Factor2 Energy, a German climate-tech startup based in Duisburg, has raised US$9.1 million in seed funding to accelerate development of its geothermal technology.
The round was led by At One Ventures with participation from High-Tech Gründerfonds (HTGF), Gründerfonds Ruhr, Verve Ventures, and Siemens Energy Ventures.
The company plans to use the funding to refine its CO₂-based geothermal system and build a pilot power plant that will demonstrate the technology’s scalability.
About Factor2 Energy
Factor2 Energy develops CO₂-based geothermal power systems designed to unlock scalable, clean, and reliable energy.
With roots in Siemens Energy and backed by leading climate investors, the company’s mission is to expand global geothermal potential while enabling permanent carbon storage.
Turning CO₂ Into Clean Power
Founded by former Siemens Energy colleagues Michael Wechsung, Joerg Strohschein, and Felix Boehmer, Factor2 Energy is pioneering a way to use carbon dioxide instead of water or brine as the working fluid in geothermal systems.
Here is how it works:
- CO₂, either naturally occurring or captured from industrial sources, is injected into porous underground formations.
- As it absorbs heat from the surrounding rock, the CO₂ rises naturally to the surface through what is called the thermosiphon effect.
- At the surface, turbines convert the heat into electricity. The cooled CO₂ is then reinjected into the reservoir, creating a closed, sustainable cycle.
This approach reduces pumping needs, lowers energy losses, and simplifies operations compared to conventional geothermal.
Factor2 Energy estimates the method can deliver up to twice the power output under similar conditions while requiring less capital investment.
Why This Matters for the Planet
Geothermal energy is one of the few renewable sources capable of producing consistent, 24/7 baseload power. Factor2 Energy’s innovation makes geothermal more widely deployable and cost-effective.
The potential impact is significant:
- 🌍 Expanding access: Opens up new locations for geothermal development, including shallower and cooler sites previously deemed uneconomical.
- ⚡ Reliable clean power: Provides continuous electricity without reliance on weather conditions, helping balance grids with high levels of solar and wind.
- ♻️ Dual benefit: Supports permanent CO₂ storage while transforming storage sites into productive energy assets.
- 💧 Resource friendly: Avoids water-intensive processes and eliminates the need for fracking or ultra-deep drilling.
By combining carbon storage with renewable power generation, Factor2 Energy directly contributes to both decarbonization and energy security.
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Investor Confidence
Investors see the technology as a critical step in the global energy transition.
Helen Lin, Partner at At One Ventures, highlighted the efficiency gains:
“The fluid physics of CO₂ as a geothermal working fluid enables a 2x increase in power output while operating at the same depths and temperatures as conventional geothermal.”
Timo Bertsch, Investment Manager at HTGF, pointed to scalability:
“Their successful proof of concept in a geologically complex environment demonstrates the robustness of their approach. We believe Factor2 Energy is well positioned to play a pivotal role in the global energy transition.”
Siemens Energy Ventures, where the founding team first developed the concept, will continue to collaborate by tailoring turbine technology for this emerging market.
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