Chevron’s JV with Baseload Capital for Geothermal Ventures in Nevada

In late 2022, Chevron, a global energy corporation, embarked on a strategic partnership with Baseload Capital, a Sweden-based firm specializing in low-temperature geothermal power projects.    The collaboration aims to explore and capitalize on geothermal opportunities in Nevada, leveraging Baseload Capital’s expertise in geothermal energy and Chevron’s resources and experience in the energy sector.

Chevron’s interest in diversifying its energy portfolio aligns with the growing global demand for clean energy solutions.

Baseload Capital brings its innovative technology and experience in low-temperature geothermal projects to the table, complementing Chevron’s strengths in project management, investment capabilities, and market access.

Objectives: The primary objectives of this partnership include:

1. Identifying and assessing geothermal resources in Nevada suitable for development.
2. Implementing innovative geothermal technologies to maximize energy extraction efficiency.
3. Advancing sustainable energy solutions to support Nevada’s transition towards renewable energy.
4. Expanding Chevron’s renewable energy portfolio while contributing to global efforts to combat climate change.

Benefits: The collaboration between Chevron and Baseload Capital offers several benefits:

1. Access to Expertise: Baseload Capital brings specialized expertise in low-temperature geothermal projects, enhancing Chevron’s capabilities in renewable energy development.
2. Risk Mitigation: By pooling resources and expertise, both companies can mitigate risks associated with geothermal exploration and project implementation.
3. Economic Growth: Geothermal ventures in Nevada have the potential to stimulate economic growth by creating jobs and attracting investments in clean energy infrastructure.
4. Environmental Impact: Leveraging geothermal energy reduces greenhouse gas emissions and promotes environmental sustainability, aligning with both companies’ commitment to corporate social responsibility.

In September 2023, the joint venture announced a new geothermal project  in Weepah Hills, Nevada.  See this article, with relevant portions displaced  below:

… It also has the following benefits:

• Geothermal is considered a baseload energy, meaning it is continuously available. It doesn’t depend on weather, time of day or other outside factors because the Earth is always producing heat.
• It is a renewable resource for generating power and for producing other lower carbon energies, such as hydrogen.
• Geothermal is a valuable renewable resource because of its high reliability and availability.
• It is a flexible source of power, with a relatively small footprint, that can meet the needs of a variety of customers.

Kimilia Jones, commercial manager for Chevron’s emerging business line, noted that this endeavor is a platform for Chevron to advance geothermal development in the United States.

“This will allow Chevron to be hands-on in assessing challenges with geothermal development, including permitting, geothermal resource identification and interconnections.”

“The Baseload joint venture may also provide options for meeting enterprise needs and creating new value chains in Chevron New Energies.” she said.

nimble and quick

Although the Weepah Hills project in western Nevada is relatively small compared to other geothermal undertakings, its size has helped it quickly move to the ready stage.

“We want to get into a position where we can develop several of these in parallel—and quicker,” said Jesper Jolma, investment manager with Baseload. “That way we can bring more power online faster. Fifty or 100 megawatt projects are fantastic, but they take many years to develop.”

experience matters

Chevron isn’t new to the geothermal industry. Previously, our geothermal assets were conventional, using traditional geothermal methods. Now we are working to accelerate the development of geothermal energy by using the latest technologies, within a range of temperatures, while also working to advance novel technologies.

We bring decades of experience from traditional oil and gas operations, such as wells and drilling, to tap into the Earth’s heat. Using scalable, novel geothermal technology will help us convert that heat into energy.

An example of a novel geothermal technology, known as closed loop, is a system where pipes run in a loop from the surface to the rock underground and back up. Fluid is contained and circulated through the pipes, absorbing the heat from the surrounding rock and transporting the heat back to the surface. Another example, called enhanced geothermal, is a system that involves drilling into solid rock, injecting water to allow increased permeability and collecting the now hot water through another well. Once at the surface, the heat is used to power a turbine and generate energy.

This isn’t the first time we’ve teamed up with Baseload Capital. Together, we launched a pilot in July 2022 at our San Ardo oil and gas field in California. That trial uses oil and gas wells to process heat and produce lower carbon, cost-effective power.