Making a landmark expansion into the geothermal sector, renowned oil companies, Chevron and BP, have reportedly headlined a $40 million investment round by Canada-based geothermal energy company, Eavor.
According to reliable sources, Eavor has developed a new kind of technology that could reasonably be deployed in many places across the globe.
As per by Felipe Arbelaez, the SVP of Zero Carbon Energy at BP, the company has seen Eavor’s potential to be correspondent with its expanding solar and wind portfolios and believes that technology such as Eavor’s has the capability to provide geothermal heat and power that would help unlock a low carbon future.
Eavor’s new type of geothermal technology creates an underground “radiator”. According to Eavor’s President and Chief Executive, John Redfern, the predictability of the system, established in field trails in collaboration with Royal Dutch Shell, is scalable and repeatable and this makes it much like solar and wind installations.
Redfern has further stated that the technology is not an exploration game similar to the traditional geothermal or the traditional oil and gas. It is a repeatable production process, and as such it does not require the same rate of return.
The investment reportedly represents a key move into an area that was otherwise neglected by energy companies, which have largely considered solar and wind projects in their efforts for diversifying away from fossil fields. This marks BP’s first investment into geothermal energy and also signifies a re-entry into the field for Chevron, which divested its geothermal assets in 2016.
As per reliable sources, Eavor has earlier only accepted venture capital and angel investment. The $40 million funding will be utilized for further research and development and is poised to help in scaling the price-competitiveness of the power system.