A Montreal-born startup has closed a seed round of financing.
FeX Energy, which spun out of McGill University’s Alternative Fuels Lab under Professor Jeffrey Bergthorso, announced this week that it has raised US$3.5M in an oversubscribed round.
“Reaching this milestone is a moment of gratitude and celebration,” stated Hayden Smith, chief executive officer of FeX Energy. “The team has created real value and we’re ready for the next stage of growth.”
Launched in 2023, FeX Energy is developing iron-based long-duration energy storage, which the Canadian company describes as a “breakthrough technology offering unparalleled energy density, ease of deployment, and storage stability without self-discharge.”
“Our mission at FeX is to empower industry decarbonization with iron energy–affordable, safe, and globally abundant,” Smith said.
The seed financing will be used to accelerate deployment of FeX’s first pilot project and expand the team, according to a statement from the Quebec company.
“With this seed funding, and the strong alignment of our new investors, we are well positioned to demonstrate how our solution can replace high-cost fossil fuels in even the most remote and challenging locations, while laying the foundation for scalable growth across global energy systems,” commented Smith.
The round was led by Fathom Fund, a Houston-based deep-tech venture capital firm with ties to the global energy industry.
“At Fathom we have looked at practically every long-duration storage solution in the market,” says managing partner Paul Sheng.
The investor believes Fex’s “thermochemical approach stood out for its unique combination of unparalleled energy density, stability of storage without self-discharge, and reliance on abundant low-cost iron.”
“We believe this is a breakthrough solution with the potential to decarbonize some of the most difficult sectors of the energy system,” Sheng said, “and we are excited to support Hayden and the team with capital, industry connections, and follow-on investment for growth.”
Canada’s Amplify Capital also invested in the round.
“FeX exemplifies the kind of bold, scalable solution Canada can contribute to the global energy transition, combining scientific excellence with a clear pathway to industrial decarbonization,” stated Trish Nixon , Venture Partner at Amplify Capital. “What impressed us was not only FeX’s breakthrough technology, but also the team’s commitment to building with purpose, impact, and integrity.”
FeX Energy is the flagship venture of Hard Climate, a Canadian venture studio dedicated to building and scaling breakthrough climate technologies.
“From its origins in McGill’s Alternative Fuels Lab to today’s seed round milestone, FeX embodies both the scientific excellence and the entrepreneurial drive needed to deliver meaningful climate solutions at scale,” said Marc Guilbert, who heads Hard Climate.