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Sweden's Baseload Capital is playing a key innovation role in developing new, sustainable energy production methods stemming from geothermal energy.
Sweden's Baseload Capital is playing a key innovation role in developing new, sustainable energy production methods stemming from geothermal energy.

Press release -

SWEDISH BASELOAD CAPITAL RAISES USD 24 MILLION INVESTMENT TO BOOST GEOTHERMAL

“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,” says Alexander Helling, CEO of Baseload Capital, a member of the Blue portfolio.

This round of financing, amounting to USD 24 million, is one of the more substantial within the impact sector in Sweden. Together with a credit facility of USD 25 million secured in the spring, Baseload Capital has raised just over half a billion Swedish kronor 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,” says 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 base load – 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 geothermal energy production to new parts of the world,” says Carmichael Roberts, Breakthrough Energy Ventures.

The USD 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 organizations like Baseload Capital that can help accelerate the deployment of geothermal projects worldwide in an attractive and cost-effective manner,” says 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.

For more information, please contact
Alexander Helling, CEO of Baseload Capital
alexander.helling@baseloadcap.com

or
Magnus Brandberg, Chairman of the Board, Baseload Capital and co-founder, Gullspång Invest
magnus@gullspang.vc

or
Kristina Hagström-Ilievska, CMO of Baseload Capital
kristina.hagstrom@baseloadcap.com

About Thermal power and geothermal energy

Thermal power is an affordable form of renewable energy that can be extracted from either geothermal resources or waste heat from, for example, industry. Geothermal energy (from the Greek geo, earth, thermos and heat) is energy stored in the Earth's crust. It originally comes from the formation of the Earth plus continuous decay in the Earth's interior. People have traditionally used this energy in places where hot water naturally comes up to ground level, like in Iceland. However, by drilling extremely deep, one kilometer or more, and circulating liquid in the channel, the high temperature can be used for heating or electricity production. Thermal power should not be confused with cogeneration/combined heat and power.

About Baseload Capital

Baseload Capital is a specialized investment entity that funds the deployment of heat power worldwide. Our portfolio of companies in Iceland, Japan, Taiwan and the U.S. work with local communities and power companies to permit, build and commission heat power plants. Baseload Capital aims to help countries quickly switch from fossil fuels to renewable energy sources. Greater energy independence can lead to more sustainable societies and a planet in balance.

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About Blue

Headquartered in Stockholm, Sweden, Blue is an investment company that serves as a catalyst for innovations that can solve some of the major challenges facing our planet and all living on it. Blue’s mission is to find, engage with, invest in and support entrepreneurs, innovators and businesses driven by the desire to deliver tangible, sustainable solutions that can benefit human wellbeing and planetary health.www.blueab.se

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David Noble

David Noble

Press contact PR & Communications Director Public Relations & external and internal communications +447785302694