Eavor Technologies Inc. is the first recipient of Canada Growth Fund (CGF) support, a $15-billion federal program created in 2022 with the intention of supporting low-carbon finance initiatives.
Deputy Prime Minister and federal Finance Minister Chrystia Freeland made the announcement Wednesday afternoon in downtown Calgary.
“Canada has to keep up. And we have to not just keep up, we have to be in the lead,” Freeland said, referencing the CGF’s priorities.
Eavor is building a commercial-scale geothermal development in Germany, which is expected to cost $290 million to complete. The development is expected to start producing energy next year and reach full capacity by 2026, Eavor CEO and co-founder John Redfern said earlier this summer.
Geothermal technology extracts heat by drilling deep into the earth’s crust, and can be used as a clean source of heating, cooling and electricity.
The investment is a direct commitment of $90 million of Series B preferred equity in the company, funding that “will allow (Eavor) to scale-up its business while retaining intellectual property and creating jobs in Canada,” according to a news release on Wednesday.
Redfern said the company has been exploring starting geothermal projects in Alberta and other areas of Canada. He said it’s actively looking at projects in Saskatchewan, Toronto and Vancouver.
“At the start, when you have limited funds, you pick the lowest-hanging fruit first. Some of the lowest-hanging fruit we found was in places like Germany,” Redfern said Wednesday afternoon.