RIFT Raises €114 Million to Deploy First Commercial Iron Fuel Production Facility
Eindhoven, Tuesday 3 March 2026
Backed by PGGM, RIFT will utilise this capital to operationalise iron powder as a circular, carbon-free energy carrier, offering a critical solution for decarbonising high-temperature industrial processes.
Funding Overview
On Monday, 2 March 2026, RIFT, based in Eindhoven, announced that it has secured €113.8 million to advance its iron fuel technology [3][6]. This funding comprises an €83.1 million Series B round, spearheaded by PGGM, with contributions from Invest-NL and Oost NL, Rubio Impact Ventures, Brabantse Ontwikkelings Maatschappij (BOM), and the Energietransitiefonds Rotterdam (ETFR) [3][6]. Furthermore, RIFT has been awarded a €30.7 million subsidy from the EU Innovation Fund [3][6].
Iron Fuel Technology
RIFT’s core innovation lies in its iron fuel technology, which offers a sustainable alternative to fossil fuels for high-temperature industrial heat [3]. The technology uses iron powder as a circular energy carrier, which is combusted in specially designed boilers to produce heat [1][5]. The resulting iron oxide (rust) is then converted back into iron powder in another installation, creating a closed-loop, reusable fuel chain that eliminates direct CO₂ emissions during heat production [5]. This approach addresses the significant challenge of decarbonising industrial heat, which is currently heavily reliant on natural gas and other fossil fuels [5].
Investor Confidence and Projected Impact
Tim van den Brule, Investment Director at PGGM Infrastructure, stated that the investor consortium has closely monitored RIFT’s development and recognises its substantial potential for tangible industrial impact [2][3]. He noted that many industrial innovations falter during the transition from demonstration to realisation, and the chosen financing structure ensures capital availability through execution, enabling the first commercial project to become operational [2][3]. RIFT aims to supply iron fuel to industrial clients who will integrate Iron Fuel Boilers into their operations [3]. The first commercial contract was signed with Kingspan Unidek in mid-2025, and operations are targeted to commence in 2029 [3]. The project is expected to deliver approximately 340 GWh of industrial heat per year, totalling about 5 TWh over 15 years, and prevent over one million tonnes of CO₂ emissions [3].
Strategic Focus and Regional Development
The investment aligns with the broader transition of chemical clusters such as Chemelot and Rotterdam/Antwerp towards sustainable chemistry and circular economy materials, incorporating green hydrogen applications [alert! ‘No source specifies the direct impact on the chemical clusters.’]. RIFT’s technology supports the reduction of CO₂ emissions in sectors like food processing, chemicals, and building materials [3]. With its pilot facility and R&D activities at Cleantech Park Arnhem, RIFT contributes to strengthening Brabant’s position in sustainable energy innovation [1][5]. The Energietransitiefonds Rotterdam (ETFR) joined RIFT in 2022 with Rubio and BOM as initial investors, aiming to expand the hydrogen market, facilitate affordable industrial electrification, and address grid congestion issues within Europe’s largest port-industrial complex [6].