Dutch healthcare workers, fits very well in the funds’ ambitions: to make a tangible contribution to the energy transition with investments that deliver sound financial returns. With its technology, RIFT is a frontrunner and in the next few years the company should be able to contribute to decarbonizing industrial processes and large-scale district heating networks like Ennatuurlijk, which is part of the PFZW investment portfolio.”

Remco Westerbeek, Investment Manager at Invest-NL: “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.”

Ian de Graaff, investment manager at Oost NL: “In addition to the benefits for industrial decarbonization, RIFT’s solution is also circular, as the iron powder can be reused multiple times. In an era of raw material scarcity, it’s essential to manage resources carefully. This makes us believe in RIFT’s solution to accelerate the industrial heat transition. We are proud to contribute to RIFT’s mission alongside pension fund PGGM, various regional development funds, Invest-NL, and the market, with this investment.” Oost NL is investing through Perspectieffonds Gelderland, a fund of the Province of Gelderland.

Existing investors Rubio, ETFR, and BOM add: “CO2 reduction is a key component of our investment philosophy because we believe that sustainability and innovation are essential for a future-proof economy. We are proud to have supported RIFT closely in the phase leading to the industrial pilots. The Dutch ecosystem provides a solid foundation for companies with significant impact potential, such as RIFT, to realize their ambitions. We are confident that RIFT will play a key role in industrial decarbonization, and we look forward to the next steps with great confidence.”

Robert-Jan Smits, president of executive board Eindhoven University of Technology concludes: “We, as a university, are very proud of RIFT. It is fantastic to see the trust from investors in this TU/e spin-off. The idea of using iron as fuel truly took off at our university through Professor Philip de Goey, who initiated a research program from which RIFT emerged. 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 urgently needed for the massive transitions our country is facing. It is essential that these start-ups have the opportunity to grow in the Netherlands.”

About RIFT
Eindhoven-based startup RIFT is focused on commercializing their 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 generation. RIFT currently operates with a motivated team of over 50 professionals. Together, they are committed to achieving the ambition of preventing 1 gigaton of CO2 annually by 2050 – roughly equivalent to seven times the current annual emissions of the Netherlands.
• More info via: www.ironfueltechnology.com

About PGGM Investment Management
PGGM Investment Management is part of the Dutch not-for-profit pension fund service provider PGGM. It fulfils a social mandate: the sustainable investment of the pension capital of around three million participants of PFZW, the pension scheme for the Dutch health and welfare sector. On 30 June 2024, PGGM IM managed EUR 243 billion in public and private markets globally.
• More info via: www.pggm.nl/en/asset-management/infrastructure/

About Invest-NL
Invest-NL is the Dutch National Promotional Institute with a principal focus on providing financial solutions to businesses and projects that have a positive impact on society but face difficulties in securing financing from traditional sources. Our goal is to support the development of pioneering technologies, green initiatives, and social enterprises that contribute to the Netherlands' leadership in sustainability and innovation. These include transitioning to a carbon-neutral and circular economy, ensuring affordable and accessible healthcare, and deep tech.
• More info via: www.invest-nl.nl/

About Oost NL
For nearly 50 years, Oost NL has been the development agency for the East Netherlands region. As future-makers, we support startups and innovative SMEs in accelerating technological advancements and innovations in food, healthcare, digitalization, energy, and circularity. Through our expertise, network, and financing, we create a strong foundation for entrepreneurs in Gelderland and Overijssel who are working towards sustainable change. We also connect East Netherlands with national and international partners, contributing to a livable future every day. This is carried out on behalf of the provinces of Gelderland, Overijssel, and the Dutch Ministry of Economic Affairs.
• More info via: oostnl.nl

About BOM
Entrepreneurship is the driver of innovation – from sustainable food sources to a healthy future, climate-neutral energy, and developing promising key technologies. The Brabant Development Agency (BOM) ensures that startups playing a role in these fields receive the right support and funding to get off to a flying start and grow into scaleups, and that companies that aspire to go global can actually do so. Every year BOM works with dozens of companies to create this impact.
• More info via: www.bom.nl

About Energy Transition Fund Rotterdam
The Energy Transition Fund Rotterdam is an impact investment fund from the Municipality of Rotterdam with a size of €100 million. The fund finances innovative companies and large sustainable projects that contribute to Rotterdam's energy transition and circular economy. The city's goal with the fund is to reduce CO2 emissions, improve air quality, and decrease the use of raw materials. InnovationQuarter, with extensive experience in ecosystem development and investing in innovative technologies, serves as the fund manager for the Energy Transition Fund Rotterdam.
• More info via: www.innovationquarter.nl/item/energietransitiefonds-rotterdam

About Rubio Impact Ventures
Rubio Impact Ventures is a leading impact venture capital fund with €150 million under management. Rubio invests in young, fast-growing companies that are making a significant impact on the world while achieving commercial scalability, a future-proof form of entrepreneurship that Rubio calls 'the new normal.' Rubio provides entrepreneurs with the capital to grow, along with the expertise, network, and support they need to accelerate their plans and results.
• More info via: www.rubio.vc

About Breakthrough Energy Fellows Program
The Breakthrough Energy Fellows program, founded by Bill Gates, supports promising innovators in climate technology with funding and hands-on assistance to accelerate their ideas toward commercialization. By overcoming early-stage development barriers, the program helps advance the clean technologies necessary to achieve net-zero emissions by 2050.
• More info via: https://www.breakthroughenergy.org/our-work/fellows/