Montreal, Canada / Melbourne, Australia — February 25th, 2026 — FeX Energy and the Kyeema Foundation today announced that FeX Energy has been awarded funding through the Palladium Challenge Fund, recognising the company’s innovative technology with the potential to deliver clean, affordable, and reliable energy for remote and under-resourced communities.

The Palladium Challenge Fund supports solutions that combine strong ethics, inclusive development, and the potential for outsized global impact. FeX Energy was selected following a highly competitive process based on the strength of its technology, the calibre of its team, and a deep alignment with Kyeema’s values around community empowerment, sustainability, and long-term systems change.

At the centre of the award-winning project is Arc-S, FeX Energy’s containerised, iron-based, long-duration energy storage system. Arc-S converts low-cost or renewable electricity into high-temperature clean heat, which can be stored for hours, days, or even entire seasons, and delivered on demand. By using safe, abundant iron as its core energy medium, Arc-S offers a uniquely robust, scalable, and non-toxic alternative to diesel and other fossil-fuel-based heating systems.

Purpose-built for remote environments, Arc-S features a rugged enclosure, minimal moving parts, standard industrial components, and a modular design that simplifies transport, installation, and maintenance in challenging conditions. These characteristics make it particularly well suited to off-grid communities and industrial sites facing high energy costs, unreliable supply, and harsh climates.

With support from the Palladium Challenge Fund, FeX Energy will build, commission, and winter-test a 100 kW Arc-S pilot system at a Canadian federal facility. The pilot will validate real-world performance, demonstrate meaningful cost reductions compared to fossil fuels, and aim to support the development of a co-designed implementation plan with First Nations partners.

By the end of the project, Arc-S will be positioned for first MW-scale commercial deployments and future agreements for implementation in applications in Canada and globally.

Sinéad Magill, CEO of Palladium and Chair of the Kyeema Foundation stated that “FeX Energy are showing the world that the future of energy doesn’t just need to be clean, it needs to be locally owned, resilient, and accessible to all.”

“We were deeply impressed not only by FeX Energy’s technology, but by the team’s values, rigour, and commitment to inclusive impact,” said another representative of the Kyeema Foundation. “Arc-S has the potential to unlock clean energy access where it is needed most, while creating local economic opportunity and contributing meaningfully to global climate solutions.”

“We are honoured to be supported by the Palladium Challenge Fund and the Kyeema Foundation,” said Hayden Smith, CEO of FeX Energy. “This partnership accelerates our mission to replace diesel with clean, reliable energy, while empowering communities to participate in and benefit from the energy transition. Together, we can deliver solutions that improve health, lower costs, create high-quality jobs, and address some of humanity’s greatest challenges.”

About FeX Energy

FeX Energy is a Canadian clean-technology company developing iron-based, long-duration energy storage systems that deliver reliable, high-temperature clean heat for remote and industrial applications. Spun out of leading academic research and supported by industrial partners and government programmes, FeX Energy’s mission is to replace fossil fuels with safe, affordable, and scalable clean energy solutions that empower communities and accelerate the global energy transition.

About Kyeema Foundation

The Kyeema Foundation is a global non-profit organisation dedicated to improving livelihoods and protecting the planet through ethical, inclusive, and high-impact initiatives. Through programs such as the Palladium Challenge Fund, Kyeema supports innovative solutions that address complex global challenges, with a strong focus on integrity, sustainability, and long-term impact for underserved communities.

About the Palladium Group

The Palladium Group is a global advisory firm and implementer of international development projects, working with governments, businesses, and investors to solve the world's most pressing challenges. With over 60 years of experience, the company operates at the intersection of commercial growth and social progress. For the past 20 years, Palladium has committed 1.5% of our profit before tax to their global giving platform, including funding the the winners of the 2025 Palladium Challenge.