RIFT raises €113.8 million to decarbonise industrial heat
Dutch climate-tech startup RIFT has secured a total of €113.8 million in funding to scale a novel clean heat solution for heavy industry. The company plans to deliver up to 340 GWh of industrial heat annually, avoiding more than 1 million tonnes of CO₂ emissions by replacing fossil fuels in energy‑intensive processes.
Innovative iron fuel technology for heavy industry
RIFT is developing an industrial-scale system based on iron fuel, in which finely powdered iron is burned to generate high‑temperature heat. The process emits iron oxide (rust) instead of CO₂. That rust can then be regenerated back into iron using renewable electricity, creating a closed, circular fuel cycle.
This approach is designed to serve sectors that are difficult to electrify directly, such as steelmaking, chemicals, and district heating. By slotting into existing boilers and heat systems, RIFT‘s technology aims to offer a drop‑in alternative to natural gas and coal without the long lead times of full infrastructure overhauls.
Scaling up industrial heat at European level
The €113.8 million backing, which combines equity investment, grants and project finance, will be used to build and deploy commercial‑scale installations across Europe. The funding will support engineering, certification and the rollout of the first wave of industrial customers, along with the build‑out of regeneration facilities that turn iron oxide back into reusable fuel.
By reaching an annual output of 340 GWh of heat, RIFT expects to contribute meaningfully to the EU Green Deal and member states’ net‑zero targets. The company positions its solution as a way for manufacturers to cut emissions rapidly while maintaining reliable, high‑temperature heat supply.
Positioning in the climate-tech landscape
As Europe races to decarbonise its industrial base, technologies that can deliver fossil-free heat at scale are attracting growing interest from both investors and policy makers. With substantial new capital and a clear deployment roadmap, RIFT is emerging as one of the region’s most closely watched players in the clean industrial heat segment.