Cleantech Startup Factor2 Energy Secures $9.1m to Scale Geothermal Power From Stored CO₂
Factor2 Energy, a Duisburg-based cleantech startup developing an unconventional approach to geothermal power, has raised $9.1 million seed funding to advance its technology and build a pilot plant that uses carbon dioxide as a working fluid instead of water.
The round was led by Silicon Valley’s At One Ventures, with participation from High-Tech Gründerfonds (HTGF), Gründerfonds Ruhr, Verve Ventures, and Siemens Energy Ventures. The backing highlights growing investor interest in geothermal energy as a scalable source of clean, baseload electricity.
Factor2 Energy has developed a system that circulates stored CO₂ through deep geological formations to generate power. The process takes advantage of a natural buoyancy effect – known as the thermosiphon cycle – to bring heated CO₂ to the surface, where it drives a turbine to produce electricity. The gas is then cooled and reinjected underground, creating a closed loop that maintains long-term CO₂ storage while continuously generating power.
Compared with conventional water-based geothermal systems, the company claims its CO₂ cycle can deliver up to twice the power output under similar conditions while lowering capital costs. The technology also opens up new possibilities for siting geothermal plants, since CO₂ can unlock energy from shallower or cooler reservoirs traditionally unsuitable for geothermal development.
Felix Boehmer, CEO and Co-founder, Factor2 Energy: ”This approach enables emission-free, efficient, and baseload-capable electricity production, ideal for oil and gas companies looking to diversify their assets. The system builds on proven technologies from the oil and gas sector, leveraging decades of drilling and geological expertise.”
The use of CO₂ offers additional flexibility: Factor2’s plants can be deployed at natural CO₂ reservoirs or at sites earmarked for carbon capture and storage (CCS). This dual purpose – both storing and utilizing carbon – could make geothermal development more attractive in regions investing heavily in CCS infrastructure.
Helen Lin, Partner, At One Ventures: ”The fluid physics of CO₂ as a geothermal working fluid enables a twofold increase in power output compared to conventional geothermal. That translates to a favorable cost of electricity at sites that would previously have been economically unviable. We’re excited to help Factor2 unlock geothermal’s potential as a mainstream green baseload source.”
With funding in place, Factor2 Energy is now focused on scaling its proof of concept into a pilot power plant, a step that will test the system’s ability to deliver cost-competitive, 24/7 clean energy at commercial scale.
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