RIFT, a Netherlands-based cleantech company developing iron fuel technology, announced it has secured €113.8 million in financing to scale its circular iron fuel system and advance toward commercial deployment for industrial heat applications.
The funding includes an €83.1 million 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, Brabantse Ontwikkelings Maatschappij (BOM), and the Energietransitiefonds Rotterdam also participated in the round. In addition, RIFT was selected for a €30.7 million project under the European Union’s Innovation Fund.
The company said the capital will support the preparation and execution of its first commercial project and the development of its first commercial production facility. From this facility, iron fuel will be supplied to industrial customers integrating Iron Fuel Boilers into their heat processes.
RIFT previously signed its first commercial contract in mid-2025 with Kingspan Unidek, which is participating as one of the customers in the project. The company expects the facility to become operational in 2029.
The project is expected to generate approximately 340 GWh of industrial heat annually. Over a 15-year lifetime, the facility is projected to produce about 5 TWh of decarbonized heat and avoid more than one million tonnes of CO₂ emissions.
Industrial heat is one of the most difficult sectors to decarbonize because many industries require continuous high-temperature heat for processes such as food production, chemicals manufacturing, and building materials. These processes are currently powered largely by fossil fuels, particularly natural gas.
RIFT’s technology uses iron as a circular energy carrier capable of producing high-temperature heat without direct CO₂ emissions. By replacing natural gas in industrial heat systems, the company aims to provide a scalable alternative for sectors where electrification is difficult due to temperature requirements, energy demand, or grid constraints.
The EU Innovation Fund grant supporting the project is one of the European Union’s flagship instruments for advancing large-scale decarbonization technologies. According to RIFT, the project was selected among 61 initiatives chosen from 359 applications.
With approximately 75 employees, the company is now focused on executing its first commercial deployment and expanding the rollout of its iron fuel technology across energy-intensive industries.
KEY QUOTES
“We are proud of what the team has achieved so far. 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.”
Mark Verhagen
CEO, RIFT
“As a consortium, we have closely followed RIFT’s development and see strong potential for tangible industrial impact. Many industrial innovations stall in the transition from demonstration to realization. We have deliberately chosen a financing structure that provides capital through to execution.”
Tim van den Brule
Investment Director, PGGM Infrastructure
If you want, I can also quickly add the RIFT LinkedIn page blurb (like you usually include under p2 articles).