CMS advises Bayern Kapital on its investment in Exergy3's seed funding round to decarbonise industrial heat
CMS has advised Bayern Kapital on its investment in Exergy3's seed funding round. Exergy3, a University of Edinburgh spinout, raised the capital to scale its proprietary technology for converting surplus renewable electricity into high-temperature industrial heat.
The round was led by Axeleo Capital's Article 9 Green Tech Industry I fund, alongside new investors Bayern Kapital and Singapore-based Kibo Invest. Existing investors Scottish Enterprise, Zero Carbon Capital and Old College Capital, the University of Edinburgh's in-house venture investment fund, also participated in the round.
Exergy3's modular thermal energy storage technology addresses the need to decarbonise industrial heat, which represents a significant share of global energy demand and emissions, and the growing volumes of renewable electricity being curtailed as grids struggle to absorb generation in real time. Its systems convert surplus renewable electricity, such as curtailed wind power, into process heat ranging from 50°C to 1,200°C, with compact units designed for rapid integration across industrial environments.
The funding marks a pivotal step in Exergy3's transition from demonstration to commercial scale, following the successful delivery of its first-of-a-kind system and validation of the technology in real-world conditions. The capital will be used to scale manufacturing capacity, expand the team and enable broad deployment across industrial sites. Exergy3 plans to double its headcount by the end of the year and will open a Munich office as part of its expansion into Germany.
Commenting on the transaction, Corporate Partner at CMS, Tom Jameson said: “It was a pleasure to advise Bayern Kapital on its investment in Exergy3. The company is tackling one of the most persistent challenges in the energy transition – the decarbonisation of industrial heat – with a genuinely innovative approach that also helps to address grid constraints and energy security.”
Bernhard Koehler, Investment Director at Bayern Kapital, adds: “CMS provided excellent support throughout this investment. Their deep understanding of the venture capital landscape, combined with a practical and commercial approach, made them an invaluable partner as we completed our investment in Exergy3.”
The CMS team was led by Tom Jameson, with support from Kate Rockliff (Corporate).
