Factor2 Energy raises $9.1m for CO₂-based geothermal power generation system

German climate-tech company Factor2 Energy has successfully completed its seed funding round, raising $9.1 million in venture capital.

The funding round was led by At One Ventures, with additional investments from High-Tech Gründerfonds, Gründerfonds Ruhr, Verve Ventures and Siemens Energy Ventures.

Factor2 Energy will use the seed funding to advance the technological development of its CO₂-based geothermal power generation system and to develop a pilot power plant to demonstrate scalability.

Kendra Rauschenberger, general partner at Siemens Energy Ventures, commented in a release: "I am pleased to see this technology progressing toward commercialization, following its development within Siemens Energy Ventures. Geothermal energy is a reliable and renewable power source, and we will work with Factor2 Energy to tailor our turbines to meet the specific needs of this emerging market."

Have you read?
Fervo taps Baker Hughes equipment for Cape Station geothermal project
University of York launches geothermal ‘living lab’ project

According to Factor2 Energy, their technology can be deployed at either natural CO2 reservoirs or at reservoirs designated for Carbon Capture and Storage (CCS).

The (naturally occurring or captured) CO₂ is injected into deep, porous geological formations, where it is securely stored. As it absorbs geothermal heat from the surrounding rock, its density decreases, initiating a buoyancy-driven circulation known as the thermosiphon effect.

As a result, the CO₂ rises naturally to the surface via production wells, eliminating the need for subsurface pumps and significantly reducing parasitic energy consumption and mechanical complexity.

At the surface, the heat is converted into electricity using a direct driven CO₂ turbine system. After expansion, the CO₂ is cooled, reinjected into the reservoir, creating a closed cycle that enables continuous power generation while maintaining long-term CO₂ storage.

Compared to conventional water-based geothermal systems, states Factor2 Energy in a press release, this approach can achieve up to twice the power output under similar geological conditions, while requiring lower capital expenditures.

"Our approach enables emission-free, efficient, and baseload-capable electricity production, which is ideal for traditional oil and gas companies looking to diversify their operating assets," said CEO and co-founder Felix Boehmer. "And in fact, the entire system leverages proven technologies from the oil and gas sector, with its long history of drilling and geologic expertise."

The use of CO₂ enables access to a broader range of geological sites, unlocking heat from locations unsuitable for conventional geothermal systems. This includes shallower and cooler geothermal sites, reducing drilling costs and expanding the range of viable power plant locations.

The system eliminates the need for secondary fluids or complex binary systems, simplifying operations, and, by leveraging both geological formations designated for CO₂ storage (CCS) and natural CO₂ reservoirs, Factor2 Energy can transform these into active energy assets.