Eavor raises $182M in financing for its geothermal energy system
The federal government committed $90 million of the funds.
Calgary-based Eavor Technologies, which develops advanced geothermal energy solutions has secured $182 million in financing.
From who? The equity round was led by OMV AG, with participation from Canada Growth Fund, Japan Energy Fund, Monaco Asset Management and Microsoft’s Climate Innovation Fund.
Existing investors BDC, bp Ventures, Eversource Energy, Temasek and Vickers Venture Partners contributed and supported the funding round, while Chubu Electric Power Co., Inc. completed the conversion of their debentures.
Why it matters: It will enable Eavor to accelerate the development and deployment of its innovative geothermal technology.
Eavor has developed a patented Eavor-Loop™ technology, which they refer to “as a closed-loop system that circulates a benign working fluid through a network of underground drilled passages, creating a continuous heat exchanger that taps into the natural heat of the Earth.”
The upshot, according to the company, is that this tech has the potential to provide a consistent source of clean energy, free from intermittent production limitations, while also offering a significantly smaller environmental footprint compared to traditional geothermal systems.
What they’re saying: "We are delighted to have the support of our new investing partners and the continued commitment of existing partners while we advance the commerciality of our Eavor-Loop™ technology, beginning with our first full-scale project already in construction at Geretsried in Germany,” said John Redfern, president and CEO of Eavor. “The funding received here today emboldens our efforts to deploy Eavor-Loop™ systems worldwide helping to drive us all towards a sustainable, reliable, and bright energy future.”
The money talks: “An important aspect of CGF's mandate is to invest in Canadian clean technology companies at the commercialization stage of development," said Mr. Patrick Charbonneau, CEO of CGF Investment Management, in a statement. "Eavor, a homegrown clean technology champion, has the potential to accelerate decarbonization of global heat and power markets, and we're proud to support this Alberta-based company as they scale up and grow their business worldwide."
“We are pleased to work with Eavor to support their development through the Microsoft Climate Innovation Fund,” said Adrian Anderson, general manager of renewables and carbon-free energy at Microsoft. “On our journey to becoming carbon negative by 2030, we recognize that innovation and collaboration are fundamental to how we build a more sustainable world. We look forward to Eavor’s innovations in geothermal energy solutions to scale the market with consistent and reliable sources of clean energy.”