Iron Fuel: The €2.5B Pipeline to Replace Fossil Fuels - Mark Verhagen (RIFT)
Innovation and Private Capital x auliumShow Notes
Industrial heat decarbonization represents nearly 30% of global greenhouse gas emissions, yet alternatives like hydrogen and electrification repeatedly fail feasibility studies. Mark Verhagen and his co-founders at RIFT discovered a century-old technology that modern economics finally make viable: burning iron powder to generate industrial heat with zero carbon emissions.
The process sounds counterintuitive but works like fireworks at scale. Iron powder burns at 2,000°C—matching natural gas combustion—producing only iron oxide as a byproduct. That oxide is collected, transported back to a central facility, and recharged with hydrogen to become fuel again. The system achieves 95% energy efficiency compared to fossil fuel boilers at 80-85%, with lower nitrogen oxide emissions than any competing fuel. RIFT sells the boiler system with 15-year fuel contracts, guaranteeing returns and taking on performance risk. The company has secured €2.5 billion in letters of intent in the Netherlands alone and recently closed a €140 million financing round to build its first commercial fuel factory.
**Key Discussion Points:**
🔥 Iron fuel delivers cheaper heat than fossil fuels today for certain customers, with no carbon emissions and a circular fuel loop
⚡ The technology complements electrification—e-boilers run when solar and wind are abundant, iron fuel covers the remaining 60-70% of operating hours
🏭 First commercial implementation targets 3.5 terawatt hours of decarbonized energy from one fuel plant serving ten boiler systems
🚛 Transport costs stay low because iron powder is safe and dense; a single truck can serve 500 km economically
💰 Deep tech requires longer validation cycles than software, making milestone planning and capital structure critical to survival
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About Mark Verhagen [CEO & co-Founder RIFT]:Co-founder and CEO of RIFT, a company developing iron fuel technology to decarbonise industrial heat, Mark Verhagen launched the business in September 2020 alongside co-founder Lex Scheepers. He studied chemical engineering and business administration before deciding that iron fuel deserved a company rather than just a thesis. RIFT has grown to around 75 people and has raised an 83 million euro Series B led by PGGM Infrastructure, with support from the EU Innovation Fund and the Breakthrough Energy fellowship.About Aulium:Aulium is a video show exploring Innovation and Private Capital, hosted by Thomas Viguier.Connect with us:➡ Aulium on LinkedIn: https://www.linkedin.com/company/aulium➡ Thomas Viguier: https://www.linkedin.com/in/tviguier/
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