CGF promises another $48 million upon the completion of undisclosed milestones.
Calgary-based cleantech startup Eavor has secured at least $89 million CAD in a second hefty investment from Canada Growth Fund (CGF), the federal government’s clean energy investment fund.
CGF made the investment to help Eavor accelerate the development and commercial deployment of its geothermal technology, and will provide an additional $48 million upon the completion of undisclosed milestones, for a total investment of approximately $138 million. The scaling capital will ensure that the majority of Eavor’s leadership and employee base remain in Canada, according to a statement from CGF.
CGF says it has committed approximately $2.7 billion to Canadian projects and companies to date.
BetaKit has reached out to Eavor for more details on the milestones, but did not hear back by press time.
“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,” Eavor co-founder and CEO John Redfern said in a statement.
Founded in 2017 by Redfern, Paul Cairns, and Jeanine Vany, Eavor’s tech is designed to produce energy using heat generated within the earth, or geothermal energy. The startup says it has the potential to provide a consistent and resilient source of clean energy, while also offering a significantly smaller environmental footprint compared to traditional geothermal systems.
RELATED: Canada Growth Fund injection tops Eavor’s Series B at $182 million
CGF first invested $90 million in Eavor through a direct commitment in the company’s Series B preferred equity fundraise in October 2023, which brought the round total up to $182 million. The initial investment was also the first-ever out of CGF since its establishment in June 2023.
Eavor planned to use the capital to accelerate the deployment of its flagship product, Eavor-Loop, which it now has pilot versions of, while its first commercial deployment is currently being constructed in Geretsried, Germany.
Eavor-Loop circulates a benign working fluid that is completely isolated from the environment in a 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.
Eavor’s home province of Alberta is trying to become an data centre powerhouse, but the power-hungry projects could potentially strain the province’s electrical grid and significantly drive up carbon emissions. Redfern noted to the CBC that tech companies have been signing contracts for clean power to power artificial intelligence (AI) data centres, and that he expects that to spur more demand for geothermal energy.
The CGF is a $15-billion fund first introduced in the federal government’s 2022 budget to bridge the liquidity gap in the Canadian cleantech market and offer support to companies at the commercialization and scale-up stages. CGF says it has announced 13 investments since its launch, committing approximately $2.7 billion to Canadian projects and companies.
Feature image courtesy Eavor.