GlassPoint Solar, a California based provider of solar steam generators for enhanced oil recovery, today announced it has received US$3.5 million in a financing round led by Chrysalix Energy Venture Capital. The funding will accelerate the commercialisation of GlassPoint’s solar steam technology and will finance the deployment of a solar enhanced oil recovery (EOR) demonstration plant in Bakersfield, California.
With Limited Partners including the venture arms of Shell, Total and Kuwait Petroleum backing Chrysalix, this investment in GlassPoint could be especially strategic for heavy oil producers such as Kuwait.
Chrysalix is backed by a strong group of international blue-chip Limited Partners, including some of the world’s largest oil companies, GlassPoint said in a statement. With this investment, Chrysalix vice president of Investments Charlie Haythornwaite will join GlassPoint’s board of directors.
“GlassPoint’s approach to solar enhanced oil recovery is a pure economic play, greatly increasing the amount of oil that can be cost-effectively recovered from a reservoir,” stated Haythornhwaite. “The technology will accelerate heavy oil production in the world’s sunny regions, from California to Kuwait.”
Steam-based EOR, also known as thermal EOR, is widely used in enhanced oil recovery operations 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. The extreme price volatility makes it difficult to develop production plans for heavy oil fields.
GlassPoint’s solar steam generators deliver steam at a constant price for the entire 30-year life of the system. When oil fields are developed with the certainty of low-cost, fixed-price steam, recovery strategies can be optimised to produce more oil over the lifetime of the field. This results in an increase in proven reserves, greatly enhancing the value of the asset, according to the company.
GlassPoint’s 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 steam delivery.
“With a deep background in the energy industry, and a roster of strong limited partners including some of the largest oil producers, Chrysalix is the ideal investor for a company in the solar enhanced oil recovery business,” said Rod MacGregor, CEO and co-founder of GlassPoint Solar. “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.”
