Dutch clean technology company RIFT has raised €113.8 million in combined financing to transition its iron fuel technology from pilot operations to full commercial deployment, targeting large scale industrial heat decarbonisation across Europe.

The Eindhoven based company secured €83.1 million in a Series B round led by PGGM Infrastructure, with participation from Invest NL, Oost NL, Rubio Impact Ventures, Brabantse Ontwikkelings Maatschappij and the Energietransitiefonds Rotterdam. The financing package is complemented by a €30.7 million grant awarded under the EU Innovation Fund. The capital will support the development of RIFT’s first commercial production facility and the execution of its initial commercial contracts.

From Demonstration to Commercial Execution

RIFT was founded in 2020 and has focused on developing a circular iron based energy carrier capable of generating high temperature industrial heat without direct carbon emissions. Over recent years, the company has tested its iron fuel technology in industrial environments to validate operational reliability.

The latest funding marks a shift from proof of concept toward infrastructure build out. According to the company, the next phase centers on preparing and executing its first commercial scale project. The targeted operational date for the initial production facility is 2029.

Unlike early stage decarbonisation technologies that require limited capital, industrial heat solutions demand significant upfront investment in production facilities and on site integration. RIFT’s funding round reflects this capital intensity, positioning it among the larger venture backed clean industrial projects in Europe.

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Addressing a Structural Emissions Challenge

Industrial heat remains one of the most difficult segments to decarbonise. Sectors such as food processing, chemicals and building materials rely on continuous high temperature processes that are currently powered predominantly by natural gas. Electrification is often constrained by temperature requirements, grid limitations and high power demand.

RIFT’s system uses iron powder as a circular fuel. When combusted, iron releases heat without emitting carbon dioxide. The oxidised iron can then be regenerated using renewable electricity, creating a closed loop energy carrier. By integrating iron fuel boilers into existing industrial systems, companies can replace fossil fuels in high temperature applications.

The company estimates that its first commercial facility will supply approximately 340 gigawatt hours of industrial heat annually. Over a projected 15 year operational period, this would amount to roughly 5 terawatt hours of decarbonised heat and avoid more than one million tonnes of carbon dioxide emissions.

Capital Structure and Market Context

The financing structure combines equity investment with EU grant support, a model increasingly common in capital intensive climate infrastructure projects. PGGM Infrastructure highlighted that many industrial technologies stall between demonstration and full execution due to financing gaps. The consortium structured the investment to support the company through to operational delivery of its first commercial project.

RIFT’s raise comes amid sustained capital flows into European clean technology. Across 2025 and 2026, hundreds of millions of euros have been directed toward industrial decarbonisation, renewable heat and low carbon materials. Compared with earlier stage technology raises, RIFT’s funding reflects the scale required for physical infrastructure deployment, while remaining below the size of large debt facilities seen in distributed energy platforms.

Explore OneStop ESG Marketplace: Sustainable fuels

Commercial Pipeline and Industrial Partnerships

RIFT has already signed its first commercial agreement with Kingspan Unidek, an industrial customer integrating iron fuel boilers into its production processes. The planned production facility will supply iron fuel to multiple industrial clients as the system scales.

The company currently employs around 75 people and is positioning itself to serve energy intensive industries seeking alternatives to natural gas. With European climate policy placing increasing pressure on industrial emissions, scalable high temperature solutions are becoming central to long term decarbonisation strategies.

If successfully executed, RIFT’s first commercial facility would demonstrate whether circular iron fuel can operate at industrial scale and contribute meaningfully to emissions reductions in hard to abate sectors.

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