Japan's Chubu invests in geothermal start-up Eavor

Japan’s Chubu Electric Power Co Inc (TYO:9502) has agreed to make a direct investment in Canadian geothermal start-up Eavor Technologies Inc, which is looking to commercialise its closed loop geothermal technology Eavor-Loop.

The deal for the investment, whose size was not disclosed, is expected to complete shortly. It will see a representative of the Japanese company join Eavor’s board of the directors.

Chubu said on Friday that this is its first investment in a geothermal company abroad.

Eavor’s technology circulates water in a closed loop underground to efficiently extract heat. The Canadian firm says it offers a highly scalable source of heat and power, while addressing the typical exploration risk.

“The opportunity and plan for global deployment of this technology requires partners like Chubu,” remarked John Redfern, president and chief executive at Eavor, whose current backers include Vickers Venture Partners, bp Ventures, Temasek and Chevron Technology Ventures, among others.

“A technology such as this is a true game-changer and represents a potential transformation to the world’s energy stack, addresses climate change as well as energy autonomy and independence issues simultaneously,” commented Chubu senior executive managing officer Hiroki Sato.

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