Dutch pension manager PGGM, state-run investment fund Invest-NL and development agency Oost NL are among the investors supporting local startup Renewable Iron Fuel Technology (Rift) in its fundraising round.
Rift said it has raised €11m in its Series A funding round with the support of the new investors, alongside existing shareholders Rubio Impact Ventures, the Energy Transition Fund Rotterdam (ETFR) and Brabant Development Agency(BOM).
Rift said it will use the capital to conduct 2GWh of durability tests at its existing industrial pilot facilities in Arnhem and Helmond in the Netherlands. The investment will also support finalising the first commercial contracts, marking the final steps before commercialising the iron fuel technology.
Tim van den Brule, investment director at PGGM’s infrastructure investments arm, said: “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, said: “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 decarbonise. Rifts’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, said: “In addition to the benefits for industrial decarbonisation, 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.”
Oost NL is investing through Perspectieffonds Gelderland, a fund of the Province of Gelderland.
Existing investors Rubio, ETFR and BOM, said: “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 realise their ambitions. We are confident that Rift will play a key role in industrial decarbonisation, and we look forward to the next steps with great confidence.”
Mark Verhagen, CEO and co-founder of Rift, said: “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.”
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