FREMONT, Calif. – GlassPoint Solar, a provider of solar steam generators for enhanced oil recovery, has received $3.5 million in a financing round led by Chrysalix Energy Venture Capital. The funding will accelerate the commercialization of GlassPoint’s solar steam technology and will finance the deployment of a solar enhanced oil recovery (EOR) demonstration plant in Bakersfield, Calif.
With the investment, Chrysalix vice president of investments Charlie Haythornwaite will join GlassPoint’s board of directors.
Steam-based EOR, also known as thermal EOR, dominates enhanced oil recovery worldwide, delivering more petroleum and enabling production of otherwise inaccessible heavy oil and tight formations. Conventional thermal techniques rely on natural gas, which is burned to produce steam that is injected into the reservoir to facilitate production.
However, natural gas prices are extremely volatile. While today’s natural gas prices are relatively low at $4.00 per MMBtu, energy consulting firm Wood Mackenzie forecasts a price increase to $6.50 per MMBtu over the next five years. This contrasts with natural gas prices that were as high as $12 per MMBtu less than 18 months ago.
GlassPoint’s solar steam generators deliver steam at a constant price for the entire 30-year life of the system.
GlassPoint’s innovative solar thermal design combines ultralight, low-cost components in a highly durable and proven configuration. Developed specifically to withstand rugged oilfield environments with minimal operator intervention, GlassPoint’s system easily integrates with existing gas-fired generators to ensure reliable 7x24 steam delivery.
Rod MacGregor, CEO and co-founder of GlassPoint Solar commented: “Thirty years ago, the first solar EOR pilot project demonstrated the reliability and effectiveness of the technology. Today, GlassPoint’s innovations make solar steam economical and ready to scale to large thermal recovery projects.”
Stuart Heisler, P.E., thermal recovery expert and principal at TJ Cross Engineers Inc., an engineering firm in Kern County, California, added: “With more than 50 percent of the original oil in place in the United States still in the ground, operators are in need of viable recovery techniques to reach these untapped resources. With GlassPoint’s solar enhanced oil recovery technology, production can be quickly expanded in an increasingly strict regulatory environment, free from permitting and emission concerns, while locking in a low-cost fixed energy price for the life of the field. In many cases, we can bring a GlassPoint steam generator online in less time than it takes to obtain the air permits for a gas-fired steam generator.”
Chrysalix is a venture capital firm investing in technologies that will drive the new energy economy. The firm is backed by a group of international industrial and financial limited partners, including Total, Shell Hydrogen, and Kuwait Petroleum, and is headquartered in Vancouver, Canada. In total Chrysalix has approximately $300M in assets under management.
Source: GlassPoint Solar