Zero Industrial raises $10M to deploy thermal energy storage projects that replace fossil fuels with stored electricity for industrial heating—bringing affordable, clean heat to hard-to-abate sectors.
Industrial decarbonization startup Zero Industrial has secured $10 million in Series A funding to accelerate its mission of replacing fossil fuels in industrial heating systems with clean, grid-powered thermal energy storage (TES) solutions.
Based in Charleston, South Carolina, and founded in 2024 by Ted Kniesche and Jim McDermott, Zero Industrial is tackling one of the most stubborn climate challenges: reducing emissions from industrial heat. These systems—vital for processes in sectors like metals, plastics, and chemicals—are traditionally powered by fossil fuels such as natural gas, fuel oil, or coal.
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Electrifying Industrial Heat—Without the Capital Burden
Zero Industrial is bringing a unique Heat-as-a-Service model to market. Instead of requiring upfront capital investment, the company fully finances TES projects and sells clean heat or steam to industrial clients through long-term contracts. Each system is tailored to the client, including technology selection, project design, and engineering—a turnkey approach aimed at rapidly decarbonizing one of the hardest-to-abate sectors.
“We are rapidly originating project opportunities with industrial customers who want to reduce their energy costs and lower their carbon footprint by using stored electricity as thermal energy,” said Kniesche, “instead of burning gas, fuel oil or coal.”
As industrial facilities face increasing pressure to lower emissions and remain competitive, the TES solution offers a pathway to electrification even when grid constraints or fluctuating renewables would otherwise make this difficult.
Backed by Climate-Focused Investors
The Series A round was led by Evok Innovations, a clean tech-focused venture capital firm, and joined by Rusheen Capital Management, a private equity firm with a track record in energy transition investments.
Evok partner Naynika Chaubey emphasized that Zero Industrial is uniquely positioned to turn volatility in the energy grid into an asset:
“We continue to see massive growth from cheap, intermittent renewable generation, coupled with increasingly impacted electrical grids. Zero Industrial capitalizes on these market challenges by deploying thermal storage projects that shift curtailed or off-peak clean electricity to baseload heat and steam used by industries globally.”
A Crucial Decarbonization Tool
The industrial sector remains one of the toughest to decarbonize due to its reliance on high-temperature heat. Zero Industrial’s approach aligns with a broader industry trend toward electrification and thermal energy storage, increasingly seen as essential tools for bridging the gap between renewable supply and industrial demand.
With projects already being developed across the U.S. and Canada, Zero Industrial is positioning itself as a key player in industrial decarbonization—offering not just the tech, but a business model that makes clean heat financially viable for heavy industry.
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