With a vision to unlock the world’s largest untapped energy resource, Baseload Capital secures major funding and aims for a half-gigaton reduction in emissions

Baseload Capital, the Swedish company scaling up geothermal energy worldwide, today announced the closing of its €53M Series B round of financing.

The Series B round was led by an investment from infrastructure fund ENGF. The main investor behind ENGF is Ingka Investments – the investment arm of Ingka Group, the largest IKEA retailer. Other shareholders participating in this round include energy technology company Baker Hughes – whose investment was announced in 2023 – Nefco, Breakthrough Energy Ventures, and Gullspång Invest.

Baseload Capital pushes the boundaries for geothermal development by addressing underutilized resources and building a global collaborative portfolio of projects to scale the entire industry. Funds will be used to commercialize the company’s current portfolio of projects.

Geothermal energy is the world’s largest untapped energy resource: clean and always on, available 24/7. Baseload Capital aims to unlock this largely unexploited global potential, estimated at 200 GWe and 5000 GWth with existing technology. Installed global capacity today is 16.3 GWe and 173 GWth.

According to the U.S. Department of Energy, geothermal resources leveraged by technologies from the oil and gas industry could provide 90-300 GW of clean firm capacity by 2050 in the U.S. alone. While the geothermal industry drills about 800 wells a year, it lags far behind the oil and gas industry that drills about 60,000-70,000 annually. Together with companies like Baker Hughes, Baseload Capital is accelerating geothermal development by incorporating over 100 years of knowledge, technology and experience from the oil and gas industry.

As one of the first European investments by Breakthrough Energy Ventures (BEV), Baseload Capital also carries a certain quality mark, as BEV only invests in companies that can reduce emissions by at least half a gigaton of greenhouse gases.

Baseload Capital and its Baseload Power subsidiaries operate in mature geothermal markets like Iceland, the US, and Japan, as well as in emerging markets like Taiwan. In the latter, taking an active part in shaping the first-ever geothermal policies.

“The trust these renowned partners place in us is a testament both to what we at Baseload can achieve and to the fact that the geothermal industry is ready to scale up globally,” said Alexander Helling, CEO of Baseload Capital. 

“We are delighted to be working with Baseload Capital and the other investors on this important energy infrastructure platform,” said Oskar Backman, Managing Director of ENGF. “We strongly believe in the sector as it offers stable and carbon-free baseload electric capacity to the grid. Baseload has demonstrated its capabilities to develop a portfolio of geothermal projects, and we are thrilled to support the company through its next phase in commercializing its pipeline.

As a business we are committed to help support the green transition and this partnership helps us deliver on our promise.”

“As a dispatchable source of power that can be harnessed from anywhere on the planet, geothermal has the potential to transform the energy landscape by providing a constant stream of electricity,” said Carmichael Roberts, Breakthrough Energy Ventures. “Baseload Capital is helping to accelerate the deployment of geothermal projects worldwide and showing the world how geothermal can meet the planet’s heat and power needs.” 

“Geothermal is a crucial piece of the world’s energy mix, and we are excited to collaborate with Baseload Capital to scale up this critical technology,” said Ajit Menon, vice president of geothermal energy, Oilfield Services and Equipment at Baker Hughes. “Baker Hughes is committed to supporting lower carbon solutions through strategic collaborations with innovative companies like Baseload Capital.”  

Vinge and DNB Markets acted as advisors in the Series B transaction.