Calgary-based startup Eavor, which offers geothermal technologies for producing energy, has raised approximately $80 million CAD in what it called the first close of its Series B round.
A spokesperson for Eavor told BetaKit that of the $80 million, $50 million came from Austrian oil and gas company OMV as the lead investor. The remaining $30 million came from existing investors in Eavor, which included BP Ventures, Eversource Energy, and Vickers Venture Partners.
“The European heat market is a primary focus for Eavor, starting with our projects in Geretsried and Hannover.”
Eavor previously said in March that it was pursuing a Series B funding round with a goal of raising $145 million this year. The company’s spokesperson added that it expects to have $500 million in total funding raised to date after the anticipated completion of its Series B round.
OMV has also penned a commercial agreement with Eavor. It established OMV as a key partner with preferred licensing terms, access to services, and development support.
As a key partner, OMV said it will initially focus on the deployment of Eavor’s technology in Austria, Romania, and Germany. As The Logic reported, Eavor has yet to commercialize its technology in Canada.
Founded in 2017 by John Redfern and Paul Cairns, Eavor’s solution is designed to produce energy using heat generated within the earth, or geothermal energy.
According to the company, Eavor’s flagship product, Eavor-Loop, circulates a benign working fluid that is completely isolated from the environment in closed-loop, through a massive radiator underneath the surface of the ground. The radiator collects heat from the natural geothermal gradient of the earth via conduction.
With its project partners, Eavor said it will begin drilling operations at its Europe site near Bavaria, Germany this summer. The project would be the first implementation of Eavor’s loop technology, according to the company.
“The European heat market is a primary focus for Eavor, starting with our projects in Geretsried and Hannover,” said Eavor’s executive vice president Robert Winsloe. “The agreement with OMV will supercharge the commercialization of Eavor-Loop and the full decarbonization of district heating and cooling in Europe and beyond.”
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OMV will use Eavor’s technology to support its transition to green energy. According to OMV, it intends to move from generating power from oil, gas, and chemicals to innovative and sustainable fuels, chemicals, and materials.
By becoming a “low-carbon business,” OMV said it aims to achieve net zero greenhouse-gas emissions by 2050 at the latest.
Redfern said Eavor has been working on this partnership with OMV for over a year.
“We look forward to building on this foundation with OMV, to deliver true energy independence, security and autonomy to Europe,” the company said in a press release.
Eavor previously secured a $132.1-million CAD ( €91,6 million EUR) grant in March from the European Union’s European Innovation Fund for its upcoming geothermal project in Bavaria. The company also raised $50.7 million CAD in 2017 and received a $6.7-million CAD grant from the Government of Canada in 2019.
Featured image courtesy Eavor.