Finnish Climate Startup TheStorage Secures €1 Million Investment Round to Decarbonise Industrial Heat
TheStorage has secured €1 million in funding from 2C Ventures and Superhero Capital to tackle one of the biggest challenges in the green transition—decarbonising industrial heat.
TheStorage was founded in 2023 by power plant industry experts. The company is actively hiring new talent to join its mission of driving the global energy transition. The company is poised to showcase its unique solution to customers, moving from proof of concept to pilot systems and eventually to full-scale deployment.
The Challenge of Decarbonising Industrial Heat
The industrial sector accounts for about 40% of global energy consumption, significantly more than transport or building energy use. Over half of the energy consumed by industry is used for heat production, essential for various manufacturing processes, from producing food to making steel.
Seventy-five per cent of this heat is produced by burning fossil fuels. Electrifying industrial heat and transitioning to renewable energy requires cost-effective energy storage solutions, as industry needs stable heat energy even when the wind isn’t blowing and the sun isn’t shining.
Innovative Sand-Based Thermal Energy Storage
The company’s sand-based thermal energy storage technology provides a highly scalable, cost-efficient, and fossil-free solution for industrial heat, delivering substantial reductions in greenhouse gas emissions while offering significant cost savings. These savings are achieved by allowing customers to harness abundant, low-cost renewable energy—such as wind and solar—when it is plentiful and inexpensive and store it as heat. This stored energy can then be converted into a stable, continuous supply of industrial heat, reducing reliance on traditional fossil fuels and lowering overall energy costs.
Empowering the Transition to Fossil-Free Processes
Timo Siukkola, Co-Founder & CEO of TheStorage:
Currently, the majority of industrial heat is produced by burning fossil fuels. Our solution empowers industries to transition to fossil-free processes. Not only will the technology allow industries to reduce their carbon footprint, but it will also lead to direct cost savings as companies utilise renewable energy when it is cheap.
The larger the energy storage capacity, the greater the cost-saving benefits.
Investors Back Industrial Heat Decarbonisation
Investors recognise industrial heat as a critical challenge, accounting for 30% of global greenhouse gas emissions. The growth of renewable energy presents a timely opportunity to address this issue. Electrifying industrial heat is both technologically viable and economically and environmentally imperative. The global shift to renewable energy offers a unique opportunity to transform industrial energy systems, aligning them with emission reduction goals, cost efficiency, and enhanced energy security.
Hendrik Reimand, partner at the venture capital fund 2C Ventures, believes the technology could be critical in addressing one of the largest challenges in the green transition.
Industrial heat production is an often overlooked vertical that accounts for an outsized share of global emissions. The technology developed by TheStorage has the potential to be the missing piece of the puzzle in utilising renewable energy for decarbonising the industry while also leading to actual cost savings for customers.
Jussi Pyörre, partner at Superhero Capital, shared their excitement about the investment:
From the moment we first saw the core fundamentals of TheStorage’s technology, we knew this was a game-changing innovation. For the massive storage capacities required to decarbonise industrial heat and power systems, TheStorage offers an unmatched cost-efficiency that sets it apart from any other solution. We are thrilled to support this team as they scale their breakthrough technology.
Scaling Up: From Proof of Concept to Full Deployment
The €1 million investment will enable TheStorage to construct a proof-of-concept system that will be tested in collaboration with several industrial customers at their production sites. This system will demonstrate the technology’s ability to meet diverse industrial heat needs, including pressurised hot water, saturated steam, and thermal oil—using the same base system with easily upgradeable discharging units.
A Vision for Combined Heat and Power (CHP) Storage Solutions
The company envisions large-scale Combined Heat and Power (CHP) storage units capable of supplying electricity and heat to industrial users and district heating systems. These systems use a steam turbine to convert stored thermal energy into electricity and heat, with electricity from the grid acting as the “fuel.” This electricity heats the storage material, which can later be discharged to produce steam and run the turbine, providing a steady and predictable energy supply.
Unlike fossil fuels, which require complex logistics and handling, electricity flows directly from the grid, simplifying operations and improving flexibility in response to fluctuating energy prices. By repurposing steam turbines once powered by fossil fuels, the company can transition to fossil-free energy production while using existing infrastructure. These units would also contribute to grid stability by providing the inertia needed to maintain frequency control, which renewable energy sources like wind and solar cannot supply.
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