Dutch Startup Raises €114 Million to Build World's First Commercial Iron Powder Fuel Plant

2026-03-12 green

Eindhoven, Thursday, 12 March 2026.
RIFT’s groundbreaking iron fuel technology burns iron powder to generate industrial heat without carbon emissions, with rust as the only byproduct that gets recycled back into fuel using renewable energy.

Massive Funding Round Propels Commercial Breakthrough

On March 11, 2026, RIFT secured €113.8 million in financing to advance its revolutionary Iron Fuel Technology toward commercial deployment [1][7]. The funding package comprises an €83.1 million Series B round led by PGGM, a Dutch pension fund investor, with participation from Invest-NL, the Dutch national investment institution, and regional development agency Oost NL [1]. Additional investors include Rubio Impact Ventures, Brabantse Ontwikkelings Maatschappij (BOM), and the Energietransitiefonds Rotterdam [1]. Beyond private investment, RIFT has been selected for a €30.7 million project under the EU Innovation Fund, marking one of only 61 projects chosen from 359 applications [7]. This substantial financial backing represents a critical transition from demonstration to commercial implementation for what could become a game-changing solution to industrial decarbonization challenges.

The Science Behind Iron Fuel Innovation

The technology’s fundamental principle centers on burning finely ground iron powder in specialized boilers to generate industrial heat without direct CO₂ emissions [4]. When iron powder combusts, it produces substantial heat suitable for industrial processes in sectors including food processing, paper manufacturing, and chemicals, while leaving only iron oxide—essentially rust—as a byproduct [4]. This oxidized iron can then be converted back into metallic iron powder using hydrogen, creating a completely circular fuel system [4]. RIFT’s Iron Fuel Boiler technology specifically targets industrial heating applications, which account for 25% of all CO₂ emissions globally [5]. The Eindhoven-based company, located at Het Eeuwsel 57, has grown from a student initiative to an organization employing 70 full-time staff with international investor backing [5]. The technology addresses one of the most challenging aspects of the energy transition, as many industrial facilities require temperatures reaching hundreds of degrees Celsius and currently rely on fossil fuels due to limitations with electrification or hydrogen infrastructure [4].

Strategic Investor Confidence and Market Validation

Tim van den Brule, Investment Director at PGGM Infrastructure, emphasized the consortium’s deliberate approach to financing structure, stating that they have “closely followed RIFT’s development and see strong potential for tangible industrial impact” while noting that “many industrial innovations stall in the transition from demonstration to realization” [1][6]. The investment aligns with PGGM’s mandate through Pensioenfonds Zorg en Welzijn, demonstrating institutional confidence in sustainable energy solutions [1]. Remco Westerbeek, Investment Manager at Invest-NL, highlighted the technology’s potential impact, noting that “industrial heat is one of the largest sources of CO₂ emissions” and positioning RIFT as “a solution that can directly contribute to reducing these emissions” [1]. The funding represents continued support from existing investors, with PGGM and Invest-NL having previously provided €11 million in earlier financing rounds [1]. This investor retention signals sustained confidence in RIFT’s technological progress and commercial viability as the company advances beyond pilot testing phases.

Commercial Deployment Timeline and Impact Projections

RIFT’s first commercial production facility, developed through the new financing, will supply iron fuel to industrial customers integrating iron fuel boilers into their heating processes [1][6]. The company signed its first commercial contract in mid-2025 with Kingspan Unidek, establishing the foundation for commercial operations [1][7]. Mark Verhagen, CEO of RIFT, stated that the company has “demonstrated that Iron Fuel Technology performs reliably in an industrial environment” and is “now moving into the next phase, focusing on preparation and execution of our first commercial project” [1][6]. The facility aims to become operational by 2029 and is projected to deliver approximately 340 GWh of industrial heat annually [1][6][7]. Over its anticipated 15-year operational lifespan, the project expects to generate over 5 TWh of decarbonized heat while avoiding more than one million tonnes of CO₂ emissions [1][7]. The company currently operates pilot installations in Arnhem and a demonstration facility in Helmond that supplies heat to a district heating network, providing real-world validation of the technology’s industrial applications [4].

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iron fuel cleantech funding