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TheStorage Secures €1 Million Investment Round To Decarbonize Industrial Heat

October 17, 2024

TheStorage founders: Olli Hannula, Timo Siukkola, Heikki Hannula, Esko Kulju

TheStorage has secured €1 million in funding from 2C Ventures and Superhero Capital to address one of the largest challenges in green transition – decarbonizing industrial heat.

The industrial sector as a whole consumes about 40% of global energy, significantly more than sectors like transport or building-related energy consumption. Over half of the energy consumed by industry is used for heat production, which is essential for various manufacturing processes, from producing food to making steel. 75% of this heat is generated 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.

TheStorage thermal energy storage system

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 also 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, storing 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.

"Currently, majority of industrial heat is produced via 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, it will also lead to direct cost savings as the companies utilize renewable energy when it is cheap. The larger the energy storage capacity, the greater the cost-saving benefits." Timo Siukkola, Co-Founder & CEO of TheStorage.

Investors recognize industrial heat as acritical challenge, as it accounts for 30% of global greenhouse gas emissions. The growth of renewable energy presents a timely opportunity to address this issue. Electrifying industrial heat is not only technologically viable but also economically and environmentally imperative. The global shift to renewable energy offers a unique opportunity to transform industrial energy systems, aligning them with the goals of emission reduction, cost efficiency, and enhanced energy security.

Hendrik Reimand, partner at the venture capital fund 2C Ventures, believes that the technology could play a critical role in addressing one of the largest challenges in green transition.

"The production of industrial heat 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 utilizing renewable energy for decarbonizing the industry while also leading to actual cost savings for the customers." Hendrik Reimand, Partner at 2C Ventures.

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 decarbonize industrial heat and power systems, TheStorage offers an unmatched cost-efficiency that sets it apart from any other solution we’ve seen. We are thrilled to support this team as they scale their breakthrough technology." Jussi Pyörre, Partner at Superhero Capital.

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 pressurized hot water, saturated steam, and thermal oil—using the same base system with easily upgradeable discharging units.

A Vision for the Future: Combined Heat and Power (CHP) Storage

The company envisions large-scale Combined Heat and Power (CHP) storage units capable of supplying both 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 continuous energy supply.

Unlike fossil fuels, which require complex logistics and handling, electricity flows directly from the grid, simplifying operations and enhancing flexibility in response to fluctuating energy prices. By repurposing steam turbines once powered by fossil fuels, the company enables a transition to fossil-free energy production while making use of 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.

TheStorage 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.

2C Ventures is a cleantech venture capital fund established in 2023 with a mission to help the world tackle climate change. 2C Ventures supports innovative cleantech companies in the Nordics and Baltics, helping to accelerate new business models and technological innovation.

Superhero Capital is a venture capital firm based in Helsinki, Finland, with team members in Finland, Lithuania, Estonia and Latvia. Founded in 2015, Superhero Capital manages four early-stage funds and focuses on seed investments in Finland and the Baltics. The firm’s portfolio consists of companies such as Fractory, Cactos, Hamina Wireless and Vapaus.

For media inquiries or to learn more about career opportunities at TheStorage, please contact:

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Timo Siukkola

Co-Founder & CEO

timo@thestorage.fi

+358 40 542 7949

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