HotGreen Solutions raises €1.4M in industrial heat pump funding

Nobody talks about industrial process heat, yet it’s responsible for a fifth of global CO2 emissions. UK-based HotGreen Solutions just secured €1.4M (£1.2M) in pre-seed industrial heat pump funding led by Empirical Ventures to change that. The round included strategic participation from First Imagine! Ventures, The Conduit Impact Fund, and Almanac Ventures.

Founded in 2024, HotGreen targets brewers, distillers, and dairy processors with high-temperature heat pumps that promise four times the efficiency of traditional boilers. Moreover, the startup claims installations take just three to five days.

Why industrial heat pump funding matters now

Industrial heat has been the elephant in the climate-tech room for decades. While residential heat pumps attract headlines and government subsidies, factories burning fossil fuels for process heat have remained largely untouched by innovation.

HotGreen’s approach centres on a patent-pending isothermal compressor technology that integrates with existing infrastructure at legacy industrial facilities. The company estimates typical plants could save €0.5M annually on energy bills while avoiding 3,000 tonnes of CO2 emissions each year. Additionally, payback periods target under two years across most global markets.

“We saw a clear unmet need for a low-carbon, commercially-viable solution that industry could adopt at scale,” said Georgia Ware, CEO and co-founder. “Despite rising energy bills and its substantial carbon footprint, industrial heat has seen little innovation.”

Empirical Ventures led the funding round, recognising the market opportunity in decarbonising industrial processes. The firm has previously backed climate-tech companies focused on hard-to-abate sectors.

From frustration to commercial deployment

Ware established HotGreen out of frustration with the lack of affordable decarbonisation solutions for industry. Heat pumps have existed for 150 years, yet mass market adoption in industrial settings remains elusive.

The startup currently focuses on food and beverage applications including pasteurisation, brewing, distillation, drying, and sterilisation. Future markets include pharmaceuticals, chemicals, pulp and paper, and textiles. Furthermore, Coca-Cola Europacific Partners recently announced a trial of HotGreen’s technology.

The fresh capital will fund commercial deployments and product development. HotGreen’s lower equipment costs and operational efficiency create a compelling value proposition for manufacturers facing pressure to reduce both costs and emissions.

Industrial decarbonisation represents one of Europe’s most challenging climate goals. HotGreen’s rapid installation timeline and sub-two-year payback periods could finally make heat pumps the default choice over fossil fuel boilers.