Zero Industrial Raises $10 Million to Advance Clean Industrial Heat Solutions

Zero Industrial, Inc., a US-based developer focused on decarbonizing industrial heating through thermal energy storage (TES) systems, has raised $10 million in a recent funding round. The investment was led by Evok Innovations, with additional support from Rusheen Capital Management.

Ted Kniesche, co-founder and CEO of Zero Industrial, said, “We are excited to partner with Evok and Rusheen to help us accelerate the deployment of thermal energy storage projects in North America.”

He added, “We are rapidly originating project opportunities with industrial customers who want to reduce their energy costs and lower their carbon footprint by using stored electricity as thermal energy, instead of burning gas, fuel oil or coal."

Pioneering Heat-as-a-Service Model

Founded in 2024 by Ted Kniesche and Jim McDermott, Zero Industrial is committed to transforming how industrial heat is generated. The company offers end-to-end project development services, including technology selection, system design, and engineering for TES installations.

A standout feature of their approach is the financing model: Zero Industrial covers all upfront project costs, providing customers with clean heat or steam through long-term Heat-as-a-Service agreements. This eliminates the need for initial capital investment by industrial clients, making the transition to cleaner energy sources more accessible.

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Targeting Hard-to-Decarbonize Sectors

Naynika Chaubey, a Partner at Evok Innovations, expressed excitement about partnering with Ted and his team at Zero Industrial to build a leading development business aimed at accelerating the decarbonization of industry, one of the most challenging sectors to address in terms of emissions.

She highlighted the significant growth in cheap, intermittent renewable energy generation, which, combined with increasingly strained electrical grids, presents an opportunity. Chaubey explained that Zero Industrial aims to address these market challenges by deploying thermal storage projects that will convert curtailed or off-peak clean electricity into baseload heat and steam for industries worldwide.

Currently, Zero Industrial is actively pursuing projects throughout the US and Canada. The company is keen to partner with industrial operations aiming to lower their carbon footprint, eliminate harmful emissions, and stabilize energy costs.