Industrial heat production is one of the largest and hardest-to-solve sources of emissions worldwide. Finnish startup TheStorage has developed a sand-based heat storage solution that can cut energy costs by up to 70% and carbon emissions by up to 90%
Blind spot of decarbonization: industrial heat
Recent energy debates have focused heavily on electricity, but for industrial emissions, heat is the critical issue. Hot steam is required across industries, from food production to chemical processing. The majority of industrial energy use comes from heat production, which is still largely based on fossil fuels.
Electrifying industrial heat has been challenging due to the variable availability of renewable energy. Industry requires a consistent supply of heat throughout the year.
The idea emerged in 2023, and in January 2026 the first industrial-scale pilot was installed at a Finnish brewery for real-world industrial testing. There it produces fossil-free steam for the brewery’s production lines.
„Producing steam without fossil fuels is a major step toward carbon-neutral production,“ says Vesa Peltola, Production Director of Nokian Panimo brewery.
Sand as the industry’s green energy bank
TheStorage’s technology captures electricity when it is abundant and cheap, converts it into high-temperature heat, and stores it in sand. This stored heat can be used in industrial processes independently of real-time electricity availability.
“Companies have wanted to decarbonize for years, but viable solutions simply weren’t available. Finally, renewable energy generation can meet industrial heat demand in a way that’s both ecologically sound and economically practical,” says Timo Siukkola, CEO of TheStorage.
The principle of the sand-based heat storage is simple. The proprietary technology stores heat in ordinary sand using two insulated silos, an electric heater, and a heat exchanger.
Cool sand moves from a cold silo to an electric heater, reaching temperatures up to 800°C. The heated sand is then stored in a hot silo, where energy is efficiently retained in stationary sand. By circulating the sand through an external heat exchanger, the system delivers steam with up to tenfold higher heat transfer efficiency compared to conventional static storage systems.
The stored heat can be released on-demand as steam or thermal oil, providing stable power that can be quickly adjusted to match demand. The solution is scalable from 20 to 500 MWh with charging power from 1 to 20 MW, depending on industrial needs. The technology allows fully flexible operations in both charging and discharging.
Contact for media inquiries
Timo Siukkola
TheStorage
CEO
Phone: +358 40 542 7949
E-mail: timo@thestorage.fi
Vesa Peltola
Nokian Panimo
Production Director
Phone: +358 45 145 3906
E-mail: vesa.peltola@nokianpanimo.fi
About TheStorage
TheStorage is a Finnish cleantech startup enabling fossil-free industrial growth through scalable thermal energy storage solutions. The company supports the transition to renewable energy by acting as an efficient energy buffer for industrial processes.
TheStorage has raised €2.15 million from 2C Ventures, Superhero Capital, and Business Finland.
About Nokian Panimo
Nokian Brewery is the second largest craft brewery and the fifth largest brewery in Finland. All products are manufactured at the brewery’s production facility in Nokia. In 2024, total sales volume was 8.3 million litres and net sales amounted to EUR 11.9 million. Domestic origin, responsibility, and sustainable practices are at the core of the company’s operations.