In recent years, the demand for efficient energy storage solutions has escalated across various industries. Lithium batteries, long regarded as the cornerstone of energy storage, have increasingly shown their inadequacies in specific industrial contexts. Their high costs, logistical requirements, and suitability only for limited applications make them less desirable for many sectors. As industries strive to enhance sustainability and reduce their carbon footprints, the need for alternative energy storage technologies becomes apparent. This has led to a rising interest in thermal batteries, which offer distinct advantages over conventional lithium-based systems.
Embracing Thermal Battery Technology
Thermal batteries work by storing energy in the form of heat, allowing for a longer storage duration and efficient energy use. These systems, particularly those leveraging molten salt, prove beneficial for energy-intensive industries like food processing, chemical manufacturing, and metal production. One notable player in this space is Denmark’s Hyme Energy, which has taken significant strides toward scaling thermal battery technology for industrial usage. Their molten salt solution is designed specifically to meet the energy demands of industries that require substantial amounts of steam, positioning them as an attractive alternative to traditional fossil fuel energy sources.
Hyme Energy has recently formed a strategic partnership with Arla, one of the world’s largest dairy companies, to develop a large-scale thermal storage system. This collaboration aims to establish a system with a capacity of 200 MWh for Arla’s milk powder facility in Holstebro, Denmark. By converting electricity from renewable sources into heat stored in molten salt tanks at very high temperatures, this initiative is anticipated to fully replace fossil fuel energy in Arla’s production processes and eliminate CO2 emissions entirely.
This partnership exemplifies the practical applications of thermal battery technology within industrial operations. Hyme’s CEO, Ask Emil Løvschall-Jensen, emphasizes the importance of steam in Arla’s processes and believes that the molten salt solutions can satisfy this need effectively, particularly operating in the 200°C to 500°C range.
With any emerging technology, the question of scalability looms large. Løvschall-Jensen believes that there are no inherent limitations to the storage medium’s production, enabling rapid scaling to cater to industry demands. Hyme Energy has a proactive approach by collaborating with established suppliers and engineering, procurement, and construction (EPC) partners rather than manufacturing all components in-house. This strategy is crucial for accelerating production to meet the heating demands of various industries across Europe.
However, the overall investment landscape for thermal battery technology presents both opportunities and challenges. While venture capital appetite is growing, particularly for energy innovations, Løvschall-Jensen notes that raising funds in this space may still trail behind more lucrative sectors, like software. Nonetheless, indications show increasing recognition of the potential these technologies hold for the future of energy management.
Hyme Energy’s recent funding rounds shed light on the growing interest in thermal energy storage. With a total of €25 million ($26 million) raised, including significant contributions from investors like Brightfolk, the company demonstrates a strong trajectory for growth. Plans for an upcoming Series A funding round aim to raise an additional €20 million to €30 million ($20.8 million to $31.2 million). The broader market also reflects this trend, with thermal battery startups amassing over $170 million in venture capital throughout 2023, with projections to double that in the following year.
Hyme Energy is not alone in the thermal battery field; competitors like Electrified Thermal Solutions and Fourth Power are also pushing boundaries with innovative solutions. They explore diverse methodologies, such as energy storage in graphite blocks and other solid mediums, highlighting a growing spectrum of thermal energy innovations.
As industries aim for sustainable operations and renewed environmental commitments, thermal batteries present a promising alternative to conventional energy systems. The partnership between Hyme Energy and Arla exemplifies the potential for large-scale industrial applications of thermal storage technology. With proper funding, strategic collaborations, and progressive thinking, thermal batteries could revolutionize how industries approach energy storage and utilization, paving the way for a greener, more efficient future.