Finnish startup pilots fossil-free industrial steam using sand heat storage
Sand-based thermal energy storage is emerging as a potential solution to one of industry’s most persistent emissions challenges: fossil-fuel-driven heat production. Finnish cleantech startup TheStorage has deployed its first industrial-scale pilot, demonstrating how renewable electricity can be converted into high-temperature heat and stored for on-demand industrial use.
Industrial heat accounts for roughly one fifth of global energy consumption, with the majority still produced using oil and gas. According to TheStorage, its system can reduce industrial energy costs by up to 70% while cutting carbon emissions by as much as 90%.
The pilot installation, commissioned in January 2026 at a brewery, produces fossil-free steam for production processes. The system captures renewable electricity when it is abundant, converts it into heat, and stores the energy in ordinary sand. Heat is retained at temperatures reaching up to 800°C and released as steam or thermal oil independently of real-time electricity availability.
The solution is designed to scale from 20 to 500 megawatt-hours, with charging power ranging from 1 to 20 megawatts, allowing it to adapt to different industrial applications. Flexible charging and discharging enable continuous operations despite fluctuations in renewable power generation.
Fossil-free industrial heat is increasingly tied to regulatory and commercial pressures across Europe. Emissions reporting under the Corporate Sustainability Reporting Directive and rising costs under the European Union Emissions Trading System are pushing manufacturers to rethink how heat is produced. According to TheStorage, industrial heat emissions now directly affect compliance, operating costs, and supplier eligibility in global value chains.
By addressing heat rather than electricity alone, sand-based thermal storage aims to close a critical gap in industrial decarbonization while maintaining reliability for energy-intensive manufacturing processes.