Berlin-based cleantech startup FION Energy has successfully closed a $1.6 million pre-seed funding round to combat soaring industrial energy costs across Europe. The investment was led by prominent venture capital firms HTGF and Norrsken Evolve, with additional support from strategic business angels. This capital injection will fuel the expansion of FION's AI-optimized battery storage solutions, designed to restore the competitive edge of European manufacturing.
Addressing Europe's Industrial Energy Crisis
Europe's industrial sector is grappling with electricity prices approximately 50 percent higher than those in the United States and China, placing immense strain on production facilities. This economic disadvantage is compounded by the fluctuating output from wind and solar power, creating volatility that factories are ill-equipped to manage. The urgent need for flexible and cost-effective energy solutions has therefore become a critical factor for industrial survival and growth.
An Integrated AI-Powered Solution
FION Energy provides a comprehensive, all-in-one service that simplifies the adoption of advanced energy storage for industrial clients. The company manages the entire process, from initial site analysis and system sizing to the procurement and turnkey installation of battery hardware. This end-to-end approach removes the technical complexity and high operational effort typically associated with such projects, making advanced energy management accessible.
At the core of FION's offering is a proprietary AI dispatch engine that autonomously optimizes energy usage in real-time. This intelligent software learns a facility's unique consumption patterns, analyzes electricity tariffs and market prices, and controls the battery system accordingly. By doing so, it smooths costly load peaks, reduces grid fees, and enables price arbitrage without requiring any intervention from plant operators.
Proven Impact and Strategic Investment
The practical benefits for FION's customers are substantial, with the potential to reduce electricity costs by up to 50 percent. The company has already deployed several battery systems at live industrial sites, demonstrating the real-world effectiveness of its technology beyond theoretical models. These initial projects serve as powerful proof that the AI-driven approach delivers tangible financial savings and operational stability.
The investment from HTGF and Norrsken Evolve underscores strong market confidence in FION's scalable solution and experienced founding team. Anne Umbach, Investment Manager at HTGF, highlighted the company's ability to address one of the industry's biggest challenges with a simplified onboarding process. The new capital will be strategically allocated to accelerate the product rollout, further develop the software platform, and expand the team.
Future Vision and Market Expansion
Looking ahead, FION Energy envisions connecting its industrial clients into a sophisticated, decentralized energy network. This ambitious plan would transform factories from simple power consumers into intelligent participants that can actively manage and trade energy. Such a network would enhance grid stability while creating new revenue streams and efficiencies for participating companies across the continent.
Co-founder and Managing Director Philipp Hamm stated that FION aims to make energy predictable and profitable again, turning it into a competitive advantage. With several new projects already in development, the company is actively expanding its footprint within Germany and across the European Union. This expansion is central to its mission of making European production more economically attractive and resilient on the global stage.
This $1.6 million pre-seed funding marks a pivotal moment for FION Energy, equipping it with the resources to scale its innovative solution for a critical market need. By deploying intelligent battery storage, the company is not just lowering operational costs but also contributing to the long-term economic health of Europe's industrial base. FION is now strongly positioned to help manufacturers navigate energy volatility and strengthen their competitiveness in an increasingly challenging global market.