BP and Chevron invest in Canadian geothermal technology

The two oil majors headlined the funding round into the company’s Eavor-Loop technology, which uses the natural heat of the earth to provide a constant flow of energy.

As part of Eavor’s geothermal method, fluids are heated by the earth and circulated in a closed network of underground wellbores, typically 3km to 4km below the earth’s surface to harness the natural energy source.

Liquid travels in the pipes, installed via advanced drilling techniques from the oil sector, from the aboveground facility, through the hot underground environment, before returning to the top of the loop. The hot liquid is then converted into electricity or transferred to a district heat grid.

Relying on this concept, Eavor says its geothermal technology is scalable because it can “go anywhere” to generate dispatchable power with zero carbon emissions. Its energy storage capability is also expected to be complementary to less stable renewable sources like wind and solar.

BP senior vice president of zero-carbon energy Felipe Arbelaez said: “We see Eavor’s potential to be complementary to our growing wind and solar portfolios. Technologies such as Eavor’s have the potential to deliver geothermal power and heat and help unlock a low carbon future.”

In addition to Eavor-Loop’s environmental benefits, the consistency of its heat harvesting gives it the potential to replace traditional forms of baseload power such as coal and nuclear.

The investment marks a key move into geothermal, which is slowly growing in prominence. It is BP’s first investment into geothermal energy and re-entry for Chevron after the company sold its geothermal assets in 2016.

The investments, and the partnerships formed around them, are expected to aid the commercialisation of the technology and help Eavor scale its extensive project pipeline.