Eavor Technologies Inc., a company specialised in closed-loop geothermal technology, will receive up to CA$138mn ($100.2mn) in additional financing from Canada Growth Fund Inc. (CGF), according to a joint announcement made on June 3. This new commitment aims to accelerate construction of Eavor’s first commercial-scale project located in Geretsried, Germany.
A two-phase financial commitment
The total funding is structured in two tranches: approximately CA$89mn will be disbursed at financial close, while a further CA$48mn will be provided upon achieving specific operational milestones. The CGF previously invested CA$90mn ($65.3mn) in October 2023 through a Series B preferred equity raise.
Founded in 2017 and headquartered in Calgary, Eavor is developing its proprietary Eavor-Loop™ system, which operates as a closed-loop geothermal solution without requiring hydraulic fracturing or underground reservoirs. This system was validated in pilot projects, and its deployment in Germany marks the transition to a full-scale commercial phase.
Canadian technology and expertise at the core
Since the initial investment, Eavor has achieved several technical milestones, including the successful intersection of wells using its active magnetic ranging system and the deployment of insulated drill pipe designed for high-temperature environments. The company also employed its Rock-Pipe™ technology to seal multilateral wells.
The CGF emphasised that this latest investment is intended to maintain Eavor’s strategic operations in Canada, notably by keeping the majority of its leadership and workforce in Calgary. The fund stated that this initiative aligns with its mandate to support the growth of Canadian companies advancing technologies at a critical stage.
A targeted sector investment strategy
“As the company completes the first large-scale commercial deployment of its technology, our continued support for Eavor is a clear example of CGF’s commitment to growing Canadian businesses,” said Yannick Beaudoin, President and Chief Executive Officer of Canada Growth Fund Asset Management.
Since its launch in June 2023, the CGF has made 13 investments totalling approximately CA$2.7bn ($1.96bn). The fund focuses on Canadian clean technology companies at demonstration or advanced commercialisation stages.
