FeX Energy, a McGill University spin-out developing iron reactors for renewable energy storage, has raised $4.8 million CAD ($3.5M USD) in equity funding.
The round was led by Houston-based Fathom Fund, with participation from Amplify Capital (Toronto) and Antares Ventures (Singapore).
Turning iron into clean energy storage
FeX Energy’s containerized reactors store renewable energy in iron through a reduction reaction, later releasing it as high-temperature heat. This process can replace diesel and other fossil fuels in energy-intensive sectors such as mining, shipping, and building heat in remote regions.
CEO Hayden Smith said the technology offers dense, stable, and cost-effective storage, with potential dual-use in defense applications. The company recently won $1M from Canada’s IDEaS program to explore zero-carbon energy solutions for Arctic operations.
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First pilots and industrial adoption
The new capital will fund FeX’s first Ontario pilot project, where its system will provide building heat powered by hydroelectricity. The startup employs seven full-time staff and five contractors, with plans to expand its team.
FeX Energy was founded in 2018 by McGill professor Jeffrey Bergthorson (chief scientific advisor) and cleantech venture builder Hard Climate (formerly BXVentures Canada).
Scaling toward climate goals
Hard Climate founder Marc Guilbert, also FeX’s co-founder and board chair, called the solution one of the safest and densest storage options for industrial use. Smith said FeX aims to help cut global carbon emissions by 500 million tons annually by 2050, arguing multiple parallel solutions are essential for the energy transition.
With demand from both heavy industry and defense, FeX is positioning iron as a new workhorse of renewable storage.
