Iberdrola and Spirax-Sarco invest in Norway's Kyoto Group

Spanish utility Iberdrola and thermal energy specialist Spirax-Sarco Engineering have invested in Kyoto Group, a move aimed at accelerating the decarbonisation of industrial process heat with Kyoto’s Heatcube.

Iberdrola will invest NOK 35.1 million ($3 million) in return for a 12.8% share of Kyoto’s issued share capital, while Spirax-Sarco Engineering will invest NOK 41.0 million ($4 million) in return for a 15.0% share.

Both will join the Kyoto board, pending approval by Kyoto’s annual general meeting on 30 June.

The agreements also map commercial and technical cooperation to further commercialise Heatcube.

This investment will allow Iberdrola and Kyoto to introduce thermal energy storage solutions to both Kyoto’s and Iberdrola’s industrial customers. The partners have already submitted co-developed offers to several specific customers.

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Heatcube

Kyoto's Heatcube provides thermal energy storage and heat generation, providing industrial customers with the technology to lower both their costs for producing process heat and their CO2 emissions using intermittent renewable energy sources for heat production.

Heatcube can be configured with storage capacities from 16MWh to over 96MWh, with a discharge effect for each Heatcube of up to 20MW.

The modular storage solution can use multiple renewable energy sources to heat molten salt to over 415 degrees Celsius. The high-temperature salt is then used to produce steam for industrial production processes.

“This is a defining moment for Kyoto Group. Beyond the increased equity, having Iberdrola and Spirax-Sarco Engineering put their plans, market access, and credibility behind the commercialization of Heatcube opens huge market opportunities and provides us with world-class technological backing. We are already working on several specific commercial customer projects with Iberdrola and expect positive results shortly,” says Camilla Nilsson, CEO of Kyoto Group.