Canopus receives € 3 million follow-on investment for game-changing geothermal drilling technology

Today at the Global Geothermal Impact Summit 2024 in the Hague, Canopus Drilling Solutions Geothermal BV proudly announced that the company has secured a significant follow-on investment of 3 million euro led by new investor Underground Ventures, and existing investors SHIFT and ENERGIIQ. Canopus developed the directional steel shot drilling technology - a technology with game-changing potential in geothermal drilling. This investment marks a milestone in the advancement of geothermal solutions that are to reduce the dependency on fossil fuels.

Geothermal energy is a clean, reliable, and renewable source of energy that utilizes heat from the earth's core directly for heating and to generate electric power. It is available everywhere on the globe and the global energy demand is only a tiny fraction of the accessible amount of heat available. Unlike fossil fuels, geothermal energy produces minimal greenhouse gas emissions and unlike other renewable energy sources it is always available. Nevertheless, geothermal currently supplies only about 1% of the world’s energy need. It is widely seen that geothermal could play a much larger role in the energy transition if the costs for the subsurface installation – including the drilling of the bore holes - can be reduced. Geothermal energy has been named a sleeping energy giant.

Canopus has invented a technology that can unlock the immense potential of geothermal energy. “We call our innovation ‘Directional Steel Shot Drilling’ (DSSD) and it combines conventional diamond cutter technology with erosion by steel particles smaller than 1 mm. The combined action of mechanical drilling and steel shot erosion drills much faster and can easily be steered. DSSD reduces drilling time and can drill branched bore hole structures that have very good thermal contact with the hot layers of the earth”, says Jan Jette Blangé the CEO of Canopus.

Underground Ventures, a new fund from Denmark dedicated to and specialized in investing in geothermal is the lead investor in this round. “This investment underpins our dedication to growth of a sector which we see as essential to solve the energy crisis,” says Torsten Kolind, the fund manager. Existing investors SHIFT and ENERGIIQ are excited to give their continued support to Canopus underpinning their dedication as impact investors to growing geothermal.

Geothermal energy holds great promise for the region and the world at large. In the South of Holland, where Canopus is based, the abundance of geothermal resources presents a unique opportunity to diversify the energy mix and stimulate economic growth The Hague region is transforming into the global centre for geothermal energy, combining world-class energy research institutions, industry and financing. For instance, with TNO’s Rijswijk Centre for Sustainable Geo-energy (RCSG). RCSG is an open innovation lab, where companies can test and demonstrate their new drilling techniques, materials and other innovations. As another example, the International Geothermal Association (IGA) established itself in The Hague in 2021 IGA represents the global geothermal industry to international organizations such as the United Nations, the World Bank, the International Renewable Energy Agency and the International Energy Agency.

“This region will be a geothermal hub. ENERGIIQ has strong confidence in Canopus solution and management team to make a big impact in geothermic development”, says Mathijs van Rijk, investment manager at InnovationQuarter, the regional development agency who carries out the fund management of ENERGIIQ. Koen Hooning, associate partner from SHIFT Invest, adds that geothermal has the potential to materially contribute to the energy transition, provided that it gets enough resources and focus and innovative companies like Canopus get supported.

The Global Geothermal Impact Summit 2024 in the Hague hosted by the IGA at which this investment was announced, is exactly about this: how to get more financing into geothermal to awake the sleeping giant. This investment in Canopus sets an important example.