Eavor obtains $138M to advance geothermal technology

Key Takeaways:

• Canada Growth Fund Inc. (CGF) is committing up to $138 million to Calgary-based Eavor Technologies to accelerate the commercialization of its innovative closed-loop geothermal system, Eavor-Loop.
• Since CGF’s initial $90 million investment in 2023, Eavor has made major technical advances at its first commercial-scale project in Germany, including new drilling technologies and proprietary systems like Eavor-Link AMR and Rock-Pipe.
• CGF’s investment supports the retention of Eavor’s leadership and talent in Canada, aligning with its broader mandate to scale homegrown clean technologies and strengthen the country’s low-carbon innovation ecosystem.

The Whole Story:

Canada Growth Fund Inc. (CGF) and Eavor Technologies Inc. announced a financing commitment by CGF of up to $138 million to accelerate the development and commercial deployment of Eavor’s geothermal technology.

Founded in 2017, Eavor is an advanced geothermal technology company based in Calgary, Alberta. Eavor has proven pilot versions of its proprietary closed-loop geothermal system (Eavor-Loop) and a first commercial project is under construction in Geretsried, Germany. In connection with the transaction, CGF executed a definitive agreement committing it to invest up to $138 million: $89 million on financial close and $48 million upon the achievement of certain milestones.

Eavor-Loop leverages Canada’s talent and expertise to build the next generation of geothermal innovation. CGF first invested $90 million in Eavor in October 2023, through a direct commitment in its Series B preferred equity fundraise. Since CGF’s initial investment, Eavor has progressed construction of its first commercial-scale facility in Geretsried and achieved major milestones including successfully intersecting wells using its new Eavor-Link Active Magnetic Ranging (AMR) system; deploying its proprietary insulated drill pipe to enable well construction in high-temperature environments; setting, sidetracking, and retrieving whipstocks to drill deep multilateral wells; and implementing its proprietary Rock-Pipe technology to seal the multilateral wells.

CGF’s scaling capital will continue to facilitate the Company’s Canadian presence by ensuring the majority of its leadership and employee base remain in Canada and leverage Canada’s drilling knowledge and know-how to catalyze the next generation of global geothermal innovation. Eavor’s continued growth will secure its innovation and employment footprint in Canada at its Calgary, Alberta headquarters.

“Our continued investment in Eavor, as the company completes the first commercial-scale application of its technology, is a prime example of CGF’s steadfast commitment to scaling up Canadian companies and investing at a critical stage of their development,” said Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management Inc. (CGFIM). “CGF was established to drive innovation and competitiveness across new and traditional sectors of Canada’s industrial base, and Eavor is well aligned with our mandate.”

CGF has announced 13 investments since its launch in June 2023 and has committed approximately $2.7 billion to Canadian projects and companies. It has a mandate to invest in Canadian clean technology businesses that are scaling innovative technologies at the demonstration or commercialization stages of development.

“We are grateful for CGF’s continued commitment to our Canadian company, which uses Albertan expertise to drive innovation in the development of new advanced geothermal technologies,” said John Redfern, Co-Founder and CEO of Eavor. “Eavor has achieved significant development and technical milestones in scaling clean, reliable, dispatchable heat and power using its proprietary closed loop geothermal system, and we look forward to building on this progress in the months ahead.”

CGF is a $15 billion arm’s length investment vehicle that helps attract private capital to build Canada’s clean economy by using investment instruments that absorb certain risks, in order to encourage private investment in efficient low carbon projects, technologies, businesses, and supply chains.