HOUSTON/STOCKHOLM, Dec. 14, 2022 – Chevron Corporation (NYSE: CVX), through its Chevron New Energies business, and Baseload Capital have announced a joint venture to develop geothermal projects in the United States. The two companies will collaborate on driving geothermal opportunities – including identifying the best prospects for development, operations and progressing the next generation of geothermal technologies from pilot to commercial scale. Through this agreement, Chevron and Baseload Capital will work together to create awareness around geothermal energy which will be a critical supply option for renewable energy.
Geothermal energy provides baseload, reliable power – and will be a critical element in developing the energy systems of the future. Chevron and Baseload Capital believe that to reach a lower carbon future, all forms of energy will be required, and geothermal power provides a reliable source of renewable power that will also enable other lower carbon solutions.
The joint venture aims to leverage the companies’ geothermal operational experience, combined with core competencies from the traditional oil and gas sector, especially around subsurface, wells, drilling and completions, to advance scalable novel geothermal technologies to tap into the earth’s core heat.
The first project Chevron and Baseload Capital have identified is in Weepah Hills, Nevada, USA. The two companies will pursue development opportunities in Esmeralda County where previous geothermal research and advanced exploration already exist.
“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,” said Barbara Harrison, Vice President, Offsets and Emerging, at Chevron New Energies.
The relationship between Chevron and Baseload Capital dates to 2021 when Chevron Technology Ventures invested in Baseload Capital and began a pilot utilizing waste heat from existing oilfield operations at Chevron’s San Ardo oil and gas field in California, USA. The pilot, which started operations in July 2022, demonstrates the potential of using existing oil and gas wells, and process heat for reliable and cost-effective lower-carbon power production.
“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 favor 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,“ said Alexander Helling, CEO at Baseload Capital.