Zero Industrial, Inc., a US-based company specialising in the development of thermal energy storage (TES) systems, announced on April 7 that it has closed a $10 mn Series A funding round. The round was led by venture capital firm Evok Innovations, with participation from Rusheen Capital Management. The funding aims to support the expansion of TES projects at industrial facilities across the United States and Canada.
Founded in 2024 by Ted Kniesche and Jim McDermott, Zero Industrial offers end-to-end development services for TES projects, including technology selection, design and engineering. The company fully finances each project and sells heat or steam through long-term Heat-as-a-Service contracts, requiring no upfront capital expenditure from industrial clients.
A model for decarbonised heat supply
Zero Industrial’s TES systems enable industrial sites to replace fossil fuel use with electricity stored as heat, helping to reduce energy costs and market volatility. This approach also addresses the growing need to optimise electricity generated from intermittent renewable sources, whose large-scale integration challenges power grid stability.
According to Ted Kniesche, Chief Executive Officer of Zero Industrial, the funding will accelerate the deployment of projects for industrial customers seeking alternatives to burning gas, fuel oil or coal. The proposed solutions target clients aiming to hedge against energy price fluctuations while upgrading their infrastructure.
A response to grid constraints
Naynika Chaubey, Partner at Evok Innovations, noted that the surge in low-cost renewable energy and the increasing instability of power grids make the rollout of thermal storage solutions urgent. She stated that Zero Industrial’s model offers a practical response to logistical and economic challenges posed by converting excess electricity into baseload heat.
The company is actively developing new projects and working with industrial customers in North America looking to reduce exposure to regulated pollutants while securing long-term energy supply.
About Zero Industrial, Inc.
Zero Industrial is a leading developer of industrial decarbonization projects, utilizing thermal energy storage technologies to eliminate the combustion of fossil fuels for heat and steam production at industrial facilities. Zero Industrial offers its customers a full end-to-end development solution from design and engineering to project execution and delivery. Heat generated from its projects will be sold under a Heat-as-a-Service agreement without requiring any capital investment from its customers. Zero Industrial is actively originating and developing projects in the United States and Canada and exploring additional international markets. For more information, please visit www.zeroindustrial.energy
About Evok Innovations
Evok is a clean tech venture capital fund focused on supporting exceptional entrepreneurs with bold visions for scaling novel technologies within heavy industry. At Evok, we provide value beyond capital by leveraging our team of technologists and company builders, along with our limited partner group—which includes major financial institutions and industrial leaders—to help accelerate the success of our companies.
In 2016, Evok was founded with the thesis of collaborating with industrial partners to invest in and scale novel technologies in the energy sector. With the launch of Evok Fund II in 2022, we expanded this mandate, bringing in strategic partners across new industrial verticals, including critical minerals. Evok is actively investing out of Fund II, a $284M USD fund focused on supporting Series A+ companies in North America that are taking novel approaches to supporting the energy transition across a wide array of sectors and industries. For more information, please visit: www.evokinnovations.com
About Rusheen Capital Management
Rusheen Capital Management ("RCM") is a Santa Monica-based private equity firm specializing in investments that promote sustainability and resource efficiency across the energy transition landscape. Founded in 2015, RCM focuses on growth-stage companies in sectors such as carbon capture and utilization, energy transition, low-carbon energy, and water sustainability. Since 2003, RCM's principals founded, ran, and invested in over 40 energy transition companies across the entire industrial economy. For more information, please visit www.rusheen.com.
For more information, contact Sara Holba at info@zeroindustrial.energy