Tampere-based cleantech startup TheStorage has raised €3.6 million in seed funding to accelerate the commercial rollout of its industrial-scale thermal energy storage technology, with the round led by Voima Ventures and backed by existing investors Superhero Capital and 2C Ventures, alongside new entrant Momentum Partners. The company develops high-temperature “sand-in-motion” storage systems that enable industrial players to electrify heat production—one of the most emissions-intensive sectors—by storing excess renewable energy and releasing it as process heat on demand. The fresh capital will be used to scale commercial deployments, expand hiring, and position the company as a go-to solution for industries seeking to cut energy costs and emissions simultaneously, as demand rises for technologies that can stabilise renewable energy usage and reduce reliance on fossil fuels.
TheStorage is a cleantech company founded in 2023 that develops high-temperature thermal energy storage systems for industrial applications. Its core technology stores excess electricity—typically from renewable sources—as heat in moving sand, which can later be released as steam or thermal energy for industrial processes. By enabling factories to shift energy use to periods of lower electricity prices and reduced carbon intensity, the company’s systems aim to lower both operating costs and emissions in sectors where heat demand is significant and traditionally reliant on fossil fuels. TheStorage’s approach is designed to integrate with existing industrial infrastructure while also allowing participation in electricity balancing markets.
With TheStorage’s unique thermal energy storage, industrial companies can switch to renewable energy sources in their heat processes and take advantage of favourable electricity spot prices. The technology electrifies one of the largest and hardest-to-solve sources of emissions worldwide, heat production, by storing energy in sand. The company’s unique sand-in-motion technology can reduce industrial energy costs by up to 70 per cent and emissions by up to 90 per cent compared to fossil-based heat production.
“The new funding gives us real momentum in commercialising our technology. Interest in thermal energy storage is growing enormously across industry, and our goal is to be the number one choice for companies looking for efficient solutions to manage their energy costs and support their sustainability targets,” said Timo Siukkola, CEO and co-founder of TheStorage.
“TheStorage operates at the centre of two major transitions. The company helps industry reduce emissions while making renewable energy usage more reliable and economically viable. This is exactly the kind of deep tech opportunity we look for at Voima Ventures. TheStorage has a winning solution that delivers clear value to customers. The technology is highly relevant from a climate perspective and has excellent potential to scale globally,” said Pontus Stråhlman, Partner at Voima Ventures.
Currently, 80 per cent of industrial heat is still generated using fossil fuels. The growing availability of renewable energy combined with exceptional volatility in fossil fuel markets driven by the ongoing energy crisis has increased demand for cost-effective thermal energy storage solutions. The transition away from fossil fuels has been difficult for industry due to the intermittent nature of renewable energy. TheStorage has solved this challenge in a way that makes the green transition economically viable.
“Now there is no reason for industry to keep using fossil fuels,” said Siukkola.
In addition to cost savings, TheStorage’s solution opens up reserve market participation for industrial companies, generating additional revenue while contributing to grid stability.
“One fifth of global energy consumption comes from industrial heat production, and hot steam is essential across virtually every industrial sector. We offer the best heat transfer solution on the market – up to ten times more efficient than competitors’ static alternatives,” said Siukkola.
Bolstered by the new funding, TheStorage will focus on broader commercialisation and recruiting key talent.
“Our goal is to double our team by the end of 2026, so skilled professionals are welcome to apply right away,” Siukkola said.
TheStorage’s pilot facility was commissioned for industrial testing at Nokian Panimo, Finland’s second largest craft brewery, in February, where it produces steam for the brewery’s production processes.
Unlike other heat storage solutions on the market, TheStorage’s sand-in-motion technology enables cost-effective electrification of industrial heat production without any compromise on technical performance. The technology allows industry to harness renewable energy sources and produce the process heat it needs at up to 70 per cent lower cost than fossil alternatives.
Thermal energy storage enables rapid response to electricity price fluctuations, allowing industrial operators to save on energy costs by timing their electricity consumption to the cheapest hours. The technology enables participation in grid balancing, i.e. reserve markets. This creates potential additional revenue for industrial companies.
Emissions in industrial applications can be reduced by up to 90 per cent.
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Read the orginal article: https://arcticstartup.com/thestorage-raises-e3-6-million-seed/
