Kraftblock raises 20 millon euro for thermal energy storage technology
Through its patented and sustainable thermal storage technology, Kraftblock enables the energy transition and decarbonization of processes in the energy and industrial sectors. The storage time-shifts waste heat or renewable power to replace fossil fuels with green heat up to over 1,300°C.
Kraftblock, producer of sustainable high-temperature energy storage systems, has raised a total of €20 million in a Series B financing round. Six companies under the lead of Shell Ventures have joined the Germany-based scale-up on their mission to decarbonize heavy industries. The new investors are:
> Shell Ventures, the venture capital arm of the global energy company Shell.
> Finindus, a Belgian VC investment company funded by global steel producer ArcelorMittal and the Flemish Region.
> Moore Strategic Ventures from the US.
> A&G Energy Transition Tech Fund, the VC arm of A&G, one of the largest independent private banks in Spain.
> TechEnergy Ventures, the Techint Group’s fund focused on energy transition technologies globally.
> Future Industry Ventures, a European fund initiated by Redstone and SBI Holdings.
Through its patented and sustainable thermal storage technology, Kraftblock enables the energy transition and the decarbonization of processes in the energy sector and any industries from food to chemicals, paper, ceramic and steel. The storage time-shifts waste heat or renewable power to replace fossil fuels with green heat up to over 1,300°C (2,500°F). Recently, Kraftblock announced a project with PepsiCo and Eneco to build the world's largest commercial high-temperature storage at a food plant.
Impact investment to decarbonize heavy industries
Kraftblock’s mission is to decarbonize high-temperature energy. "We have created a great opportunity to pursue our goal of reducing carbon emissions," says CEO and co-founder Dr Martin Schichtel. "The past few years, the extreme weather conditions due to climate change have given us a glimpse of the devastating impact it has on the world, and we need to do all we can to stop it.”
Jermaine Saaltink, Investment Director at Shell Ventures commented: "As the need for decarbonization solutions in hard to abate sectors continues to increase, Kraftblock has a pivotal role to play by unlocking a renewable electrification pathway and the increased use of waste heat. Both need credible storage to overcome intermittency. We are excited to be joining the team on their journey as they expand their offering globally."
Enrico Bonatti, Investor at TechEnergy Ventures observed that “Kraftblock is the perfect example of circular economy in climate-tech. It not only offers an innovative solution toward decarbonizing the industry, but is itself made from steel slag so that nothing is wasted.
Sign of validation in the global market
Susanne König, CFO and co-founder of Kraftblock, highlights the significance of this financing round: “At a time when there are very limited funding opportunities for start-ups, we are proud to have closed this Series B round. It shows the resilience and solid business of Kraftblock and proves our great potential.” The investment will be used for example to further expand the team and add production capability.
Kraftblock already operates out of Europe, and the new partners will strengthen its visibility around the globe. "We specifically chose investors who have their roots in industries such as food, steel and energy and who will help us to consolidate our leading market position," explains CEO Schichtel. As well as branching out in Europe and taking on energy-intensive industries such as steel, glass and ceramics in Europe and East Asia, the partners are creating new opportunities in the US market and providing access to industries such as mining and energy in Latin America.