NOC Energy raises $2.7M to hybridize industrial heating

NOC Energy, a startup developing industrial heating technology, has raised a $2.7 million seed round. The funding round was led by 360 Capital, with participation from SOSV and Desai VC. The company plans to use the capital to advance its system, which allows industrial facilities to “hybridize” their processes—meaning they can combine electric heating with existing fossil fuel-fired systems. This approach allows operators to switch to electric heat when power is cheap and revert to fossil fuels if electricity prices rise.

The startup’s technology relies on induction heating, a method that uses magnetic fields to vibrate atoms in metal to generate heat, similar to how kitchen induction stoves operate. In NOC Energy’s system, copper coils produce magnetic fields that heat steel spheres packed inside large ceramic containers.

Key specifications of the system include:

• Container dimensions: The ceramic containers are 2.5 meters (around 8 feet) across.
• Insulation thickness: The copper coils are embedded in half a meter (about 20 inches) of insulation, keeping them at room temperature while casting electromagnetic waves inward.
• Temperature capabilities: The system currently delivers heat at temperatures reaching 1,200˚ C, with plans to reach 1,500˚ C.
• Lifespan advantages: Unlike specialized resistance heaters, which last around 12 months at 1,000˚ C and drop to three months at 1,200˚ C, NOC Energy’s copper coils do not contact the heat they generate, avoiding rapid degradation.

NOC Energy has already operated a pilot-scale system for 15,000 hours. The company is now preparing to deploy its technology at a larger scale, with two demonstration systems in France—one for a glass manufacturer and another for a cement producer—expected to be switched on in May.

According to Carlos Ceballos, co-founder and CEO of NOC Energy, the hybrid model is designed to help industrial companies manage the energy transition without immediately abandoning fossil fuels. Ceballos noted that being hybrid allows companies to derisk their future, which is highly attractive given current geopolitical challenges. “Most companies are willing to electrify, but they don’t want to get rid of fossil fuels yet. In the energy transition, they want to have the opportunity to choose the lowest cost,” Ceballos said.

Why it matters

NOC Energy’s hybrid approach offers a pragmatic bridge for industrial facilities to adopt electric heating without abandoning existing fossil-fuel infrastructure, allowing for cost-effective energy transitions.