Chevron Increases Geothermal Investment with Baseload Capital

Chevron, a major oil company based in the United States, is significantly increasing its investment in geothermal power. This is being achieved through an investment in Baseload Capital, a Swedish developer specializing in low-temperature geothermal and heat power projects.

Pressure for Diversification in the Energy Sector

Oil companies are facing growing pressure to explore new business avenues. This shift is driven by the global move towards renewable energy resources. The aim is to power industries while mitigating climate-related disasters caused by rising greenhouse gas emissions.

This transition is crucial as the planet experiences the effects of a warming temperature.

Investment Group

Alongside Chevron, the investment round included participation from Breakthrough Energy Ventures, a clean energy investment firm backed by prominent billionaires. Gullspang Invest AB, a Swedish investment group, also contributed to the funding.

Recent Geothermal Investments

This investment in Baseload Capital follows Chevron’s recent commitment to Eavor, another geothermal technology developer. Breakthrough Energy Ventures has also recently invested in Dandelion Energy, a company originating from Google’s X development unit.

Leveraging Oil and Gas Expertise

Dandelion Energy and Eavor represent a growing trend. Numerous startups are now utilizing knowledge gained from the oil and gas industry to harness geothermal resources. Applications range from providing baseload energy to powering home heating and cooling systems.

Other companies involved in this effort include Fervo Energy, GreenFire Energy, and Sage Geosystems, all focused on generating power from heat.

Affordability of Heat Power

Chevron highlighted that heat power represents a cost-effective form of renewable energy. It can be derived from geothermal sources or recovered from waste heat.

CTV’s Core Venture Fund

The investments in both Baseload and Eavor are being funded by Chevron Technology Ventures’ (CTV) Core Venture fund. This fund specifically targets companies with technologies that can enhance Chevron’s core operations. Areas of focus include operational efficiency, digitalization, and lower-carbon initiatives.

Pilot Project Plans

The two businesses are collaborating on pilot projects to test and refine the technology. Potential project locations include existing Baseload operations in Japan, Taiwan, Iceland, and the United States.

The financial details of the investment have not been publicly disclosed.

Baseload CEO Statement

“We were seeking a strategic investor to accelerate our deployment in key markets,” stated Alexander Helling, CEO of Baseload. “Chevron is an ideal partner, complementing our existing ownership group and bringing valuable expertise in drilling, engineering, and exploration. These capabilities will expedite our ability to deploy heat power and improve our operational approach.”

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