Baseload Capital, a Stockholm-based company focused on advancing geothermal energy worldwide, has successfully closed a €53 million Series B funding round. Led by ENGF, an infrastructure fund with backing from Ingka Investments, the investment arm of Ingka Group (the largest IKEA retailer), this round marks a significant milestone in the company’s mission to scale up geothermal energy as a reliable and sustainable power source. The capital injection will be used to commercialize Baseload Capital's existing portfolio of geothermal projects, driving growth in both mature and emerging markets.

Key Investors and Partners

The Series B round was spearheaded by ENGF, with Ingka Investments as the key investor. Additional backing came from well-established stakeholders in the energy sector, including Baker Hughes, Breakthrough Energy Ventures, Gullspång Invest, and Nefco. Each of these investors brings a unique value to Baseload Capital's ambitious agenda of unlocking the potential of geothermal energy. Notably, Baker Hughes, a global energy technology company, announced its investment earlier in 2023, highlighting its commitment to supporting Baseload's geothermal expansion with its century-long expertise in the oil and gas sector.

Baseload’s CEO, Alexander Helling, emphasized the significance of this funding round, noting that the trust shown by these prominent investors demonstrates the potential and readiness of the geothermal sector to scale globally. The investments are a testament to the company's ability to drive meaningful change in the clean energy space, contributing to the overall transition to a greener economy.

Baseload Capital’s Vision: Scaling the World's Largest Untapped Energy Resource

Geothermal energy is recognized as one of the world's most underutilized energy resources, offering clean, constant, 24/7 power. Baseload Capital’s goal is to harness this untapped resource and make a global impact. The current global installed capacity for geothermal energy stands at 16.3 GWe (gigawatts electric) and 173 GWth (gigawatts thermal). However, estimates suggest a far greater potential, with 200 GWe and 5,000 GWth technically available through existing technologies. By leveraging expertise from partners like Baker Hughes, Baseload Capital is working to accelerate the pace of geothermal development, thereby closing this gap.

Global Operations and Expansion Plans

Baseload Capital and its subsidiary, Baseload Power, are already active in mature geothermal markets such as Iceland, the United States, and Japan. In these regions, the company is deploying innovative geothermal projects that capitalize on the naturally occurring heat beneath the Earth's surface to generate electricity. Beyond these established markets, Baseload is also targeting emerging opportunities, including in Taiwan, where the company is actively shaping the country's first-ever geothermal policies.

This broad geographical footprint allows Baseload Capital to apply its expertise across different regulatory environments and geological conditions, increasing the chances of success in scaling its geothermal operations.

A Collaborative Effort to Drive Geothermal Innovation

The partnership between Baseload Capital and Baker Hughes underscores a strategic collaboration aimed at incorporating over 100 years of technological advancements from the oil and gas industry into the geothermal space. This partnership is poised to drive innovation and efficiency, with Baker Hughes bringing critical knowledge of well-drilling techniques and subsurface engineering to geothermal applications.

Ajit Menon, Vice President of Geothermal Energy at Baker Hughes, expressed optimism about this partnership, stating that geothermal power has the potential to reshape the global energy landscape. Menon emphasized Baker Hughes' commitment to supporting Baseload Capital in accelerating the commercialization of geothermal projects around the world.

ENGF's Managing Director, Oskar Backman, echoed these sentiments, highlighting geothermal's capacity to provide stable, carbon-free electricity to power grids. Backman noted that Baseload Capital has demonstrated its ability to develop and execute a portfolio of geothermal projects, which aligns with ENGF’s commitment to supporting sustainable infrastructure platforms.

Baseload Capital's successful €53 million Series B funding round marks a significant step in the company's journey to scale geothermal energy globally. With the backing of prominent investors and partners, Baseload is well-positioned to commercialize its existing projects and expand into new markets. As the world faces increasing demand for reliable and low-carbon energy sources, geothermal is emerging as a vital component of the global energy mix, with Baseload Capital leading the charge in unlocking its full potential. This investment not only validates the company’s vision but also underscores the readiness of the geothermal industry to make a significant contribution to the green energy transition.