Eavor, a leader in scalable geothermal technology, has announced that it has raised $40 million in investment. This capital will be used for the R&D of new geothermal installations related to its Eaver-Loop technology, as well as for the company’s overall business development.
With its Eavor-Loop technology, the earth’s natural heat is used as a giant rechargeable battery. The ultimate goal is to supply approximately 10 million homes by 2030.
Eavor develops Eaver-Loop, a global project
40 million USD of additional investments
Eavor, the leader in scalable geothermal technology, has announced the end of its funding campaign on February 16, 2021. In total, six companies are investing $40 million in the innovative Eavor-Loop technology. These include BP Ventures, Chevron Technology Ventures, Temasek, BDC Capital, Eversource and Vickers Venture Partners.
The money will be used mainly in R&D with, for example, field tests of drilling in deep and hot igneous rocks. Investments will also be used for general business development, through feasibility studies and preparation of projects to the point where drilling can commence.
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Bringing the cost of clean energy to a competitive price
Not only will the company prosper and reduce production costs in the long run. But it will also bring the cost of clean energy to a competitive price in all markets.
John Redfern, President and CEO of Eavor Technologies Inc. confirms this perspective:
“I’m delighted that funding for this negotiation campaign will allow us to bring the cost of clean, dispatchable energy to a level of universal competitiveness.”
1 billion USD in funds to develop the facilities
According to BloombergNEF, geothermal only has about 15.6 GW of installed capacity at the end of 2019. It is therefore currently a niche energy source. For comparison, solar power is 644 GW.
That’s why Eavor wants to expand the areas where geothermal energy can be used. The group currently has a pipeline of potential projects in many countries. Among them are Germany, the Netherlands, Japan and the United States.
Each project will be financed separately by the companies involved in its development. But Eavor is still planning a $1 billion-plus fund called Eavor Green. The goal is to help finance multiple geothermal installations.
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A promising technology for the oil and gas industry
Eavor-Loop: How does it work?
The principle is to circulate a completely isolated benign working fluid in a closed loop. This is done through a massive underground radiator. This “radiator” simply collects heat from the Earth’s natural geothermal gradient by conduction.
The whole thing forms an underground loop of about 2 to 3 kilometers. The water then circulates around the closed loop while being heated naturally by the earth.
Use of the thermosiphon phenomenon
This cycle is essentially powered by thermodynamics. In this sense, the cold water pushes the less dense warm water towards the surface. This circulates the fluid without the need for a pump. This phenomenon is known as thermosiphon.
Ultimately, the goal is to have enough capacity to supply 10 million homes by 2030.
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A complete energy solution
Replace extraction fuels?
By the constancy of its heat harvest, it could replace fossil fuels and nuclear power plants. A boon for the hydrocarbon sector, whose oil and gas exploration and production is in long-term decline. Their skills in geology and drilling can be used here.
Felipe Arbelaez, PB’s Senior Vice President Zero-Carbon Energy, said in part:
“We see the potential for Eavor to be complementary to our growing wind and solar portfolios. Technology like Eavor’s has the potential to generate geothermal energy and heat and help unlock a low-carbon future.”
Complementary to intermittent renewable energies?
The nature of its design also makes Eavor-Loop a form of energy storage. It is therefore complementary to intermittent energy sources, such as wind and solar energy.
The Eavor-Loop solution represents the world’s first truly scalable form of clean, dispatchable energy. This, while being an affordable technology and relatively easy to implement. In short, one more step towards energy resilience.