AtmosZero raises $28.5M to electrify industrial steam production

The Loveland startup is developing a heat pump-based system to replace fossil-fueled boilers and reduce emissions.

Published on Mar. 2, 2026

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AtmosZero Inc., a Loveland-based startup, has raised $28.5 million to commercialize its new approach to industrial steam production. The company's system uses electrically powered heat pump technology to generate steam, replacing traditional fossil-fueled boilers. AtmosZero's first pilot installation began delivering steam in 2025 at New Belgium Brewing Co. in Fort Collins. The company is now transitioning from pilot validation to commercial execution, with plans to begin volume deliveries in 2027.

Why it matters

Steam accounts for roughly 8% of global energy consumption, but the way it is produced has not changed significantly in 150 years. AtmosZero's technology offers a path to decarbonize industrial steam generation, which is a sector that has proven difficult to decarbonize. By using heat pumps instead of combustion, AtmosZero's system produces no on-site emissions, which is an advantage in regions struggling with air quality.

The details

AtmosZero's system uses electricity to power a high-temperature heat pump that extracts thermal energy from the surrounding air to generate steam at industrial temperatures. This approach replaces the traditional method of burning fuel to boil water, which produces on-site emissions. The key innovation is the specialized compressor technology that enables the heat pump to operate efficiently at the high temperatures required for industrial steam production.

  • AtmosZero was founded in 2022.
  • The company's first pilot installation began delivering steam in May 2025 at New Belgium Brewing Co. in Fort Collins.
  • In 2025, AtmosZero was awarded up to $24.3 million in federal tax credits through the Qualifying Advanced Energy Project Credit.
  • In 2024, AtmosZero was awarded a $3.2 million grant from the U.S. Department of Energy's Industrial Efficiency and Decarbonization Office.
  • AtmosZero plans to begin volume deliveries of its systems in 2027.

The players

AtmosZero Inc.

A Loveland-based startup developing a new approach to industrial steam production using electrically powered heat pump technology.

Addison Stark

Co-founder and CEO of AtmosZero, who previously served as a program director at the U.S. Department of Energy.

Todd Bandhauer

Co-founder and chief technology officer of AtmosZero, who is a professor of mechanical engineering at Colorado State University.

New Belgium Brewing Co.

The first company to host a pilot installation of AtmosZero's system, which began delivering steam in 2025.

Colorado Energy Office

Awarded a $1.8 million grant to AtmosZero through its Clean Air Program for providers of industrial emissions-reduction technologies.

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What they’re saying

“We are bringing to market the most cost-effective solution to electrify the boiler. We've leveraged heat pump technology to replace the fire in a boiler and deliver the lowest total cost of ownership over the lifetime of that system.”

— Addison Stark, Co-founder and CEO, AtmosZero (bizwest.com)

“Steam is still used all over the place. Making beer, sanitizing equipment, even making things like sunscreen, it's so ubiquitous. But the way we make steam hasn't been reinvented in 150 years.”

— Todd Bandhauer, Co-founder and Chief Technology Officer, AtmosZero (bizwest.com)

What’s next

AtmosZero is transitioning from pilot validation to commercial execution, with plans to begin volume deliveries of its systems in 2027. The company is developing manufacturing processes, building a sales organization, and establishing channel partnerships to scale its technology.

The takeaway

AtmosZero's innovative approach to industrial steam production using heat pump technology has the potential to significantly reduce emissions in a sector that has been difficult to decarbonize. By replacing fossil-fueled boilers with an electrified system, the company is poised to transform a 150-year-old technology and contribute to the broader effort to combat climate change.