German climate startup HyperHeat announced that it has raised €3.5 million (USD$3.7 million) in a new funding round, with proceeds aimed at supporting the building and testing of its solutions to use renewable energy to produce zero-carbon industrial heat.

Founded in 2023 by Dr. Lars Amsbeck and Frederick Lessmann, HyperHeat is developing a system that will use renewable sources for the high-temperature heating required by heavy industry. Data shows that over 40 percent of global CO2 emissions come from heavy industry, with steel, cement, and chemical production among the world’s most carbon-intensive industries. These sectors face significant challenges in decarbonization, including the need for extremely high temperatures and the associated release of carbon dioxide during production processes. Industrial heating uses high amounts of energy, often from fossil fuel-based sources, in order to transform materials into products such as metals and plastics.

While solutions to replace fossil-based energy sources have emerged, including renewable energy, electrification and hydrogen, many are not available at scale for industrial use due to current grid limitations. HyperHeat’s solution utilizes an electrically-powered system capable of reaching temperatures of up to 2000°C. The company’s low-cost industrial heater uses oxide ceramics for ultra-hot resistive heating, which it said can rapidly decarbonize high-temperature industrial processes through cost-efficient retrofitting when powered by renewable electricity.

Lessmann said:

“We’re not just reducing emissions—we’re providing a practical, scalable, and most importantly economical solution for industrial companies facing increasing carbon regulations and market pressure. Our electric heater can retrofit existing furnaces and reach flame-like temperatures with unprecedented efficiency and durability.”

The company said that the new capital will be used to continue building and testing its first industrial products, which are expected to be deployed by 2025, and to increase its R&D efforts and deploy the technology in partnership with pilot-customers.

Amsbeck said:

“Our goal is to bring a transformative and economical solution to industrial heat generation that accounts for nearly 16 percent of global CO2 emissions.”

The investment was led by the Amadeus APEX Technology Fund with participation from Finindus, Possible Ventures, E44 Ventures, Breakthrough Energy Fellows, and a group of business angel investors.

Wolfgang Neubert, General Partner at APEX Ventures, said:

“The HyperHeat founding team combines a rare blend of technical brilliance and strategic vision that sets them apart in the industrial decarbonisation space. We’re confident their solution will play a crucial role in reducing carbon emissions and driving sustainable industrial growth.”