Baseload Capital, based in Stockholm, has raised €53 million in a Series B funding round, spearheaded by ENGF, to enhance its geothermal energy projects. The funding round saw participation from several prominent stakeholders, showcasing the growing interest in renewable energy sources. This investment marks a significant milestone for Baseload Capital, emphasizing the potential of geothermal energy in the global energy mix.
Baseload Capital had previously secured funding from various investors, but this latest round, backed by ENGF, which is primarily supported by Ingka Investments, highlights a larger commitment to renewable energy. Historically, the geothermal sector has seen interest from companies like Baker Hughes, who continue to contribute their expertise. The consistent support underscores the industry’s potential to scale globally, as envisioned by Baseload Capital.
The primary investor in this round, ENGF, is backed by Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer. Other significant participants in this round include Baker Hughes, Breakthrough Energy Ventures, and Gullspång Invest.
Geothermal Energy: Untapped Potential
Geothermal energy remains one of the largest untapped resources globally, offering clean, 24/7 energy. Baseload Capital, under CEO Alexander Helling, aims to unlock this potential, which is estimated at 200 GWe and 5000 GWth using existing technology. The current global installed capacity pales in comparison, standing at 16.3 GWe and 173 GWth. The U.S. Department of Energy projects that by 2050, geothermal resources, combined with oil and gas technologies, could contribute 90-300 GW of clean energy annually in the U.S.
Industry Collaboration and Expansion
The geothermal industry drills approximately 800 wells annually, significantly lagging behind the oil and gas sector, which drills around 60,000-70,000 wells each year. Companies like Baker Hughes play a pivotal role in bridging this gap by sharing over a century of industry knowledge and technology. Ajit Menon, Vice President of Geothermal Energy at Baker Hughes, emphasized the importance of geothermal energy in the global energy mix and expressed enthusiasm about collaborating with Baseload Capital.
Baseload Capital, along with its Baseload Power subsidiaries, operates across mature geothermal markets such as Iceland, the US, and Japan, in addition to emerging markets like Taiwan. In Taiwan, the company is instrumental in shaping the country’s first geothermal policies. Oskar Backman, Managing Director of ENGF, highlighted the sector’s potential to provide stable, carbon-free baseload electric capacity to the grid and reaffirmed ENGF’s commitment to supporting Baseload Capital through its commercialisation phase.
Geothermal energy’s role in the global energy landscape is expanding, with Baseload Capital at the forefront of this growth. The recent €53 million funding round underscores the industry’s potential and the trust placed in Baseload Capital’s ability to commercialise its portfolio. With continued support from key stakeholders and industry leaders, geothermal energy could become a cornerstone of sustainable energy solutions worldwide.
