Finnish startup TheStorage, which develops scalable thermal energy storage systems to provide sustainable heat solutions for industrial, district heating, and CHP applications, has secured €1 million in funding to advance the decarbonization of industrial heat. The investment round was led by 2C Ventures and Superhero Capital.
- Founded in 2023 by Olli Hannula, Timo Siukkola, Heikki Hannula, and Esko Kulju, TheStorage develops sand-based thermal energy storage technology that offers a scalable, cost-efficient, and fossil-free solution for industrial heat.
- TheStorage's technology allows industries to store abundant renewable energy, such as wind and solar, as heat when it is plentiful and inexpensive. The stored energy provides a stable, continuous supply of industrial heat, helping to reduce reliance on fossil fuels, lower energy costs, and significantly cut greenhouse gas emissions, driving a more sustainable energy future.
"Currently, majority of industrial heat is produced via burning fossil fuels. Our solution empowers industries to transition to fossil-free processes. The larger the energy storage capacity, the greater the cost-saving benefits," Co-founder & CEO of TheStorage, Timo Siukkola, commented.
Details of the deal
- The funding round was backed by 2C Ventures, an Estonia-based investment firm focused on climate change and cleantech projects across Estonia, the Baltic Sea region, and the Nordics. In January, the firm launched a €50 million fund to support cleantech innovation in these regions.
"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," Partner at 2C Ventures, Hendrik Reimand, commented.
- Superhero Capital, a Helsinki-based venture capital firm that invests in seed-stage, software-driven startups in Finland and the Baltics, also participated in the funding round. The firm typically makes initial investments ranging from €100,000 to €1 million.
- With the €1 million raised, TheStorage plans to build a proof-of-concept system to demonstrate its thermal energy storage technology at various industrial sites. The company aims to develop large-scale Combined Heat and Power (CHP) units that supply both electricity and heat, facilitating the transition to fossil-free energy while enhancing grid stability.
- Additionally, TheStorage intends to expand its workforce to support its growth as it transitions from proof of concept to pilot systems and ultimately to full-scale deployment.
