Hyme Energy signs global deal with Arla to expand thermal storage technology

For many industries, lithium batteries just don’t cut it—they’re getting more and more expensive, require a lot of space, and are sometimes overkill for many industrial use cases. Thermal batteries, on the other hand, can store energy in the form of heat for a long time, are often cheaper to invest and deploy, and are more suitable for various industrial applications.

Now Denmark Hyme EnergyA company that produces thermal batteries using molten salt has signed an agreement that could help bring its technology to the industrial level: Arla, the Danish-Swedish multinational cooperative and the world’s fifth largest dairy company, is collaborating with Hyme. develop a large-scale industrial thermal storage system.

The project will initially be built for Arla’s milk powder plant in Holstebro, Denmark. Hyme and Arla will also seek EU funding for the project.

Hyme uses a molten salt system designed for energy intensive industries such as food and beverage, chemicals and metal manufacturing. The proposed system will have a capacity of 200 MWh and will convert electricity from renewable sources into heat, which will then be stored in molten salt tanks at temperatures above 500 °C. The goal is to completely replace energy in Arla’s milk powder production with fossil fuels and reduce CO2 emissions by 100%.

Ask Emil Løvschall-Jensen, co-founder and CEO of Hyme, believes that the company’s solutions are ideal for Arla’s processes due to their steam needs. Hyme has focused on industrial segments where there is a huge demand for steam, especially continuous steam in the temperature range of 200°C to 500°C.

“There are many new technologies in this space. One is molten salts, and the other is graphite, ceramics, etc. as a solid storage medium. The main differences are when it comes to long-term releases of steam.”

The question is how fast can the technology spread across Europe to meet industrial demand? Løvschall-Jensen thinks it’s possible.

“There is no limit to the production storage medium (…) so it can be scaled at any speed. We’re taking a strategy where we try not to be a manufacturer of components, but instead work with blue-chip suppliers and EPC partners to ensure we can scale fast enough,” he said.

Is venture capital investing enough in this area?: “Yes and no,” he said. “It’s very easy to raise money for software. Some realize that they need to capture technologies earlier to be the right development partner later. We see signs of this.”

Brightfolk led Hyme’s €10.4 million ($10.8 million) first fundraising round. It also raised 8.4 million euros ($8.7 million) in convertible notes, and together with grants, the startup has raised a total of 25 million euros ($26 million). The startup now plans to raise a Series A round of €20 million to €30 million ($20.8 million to $31.2 million).

according to PitchBookThermal battery startups like Hyme raised more than $170 million in venture funding in 2023 and are on track to more than double that in 2024.

Hyme’s rivals include Electrified Thermal Solutionsimbues the bricks with the ability to convert electricity into heat and store it for hours. Thermal battery of the Fourth Power stores energy in the form of graphite blocks held at a temperature of about 2,400 °C (4,350 °F). The blocks are filled with molten tin that is heated using solar panels or electricity from wind turbines. And MGA Thermals wants to help utilities transition from fossil fuels to renewables with shoebox-sized thermal energy storage units.