Sulzbach-based startup Kraftblock has recently secured €20 million in a Series B funding round led by Shell Ventures, the venture capital arm of energy giant Shell. Five other global investors, including Finindus and A&G Energy Transition Tech Fund, also participated in the funding. With this significant capital infusion, Kraftblock plans to expand its workforce and production capabilities. The company aims to address energy-intensive industries such as steel and glass across Europe and East Asia while exploring new opportunities in the United States and Latin American markets.
Kraftblock, founded in 2014, focuses on tackling the climate crisis through its innovative thermal storage technology. Its proprietary storage solution can withstand temperatures of up to 1,300°C and store energy for a duration of two weeks. This cutting-edge technology eliminates the need for fossil fuels in power generation and overcomes the intermittency challenge faced by other renewable energy sources. Unlike solar-dependent facilities that struggle on cloudy days, Kraftblock’s technology can consistently harness thermal energy from manufacturing processes.
Martin Schichtel, CEO and co-founder of Kraftblock, highlighted the strategic choice of investors who have deep roots in industries such as food, steel, and energy. These investors will play a crucial role in solidifying Kraftblock’s leading market position. Susanne König, CFO and co-founder, expressed pride in closing the Series B round during a time when funding opportunities for startups are limited. This accomplishment demonstrates the resilience and strong business potential of Kraftblock.
Jermaine Saaltink, investment director at Shell Ventures, emphasized Kraftblock’s pivotal role in achieving decarbonization solutions for hard-to-abate sectors. The startup unlocks a pathway for renewable electrification and increased utilization of waste heat, both of which require reliable storage to overcome intermittent supply. Shell Ventures is excited to be part of Kraftblock’s global expansion journey.
Hans Maenhout, investment director at Finindus, commended Kraftblock’s transformative solutions for cost-effective, net-zero heat energy availability, particularly in energy-intensive industrial processes. A&G Energy Transition Tech Fund, the VC arm of Spanish bank A&G, viewed Kraftblock as an early-stage investment with significant potential to drive decarbonization in the industrial sector.
Kraftblock’s storage system boasts high thermal conductivity, enabling efficient heat transfer. Excess heat is automatically directed to the storage medium, while a cold transfer medium extracts heat as needed. This seamless energy management approach ensures optimal utilization. Notably, the compact storage solution offers high efficiency, achieving a storage capacity of up to 1.2 MWh per cubic meter. Moreover, Kraftblock’s operating costs are remarkably low, allowing users to attain the break-even point within a few years.
Eco-friendliness lies at the core of Kraftblock’s design ethos. The startup predominantly employs recycled steel slag for its storage system’s components, minimizing its environmental impact. Additionally, the company assures remarkable durability, with an expected service life exceeding 40 years. Kraftblock has already forged partnerships with industry leaders for the deployment of its pioneering technology. In collaboration with PepsiCo, a prominent food and beverage company, Kraftblock established an energy storage system within PepsiCo’s factory in the Netherlands last year.
In summary, Kraftblock’s successful funding round and strategic partnerships highlight its commitment to combating the climate crisis and revolutionizing the renewable energy sector. With the backing of Shell Ventures and other prominent investors, Kraftblock is well-positioned to scale up its operations globally while contributing to the decarbonization of energy-intensive industries. The startup’s thermal storage technology offers a reliable and eco-friendly solution for the storage and utilization of thermal energy, paving the way for a more sustainable future.
