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CapMan Infra’s portfolio company Loviisan Lämpö invests in new innovative Sand Battery in Finland, targeting significant emissions reductions


CapMan Infra news
6 March 2024 at 9:30 AM EET

CapMan Infra’s portfolio company Loviisan Lämpö invests in new innovative Sand Battery in Finland, targeting significant emissions reductions

Loviisan Lämpö has agreed to invest the building of a heat energy storage to its district heating area in Pornainen, Finland. The new 1 MW Sand Battery will be realised by the Finnish company, Polar Night Energy. On an annual level the investment will enable nearly 70 percent emissions reductions in the Pornainen district heating network. The investment is a significant step on the company’s journey towards more environmentally friendly energy production.

The goal of the investment is to reduce the CO2 emissions of heat production in the district heating network in the Pornainen municipality area and introducing a novel type of heat production technology.

The heating power of the new Sand Battery will be 1 MW and it can store up to 100 MWh of thermal energy. The impact of the investment on total emissions is approximately 160 tons of carbon dioxide equivalent per year, translating to nearly a 70% reduction in emissions from the district heating network of Pornainen. In addition to eliminating the usage of oil, the combustion of woodchips is expected to decrease by around 60%. The thermal energy storage capacity corresponds to almost one-month heat demand in summer and a one-week demand in winter in Pornainen.

“Loviisan Lämpö’s investment in the Sand Battery is a concrete step towards CapMan’s climate goals. We are committed to reducing our carbon dioxide emissions and seeking solutions that lead us towards net-zero emissions, of which this innovative solution is an excellent example,” says Sauli Antila, Investment Director at CapMan Infra.

The Sand Battery is flexible in both its electricity usage and district heating production. It is charged from the electric grid, minimizing the cost of electricity used for charging while meeting the heat demand of the district heating network.

“We want to enable the growth of renewable energy. The Sand Battery is designed to participate in all Fingrid’s (Finland’s transmission system operators) reserve and balancing power markets. It helps to keep the electricity grid balanced as the share of wind and solar energy in the grid increases,” says Mikko Paajanen, CEO of Loviisan Lämpö.

“It’s exciting to build a large-scale thermal energy storage, which will also act as a primary production plant in Pornainen’s district heating network. This is a significant step in scaling up the Sand Battery technology,” says Liisa Naskali, COO at Polar Night Energy.

The estimated duration for construction and testing of the new Sand Battery is around 13 months. The project has received support from Business Finland’s new technology energy aid. The new thermal energy storage will use crushed soapstone produced as a byproduct of Finnish fireplace producer Tulikivi’s manufacturing process.

For more information, please contact:

Sauli Antila, Investment Director, CapMan Infra, +358 40 658 9708

About Loviisan Lämpö

Loviisan Lämpö is a Finnish district heating company that supplies district heating to its customers in Loviisa, Pukkila, Pornainen, Pyhtää Siltakylä, Pyhtää village center, and Lappohja. Loviisan Lämpö is owned by CapMan Infra.

About Polar Night Energy

Polar Night Energy is a Finnish startup that designs and manufactures high temperature thermal energy storages for wind and solar energy. The Sand Battery developed by the company enables a significant increase in wind and solar energy production while reducing the use of fossil fuels. The company was founded in 2018.

About Tulikivi

Tulikivi is the market leader in heating fireplaces in the world. Tulikivi was born by combining Finnish knowledge of arctic conditions, wood heating know-how and a unique soapstone reserve.

About CapMani

CapMan is a leading Nordic private asset expert with an active approach to value creation and over 5 billion in assets under management. Our objective is to provide attractive returns and innovative solutions to investors by enabling change across our portfolio companies. An example of this is greenhouse gas reduction targets that we have set under the Science Based Targets initiative in line with the 1.5°C scenario and our commitment to net-zero GHG emissions by 2040. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover real estate and infrastructure assets, natural capital and minority and majority investments in portfolio companies. We also provide wealth management solutions. Our service business includes procurement services. Altogether, CapMan employs around 200 professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo, London and Luxembourg. We are listed on Nasdaq Helsinki since 2001.

In the photo at the top of the page : Polar Night Energy’s Product Sales Manager Matti Ulvinen and CEO Tommi Eronen with Loviisan Lämpö’s CEO Mikko Paajanen and CapMan Infra’s Investment Director Sauli Antila