EIT InnoEnergy invests in grid-scale energy storage company Mine Storage
The Swedish company Mine Storage provides closed-loop energy storages using proven pumped hydropower technology in an underground setting. This innovative application of proven technology can become a true enabler of the sustainable energy transition.
Mine Storage develops and operates a portfolio of grid-scale energy storages in underground mines. The global need for grid-scale energy storage is driven by the increasing share of weather dependent power generation, which causes imbalance in the transmission grids. The Mine Storage team contributes to a sustainable future with fossil free energy production by developing environmentally friendly energy storage plants that will store energy and help balance the grid. Managing the whole project development and operations process, the experienced team qualifies and secures the rights to attractive sites, builds profitable business cases, secures the financial structures, and designs, constructs, and operates the plants.
“At EIT InnoEnergy, we are looking to invest in companies operated by superior entrepreneurial teams aiming for impact at large. Climate change and the energy transition are global issues and therefore we need truly scalable solutions that can be implemented worldwide,” says Markus Berglund, Investment Manager at EIT InnoEnergy. “We are very impressed by the achievements made by the Mine Storage team and see that the demand for cost effective grid-scale storage capacity will increase substantially over the decades to come. We look very much forward to supporting Mine Storage in developing a diversified portfolio of storage plants that not only allows to reduce CO2 emissions, but also repurposes closed mines into circular assets.”
The investment decision was made beginning of April with the objective to accelerate the company’s expansion in Sweden and internationally. Mine Storage will receive a cash equity investment and added-value services to further develop business, markets, and operations.
“EIT InnoEnergy shares our view on the challenges ahead for the future energy system and by this investment they also share our vision of how Mine Storage can enable the sustainable energy transition. During their thorough and professional investment process EIT InnoEnergy have proven their high standards, which is exactly in line with our ambition. It is an honor to have EIT InnoEnergy as an investor and we see opportunities for accelerated business development through our collaboration,” says Thomas Johansson, co-funder and CEO at Mine Storage.
Mine storage as a technology is the underground version of pumped storage hydropower. It relies on the same basic principle of moving water between two reservoirs. It too can store large quantities of energy and is highly suitable to support the grid. The main difference is that the lower water reservoir is below ground in a closed mine. This makes it much more scalable than traditional pumped storage hydropower with an estimated 1 million abandoned mines across the globe.
“As the share of renewables continues to increase at pace, the need for energy storage – and particularly long-duration storage – is growing. Introducing water-based energy storage to the energy system brings tremendous benefits both in terms of grid stability and increased penetration of renewable energy,” says Johan Söderbom, Thematic Leader for Smart Grid and Energy Storage at EIT InnoEnergy. “Mine Storage addresses a clear market need for efficient long-duration grid scale storage, and we look forward to an exciting journey towards accelerating the energy transition.”