Oil and Gas giants Chevron and BP back renewable energy start-up, EavorTechnologies.

On16^th Feb, 2021,Canadian geothermal company Eavor Technologies on Tuesday announced USD 40 million funding round. The companies backing the start-up include ventures from the likes of BP and Chevron with big Oil and Gas companies looking to invest in renewable energy to look for sustainable energy sources and diversify their portfolio.

Geothermal energy is a type of renewable energy produced from underground heat. The U.S. Department of Energy calls geothermal a “vital clean energy resource. Geothermal energy emits little to no greenhouse gases and is a nascent energy source. Adoption rate for geothermal energy differs from country to country on the basis of many factors.

Eavor is looking to commercialize its technology backed with the new funding. The company said that the on demand nature of the its energy means it can act as an energy provider company and can power the grid 24/7/365.

Eavor’sinnovative technology targets the issues that has hindered the growth of geothermal energy. The issues include the need for volcanic temperatures and highly permeable aquifers.Eavor technologies provide a completely closed loop system environment. With the use of a benign working fluid, Eavor uses the geothermal energy to create electricity. As per the company, Eavor has the advantage of no fracking, no GHG emissions, no earthquake risk, no water use, no produced brine or solids, and no aquifer contamination. Unlike Wind and Solar energy, Eavor’sEavor-Loop is not intermittent, and can easily fit in someone’s backyard.

The company has a project site located near Rocky Mountain House, Alberta, with drilling and construction expected to begin in July. The company claims that with a single installation,Eavor-Loop produces heat equivalent to 16,000 homes.

The investment from the ventures of Chevron and BP has come at a time when the oil and gas companies are looking to diversify their portfolio.

Felipe Arbelaez, senior vice president zero carbon energy at BP, said in a statement, “We see Eavor’s potential to be complementary to our growing wind and solar portfolios. Our expertise and experience also makes BP well equipped to support Eavor’s growth.”

Apart from the notable names like Chevron and BP, other backers include Temasek, BDC Capital, Eversource and Vickers Venture Partners.

Eavor President and CEO John Redfern said in a statement, “The involvement of companies such as BP and Chevron represents a fantastic endorsement of our technology, the progress we have made to date and the promise for its global scalability.”