Factor2 Energy, a company located in Duisburg, Germany, is making significant strides in the field of geothermal energy. Recently, the company announced that it has completed its seed funding round, raising $9.1 million in venture capital. This funding round was primarily led by At One Ventures, with additional support from prominent investors such as High-Tech Gründerfonds (HTGF), Gründerfonds Ruhr, Verve Ventures, and Siemens Energy Ventures.
The funds obtained from this initiative will be crucial for Factor2 Energy as they focus on advancing their unique CO₂-based geothermal power generation system. The company plans to develop a pilot power plant to demonstrate how this cutting-edge technology can be effectively scaled up. The leadership team at Factor2 Energy—composed of Michael Wechsung, Joerg Strohschein, and Felix Boehmer—has an impressive background, having previously collaborated at Siemens Energy. It is there that they invented an innovative method of harnessing geothermal energy by using carbon dioxide (CO₂) as the primary working fluid, which is a departure from the traditional methods that rely on water or brine.
The technology developed by Factor2 Energy represents a breakthrough in clean energy generation. It utilizes both natural CO₂ reservoirs and those set aside for Carbon Capture and Storage (CCS). The process begins when the captured or naturally occurring CO₂ is injected into deep geological formations that are porous enough to hold the gas securely. As this CO₂ absorbs heat from the surrounding rock, it becomes less dense and triggers a natural upward flow, known as the thermosiphon effect. This allows the CO₂ to rise to the surface through production wells. Notably, this process eliminates the need for subsurface pumps, reducing energy consumption and simplifying the overall system.
Once the CO₂ reaches the surface, the heat it carries is converted into electricity using a turbine that the CO₂ itself directly powers. After this transformation, the CO₂ is cooled and injected back into the reservoir, creating a closed-loop cycle that enables continuous electricity generation while also ensuring long-term storage of CO₂. This innovative method can potentially generate up to twice the power output compared to traditional water-based geothermal systems, all while needing less investment upfront, referred to as capital expenditures or CAPEX.
One of the remarkable advantages of this technology is its flexibility in choosing locations for power generation. The use of CO₂ allows Factor2 Energy to tap into a broader range of geothermal sites, including those that may not be suitable for conventional systems. As a result, the company can access shallower and cooler geothermal areas, which not only cuts down on drilling costs but also expands the number of locations where power plants can be developed. This system proves effective in situations where traditional geothermal energy struggles, offering a competitive cost for electricity.
In summary, Factor2 Energy’s innovative approach to geothermal energy not only promises reliable green power available 24/7 but also opens the door to new geographical possibilities for energy generation. By utilizing both existing geological formations designated for CO₂ storage and those available in nature, Factor2 Energy is well-positioned to transform these resources into active energy assets, paving the way for a more sustainable future.
KEY QUOTES:
“I am pleased to see this technology progressing toward commercialization, following its development within Siemens Energy Ventures. Geothermal energy is a reliable and renewable power source, and we will work with Factor2 Energy to tailor our turbines to meet the specific needs of this emerging market.”
Kendra Rauschenberger, General Partner at Siemens Energy Ventures
“Our approach enables emission-free, efficient, and baseload-capable electricity production, which is ideal for traditional oil and gas companies looking to diversify their operating assets. And in fact, the entire system leverages proven technologies from the oil and gas sector, with its long history of drilling and geologic expertise.”
CEO and co-founder Felix Boehmer
“As a cornerstone for enabling broader electrification, the need for cost-effective baseload power has never been more urgent. The fluid physics of CO₂ as a geothermal working fluid enables a 2x increase in power output while operating at the same depths/temperatures as conventional geothermal, translating to efficiencies in both capex and opex. These technoeconomics combine to form a favorable LCOE at sites that would previously have been economically unviable. We are excited to support Factor2 to bring this crucial technology to market to unlock the potential of geothermal as a more prevalent source of green baseload”
Helen Lin, Partner at At One Ventures
“We invested in Factor2 Energy because their innovative technology dramatically expands global geothermal potential and uniquely enables the transformation of CCS sites into energy-generating power plants. Their successful proof of concept in a geologically complex environment demonstrates the robustness and scalability of their approach. We believe Factor2 Energy is well positioned to play a pivotal role in the global energy transition.”
Timo Bertsch, Investment Manager at HTGF
