Polar Night Energy
Polar Night Energy is a Finnish startup founded in 2018 in Tampere that developed the Sand Battery: a system that stores renewable energy as heat in sand, heated to up to 500°C. The technology is already commercially operational and targets district heating and industrial heat markets.
Europe's most interesting startup stories. Every week.
No spam. Unsubscribe anytime.
Podcast Episode
🎙️ Deep Dive
EP50 — Unicorn Files — Polar Night Energy: The Sand Battery Storing Renewable Heat
Listen to the episodeAbout Polar Night Energy
Polar Night Energy is a Finnish startup founded in 2018 by Tommi Eronen (CEO) and Markku Ylönen (CTO). The company developed the Sand Battery, a thermal storage system that heats common sand to up to 500°C using excess electricity from renewable sources, and keeps it hot for weeks thanks to the material's excellent insulating properties. When heat is needed, a heat exchange system releases it into the district heating network or industrial processes. The world's first commercial Sand Battery went into operation in Kankaanpää in 2022, at Vatajankoski. The Pornainen plant (1 MW, 100 MWh) is currently the world's largest sand thermal storage system. In 2024-2026 the portfolio expands with the Power-to-Heat-to-Power project at Valkeakoski, a partnership with Lahti Energia for 250 MWh and expansion into Baltic markets. In 2026 the company wins the Breakthrough Award from TEK, Finland's leading engineering association. Polar Night Energy tackles one of the largest and least decarbonized sectors: industrial heat and district heating. Sand — abundant, safe and inexpensive — becomes the energy storage medium for a market where lithium batteries are not designed to operate.
The Story
Tommi Eronen and Markku Ylönen met in 2013 at Tampere University of Technology. The spark was a question: is it possible to build an energy self-sufficient commune using only solar power? The project — internally called 'Hippie Commune' — led them to build a sand battery prototype in the backyard of Eronen's grandparents' cottage. The proof of concept worked, and Polar Night Energy was founded in 2018. Eronen holds an M.Sc. in Power Plant Engineering; Ylönen holds a PhD in Applied Mechanics. In 2024 the company closed a €7.6M seed round led by Jonathan Oppenheimer.
How Polar Night Energy works
Business Model
Design, construction and maintenance of Sand Battery systems for district heating utilities and industrial clients. Revenue from turnkey installation contracts and ongoing maintenance. World's first commercial Sand Battery operational since 2022 in Kankaanpää; the Pornainen plant (1 MW / 100 MWh) is currently the world's largest sand-based thermal storage system.
Revenue Model
EPC (Engineering, Procurement, Construction) contracts for Sand Battery plant delivery, with revenue from installation and long-term maintenance contracts with district heating utilities and industrial clients.
Market & Clients
Key Customers
It targets district heating utilities and Nordic and Baltic industrial customers who want to integrate renewable thermal storage into their infrastructures.
Founding Team
Founders
Key Metrics
Similar Startups
Resand
Finnish company enabling foundries to recycle almost all used sand, reducing virgin sand purchases, transport and waste.
Read AnalysisH2 Green Steel
Swedish green steel producer using renewable hydrogen instead of coal in steelmaking, cutting CO₂ emissions by 95% for automotive and packaging industries.
Read AnalysisAirmo
Mobile app for seamless file sharing and device control across iOS, Android, Windows, and Mac without cables.
Read Analysis