Chevron, through its Chevron New Energies unit, has formed a joint venture (JV) with Swedish investment entity Baseload Capital to develop geothermal projects in the US.
The parties have selected their first project in Weepah Hills, Nevada. They will also explore the development potential in Esmeralda County where geothermal exploration and research were taken up in the past.
As part of the agreement, Chevron and Baseload Capital will collaborate to advance the possibilities of tapping geothermal energy, which includes the identification of suitable prospects for development and operations.
Besides, the parties intend to develop the next generation of geothermal technologies from pilot to commercial scale.
Chevron New Energies offsets and emerging vice president Barbara Harrison said: “We are pleased to be partnering with Baseload Capital on this joint venture and believe we are in a prime position to lead in the geothermal space where we will lean on our experience and technical strengths.
“We believe that to make the geothermal ecosystem a reality, we must take these important steps through collaboration and partnership, and this example with Baseload Capital is a great start towards pursuing our lower carbon goals for the future.”
The joint venture intends to advance scalable new geothermal technologies to access the earth’s core heat by leveraging the companies’ geothermal operational experience.
In addition, the companies plan to utilise the core competencies from the traditional oil and gas industry, particularly in the areas of wells, drilling, subsurface, and completions for geothermal technologies.
According to the companies, geothermal energy offers a stable source of renewable power that will also facilitate other lower carbon solutions.
Baseload Capital CEO Alexander Helling said: “It is time for the geothermal industry to take its place as an obvious part of the energy mix. Geothermal should be the new normal, becoming as standard to the energy mix as goretex is for outdoor clothes. Right now, everything is in the industry’s favour to move from niche to mainstream.
“We have no time to waste and no excuse for not picking up the pace here and now. Together with Chevron we believe that the transition to a greener planet, with the help of geothermal, is going to be much faster.”
In early 2021, Chevron, through Chevron Technology Ventures, invested in Baseload Capital and commenced a pilot utilising waste heat from existing oilfield operations at its San Ardo oil and gas field in California.
