TOKYO (Reuters) – Chubu Electric Power Co Inc said on Friday it would invest up to 5 billion yen ($34 million) in a Canadian geothermal venture, Eavor Technologies Inc, as it moves to expand its renewable energy portfolio and fight climate change.
Within a few weeks, Chubu will invest between 1 billion and 5 billion yen ($7 million to $34 million) for a stake ranging from 10% to 20% in Eavor, according to its deputy chief executive of global business, Katsuji Sugimori.
Eavor’s technology circulates water in a closed loop underground to extract heat efficiently even in areas where sufficient amounts of hot water or steam cannot be obtained by conventional geothermal means.
It can be used in a wide range of areas, and avoids the typical exploration risk stemming from a shortage of hot water or steam underground, Chubu said.
“We want to apply the technology in Japan in the future,” Sugimori told a news conference.
The Canadian venture aims to commercialise two projects being developed, one in the United States and another in Germany, in 2024, Chubu said.
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Eavor’s investors include venture funds owned by global energy and metals producers such as BP, Chevron, and BHP.
($1=147.4300 yen)
(Reporting by Yuka Obayashi; Editing by Clarence Fernandez)