The $24 million convertible loan raised by Baseload Capital from several investors will be used for the continued expansion of the company.
Swedish Climate Investment Fund, basic capital, raised $24 million in new funding, corresponding to 250 million Swedish krona. Behind the convertible loan are both existing and new investors, including Breakthrough Energy Ventures, founded by Bill Gates.
This funding round is one of the largest in the impact sector in Sweden. With a $25 million credit facility secured in the spring, Baseload Capital has raised just over half a billion Swedish kronor this year. According to a list published in Sweden’s most influential business newspaper, Dagens Industri, this is comparable to last year’s fifth largest funding round in the impact sector.
“Earth heat can provide renewable energy 24 hours a day, 365 days a year. So it’s no wonder that more and more big investors see the potential in what we do. We are pleased that our partners are supporting us as we continue our rapid growth,” said Alexander Helling, CEO of Baseload Capital.
Current investors in Baseload Capital’s funding round are Gullspång Invest, Chevron Technology Ventures – the venture capital arm of Chevron, one of the world’s largest energy companies – and Breakthrough Energy Ventures. The latter venture invests in the technologies needed to achieve net zero emissions by 2050 and was founded by Bill Gates in 2015. Additional investors in the latest round are energy technology company Baker Hughes and Nefco, Nordic Green Bank.
“Geothermal energy is an ideal source of stable and renewable baseload energy that complements solar and wind. It will be a crucial piece of the puzzle when the world has to move quickly towards a sustainable energy supply,” said Magnus Brandberg, Chairman of the Board of Baseload Capital and co-founder of Gullspång Invest.
Baseload Capital works closely with local affiliates to finance, plan and build mining facilities geothermal energy – the heat stored inside the Earth. Unlike other forms of renewable energy, such as solar or wind, geothermal energy operates independently of weather or daily fluctuations. It is therefore well suited for supplying large energy systems with what is known as a base load – a constant power supply necessary for a stable system. In addition to basic power
, groundwater can also be used to extract minerals such as lithium, creating an ecosystem of additional benefits for the planet.
“The key to achieving net zero emissions is innovation in new methods of producing sustainable energy. We are proud to work with Baseload Capital as they bring geothermal power generation to new parts of the world,” says Carmichael Roberts, Breakthrough Energy Ventures.
The $25 million credit facility secured by Baseload Capital this spring comes from London-based firm Sustainable Development Capital. The credit provides flexible financing for the commissioning of new geothermal power plants, while the new convertible loan is for Baseload Capital’s continued expansion. Part of this capital will also be used to redeem the company’s green bond.
It should be noted that several investors are involved throughout the energy sector. These include Chevron, one of the world’s largest oil companies, and Baker Hughes, a global energy technology leader. As the use of geothermal energy increases, these companies’ expertise in deep drilling and geology will be essential to rapidly expanding Baseload Capital’s capacity.
“Geothermal power can make a significant difference to global emissions. That’s why we want to partner with organizations like Baseload Capital who can help accelerate the deployment of geothermal projects around the world in an attractive and cost-effective way,” says Ajit Menon, vice president of geothermal energy at Baker Hughes.
Baseload Capital has the right to decide on the possible conversion of the loan into shares.
Source: basic capital