Munich Startup: What does your startup do? What problem do you solve?
Gianluca Pauletto, CEO and co-founder of Sypox: Sypox develops electrically heated reactors For high-temperature chemical processes, an area that has previously been considered particularly difficult to electrify. With our reactor, natural gas or biogas can be converted into synthesis gas much more efficiently, without fossil combustion and with up to 40 percent less methane consumption.
The underlying process is steam reforming, traditionally generating the required process heat in a gas-fired furnace with very high CO2 emissions. We are replacing this furnace with a compact, electrically heated reactor that runs directly on renewable electricity and reaches temperatures of over 900 degrees Celsius. This not only reduces emissions but also makes plants more efficient, smaller, faster, and more flexible.
In addition to key users, biogas plants also benefit: They can produce green hydrogen or renewable methanol on-site instead of converting low-value-added biogas into electricity. And because our reactors react to electricity prices in seconds, production can be ramped up or down at any time, which offers advantages for both economic efficiency and grid stability.
Munich Startup: But that's been around for a long time!
Gianluca Pauletto: Electric process heaters have been used in the chemical industry for years, but only up to about 600 degrees Celsius. Until now, there has been no electric solution for high-temperature processes such as steam reforming because conventional heaters cannot reach the necessary 900 degrees Celsius (and more). However, processes in precisely this temperature range account for a large proportion of industrial CO2 emissions because they have so far been heated exclusively by fossil fuel combustion.
Sypox closes this gap: We have developed an electrically heated high-temperature reactor that meets the extreme conditions of steam reforming – without a flame, without a burner, without fossil fuel heat. This makes possible for the first time what was previously considered unelectrifiable.
TUM spin-off grows beyond pilot plants
Munich Startup: What is your founding story?
Gianluca Pauletto: In 2021, Martin Baumgärtl and I founded Sypox as a spin-off of Technical University of Munich The company was founded. The first laboratory reactors successfully demonstrated the potential of electrification. In 2022, the first pilot plant was integrated into a biogas plant and tested under real-world conditions together with Bayerngas. As part of the Eretech project, a commercial-scale pilot plant for the production of 400 kilograms of hydrogen per day was installed at the same biogas plant in 2024, and the reactor's flexible operation was successfully demonstrated.
Munich Startup: What have been your biggest challenges so far?
Gianluca Pauletto: Scaling up from laboratory to industrial scale was a major challenge, requiring significant time, resources, hands-on work, and specialized expertise. Currently, complex regulatory hurdles and bureaucratic processes add to the difficulty. Our approach must not only be efficient and climate-friendly but also remain economically competitive. Keeping track of applicable regulations and the resulting financial incentives is often challenging, especially given the rapidly changing political landscape.
Organic growth instead of venture capital
Munich Startup: Where would you like to be in one year, where in five years?
Gianluca Pauletto: In one year, we aim to be known as an established Munich-based startup that has successfully brought electrified steam reforming to market on an industrial scale. In fact, we have already made the transition from the classic startup phase to commercialization, entirely without private investment. We are growing organically, financing ourselves, and this approach is clearly paying off so far. In five years, we envision ourselves as a firmly established company in the biogas and chemical industries, making a significant contribution to decarbonization.
Munich Startup: How have you experienced Munich as a startup location so far?
Gianluca Pauletto: Munich is a vibrant center for us, full of diversity and innovation. The city is open to future-oriented technologies and offers a strong network of science, industry, and research. This creates ideal conditions for rapidly advancing new ideas and growing in a dynamic environment.
Sypox focuses on impact rather than hype
Munich Startup: Hidden champion or shooting star?
Gianluca Pauletto: Definitely a hidden champion. We work purposefully and with a long-term perspective to bring about real change in the industry, rather than seeking fleeting fame. We are hardly known in the traditional startup or investor circles and haven't won any pitch awards or competitions. Instead, many established technology providers and companies in the chemical and petrochemical industries know us very well. Sustainable impact is more important to us than quick hype.
