Climate tech startup Good Heat raises $2 million to transform industrial energy

A Sydney startup using batteries to replace gas for industrial heat, and cut business energy costs, has raised more than $2 million.

Good Heat will deploy large-scale thermal energy storage (TES) systems powered by cheap renewable electricity to provide industrial heat at prices below gas.

Plans for Australia’s largest heat battery development, for a significant industrial customer, are already underway in Victoria, with the startup saying the project will save the factory more than $1.5 million annually on its energy bill as well as cutting carbon emissions by replacing gas

The raise was led by Understorey Ventures, with support from local climate tech VC  Investible, and 2100VC, the European fund linked to the Benetton industrial group.

Good Heat was cofounded by Bauke van Gent, Tom Geiser and Bruis van Vlijmen in early 2025. Their experience spans greenfield energy project development, and energy markets, at the likes of Neon and Infigen, as well as batteries

van Vlijmen, the CTO, has been at the forefront of commercialising new battery technologies as a vnture partner at energy-tech fund Transition VC and has deep experience in AI-driven battery optimisation through his research at Stanford University.

van Gent, the CEO, said heat makes up the bulk of energy use in manufacturing – from milk powder to chemicals to beer – and most factories burn gas to produce heat, exposing themselves to rising costs and rising carbon emissions.

Low risk for business

Good Heat doesn’t ask customers to invest or take on technology-risk of renewable heat.

“Our partners will not need to buy equipment or speculate on the energy markets,” he said.

“We sell heat, not hardware. Customers simply receive a monthly bill for the heat they consume, and save millions compared to gas.”

Each deal is secured through Heat Purchase Agreements (HPA), locks in savings for 10-20 years.

Good Heat develops, owns, and operates thermal energy storage projects, which typically cost more than $50 million to build.

The “heat batteries” charge when electricity is cheapest, typically during the middle of the day when solar power is abundant, and dispatch steam on demand.  The system is located on the site of the customer, who can manage the heat battery through intelligent energy management system, optimising for lowest cost of steam and maintaining reliable operation.

Understorey Ventures director Jordan Soriot said giving manufacturers access zero-carbon heat without upfront investment “is a genuine step change for industrial electrification.

“Good Heat has the potential to show that thermal energy storage can be both bankable and profitable, and to accelerate its large-scale deployment across industry sectors that are difficult to decarbonise,” he said

Investible investment principal Ben Lindsay said Good Heat has demonstrated impressive commercial traction.

“With significant market pull, and a stellar team, we are convinced that Good Heat has what it takes to roll out this industrial heat platform across Australia and into overseas markets,” he said.