“The Earth's heat can deliver renewable energy 24 hours a day, 365 days a year. So, it is no wonder more and more large investors see the potential in what we do. We are happy that our partners are supporting us as we continue our fast-paced growth,” said Baseload Capital's CEO, Alexander Helling.
This round of financing, amounting to US$24 million, is one of the more substantial within the impact sector in Sweden. Together with a credit facility of US$25 million secured in the spring, Baseload Capital has raised just over SEK 500 million this year. According to a list in Sweden’s most influential business newspaper, Dagens Industri, this is comparable to last year's fifth-largest funding round in the impact sector.
Existing investors in Baseload Capital's financing round are Gullspång Invest, Chevron Technology Ventures – the venture arm of Chevron, one of the world’s largest energy companies – and Breakthrough Energy Ventures. The latter firm invests in technologies needed to reach net-zero emissions by 2050 and was founded by Bill Gates in 2015. The additional investors in the latest round are the energy technology company Baker Hughes and Nefco, the Nordic Green Bank.
“Geothermal energy is an ideal source of stable, renewable base energy that complements solar and wind. It will be a crucial piece of the puzzle when the world needs to rapidly switch to a sustainable energy supply,” added Magnus Brandberg, Baseload Capital's Chairman of the Board, and Co-Founder of Gullspång Invest.
Baseload Capital works closely with local affiliates to finance, plan and build facilities for extracting geothermal energy – the heat stored in the Earth's interior. Unlike other forms of renewable energy, such as solar or wind, geothermal energy functions independently of the weather or daily fluctuations. It is therefore well suited for supplying large energy systems with a so-called baseload – a constant electricity supply needed for a stable system. In addition to base power, the subsurface water can also be used to extract minerals such as lithium, creating an ecosystem of added benefits for the planet.
“The key to reaching net-zero emissions is innovation in new, sustainable energy production methods. We are proud to work with Baseload Capital as they bring geo-thermal energy production to new parts of the world,” commented Carmichael Roberts, Breakthrough Energy Ventures.
The US$25 million credit facility secured by Baseload Capital this spring came from London-based Sustainable Development Capital. The credit provides flexible financing for commissioning new geothermal power plants, while the new convertible loan is intended for Baseload Capital's continued expansion. Some of this capital will also be used to redeem the company's green bond.
It is noteworthy that several investors are involved from across the energy sector. These include Chevron, one of the world's biggest oil companies, and Baker Hughes, a global leader in energy technologies. As the use of geothermal energy increases, the expertise of these companies in deep drilling and geology will be vital for rapidly expanding Baseload Capital’s capacity.
“Geothermal energy can make a significant difference to global emissions. That's why we’re keen to collaborate with organisations like Baseload Capital that can help accelerate the deployment of geothermal projects worldwide in an attractive and cost-effective manner,” concluded Ajit Menon, Vice President of Geothermal at Baker Hughes.
Baseload Capital has the right to decide on the potential conversion of the loan into shares.