Energy Dome, an Italian startup that stores energy by compressing carbon dioxide, is in talks with European and US investors to raise several hundred million euros. The company says the new funding will help it scale its technology beyond the €200 million it has already raised, as it shifts from proving its concept to building commercial projects at scale.
From pilot to pipeline
Founded in Milan, Energy Dome has developed a "CO2 battery" that stores electricity by compressing CO2 gas into a liquid, then releasing it to drive a turbine when power is needed. The approach is designed for long-duration storage—discharging power over hours, not minutes—which is increasingly valuable as grids add more intermittent renewable energy like wind and solar.
The company has already deployed a small demonstration plant and signed long-term commercial contracts that it says point to recurring revenue worth several billion euros over their lifetimes. However, for 2026, it is only guiding for €30 million to €40 million in revenue. That gap between contracted backlog and near-term sales is typical for capital-intensive infrastructure businesses, but it underscores how much money is needed to build out projects before they start generating meaningful income.
CEO Claudio Spadacini told investors that funding needs are "well beyond" the €200 million raised to date. The reason: Energy Dome is moving from licensing its technology to investing directly in its own storage projects. That shift means the company will need to finance construction, equipment, and long-term operations, not just engineering and design.
Why this matters for investors
For everyday investors, Energy Dome's fundraising is a window into a broader trend: the race to build long-duration energy storage. As solar and wind power expand, utilities and grid operators need ways to keep electricity flowing when the sun isn't shining and the wind isn't blowing. Batteries like lithium-ion are great for short bursts, but they are expensive for storing power for 8, 12, or more hours. CO2-based storage is one of several emerging technologies—along with compressed air, gravity, and hydrogen—trying to fill that gap.
The company's ability to raise several hundred million euros from European and US investors would be a vote of confidence in that technology. But it also highlights the risks. Energy storage is a capital-heavy business, and projects can face delays, cost overruns, and technical challenges. The gap between the company's projected 2026 revenue and its contracted backlog shows that investors are betting on future growth, not current profits.
For those watching the sector, the key question is whether Energy Dome can execute. The company says its commercial contracts already represent a multi-billion-euro pipeline, but turning those contracts into cash requires building projects on time and on budget. That's a tall order for any startup, especially one moving into a capital-intensive phase.
What to watch next
Investors will be watching for details on the size and structure of the new round, as well as which investors participate. Energy Dome has previously attracted backing from European venture capital and infrastructure funds, and it is now courting US investors as well. A successful raise would give it the runway to build its first large-scale projects, which could serve as proof that CO2 storage works commercially.
The broader energy storage market is also in flux. LG Energy Solution's recent profit jump on US tax credits shows how policy support can boost battery makers, while rising bond yields are making it more expensive for capital-intensive projects to borrow. For Energy Dome, the cost of capital will be a critical factor in whether its projects pencil out.
Another angle: the company's decision to invest directly in projects, rather than just license its technology, is a strategic shift. It could lead to higher returns if projects succeed, but it also concentrates risk. Some investors may prefer a lighter-asset model, but Energy Dome's approach suggests it sees more value in owning and operating its storage plants.
For now, the company is in the middle of what could be a defining fundraising round. If it succeeds, it will join a small but growing group of startups trying to commercialize long-duration storage. If it struggles, it may signal that the market is not yet ready to back unproven technologies at scale.
Either way, the outcome will be closely watched by anyone with exposure to the clean energy transition—whether through utility stocks, renewable developers, or the broader push to decarbonize the grid.
