It’s been reported that Meta-owned WhatsApp has formally backed Apple in its legal challenge against the UK government over secret demands to weaken end-to-end encryption, in a case that could have global repercussions for user privacy and national security policy.

Secret UK Orders to Access Encrypted Data

The dispute stems from a Technical Capability Notice (TCN) reportedly issued to Apple by the UK Home Office under the Investigatory Powers Act 2016, i.e., legislation that allows UK authorities to compel technology firms to provide access to communications and stored data where necessary for law enforcement and national security.

This particular TCN is believed to have required Apple to create a way for UK authorities to access encrypted content held in users’ iCloud accounts, including personal files, messages, and notes. Apple’s Advanced Data Protection (ADP) system, introduced globally in late 2022, uses end-to-end encryption (E2EE) to protect this data, meaning only the user, not even Apple, has access to it.

When Apple received the notice, it pulled the ADP feature from the UK in February 2025 and launched a legal appeal through the Investigatory Powers Tribunal, the specialist court that handles intelligence and surveillance disputes. The case was initially held behind closed doors, but following pressure from media organisations, a judge ruled in April that certain details should be made public due to the significance of the case.

WhatsApp Warns of Global Implications if Encryption Is Weakened

Now, WhatsApp has reportedly stepped in to support Apple, applying to submit evidence in the case and voicing serious concerns about the precedent such government powers could set. According to a recent report from the BBC, WhatsApp head Will Cathcart said the platform “would challenge any law or government request that seeks to weaken the encryption of our services and will continue to stand up for people’s right to a private conversation online.”

Cathcart added that if the UK’s approach were allowed to stand, it could “embolden other nations” to demand similar access, undermining encryption standards and threatening users’ privacy worldwide.

WhatsApp, which provides E2EE by default for all messages and calls, has long warned that creating any “backdoor” access mechanism, even for a single government, would jeopardise the security of all users. For example, back in 2023, the platform said it would rather be banned in the UK than comply with demands to compromise its encryption under the Online Safety Act.

A Broader Tech Industry Pushback

Apple itself has said little publicly beyond its legal filings but has previously stated that building such backdoors would expose users to risks from “bad actors” and hostile states. “There is no way to provide access to encrypted data for some without making it vulnerable to others,” Apple argued in a 2024 statement responding to proposed changes in UK surveillance law.

The wider tech industry has reacted with unease. Civil liberties campaigners, including Open Rights Group and Liberty, have welcomed WhatsApp’s intervention. “It’s important that the court hears from as many companies and organisations as possible,” said Jim Killock, executive director of Open Rights Group. “The Home Office is trying to establish powers that would affect the safety and privacy of billions of people.”

What the UK Government Says

The Home Office has declined to comment on the ongoing legal case. However, in a broader statement reported recently by the BBC, it said the UK has “a longstanding position of protecting our citizens from the very worst crimes, such as child sex abuse and terrorism, at the same time as protecting people’s privacy.”

The government maintains that such powers are only used “on an exceptional basis” and subject to independent oversight, but critics argue that the secrecy surrounding TCNs makes scrutiny difficult. Under UK law, recipients of TCNs are not allowed to confirm they’ve received one, adding to the opacity of the process.

What Happens if Apple Loses?

If Apple’s legal challenge fails, it could be forced to re-engineer iCloud systems to allow for selective access to encrypted user data. Privacy advocates warn that even if intended for legitimate UK investigations, the mere existence of such a capability could be exploited by other governments, including authoritarian regimes.

That would represent a major change in the international norms around encryption, long considered a vital defence against cybercrime, identity theft, and state surveillance. Tech companies may also face rising pressure to comply with similar orders from other jurisdictions, effectively weakening global data security.

Apple, whose products are used by millions of businesses worldwide, including SMEs and regulated sectors such as law and healthcare, could face reputational and operational risks if seen to compromise its security guarantees. Likewise, any weakening of encryption on WhatsApp would create immediate concerns for its 2 billion users, many of whom rely on it for confidential client communications.

Concerns for Business and International Relations

The political and diplomatic fallout has already begun. For example, in the US, two members of Congress wrote to Director of National Intelligence Tulsi Gabbard demanding the UK order be retracted, citing it as a “dangerous attack on US cybersecurity.” Gabbard later confirmed the order had not been disclosed in advance and is now being investigated by US intelligence agencies.

Some US officials have also reportedly warned that if the UK proceeds with such unilateral data access powers, it could damage intelligence-sharing arrangements within the Five Eyes alliance, a cornerstone of post-war Western security cooperation between the UK, US, Canada, Australia, and New Zealand.

For UK businesses, especially those handling sensitive data or operating internationally, any weakening of encryption by major providers could raise compliance questions, particularly under GDPR and other global privacy regimes.

A Fight Over Principles, Technology, and Power

At the heart of the legal fight is a clash between national security objectives and digital privacy rights, one that is shaping the future of how encrypted technologies are governed. While the UK government argues it needs the tools to investigate the most serious crimes, tech firms warn that any mechanism to bypass encryption inherently undermines its effectiveness.

The case also illustrates how laws written in 2016 are now being applied in a more technologically advanced and politically volatile world, where global tech platforms often sit at odds with national authorities. As WhatsApp’s Cathcart noted (as reported by the BBC), what happens in this case “will set the tone for the future of privacy and encryption around the world.”

What Does This Mean For Your Business?

If the tribunal ultimately sides with the UK government, the immediate consequence would be the normalisation of secret orders compelling companies to undermine their own security architecture. This would not only damage the trust users place in services like iCloud and WhatsApp, but could expose everyday business communications, customer records, and proprietary information to new vulnerabilities. For UK businesses, especially those in sectors such as finance, law, and healthcare where confidentiality is critical, the legal uncertainty and technical risk of weakened encryption could prove costly. Questions around compliance with global data protection rules would also increase, with firms forced to consider whether UK-hosted services still meet international privacy standards.

For tech companies, the case highlights an escalating pattern of legislative tension between national governments and global platforms. A ruling in favour of the Home Office could embolden other countries to issue similar demands, gradually eroding the integrity of end-to-end encryption across borders. Smaller or newer service providers without the legal resources of Apple or Meta may find it harder to resist such pressures, creating an uneven playing field and amplifying risks for users across the board.

On the other hand, for law enforcement and intelligence services, the case reflects long-standing frustrations with encrypted platforms that make it harder to investigate serious crimes. The Home Office maintains that the powers in question are only used where strictly necessary, and subject to independent oversight. However, the lack of transparency, particularly around the existence and use of Technical Capability Notices, remains a sticking point for civil liberties groups and privacy advocates.

Ultimately, the outcome of Apple’s legal challenge will shape more than just the UK’s approach to digital surveillance. It will set a precedent for how democratic societies balance the competing demands of public safety, privacy, and technological progress. With major platforms now formally aligning against the government’s position, the case has become a defining test of both legal authority and digital ethics. Whatever the ruling, its impact is likely to resonate well beyond the UK courtroom.

WhatsApp has announced it will begin showing adverts on its platform for the first time, with new features designed to monetise its Updates tab while keeping personal messages private.

Ads Appear Only in the Updates Tab

In a major shift for the Meta-owned app, WhatsApp will now allow businesses to promote content in two key areas of the Updates tab, i.e., Status and Channels. These features are separate from private chats and have been used by more than 1.5 billion people daily, according to Meta.

The new monetisation rollout includes three core features, which are:

1. Ads in Status – short-lived posts similar to Instagram Stories, where businesses can now place adverts that link directly to a chat.

2. Promoted Channels – businesses and creators will be able to pay to have their Channels suggested to users browsing the directory.

3. Channel Subscriptions – a new paid model allowing followers to access exclusive content for a monthly fee. WhatsApp will take a 10% commission.

“Today we’re introducing new features in WhatsApp’s Updates tab, which is home to both Channels and Status,” the company said. “We believe the Updates tab is the right place to introduce this, in a way that doesn’t interrupt personal chats.”

Targeting and Privacy

Meta says it has designed the new advertising features with “privacy as the core principle”. The company is keen to stress that end-to-end encryption still applies to all messages, calls and personal Status posts, meaning they cannot be accessed or used for ad targeting.

Instead, WhatsApp says it will use a limited set of data to decide which ads to show. This includes:

– The user’s country or city.

– App language settings.

– Channels followed.

– Interaction with other ads.

Those who have linked WhatsApp to Meta’s Accounts Centre (used to manage connected services like Facebook and Instagram) may also see more tailored ads, based on preferences or activity from across those platforms. But Meta insists phone numbers and private content will not be shared.

“We will never sell or share your phone number to advertisers,” WhatsApp stated. “Your personal messages, calls and groups you are in will not be used to determine the ads you may see.”

A Strategic Move Towards Business Monetisation

While this is WhatsApp’s first foray into advertising, the move aligns with Meta’s wider strategy to turn the messaging app into a multi-purpose business platform. With public social media engagement falling and users spending more time in private messages and small group updates, WhatsApp’s Status and Channels features represent prime digital real estate.

“We’ve been talking for years about how to build a business on WhatsApp in a way that doesn’t interrupt personal chats,” Meta said. “Now the Updates tab is going to be able to help Channel admins, organisations and businesses build and grow.”

WhatsApp’s Status feature is already used by millions of individuals and companies to post 24-hour content. Channels, meanwhile, offer a one-way broadcast model, popular with news outlets, influencers and service providers—that is now gaining commercial functionality.

By adding adverts and subscription models, Meta is following a monetisation blueprint more common in Asia, where super-apps like WeChat have long blurred the line between messaging, content, and e-commerce.

Businesses and Advertisers

For UK businesses using WhatsApp to communicate with customers, the change brings new opportunities to drive engagement and visibility directly within the app.

Ads in Status updates could, for example, allow a local retailer to post a promotion with a “click to chat” button that starts a WhatsApp conversation. Promoted Channels will enable brands to push their content to new audiences, while paid subscriptions may appeal to creators and media companies offering exclusive updates.

“By showing ads in Status, you can help your business get discovered by new customers and make it easy for them to start a conversation with you, all within WhatsApp,” the company explained.

Although detailed campaign tools are still limited compared to Facebook or Instagram, early reports suggest that WhatsApp will offer businesses insights into click-through rates and some performance data.

Meta says it will gradually roll out the new advertising features over the coming months, starting with select markets. It has not confirmed which countries will be first, but WhatsApp’s Updates tab is known to be more popular in Latin America, India, and Southeast Asia than in the UK or Europe, where adoption of Channels and Status has been slower.

A Careful Balancing Act for WhatsApp

While WhatsApp says personal chats will remain untouched, the introduction of adverts may be seen by some as a departure from the app’s original ethos. For example, WhatsApp was once strongly anti-ads, famously stating in a 2012 blog: “Advertising isn’t just the disruption of aesthetics… at every company that sells ads, the user becomes the product.”

That stance softened after Meta’s acquisition in 2014. With WhatsApp now home to billions of users but little direct revenue, monetisation has become a priority. For example, back in 2023, Meta introduced tools such as WhatsApp Business API, click-to-chat ads from Facebook, and shopping catalogues, but this is the first time that on-platform adverts will be shown within the app itself.

Optional

Meta has also confirmed that the new advertising and subscription options are optional for users. For example, if someone chooses not to follow Channels or browse Status updates, they won’t see any ads. “If you only use WhatsApp to chat with friends and loved ones, there is no change to your experience at all,” the company said.

Even so, some privacy experts have warned that the move could set a precedent. Marijus Briedis, CTO at NordVPN, has noted: “Ads in WhatsApp aren’t just a distraction—they’re a signal of what may come next. Meta’s so-called ‘optional’ data-sharing is rarely as optional as it sounds.”

Regulation

Regulators in the EU are also likely to take a close look at the rollout, especially in light of GDPR requirements and Meta’s ongoing legal challenges over data processing and consent.

More changes are expected as the advertising features evolve. For now, it seems that WhatsApp is just focusing on “ads in the right place”, limiting the impact on its core messaging service. “We also don’t want to have a service that has lots of settings… that’s complexity too,” the company said, confirming that core app tabs like Updates and Channels will remain fixed.

What Does This Mean For Your Business?

It has to be said that this first step into advertising marks a real turning point for WhatsApp and the direction of Meta’s wider messaging strategy. By ringfencing adverts within the Updates tab, the company is attempting to walk a careful line between unlocking new revenue streams and preserving user trust. Whether that balance holds will depend on how the rollout is received across different markets, particularly in Europe, where expectations around privacy and digital intrusiveness remain high.

For UK businesses, the changes bring a new channel for visibility, especially for those already using WhatsApp to handle customer enquiries or share updates. The ability to promote Status content or gain traction through sponsored Channels could offer low-friction ways to reach engaged users, with a direct path into conversation. It may also help smaller firms compete more easily with larger brands in a messaging-first environment. However, uptake will likely depend on how seamlessly these features integrate with the current business tools and how effective the targeting proves in practice.

Advertisers and creators also now have a fresh route into an app with over a billion daily users, but one that has historically resisted the very concept of commercialisation. Meta’s challenge is to prove that these new ad formats deliver value without compromising the simplicity and privacy that have long defined WhatsApp’s appeal. Meanwhile, competitors like Signal and Telegram are likely to be watching very closely and may well seize on any missteps to reinforce their own positioning as ad-free alternatives.

For users, the WhatsApp experience remains largely unchanged for now, provided they steer clear of Channels and Status. However, questions about long-term data use, the permanence of ad features, and the possible expansion of monetisation elsewhere in the app are unlikely to fade. WhatsApp’s keen to promote the message that ads will stay away from personal chats. However, the test will be whether that promise still feels true a year from now.

A new set of documents known as The OpenAI Files claims to reveal troubling internal dynamics at OpenAI and could shape how the world approaches artificial general intelligence (AGI) governance in the years ahead.

An Urgent Moment for AI Oversight

The release comes at a critical juncture. For example, OpenAI CEO Sam Altman has stated publicly that AGI (AI systems capable of performing most human jobs) is likely to arrive within just a few years. In a February 2024 blog post, OpenAI said it was “quite plausible that AI systems will outpace human expert skill levels in most domains within the current decade.”

Such predictions have fuelled both investment and anxiety. This is because, while the potential productivity gains from AGI are vast, so too are the risks, ranging from misinformation and bias to large-scale unemployment or misuse by malicious actors. However, critics argue that the current leading AI companies, including OpenAI, are operating with too little external scrutiny.

That’s where The OpenAI Files come in. Curated by two US-based non-profit watchdog organisations, i.e. The Midas Project and the Tech Oversight Project, the archive aims to fill a growing accountability gap by exposing how OpenAI’s trajectory has diverged from its original non-profit mission.

Who’s Behind the Archive?

The Midas Project and the Tech Oversight Project describe themselves as independent technology watchdogs. Both are known for promoting stronger corporate accountability in Big Tech and for campaigning on issues such as data privacy, algorithmic bias, and monopoly power.

Their collaboration on The OpenAI Files resulted in a publicly accessible dossier of internal documents, board communications, statements, and media coverage. For example, this includes over 10,000 words of commentary and contextual analysis. The goal, according to the Midas Project, is to “shed light on the ethical and governance failures at OpenAI that have broader implications for AI safety and democracy.”

Has OpenAI’s Founding Principle Shifted?

The central claim of the archive is that OpenAI has quietly shifted from its founding principle, i.e. to build AI that benefits all of humanity, to what is essentially a commercial structure prioritising investor returns. For example, in 2015, OpenAI began as a non-profit with a mission to ensure AGI would be “used for the benefit of all.” However, after introducing a capped-profit model in 2019 to attract investment, and launching high-profile partnerships such as the one with Microsoft, critics say the company has become less transparent and more profit-driven.

The archive also revisits the dramatic 2023 ousting (and rapid reinstatement) of CEO Sam Altman by the OpenAI board. Internal tensions reportedly stemmed from disagreements over safety culture and the pace of development. The board’s lack of explanation at the time, followed by a shake-up that brought in pro-growth allies, raised concerns about whether safety was being sidelined.

One former board member, Helen Toner of Georgetown University’s Centre for Security and Emerging Technology, is quoted in the archive alleging that Altman “withheld information” and “gave inaccurate information” to the board—an assertion he denies.

A Playbook for Responsible AI

Despite the retrospective tone of the materials, rather than being like a post-mortem, The OpenAI Files could be seen as more of a call to action. The curators argue that this transparency can inform a better governance model for AGI, and one that includes:

– Independent oversight of frontier AI companies.

– Binding commitments to public benefit.

– Worker and user representation in decision-making.

– Global cooperation on safety research and risk standards.

The Tech Oversight Project notes: “We need robust regulatory guardrails, but we also need a cultural shift—companies building AGI must be accountable to the public, not just shareholders.”

AI Developers and the Public

If adopted, such reforms would significantly alter how OpenAI and its peers operate. For example, developers may face slower release cycles, stricter testing requirements, and mandatory transparency mechanisms. Companies would also need to re-centre their objectives around public interest, which is something OpenAI once championed.

For users and society, these shifts could bring reassurance that powerful AI tools won’t be developed behind closed doors or guided solely by profit. It could also mean better protection against misuse, clearer redress mechanisms, and fairer access to AI-generated benefits such as job creation, medical breakthroughs, or educational access.

As AGI becomes less hypothetical and more imminent, the stakes are getting higher. In its own 2023 governance update, OpenAI acknowledged: “We don’t expect everyone to trust us by default. We plan to earn that trust.” The watchdog groups may agree but also argue that trust must be backed by verifiable commitments, not just promises.

Other Safeguards and Challenges

The archive’s release adds to growing momentum for external safeguards. For example, in the past year, governments and international organisations have stepped up efforts to regulate frontier AI. The UK held the first global AI Safety Summit in 2023, while the EU has finalised its AI Act, a comprehensive legal framework for high-risk systems. In the US, the Biden administration introduced an AI executive order in late 2023 calling for more audits and red-teaming (testing of system vulnerabilities).

There are also proposals from academics and policy experts for third-party licensing bodies, global AI treaties, and mandatory ethics boards inside AI labs.

That said, change won’t be easy. Major tech firms have pushed back against regulation, warning that overreach could stifle innovation. Critics of The OpenAI Files also point out that the documents reflect selective curation, not an exhaustive or balanced record. OpenAI itself has defended its structure, saying the capped-profit model allows it to raise capital while still pursuing safety goals. “We believe strongly in alignment research and broad benefit,” the company wrote in a recent update, adding that it has made safety “a core focus of our technical agenda.”

Even so, the release has clearly struck a nerve, sparking fresh debate over who should shape the future of AI, and on what terms.

What Does This Mean For Your Business?

The timing of The OpenAI Files places added pressure on AI leaders to re-examine not just their business models but their obligations to society. For OpenAI and others pushing towards AGI, transparency and public accountability are essential (not optional) to maintain legitimacy in the eyes of governments, users, and regulators alike. These archives offer a detailed and accessible case study on how corporate structure, leadership decisions, and investor influence can shift priorities away from public interest. Whether companies accept or resist the lessons outlined remains to be seen, but the conversation is clearly changing.

For UK businesses, the implications are wide-reaching. For example, as AI systems become more capable, more embedded, and potentially more autonomous, their influence on supply chains, labour, customer experience, and regulatory exposure will grow. Businesses may welcome AGI’s productivity gains, but only if they feel the technology is being developed responsibly and without hidden risks. Greater clarity on AI safety protocols, decision-making processes, and ethical frameworks could help smaller firms and public sector bodies feel more confident about adoption. It could also influence procurement choices, data handling policies, and the future of work more broadly.

Also, users, whether individuals or employees, may stand to gain or lose the most. For example, a governance framework focused on ethical leadership and shared benefit could help protect against exploitative uses of AI, ensure wider access to new capabilities, and support democratic oversight as systems grow in complexity and power. That would require sustained effort from policymakers, watchdogs, and AI firms alike, as well as a shift away from the current reliance on self-regulation. The OpenAI Files may not offer all the answers, but they appear to provide quite a detailed starting point for anyone serious about building a future where AGI development is guided by more than market momentum.

Scattered Spider, a teenage-led (mainly UK and US-based) hacking group has begun targeting insurance companies, sparking fresh warnings from cyber security experts.

Google’s Threat Intelligence Group (GTIG) confirmed multiple US insurance firms have recently suffered attacks matching the group’s methods. Known for breaching major retailers like M&S and Tiffany, the group uses tactics such as phishing, SIM-swapping, and MFA fatigue to bypass identity checks and helpdesk protocols.

Two incidents in early June, affecting Philadelphia Insurance and Erie Insurance, show the threat is real and growing. GTIG warned that the group tends to focus on one sector at a time, and insurance firms are now clearly in its sights. Experts believe UK providers could be next.

Unlike ransomware gangs, Scattered Spider relies on social engineering to move fast and exploit human error. “They don’t need advanced exploits,” said Jon Abbott, CEO of ThreatAware. “They get in by tricking people – not by breaking software.”

To stay safe, insurers and other businesses should strengthen helpdesk verification, use phishing-resistant MFA, and monitor for unusual login activity. Above all, building a culture of security awareness is essential to stop attackers in their tracks.

A small municipality in Finland is switching off fossil fuels and switching on a new era of green heating, thanks to an innovative sand-based energy storage system.

Pornainen Turns to Thermal Storage to Ditch Oil and Gas

The Finnish town of Pornainen, just over an hour from Helsinki, has become the first community to heat its buildings entirely using a sand battery, officially the world’s largest of its kind. Developed by clean-tech startup Polar Night Energy, the sand-filled system went live in early 2025 and now powers the district heating network serving the town’s 5,000 residents.

Heating Bills Slashed and Fossil Fuels Replaced

Crucially, the project slashes heating emissions by an estimated 70 per cent and replaces imported fossil fuels with stored renewable energy. According to Polar Night Energy’s COO, Liisa Naskali, “This project is a powerful example that effective solutions for mitigating climate change do exist. Combustion is not a sustainable option for the climate or the environment.”

How a Sand Battery Actually Works

At the heart of the system is a 13-metre-tall, 15-metre-wide insulated steel silo filled with 2,000 tonnes of crushed soapstone, an industrial by-product similar to sand. The sand battery stores thermal energy, not electricity. During periods of high renewable electricity availability e.g., such as windy or sunny days, clean power is routed to a resistive air heater, which warms air to around 600°C. That hot air is then circulated through pipes embedded in the sand, storing energy as heat.

How It Works

The silo’s insulation is key and once charged, Polar Night Energy says the sand can retain its high temperature for weeks, or even months, with only minor heat loss. When heating is needed, cooler air is pumped through the silo, absorbing heat from the sand and passing it through a heat exchanger. This warms water for the town’s district heating system, which supplies homes, businesses, and even public buildings such as swimming pools.

Charging the system from ambient temperature takes several days, but in reality, the battery is topped up continually from available surplus energy. This means it rarely cools fully, enabling more efficient long-term performance.

Heating for a Week (Or a Month) On One Charge

The Pornainen sand battery has a power output of around 1 MW and a total energy storage capacity of 100 MWh. Polar Night Energy estimates that’s enough to heat the entire town for a week during winter, or up to a month in summer when demand is lower. In a cold Nordic climate heavily reliant on heating, that’s a significant step.

This installation builds on an earlier, smaller 2022 pilot by the company in Kankaanpää. That earlier model had just one-tenth the capacity of the Pornainen system and served as a proof of concept. Now, Polar Night Energy is scaling up, with further deployments under discussion across Finland and other European nations.

Emissions and Efficiency Gains

According to the town’s heating provider, Loviisan Lämpö, the sand battery will reduce the use of oil by 100 per cent and cut consumption of wood chips (the previous main heat source) by 60 per cent. This is expected to save around 160 tonnes of carbon dioxide emissions per year, a major environmental gain for such a small town.

The battery also contributes to energy security by reducing reliance on imported fossil fuels and improving resilience during energy price spikes. With around 50 per cent of Europe’s final energy consumption still used for heating (most of it fossil-fuel-based), thermal energy storage could play a crucial role in decarbonisation strategies.

Thermal Efficiency Higher Than Chemical Batteries

Round-trip thermal efficiency of the sand battery is reported to be around 85–90 per cent, significantly higher than many chemical battery systems. While it cannot return energy to the grid as electricity (yet), a pilot project is underway to develop a Power-to-Heat-to-Power (P2H2P) version by 2026, which would allow stored heat to be converted back into power during peak demand periods.

Who It’s For?

The sand battery is primarily targeted at district heating providers, industrial users, and large buildings or campuses. Applications include heating water for municipal systems, generating hot air for industrial drying or manufacturing, and producing process steam for sectors such as chemicals, food production, or pharmaceuticals.

It’s also suitable for facilities aiming to participate in grid balancing or reserve energy markets. The system can adjust its charging rate to respond to energy price changes or availability, using AI-based optimisation, an approach developed with telecoms provider Elisa.

Sand Means It’s Scalable

Also, because sand is cheap, abundant, and not in demand for construction, the system is also highly scalable and cost-effective. “We aim to provide a viable alternative to fossil fuels without introducing new dependencies,” said co-founder Markku Ylönen.

Competitors and Comparisons

It’s worth noting here that Polar Night Energy isn’t the only company exploring thermal energy storage. For example, German firm Kraftblock uses a proprietary granulate material to store heat at temperatures of up to 1,300°C for industrial processes. Also, in the US, Antora Energy has developed carbon-block-based thermal storage to power industrial operations, while Siemens Gamesa has experimented with volcanic rock as a medium for grid-scale storage in Hamburg.

However, sand, or in this case, crushed soapstone, offers a unique combination of affordability, local availability, and self-insulating properties. It’s also inert, safe, and non-toxic, making it suitable for use near residential areas.

Compared to lithium-ion batteries, which degrade over time and require mining of critical materials, sand batteries have far lower lifecycle impacts and do not face the same safety concerns. That said, they are limited to heat-based applications and cannot directly power electrical appliances or vehicles.

Challenges and Criticisms

One of the main criticisms of thermal storage systems is that they don’t address all aspects of the energy transition, particularly where electricity, rather than heat, is the end use. Converting heat back into power is possible but involves efficiency losses and greater technical complexity.

There are also infrastructure constraints. Not all towns have district heating networks in place and retrofitting them can be costly and disruptive. In the UK, for example, the dominance of individual gas boilers and a lack of widespread district heating limits immediate applicability.

Another concern is scalability. While sand batteries are modular and cost-effective at medium scale, it remains to be seen whether they can fully replace existing heating systems in large urban areas or high-density cities.

That said, advocates argue that sand batteries are not a silver bullet but a strategic piece of the puzzle. “Of course, we alone cannot solve the whole problem of climate change,” said Liisa Naskali. “But we need different solutions, and our sand battery is one of them.”

What Does This Mean For Your Organisation?

For now, the technology remains most viable in towns or industrial zones with established district heating systems, but its potential reach is growing. As more renewable electricity becomes available and the need for long-duration storage intensifies, thermal solutions like sand batteries are likely to gain traction. What makes Pornainen’s example compelling is that it shows how even a small town can take meaningful climate action using infrastructure that is low-cost, low-maintenance, and relatively simple to integrate.

For UK businesses, particularly those involved in manufacturing, utilities, or large-scale building management, sand-based thermal storage could offer a new route to decarbonisation. While domestic adoption faces barriers due to the limited rollout of district heating, commercial and industrial users may find opportunities to cut fuel costs and emissions by incorporating heat storage alongside renewable generation. Energy-intensive sites with processes that rely on steam or hot air could benefit most immediately, especially where peak demand or volatile energy pricing creates operational risks.

There’s also a clear advantage in terms of supply chain resilience. For example, by using abundant, non-toxic materials and sidestepping the rare minerals used in conventional batteries, sand storage avoids many of the geopolitical and environmental concerns linked to lithium and cobalt. Also, for those designing future-ready infrastructure, the option to add electricity recovery later may future-proof investments made today.

While sand batteries won’t replace all forms of energy storage, they do challenge the assumption that high-tech solutions must always rely on complex chemistry or cutting-edge electronics. In an energy landscape that needs diversity and flexibility, simplicity might turn out to be one of the most powerful tools we have.

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