The new commercial venture will serve as the sector’s first sustainable, market driven operation that specializes in the production of energy derived from geothermal heat extracted from existing oil & gas infrastructure.
FORT LAUDERDALE, Fla.–(BUSINESS WIRE)–X Machina Capital Strategies (“XMC”), which develops transformational private investment initiatives within the energy commodities marketplace, today announced the merger of Transitional Energy (“Transitional”), a Denver, Colorado-based geothermal company focused on energy production derived from the heat extracted via existing oil & gas infrastructure, and Gradient Geothermal, the newest strategic platform entity in XMC’s full spectrum energy investment lineup. This announcement is the latest in a series of investments by a XMC-affiliated operation to transform energy production by leveraging advanced technology in the renewable energy space.
Financial terms of the agreement were not disclosed.
While geothermal holds the highest percentage of continuous output of any renewable energy source on the market and is widely considered by experts as essential to transitioning the national energy grid to non-carbon sources, the commercial development of geothermal energy has routinely lagged behind its counterparts due to high exploration and drilling costs and lengthy permitting processes. Gradient Geothermal seeks to overcome these legacy issues by utilizing existing sources of water, natural gas, and oil that are produced during fossil fuel extraction to streamline the process of geothermal production.
This unique operational model positions the company as the only scalable commercial operation in the sector that specializes in this innovative form of geothermal energy production. The Transitional Energy team, supported in part by a grant from the U.S. Department of Energy Geothermal Technologies Office, is already executing on this strategy at an inaugural site on the Blackburn Oil Field in Pine Valley, Nevada, and the merger with Gradient Geothermal is designed to accelerate the growth of other ongoing efforts across the country and around the globe.
“Meeting our world’s ambitious environmental sustainability targets cannot be achieved without investing in technologies that allow us to mine renewable energy from traditional energy infrastructure,” said Talal Debs, Founder and Managing Partner, XMC Strategies. “XMC always strives to best position the teams that will drive the next renewable energy revolution, and we are excited to match Transitional Energy’s technological prowess with our unique marketplace outlook to help unleash Gradient’s unlimited potential.”
Dr. Benjamin Burke, Chief Executive Officer, Gradient Geothermal, commented, “Gradient Geothermal brings the deep subsurface and facilities expertise of Transitional Energy and the resources of X Machina Sustainable Technologies into a shared, common vision of making geothermal in the oilfield a commercial reality.”
About XMC Strategies
XMC Strategies is an investment management firm that helps empower commercial entities that specialize in profitably transforming existing oil and gas assets into long-term, sustainable solutions. The XMC family of companies includes Zefiro Methane Corporation, a nationwide operation specializing in plugging orphaned and abandoned oil and gas wells and subsequently creating top-tier carbon offset opportunities, X Machina Sustainable Technologies, which provides technology development and operational expertise to renewable energy organizations, and Gradient Geothermal, a geothermal energy and technology developer.
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