Baseload Capital Raises $24 Million To Bolster Geothermal Energy

Swedish climate investment firm Baseload Capital has made a $24 million investment in geothermal energy. Thanks to a $25 million loan facility it secured with Sustainable Development Capital of London in the spring, Baseload Capital has received more than $45 million. While the credit allows for flexible financing for the commissioning of future geothermal power projects, the new convertible loan will be utilised for Baseload Capital’s ongoing expansion and to redeem the company’s green bond.

One of the key investors in the round is Breakthrough Energy Ventures, a company formed by Bill Gates that funds the development of technologies that will enable net-zero emissions by the year 2050.

The existing investors in Baseload Capital’s financing round include Gullspng Invest and Chevron Technology Ventures, the venture arm of the large international oil company Chevron. Another notable investor is the international energy technology corporation, Baker Hughes. Geothermal energy doesn’t depend on changes in the weather like other sustainable energy sources do. Working together with local affiliates in Sweden, Baseload Capital finances, plans, and constructs facilities to harvest geothermal energy—the heat trapped beneath the earth’s surface.

Alexander Hilling, CEO of Baseload Capital, said: “The earth’s heat can produce renewable energy every day of the year, 365 days a year. Therefore, it is understandable why more and more significant investors are interested in what we do. We appreciate the assistance from our partners as we maintain our rapid expansion. Baseload and SDCL Energy Efficiency Income Trust agreed to a convertible term facility arrangement for €25 million (about $26.87 million) in May. The company will use the loan to refinance its operational assets, and assets that are under construction or are in the late stages of development, and to finance projects that are in the pipeline. Additionally in May, Baseload started running its fourth geothermal plant in Japan, which will generate 350 MWh of electricity yearly.”

Geothermal energy is heat that is produced beneath the earth’s surface. This energy is carried to the earth’s surface via water or steam. Geothermal energy can be used to create power or be used for heating and cooling purposes. In some circumstances, baseload energy and related services can be provided by geothermal power projects on a short- and long-term basis.