Interim report for the period 1 January – 30 June, 2021
Baseload Capital Sweden AB (publ) today releases the results for the period 1 January – 30 June 2021
During the second quarter the focus has been on execution and business development in all of our active markets.
Profit/loss for the period was SEK -34.1 million, with revaluation of projects and loans to subsidiaries accounting for SEK -17.2 million, of which SEK -7.5 million consists of exchange rate differences as a result of a stronger Swedish krona.
In the US, the project company is still waiting for permission from the authorities to release geothermal water from the Wendel plant in a nearby stream, but the forecast is that the project can still be completed before the end of the year.
In Japan work is ongoing on the Sansui site which is expected to be commissioned before the end of the year. The project is the first part of the larger Waita 2 project that Baseload Power Japan and Furusato will develop together.
In Taiwan the exploration well at Westlake is being finalized. Flow tests have been conducted during the summer, but initial tests show less flow than expected.
In Iceland Baseload Power Iceland has been established. After the quarter the company has acquired Fludaorka and Reykholtsorka power plants including the expansion rights from Varmaorka. Pre-feasibility analysis is ongoing to set drill targets for each site.
The information was submitted for publication at 07:30 CET on 27 August 2021.
Interim report for the period 1 January – 31 March 2021
During the first quarter of 2021, Baseload closed a capital round of USD 25m with Chevron Technology Ventures (“Chevron”) as a new strategic investor.
The result for the first quarter was SEK -31.0 million (SEK -8.3 million for the same period in 2020).
In Japan, work continues on the third project for Baseload Power Japan. Called Sansui, it is a small project where an existing onsen-well is used to run two Climeon modules. The project is strategically important to be able to expand with larger projects in the vicinity.
In Taiwan, drilling is back in full swing at the Westlake project with a depth of 900 meters and a target of 1200 meters. According to the new schedule, drilling should be completed by the end of May or the beginning of June.
In Iceland, Varmaorka commissioned phase 2 of the Fludir project, and started up an additional 600 kW of power, which gives Fludir 1 & 2 a total capacity of 1200 kW. The work for phase three has also begun, with an evaluation of whether we can build an additional 500 to 1500 kW on the site.
In the US, Baseload has signed an LOI together with Chevron’s Technology Center to build a pilot project on an existing well.
The information was submitted for publication at 07:30 CET on 26 May 2021.
This disclosure contains information that Baseload Capital Sweden AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 26-05-2021 07:30 CET.
Take a panoramic, emissions-free VR tour of our geothermal power plant in Flúðir, Iceland.
Before travel restrictions, you had to fly to Iceland to see our power plants. Now we’re bringing them to you. Soar over Iceland’s dramatic landscape and into the plant. See the source of the world’s most viable form of renewable energy up close in virtual reality, and get a glimpse of future developments. For a fully immersive experience, we recommend wearing a VR headset like those by Oculus.
Annual report for the period 1 January – 31 December 2020
During a year characterized by Covid-19, the development of existing projects has continued largely according to plan, and despite the pandemic, we have managed to establish ourselves in the US market without being physically in place. We have taken a major step towards our aim of becoming a leading investor in geothermal energy production.
The result of - SEK 71.3 million compared with +2.5 SEK in 2019 is partly due to the strengthened krona which affected the result by - SEK 22.8 million. Despite the fact that the business has developed positively and the shares in the portfolio companies have increased in value in local currency, this means a net write-down of SEK 6.9 million. Furthermore, interest expenses increased by SEK 22.9 million compared with the previous year, of which interest expenses for the bond accounted for SEK 13.2 million. The interest rate has been unchanged during the year and the increased cost is due to the company paying interest for 12 months in 2020, but in 2019 only for parts of the year. The remaining increase in interest expenses is attributable to increased loans from the parent company and ultimately the company's owners. The negative result is also an effect of the company choosing to be conservative in the valuation of ongoing projects.
In 2020, we have, among other things:
Commissioned two power plants in Japan. At the end of April, the first project, Waita, was commissioned. At the beginning of June, the second power plant, Midori, was commissioned. Ryuta Hiratsuka was hired as the new CEO of Baseload Power Japan after Ito Masahiro.
Continued work on a number of projects in Taiwan. Drilling began at the end of August for the Westlake project, which is expected to be the first commercial geothermal project in Taiwan. The project development was delayed due to some of the drilling equipment getting stuck in the drilling pipe at a depth of 630 meters, but is now up and running.
Converted the convertible loan issued by Baseload Capital to the Icelandic company Varmaorka. The new shares make Baseload the largest owner in the company. Varmaorka commissioned Reykholt's power plant, which will supply 300 kW to the electricity grid. A new cooling system was installed at the Fludir power plant, which is expected to reduce internal electricity consumption by up to 15%.
Established a subsidiary in the US, Baseload Power US. The company began investing in a first project in California by acquire contracts and equipment from the existing owner. Commissioning of the power plant is expected to take place during the second half of 2021. Three land lease agreements were signed in Nevada, where there is great potential for the development of new geothermal projects.
Initiated a collaboration with the New Zealand company Geo 40. Baseload participated in the new issue carried out by Geo40 during the year. Geo40 has developed a technology for extracting silicon and other minerals from geothermal water, which reduces the operating costs of geothermal power plants. At the same time, minerals are produced in a sustainable way.
Renegotiated and changed the terms of the green bond that the company issued during the first quarter of 2019 to better suit the company's business model. The first money was deducted from the bond. All covenants that the company must live up to were met during all quarters of 2020. In May, the bond was listed on Nasdaq.
Strengthened liquidity by the parent company Baseload Capital Holding AB raising a convertible loan of SEK 94.2 million from the main owners during the year.
The information was submitted for publication at 19:00 CET on 31 March 2021.
The disruptions we need: a conversation with Graeme Edge of Energy Disruptors
When we encountered a technical glitch at our recent seminar, we decided it was a great excuse to bring the Energy Disruptor founder back for another round. Are we having enough spicy conversations? Is “disruption” an overused term? Has the oil and gas industry finally begun to pivot towards geothermal? To find out, join us for this special installment of “Overrated/Underrated” with Graeme Edge and our CEO Alexander Helling, hosted by CMO Kristina Hagström Ilievska.
Geothermal startups get another boost from Chevron as the oil giant backs a geothermal project developer.
Image Credits: Universal Images Group / Getty Images
The U.S.-based oil major Chevron is doubling down on its investment in geothermal power by investing in a Swedish developer of low-temperature geothermal and heat power projects called Baseload Capital.
Oil companies are under pressure to find new lines of business as the world prepares for a massive shift to renewable energy resources to power all aspects of industry in the face of mounting climate-related disasters caused by greenhouse gas emissions warming the temperature on the planet.
Joining Chevron in the investment was the ubiquitous billionaire-backed clean energy investment firm Breakthrough Energy Ventures and a Swedish investment group called Gullspang Invest AB...
Baseload Capital closes equity round of $25 million with Chevron as new strategic investor.
Baseload Capital, the Swedish company specialized in funding the deployment of heat power worldwide, announces the successful close of a $25 million funding round with Chevron Technology Ventures as a new strategic investor. As an initial outcome of the alliance, Chevron Technical Center and Baseload Capital have already signed a letter of intent to investigate a potential pilot project in California.
“In August, we announced that we were looking for a new strategic investor to help us accelerate deployment in our key markets,” says Baseload Capital CEO Alexander Helling. “We couldn’t have asked for a better one. Chevron complements our group of owners, and adds expertise in drilling, engineering, exploration and more. These assets will accelerate our ability to deploy heat power, and strengthen our way of working.”
The potential pilot projects and commercial projects with Chevron Technical Center are designed to advance lower-carbon energy production. As Baseload Capital continues to develop heat power plants worldwide, Baseload and Chevron will look for commercial heat power opportunities in common geographies where Chevron operates. Heat power is an affordable form of renewable energy that can be harnessed from either geothermal resources or waste heat.
“Chevron’s investments in geothermal power reflects our ongoing efforts to help advance the world’s transition to a lower carbon future,” said Barbara Burger, vice president, innovation and president of technology ventures at Chevron. “We look forward to working with Baseload Capital to expand geothermal resources in the U.S. and internationally.”
This information is information that Baseload Capital Sweden AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 AM CET on the first of March 2021.
Chevron Technology Ventures (CTV) pursues and invests in externally developed technologies and new business solutions that have the potential to enhance the way Chevron produces and delivers affordable, reliable, and ever-cleaner energy. CTV leverages innovative companies and technologies to strengthen Chevron’s core operations and identifies new opportunities to shape the future of energy. The Baseload Capital investment came from Chevron’s Core Venture Fund which invests in technology that has the potential to add efficiencies to Chevron’s core business in the areas of operational enhancement, digitalization, and lower carbon operations including geothermal.
Geothermal is trending. Find out why. The earth has power. Let’s switch it on. Virtual seminar #2
Why are so many people suddenly interested in geothermal energy? What trends are driving this change? Watch our 2nd virtual seminar to learn more about the industry and help us make geothermal the new renewable baseload.
Speakers, in order of appearance: Pernilla Wihlborg, COO of Baseload Capital; Graeme Edge of Energy Disruptors; Baseload Capital CTO Manon Stöver, and CEO Alexander Helling; John Redfern, CEO of Eavor; Vinod Khosla of Breakthrough Energy Ventures and Khosla Ventures; and Alexander Helling of ThinkGeoEnergy.com
Subscribe to our newsletter for an invitation to our next seminar.
Vinod Khosla to speak at seminar on trends in geothermal energy
On 16 February, Baseload Capital will host a virtual seminar on the most important trends in geothermal energy today. Which trends are the most promising? What can investors, industries, developers, landowners and governments do to ensure continued success? The main speaker will be Vinod Khosla, founder of Sun Microsystems and Khosla Ventures.
Geothermal technology is developing rapidly, with scalable solutions that are making it possible to generate power in more and more locations, more profitably than ever before.
To discuss the latest trends affecting the industry, Baseload Capital has arranged a second event in the seminar series called, “The earth has power: Let’s switch it on.”
The keynote speaker at the seminar will be Vinod Khosla, founder of Sun Microsystems and Khosla Ventures. Vinod Khosla has long been a champion for geothermal energy and will give his view on which breakthroughs the industry needs most.
“We want to be a catalyst for renewable energy by developing and financing the production of electricity from existing heat sources. Our goal is to create resilient societies and a planet in balance,” says Alexander Helling, CEO of Baseload Capital.
The earth has power. Let’s switch it on.
A virtual seminar on trends in geothermal energy
Date: February 16, 2021
Time: 7-8:30 am PST; 10–11:30 EST; 16:00–17:30 Swedish-time
Audience: Investors, businesses, developers, landowners and governments in Europe and North and South America.
Speakers & topics
Pernilla Wihlborg, COO of Baseload Capital, will speakonwhy trends are important, and on how the company evaluates them to find the most promising ones.
Graeme Edge, founder ofEnergy Disruptors, whose “Unite” events have attracted a who’s who of energy experts, will join Baseload CTO Manon Stöverto discuss the most powerful trends in geothermal today.
John Redfern, CEO of geothermal technology company Eavor, will share his company’s success story
Vinod Khosla, founder of Sun Microsystems and Khosla Ventures, will speak on the most needed breakthroughs
Alexander Richter, founder of the geothermal news site, ThinkGeoEnergy.com, will speak with Baseload CMO Kristina Hagström Ilievska aboutthe biggest challenges he’s faced in promoting the industry, and what needs to happen next to make sure the energy keeps trending.
Registration
Press and other interested parties are welcome to attend. Register here. Attendees will have the opportunity to submit questions in advance upon registering. Any questions we do not get to during the event will be fielded among the speakers and compiled in Baseload Capital’s next newsletter.
Baseload Power US is a subsidiary of Baseload Capital, a specialized investment entity that funds the deployment of geothermal power worldwide.
Together, we are helping nations quickly transition away from fossil fuels and toward energy independence. The result will lead to more resilient societies and a planet in balance.
