RIFT raises €114 million for energy from iron
Dutch scale-up RIFT raises €113.8 million to scale its fossil-free iron fuel technology for industrial heat.
Published on March 3, 2026
Masterstudente journalistiek aan de RUG, stagiair bij IO+, schrijft graag over de integratie van AI in het dagelijks leven
RIFT, a spin-off from Eindhoven University of Technology (TU/e), secured €113.8 million to scale a technology that burns iron powder to generate heat without CO₂ emissions. This funding moves the company from pilot testing to commercial reality, positioning iron fuel as a strategic asset for European industry.
This is one of the largest investments in a Dutch sustainable energy company in recent years. RIFT intends to use part of the money to build a factory. Antwerp is the most likely location for this. Rotterdam is also an option, but grid congestion quickly becomes a problem at other locations.
A Major Capital Injection
The €113.8 million package includes an €83.1 million Series B led by pension investor PGGM, with backing from Invest-NL, Oost NL, and Rubio Impact Ventures, plus a €30.7 million grant from the EU Innovation Fund.
In addition to building the factory, the funding will be used to complete the sustainability tests required for large-scale implementation.
The Physics of Iron Fuel
RIFT’s technology relies on basic chemistry. Iron powder burns in a boiler creating a flame reaching temperatures up to 2,000°C. This high heat is ideal for industrial processes such as brick firing or chemical synthesis. Electric heat pumps cannot efficiently provide this. The combustion process releases no direct CO₂.
The only byproduct is rust, which is regenerated with hydrogen back into iron powder, producing only water. This closed loop turns iron into a rechargeable battery for high temperature heat.
From Pilot to Production
Last year, Rift signed its first commercial deal with Kingspan Unidek, a Dutch innovative construction and insulation company. This concerns the installation of an iron fuel boiler at their factory in Gemert. The installation will commence in 2029.
The system will deliver about 340 gigawatt-hour (GWh) of heat annually and could avoid over one million tonnes of CO₂ over 15 years. This proves iron fuel can replace gas boilers with minimal changes to existing infrastructure.
Efficiency and Economics
Green technology often fails due to high costs. RIFT’s system costs about €0.5 million per megawatt of thermal output (MWth). The fuel itself is delivered at a price of roughly €140 per tonne. Operational and maintenance costs are low, estimated at 2.5% to 3% of the initial investment.
Efficiency is also a key differentiator. RIFT’s boiler system achieves an energy efficiency of up to 95%, outperforming many traditional fossil fuel systems. Rust regeneration has an efficiency of 86%.
Strategic Autonomy for Europe
Energy is a geopolitical weapon. Europe’s reliance on imported gas leaves the industry exposed. Unlike hydrogen, iron fuel is abundant, cheap, and safe to transport in standard containers. It is stable, non-explosive and can be stored for long periods. This means that fluctuations in wind, solar and gas prices are not a problem for the industry.
The Road to 2050
RIFT targets 1 gigaton of CO₂ reduction annually by 2050, focussing on hard-to-abate sectors. For example, food processing, pulp and paper, and specialty chemicals.