Factor2 Energy, a young Duisburg-based company with a bold vision for clean power, has successfully closed its Seed funding round, raising €7.7 million in venture capital.
The round was led by At One Ventures, with further backing from High-Tech Gründerfonds (HTGF), Gründerfonds Ruhr, Verve Ventures and Siemens Energy Ventures.
Founded earlier this year by Michael Wechsung, Joerg Strohschein and Felix Boehmer, all former Siemens Energy colleagues, the company has developed a novel way of producing geothermal energy by using carbon dioxide instead of water or brine as the working fluid. The approach is designed to unlock scalable, emission-free, and cost-effective baseload power while reusing proven technologies from the oil and gas industry.
“Our approach enables emission-free, efficient, and baseload-capable electricity production, which is ideal for traditional oil and gas companies looking to diversify their operating assets,” said CEO and Co-founder Felix Boehmer. “And in fact, the entire system leverages proven technologies from the oil and gas sector, with its long history of drilling and geologic expertise.”
The fresh capital will support further development of this CO₂-based geothermal system and fund the creation of a pilot power plant to prove its commercial scalability. According to the company, the system can operate in either natural CO₂ reservoirs or in geological formations designated for carbon capture and storage (CCS).
By injecting CO₂ into deep porous rock, the fluid absorbs geothermal heat, becomes less dense, and rises naturally through production wells, a process known as the thermosiphon effect. This eliminates the need for subsurface pumps, cutting energy losses and mechanical complexity. At the surface, a direct-drive CO₂ turbine converts the heat into electricity before the gas is cooled and reinjected, forming a closed cycle that also secures long-term CO₂ storage.
Kendra Rauschenberger, General Partner at Siemens Energy Ventures, said, “I am pleased to see this technology progressing toward commercialisation, following its development within Siemens Energy Ventures. Geothermal energy is a reliable and renewable power source, and we will work with Factor2 Energy to tailor our turbines to meet the specific needs of this emerging market.”
The technology promises to deliver up to twice the power output of conventional geothermal systems under similar conditions, while lowering capital costs. Its ability to operate at shallower depths and cooler sites opens up opportunities in locations unsuitable for water-based systems.
Helen Lin, Partner at At One Ventures, added: “As a cornerstone for enabling broader electrification, the need for cost-effective baseload power has never been more urgent. The fluid physics of CO₂ as a geothermal working fluid enables a 2x increase in power output while operating at the same depths/temperatures as conventional geothermal, translating to efficiencies in both capex and opex.”
By transforming CCS sites into productive energy assets, Factor2 Energy’s solution has the potential to broaden geothermal’s role in the global energy mix, combining climate resilience with reliable, round-the-clock green power.