#Germany #carbon capture #Geothermal Power #Factor2 Energy #Duisburg

Factor2 Energy Secures $9.1 Million to Unlock Scalable Geothermal Power

In an exciting development for the renewable energy sector, Factor2 Energy, a pioneering German company based in Duisburg, has announced the successful completion of its seed funding round, raising an impressive $9.1 million in venture capital. This financial boost is critical for the company's groundbreaking approach to generating geothermal power through the utilization of geologically stored carbon dioxide (CO₂).

The funding round was spearheaded by At One Ventures, with significant investments also coming from High-Tech Gründerfonds (HTGF), Gründerfonds Ruhr, Verve Ventures, and Siemens Energy Ventures. The capital raised will be instrumental in driving the technological advancements necessary for Factor2 Energy's CO₂-based geothermal power generation system. In addition, the company plans to develop a pilot facility that will showcase the scalability and feasibility of their innovative approach.

Factor2 Energy's leadership team is composed of industry veterans Michael Wechsung, Joerg Strohschein, and Felix Boehmer, who previously collaborated at Siemens Energy. Together, they developed a novel method for harnessing geothermal energy that utilizes CO₂ as the primary working fluid, replacing traditional water or brine. This methodology not only enhances the efficiency of geothermal power generation but also significantly reduces operational costs.

Kendra Rauschenberger, General Partner at Siemens Energy Ventures, expressed her enthusiasm for advancing this technology towards commercialization. She noted, “Geothermal energy is a reliable, renewable power source, and we are eager to work with Factor2 Energy to tailor our turbines to meet the specific needs of this emerging market.”

How the Technology Works

Factor2 Energy's innovative approach enables the utilization of CO₂ stored in natural reservoirs or designated carbon capture and storage sites. By injecting CO₂ deep into porous geological formations, the gas absorbs the surrounding geothermal heat, causing its density to decrease. This thermal siphon effect creates natural circulation, allowing the CO₂ to rise back to the surface without the need for mechanical pumps, thereby minimizing auxiliary energy consumption and complexity.

At the surface, the heat extracted from the CO₂ is transformed into electricity via a direct-drive CO₂ turbine system. After this energy conversion, the cooled CO₂ is injected back into the reservoir, establishing a closed-loop system that facilitates continuous energy generation while maintaining long-term CO₂ storage.

Compared to conventional geothermal systems predominantly based on water, Factor2's technique could potentially yield up to double the energy output under similar geological conditions, while also demanding lower capital investments (CAPEX).

Felix Boehmer, the CEO and co-founder, stated, “Our model facilitates emission-free, efficient electricity production that serves as a stable baseload power source, making it particularly appealing for traditional oil and gas companies looking to diversify their operational assets.” He highlighted that their entire system leverages proven technologies from the oil and gas sector, benefiting from years of drilling and geological expertise.

Advantages of CO₂-based Geothermal Solutions

One of the standout features of Factor2 Energy's methodology is that it allows access to a wider array of geological sites, thereby enhancing operational simplicity. The use of CO₂ paves the way for accessing shallower, cooler geothermal resources that would not be feasible with conventional systems, leading to reduced drilling costs.

Moreover, this innovative technology can effectively generate electricity in areas where traditional geothermal methods may fail, making it a competitive option in terms of Levelized Cost of Electricity (LCOE). It also simplifies operations by eliminating the need for secondary fluids or complex binary systems. Through the strategic use of both designated CO₂ storage sites and natural CO₂ deposits, Factor2 Energy is set to transform these geological formations into active energy assets.

Helen Lin, a partner at At One Ventures, emphasized the urgent need for affordable baseload energy in the context of broader electrification. She explained how the physics of CO₂ as a geothermal working fluid doubles energy production while maintaining operational efficiency and reducing capital expenses. These techno-economic factors conspire to create a favorable LCOE at sites that would otherwise be economically unviable. “We are excited to support Factor2 in bringing this critical technology to market and unlocking the potential of geothermal energy as a dominant source of green baseload power,” she remarked.

Investment manager Timo Bertsch from HTGF echoed this sentiment, remarking, “We chose to invest in Factor2 Energy due to their innovative technology that vastly expands global geothermal potential and uniquely enables the transformation of CCS sites into power plants. Their successful proof of concept in a geologically complex environment showcases the robustness and scalability of their approach. We believe Factor2 Energy is poised to play a crucial role in the global energy transition.”

About Factor2 Energy

Founded by a former Siemens Energy team following a successful proof of concept, Factor2 Energy is a German climate technology firm dedicated to advancing CO₂-based geothermal systems. This innovative approach significantly improves energy output from moderate temperature geothermal resources without the need for hydraulic fracturing or deep drilling. Supported by major climate investors, Factor2 Energy's mission is to promote scalable, clean baseload geothermal energy generation while facilitating permanent carbon storage.

As global energy demand continues to rise and the urgency for sustainable solutions grows, Factor2 Energy's pioneering technology offers a promising pathway toward a cleaner, more sustainable energy future.