Factor2 Energy Secures $9.1M to Unlock CO₂ Geothermal Power
September 21, 2025, 9:33 pm
Location: Germany, North Rhine-Westphalia, Bonn
Employees: 51-200
Founded date: 2005
German climatetech pioneer Factor2 Energy secures $9.1 million in seed funding. This capital fuels its innovative CO₂-based geothermal power system. The technology leverages CO₂ as a working fluid, tapping moderate-temperature resources. It promises up to double the energy output of conventional designs. The system avoids fracking, deep drilling, and water-intensive processes. Critically, it transforms carbon capture and storage sites into productive, clean energy assets. This breakthrough expands viable geothermal locations. It lowers operational costs. Factor2 Energy aims for scalable, baseload power. This marks a pivotal advancement for sustainable energy and carbon utilization globally. Funds will develop a pilot plant.
Factor2 Energy, a German geothermal innovator, closed a $9.1 million seed funding round. At One Ventures led the investment. High-Tech Gründerfonds, Gründerfonds Ruhr, Verve Ventures, and Siemens Energy Ventures also participated. This substantial capital injection propels Factor2 Energy’s mission. The company aims to unlock scalable, clean, baseload geothermal power. Its technology uniquely enables permanent carbon storage.
Founded in 2025, Factor2 Energy is based in Duisburg. Michael Wechsung, Joerg Strohschein, and Felix Boehmer lead the company. They previously collaborated at Siemens Energy. There, they pioneered an economically superior approach to geothermal energy. Their method replaces water or brine with CO₂ as the working fluid. This innovation sets a new standard for geothermal power systems.
The core of Factor2 Energy’s innovation is its CO₂-based system. It converts natural CO₂ reservoirs and existing Carbon Capture and Storage (CCS) sites into reliable baseload power sources. The system operates via a closed-loop thermosiphon. This design circulates CO₂ without requiring subsurface pumps. This critical feature significantly cuts parasitic energy use. It also reduces mechanical complexity.
At the surface, a direct-drive CO₂ turbine efficiently converts heat into electricity. The CO₂ fluid is then cooled. It is reinjected into the reservoir. This closed cycle ensures continuous power generation. It simultaneously preserves long-term CO₂ storage integrity. The approach offers remarkable efficiency gains. It combines energy production with environmental stewardship.
Under comparable geological conditions, Factor2 Energy's system can deliver up to twice the power output. This surpasses conventional water-based geothermal systems. The technology also promises lower Capital Expenditures (CAPEX). This dual advantage positions it strongly in the competitive clean energy market. It drives down the cost of renewable power.
CO₂ flows more efficiently at lower temperatures and pressures. This allows Factor2 Energy to tap shallower, cooler geothermal resources. These sites are typically uneconomic for conventional geothermal operations. This capability drastically reduces drilling costs. It also widely expands the global map of viable geothermal sites. More regions can now access sustainable energy.
The design eliminates the need for secondary fluids. It bypasses complex binary systems common in other geothermal setups. This simplification supports a competitive Levelized Cost of Electricity (LCOE). It further enhances the economic viability of the technology. Factor2 Energy transforms passive CO₂ storage sites into active energy-generating assets. This redefines carbon utilization.
The company's approach leverages proven technologies. These originate from the oil and gas sector. Its long history of drilling and geological expertise underpins the system. This provides a robust foundation for rapid deployment. It also offers traditional energy companies a strategic path to diversify. They can transition existing operating assets into sustainable geothermal operations.
Factor2 Energy's system provides emission-free power. It delivers efficient, baseload-capable electricity. Baseload power is crucial for grid stability. It ensures a constant supply regardless of weather. Geothermal energy offers 24/7 reliability. This distinguishes it from intermittent renewable sources like solar and wind. Factor2 Energy delivers consistent green power.
The seed funding will immediately advance the technology's development. Factor2 Energy plans to develop a pilot power plant. This pilot will demonstrate the system's full scalability. It will prove its commercial readiness. The goal is to establish geothermal energy as a more prevalent source of green baseload power. This pushes the global energy transition forward.
This innovative climatetech represents a significant step. It redefines geothermal potential worldwide. It offers a unique solution for transforming CO₂ storage sites. They become essential components of a cleaner, more reliable energy infrastructure. Factor2 Energy positions itself at the forefront of sustainable energy innovation. The future of geothermal power looks cleaner, more efficient, and more widely accessible than ever before.
Factor2 Energy, a German geothermal innovator, closed a $9.1 million seed funding round. At One Ventures led the investment. High-Tech Gründerfonds, Gründerfonds Ruhr, Verve Ventures, and Siemens Energy Ventures also participated. This substantial capital injection propels Factor2 Energy’s mission. The company aims to unlock scalable, clean, baseload geothermal power. Its technology uniquely enables permanent carbon storage.
Founded in 2025, Factor2 Energy is based in Duisburg. Michael Wechsung, Joerg Strohschein, and Felix Boehmer lead the company. They previously collaborated at Siemens Energy. There, they pioneered an economically superior approach to geothermal energy. Their method replaces water or brine with CO₂ as the working fluid. This innovation sets a new standard for geothermal power systems.
The core of Factor2 Energy’s innovation is its CO₂-based system. It converts natural CO₂ reservoirs and existing Carbon Capture and Storage (CCS) sites into reliable baseload power sources. The system operates via a closed-loop thermosiphon. This design circulates CO₂ without requiring subsurface pumps. This critical feature significantly cuts parasitic energy use. It also reduces mechanical complexity.
At the surface, a direct-drive CO₂ turbine efficiently converts heat into electricity. The CO₂ fluid is then cooled. It is reinjected into the reservoir. This closed cycle ensures continuous power generation. It simultaneously preserves long-term CO₂ storage integrity. The approach offers remarkable efficiency gains. It combines energy production with environmental stewardship.
Under comparable geological conditions, Factor2 Energy's system can deliver up to twice the power output. This surpasses conventional water-based geothermal systems. The technology also promises lower Capital Expenditures (CAPEX). This dual advantage positions it strongly in the competitive clean energy market. It drives down the cost of renewable power.
CO₂ flows more efficiently at lower temperatures and pressures. This allows Factor2 Energy to tap shallower, cooler geothermal resources. These sites are typically uneconomic for conventional geothermal operations. This capability drastically reduces drilling costs. It also widely expands the global map of viable geothermal sites. More regions can now access sustainable energy.
The design eliminates the need for secondary fluids. It bypasses complex binary systems common in other geothermal setups. This simplification supports a competitive Levelized Cost of Electricity (LCOE). It further enhances the economic viability of the technology. Factor2 Energy transforms passive CO₂ storage sites into active energy-generating assets. This redefines carbon utilization.
The company's approach leverages proven technologies. These originate from the oil and gas sector. Its long history of drilling and geological expertise underpins the system. This provides a robust foundation for rapid deployment. It also offers traditional energy companies a strategic path to diversify. They can transition existing operating assets into sustainable geothermal operations.
Factor2 Energy's system provides emission-free power. It delivers efficient, baseload-capable electricity. Baseload power is crucial for grid stability. It ensures a constant supply regardless of weather. Geothermal energy offers 24/7 reliability. This distinguishes it from intermittent renewable sources like solar and wind. Factor2 Energy delivers consistent green power.
The seed funding will immediately advance the technology's development. Factor2 Energy plans to develop a pilot power plant. This pilot will demonstrate the system's full scalability. It will prove its commercial readiness. The goal is to establish geothermal energy as a more prevalent source of green baseload power. This pushes the global energy transition forward.
This innovative climatetech represents a significant step. It redefines geothermal potential worldwide. It offers a unique solution for transforming CO₂ storage sites. They become essential components of a cleaner, more reliable energy infrastructure. Factor2 Energy positions itself at the forefront of sustainable energy innovation. The future of geothermal power looks cleaner, more efficient, and more widely accessible than ever before.