Sage Geosystems Raises $17 Million in Series A, Announces World’s First Commercial Geopressured Geothermal System (GGS) Facility
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Insights
The $17 million Series A funding for Sage Geosystems spearheaded by Chesapeake Energy Corporation represents a significant investment in the renewable energy sector, particularly in the development of geothermal energy. This move indicates a growing interest from traditional energy companies in diversifying their portfolios into more sustainable energy solutions. The geothermal system being developed by Sage, which is capable of providing baseload power, addresses a critical challenge in the renewable energy sector – the intermittency of sources like wind and solar. By offering a solution that can store energy for both short and long durations, Sage is positioning itself to meet the increasing demand for reliable renewable energy.
From an investment perspective, the entry of established energy players and technology investors in this funding round may signal confidence in Sage's technology and its market potential. The ability to provide dispatchable power and grid inertia could make Sage's system a key player in the energy transition, potentially leading to lucrative contracts and partnerships, thus positively influencing the company's valuation in the long run.
The proprietary technology of Sage Geosystems, particularly its Geopressured Geothermal System (GGS), is a noteworthy innovation in the field of renewable energy. By utilizing pressurized water from beneath the earth's surface, the EarthStore™ system can generate electricity in a more consistent manner compared to traditional renewable sources. The reported roundtrip efficiency (RTE) of 70-75 percent is particularly impressive for a geothermal system and suggests a high level of technological advancement.
Moreover, the low water losses of less than 2 percent indicate a sustainable approach to resource management, which is a crucial aspect of renewable energy technologies. The successful demonstration of the EarthStore™ system at commercial pilot scale further validates the technology's operational viability. As the construction of the 3MW facility is set to begin, the effectiveness of the full-scale system will be a critical factor in determining the technology's impact on the renewable energy market.
The development of Sage Geosystems' EarthStore™ system has implications for the broader environmental landscape. Geothermal energy is a low-emission alternative to fossil fuels and its expansion through technologies like GGS could contribute significantly to reducing the carbon footprint of the energy sector. The integration of geothermal systems with intermittent renewable sources could enhance the overall sustainability of the energy grid, potentially leading to a reduction in reliance on carbon-intensive peaker plants.
Furthermore, the environmental impact of the geothermal facility itself, including land use and water consumption, will be an area of interest for stakeholders. With the reported low water losses, the system appears to be water-efficient, which is particularly relevant in regions where water scarcity is a concern. The project's location in Texas, a state with a complex energy landscape and a significant potential for renewable energy, could serve as a benchmark for the adoption of similar technologies in other regions.
The 3MW commercial facility, called EarthStore™, will use Sage Geosystems’ innovative technology that harvests energy from pressurized water stored deep underground. The facility will be able to store energy for short and long duration periods and can be paired with intermittent renewable energy sources, including wind and solar, to provide baseload, dispatchable power, and inertia to the electric grid.
“The first close of our Series A funding and our commercial facility are significant milestones in our mission to make Geopressured Geothermal System (GGS) technologies a reality,” said Cindy Taff, CEO of Sage Geosystems. “The success of our GGS technologies is not only critical to Sage Geosystems becoming post-revenue, but it is an essential step in accelerating the development of this proprietary geothermal baseload approach. This progress would not be possible without the ongoing support from our existing investors, and we look forward to continuing this work with our new investors.”
Sage Geosystems is in the process of manufacturing equipment, with construction of the 3MW facility beginning in Q2 2024 and a targeted commission date of Q4 2024. The exact location of the facility will be announced soon.
In 2023, Sage Geosystems successfully demonstrated the EarthStore™ system in a full-scale commercial pilot project in
For more information about Sage Geosystems, please visit www.sagegeosystems.com.
About Sage Geosystems
Sage Geosystems was founded in 2020 and is developing Geopressured Geothermal System (GGS) technologies deep in the earth. Sage Geosystems is the first company to demonstrate the ability to deliver cost-effective and commercially viable new generation geothermal (i.e., hot dry rock) with the company’s proprietary GGS design. The Sage Geosystems team has over 150 combined years in the oil and gas industry, with experience delivering major projects including Deepwater, Arctic, and Unconventional shales. The company is headquartered in
Advisors
Evercore acted as the exclusive placement agent for Sage Geosystems in connection with this capital raise, and Wilson Sonsini Goodrich & Rosati provided legal counsel.
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Brad Carl
brad@teamsilverline.com
(253) 318-6852
Source: Sage Geosystems
FAQ
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