Nabors Invests in Ultra-Deep Geothermal Drilling Technology Innovator, GA Drilling

Rhea-AI Summary

Nabors Industries (NYSE: NBR) has made a strategic USD 8 million investment in GA Drilling, enhancing its clean energy portfolio. This collaboration seeks to integrate GA Drilling's innovative PLASMABIT® technology with Nabors' drilling operations, aiming to reduce economic barriers for ultra-deep geothermal projects. The move supports Nabors' energy transition strategy and aims to make geothermal energy more accessible globally. This investment aligns with Nabors' commitment to lower-carbon energy solutions, driven by projected increases in global energy demand.

Positive

• USD 8 million investment in GA Drilling enhances clean energy portfolio.
• Integration of PLASMABIT® technology aims to reduce costs for ultra-deep geothermal energy projects.
• Partnership supports Nabors' energy transition strategy focused on sustainable energy solutions.

Negative

• None.

The integration of GA Drilling PLASMABIT^® technology with Nabors' industry-leading drilling operations is another bold step toward unlocking geothermal anywhere

HAMILTON, Bermuda and BRATISLAVA, Slovakia, March 30, 2022 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) adds to its clean energy portfolio with a USD $8 million investment in GA Drilling, a.s. ("GA Drilling"). This strategic investment expands Nabors' commitment to deep-drilling technologies tapping super-hot, ultra-deep rock reservoirs.

GA Drilling, a geothermal technology company with headquarters in Bratislava, Slovakia, is a pioneer in plasma drilling. By integrating its innovative, contactless PLASMABIT^® drilling tool into Nabors' industry-leading automated and lower-emission drilling operations, the collaboration aims to accelerate field commercialization and eliminate traditional economic barriers of ultra-deep projects to expand global access to geothermal energy. This agreement complements the pre-series investment round recently concluded by GA Drilling, with the total value of those new investments exceeding USD $20 million.

Nabors has continued to implement its energy transition strategy targeted at high growth potential, lower-carbon energy markets. Through its investments in multiple clean energy ventures, Nabors has started to establish several ecosystems of complementary technologies that can benefit from synergies with Nabors' existing operations and competencies.

GA Drilling joins Nabors' geothermal ecosystem, which is comprised of three other prior venture investments in geothermal companies. These technologies were purposefully assembled to help make geothermal energy widely accessible across geographies, while reducing cost per unit of energy generated to match the cost of other energy sources.

Meeting Decarbonization Goals

Geothermal energy is one of the only clean, renewable and reliable baseload energy sources; however, due to the limited geographical distribution of high-temperature gradients and high legacy drilling costs, its full potential remains largely untapped. PLASMABIT^® is engineered to enable ultra-deep drilling in high-temperature hard formations at a cost comparable to unconventional horizontal drilling. Using an electric arc with a chemically assisted plasma pulse, this laboratory-proven bit aims to penetrate crystalline rock at high penetration rates, at depths exceeding 10 km (6.2 miles). Clean electricity is generated by producing water heated in the earth's crust and converting it to power at the surface. Building on a common technology ecosystem and infrastructure, and the ability to access geothermal almost anywhere, this solution should speed up and expand the availability of carbon-free fuel options for power generation.

Management Comments

Anthony G. Petrello, Nabors Chairman, CEO and President said: "Now is the time to invest in innovative and bold geothermal solutions that have the potential to unlock terawatts of clean, renewable and reliable energy on a truly global scale. Given the expected sharp growth in global energy consumption over the next decades, the world will require an even sharper growth in sustainable energy supply. I am convinced that geothermal energy will be a key contributor to the necessary increase in clean energy generation. With our unmatched portfolio of drilling, automation and digitalization technologies, Nabors intends to become a key player in the upcoming expansion of geothermal energy. We look forward to leveraging the GA Drilling Centre of Excellence and integrating their technologies into our ecosystem." 

Igor Kočiš, Founder and CEO of GA Drilling, said: "We welcome Nabors not only as an investor but also as a strategic partner. The present agreement will allow us to move faster through the final stages of PLASMABIT^® development, leveraging the synergies to integrate this revolutionary drilling tool into the systems of the rig. Nabors will introduce European high-technology capacities into the U.S. market. Together, we will work toward meeting imminent demand to rapidly diversify the global energy mix. With this collaboration, we have made another big step toward delivering on our promise of 'Geothermal Anywhere'."

About Nabors Industries

Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With operations in more than 15 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com.

About GA Drilling

GA Drilling, with its patented PLASMABIT^® technology, offers a solution for a local and independent source of electricity, heating, clean water, and food production in an unstable world. The company will provide scalable, modular, solutions to zero-carbon emissions energy production. Geothermal energy is the only renewable source of clean and baseload energy, available 24/7/365. It works regardless of weather conditions or the day-night cycle. PLASMABIT^® brings a significant reduction in operational time and cost savings, drilling faster, deeper, and cheaper through any material, including hard rock and steel. The technology is the result of years of R&D, with 23 registered patents, supported by a full-time team of over 50 engineers and researchers, industrial funding, investors, some 20 EU research grants, and strategic technology development partnerships with drilling industry leaders from Europe, US, and Asia: www.gadrilling.com.

Media Contacts:

Brian Brooks
+1 281-775-4370
brian.brooks@nabors.com 

Igor Kočiš
CEO, GA Drilling
+421 2 2092 0100
igor@gadrilling.com

Investor Contacts: 

William C. Conroy
+1 281-775-2423
william.conroy@nabors.com

Kara Peak
+1 281-775-4954
kara.peak@nabors.com

 

 

 

 

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SOURCE Nabors Industries Ltd.

FAQ

What is Nabors Industries' recent investment related to geothermal energy?

Nabors Industries has made an USD 8 million investment in GA Drilling to enhance its geothermal energy capabilities.

How does the PLASMABIT® technology affect geothermal energy projects?

PLASMABIT® technology is designed to lower the costs of ultra-deep geothermal projects, making them more economically viable.

What are the implications of Nabors' investment in GA Drilling for stockholders?

The investment is part of Nabors' strategy to grow its clean energy portfolio, potentially benefiting stockholders through increased sustainability and market relevance.

When was Nabors Industries' investment in GA Drilling announced?

The investment was announced on March 30, 2022.

What is the expected outcome of Nabors' collaboration with GA Drilling?

The collaboration aims to accelerate the commercialization of geothermal energy and increase global access to clean energy.