Danish startup Hyme Energy has taken a significant step towards scaling its molten-salt battery technology to industrial levels, securing a deal with dairy giant Arla to develop a large-scale industrial thermal storage system globally. This partnership marks a crucial milestone in the company's mission to provide high energy and power density solutions for energy-intensive industries.

Hyme Energy, which has raised $26 million to date, will work with Arla to develop a system capable of storing 200 MWh of energy, converting electricity from renewable sources into heat stored in molten salt tanks above 500°C. This innovation is expected to completely replace fossil fuels in Arla's milk powder production, resulting in a 100% reduction in CO2 emissions.

The project will initially be built for Arla's milk powder facility in Holstebro, Denmark, with both companies jointly seeking EU funding for the project. Hyme's technology is particularly suited for industries requiring steam, such as food and beverage, chemicals, and metals production.

According to CEO Emil Løvschall-Jensen, Hyme's solutions are ideal for Arla's processes due to the need for steam. "There's a lot of emerging technologies in this space. One is the molten salts, and the other is the solid storage medium, like graphite, ceramics etc. The main differences are when it comes to the long duration discharges of steam," he explained.

Hyme focuses entirely on industry segments where there's a large demand for steam, but also a demand for continuous steam in the 200 to 500 degrees space. The company's strategy involves working with blue-chip suppliers and EPC partners to ensure fast scalability.

The question remains, however, whether Europe's venture capital landscape is investing enough in this space. Løvschall-Jensen believes that while it's easier to raise money for software, some investors recognize the need to catch emerging technologies early to be the right growth partner later on. "We're seeing hints of it," he said.

In a statement, David Boulanger, Executive Vice President, Supply Chain at Arla, praised the technology proposed by Hyme Energy as a "real breakthrough."

Hyme Energy is not alone in the thermal battery space, with competitors like Electrified Thermal Solutions, Fourth Power, and MGA Thermal also working on innovative solutions. Electrified Thermal Solutions, for instance, has developed a technology that imbues bricks with the ability to transform electricity into heat and store it for hours. Fourth Power's thermal battery stores energy in the form of graphite blocks kept at around 2,400°C (4,350°F), while MGA Thermal aims to help utility companies transition from fossil fuels to renewable energy sources with shoebox-sized thermal energy storage blocks.

As Europe grapples with a power and energy crisis, the ability of these technologies to scale quickly and meet industrial demand will be crucial. With Hyme Energy's partnership with Arla, the company is poised to make a significant impact in the energy storage landscape.

According to PitchBook, thermal battery startups like Hyme raised over $170 million in venture funding in 2023, and are on track to raise more than double that in 2024. As the industry continues to grow, it will be interesting to see how these innovations shape the future of energy storage and reduce our reliance on fossil fuels.