OMV and Eavor partner for deployment of closed-loop geothermal in Europe
Eavor and OMV announce landmark partnership (source: Eavor / OMV)
Carlo Cariaga
14 Jun 2023
Austrian OMV has acquired stake in Eavor Technologies, creating a partnership for the large-scale deployment of Eavor-Loop geothermal technology in Europe.
Austria-based integrated oil, gas, and chemicals company OMV AG (OMV) has announced the acquisition of a 6.5% stake in Canadian geothermal technology company Eavor Technologies Inc. (Eavor) for the amount of EUR 34 million. The two parties have thus entered into a commercial agreement to pursue large-scale deployment of the Eavor-Loop™ technology in Europe and beyond.
With this transaction, OMV has become the largest investor in Eavor’s Series B equity round. Other follow-on investments come from bp Ventures, EverSource Energy, and Vickers Ventures Partners. The commercial agreement establishes OMV as a key partner with preferred licensing terms, access to services and development support. OMV’s initial focus will be on the deployment of Eavor-Loop™ in Austria, Romania, and Germany.
Eavor, with its project partners, will begin drilling operations at the Eavor-Europe™ site near Geretsried, Bavaria, Germany this summer. The project is the world’s first commercial implementation of an Eavor-Loop™, a showpiece of the zero-emissions heat and power production capabilities of next-generation geothermal.
OMV intends to transition from an integrated oil, gas, and chemicals company to become a leading provider of innovative and sustainable fuels, chemicals, and materials, while taking a leading global role in the circular economy. By switching over to a low-carbon business, OMV is striving to achieve net zero in all three Scopes by 2050 at the latest.
The company had recently completed production and injection testing of an old natural gas well in Austria, Aderklaa-96, to assess its viability for geothermal energy production.
“We have been working with OMV for over a year on this partnership and continue to be impressed by their technical expertise and dedication to the energy transition. We look forward to building on this foundation with OMV, to deliver true energy independence, security and autonomy to Europe,” said John Redfern, President, CEO and Co-Founder at Eavor.
“We are excited about the partnership with Eavor and look forward to applying this next-generation geothermal energy technology to reach our green energy goals,” added Berislav Gaso, OMV Executive Vice President for Energy.
Source: Eavor Technologies and OMV
