Chevron, Baseload Capital set up geothermal JV

A unit of US energy giant Chevron (NYSE:CVX) and Sweden-based investment firm Baseload Capital are forming a joint venture to develop geothermal projects in the US and have already selected the Weepah Hills mountain range in Nevada as a location for their first project.

The financial terms of the deal were not disclosed.

Chevron New Energies and Baseload Capital will pursue development opportunities in Esmeralda County where the potential for geothermal energy has been already explored, a press release said.

The partnership between Chevron and Baseload Capital started in 2021 when Chevron Technology Ventures invested in the Stockholm-based firm as part of a fund-raiser. The companies also launched a pilot utilising waste heat from existing oilfield operations at Chevron’s San Ardo oil and gas field in California which started operations in July.

Baseload Capital is a private investment company focused on the development and operation of low-temperature geothermal and heat power assets. It has portfolio companies in Iceland, Japan, Taiwan and the US.

The Swedish firm earlier in 2022 secured a EUR-25-million (USD 26.5m) senior debt facility to finance a portfolio of existing and pipeline projects.

Chevron New Energies was set up in 2021 to focus on establishing lower carbon businesses in carbon capture, utilisation and storage (CCUS), hydrogen, renewable fuels, offsets and other emerging areas. The unit backs Chevron’s commitment to invest over USD 10 billion in lower-carbon businesses through 2028.

(EUR 1 = USD 1.061)

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