Geothermal startup Mazama Energy has raised $135 million in an oversubscribed Series B, the company announced Thursday. The fresh capital will accelerate development of horizontal wells in super-hot rock formations, each capable of generating 15 megawatts of electricity.
Mazama plans to begin generating electricity sometime next year. Its first site in Oregon is now estimated to have the potential to produce 10 gigawatts of electricity—a sharp upward revision from last year's estimate of 5 gigawatts, according to investor Vinod Khosla.
Enhanced Geothermal: The Dark Horse for AI Data Centers
Enhanced geothermal startups are emerging as a dark horse in the race to power AI data centers and other large grid loads. While tech companies and data center developers have heavily favored natural gas, geothermal startups have been rapidly advancing their technology.
Unlike conventional geothermal projects, enhanced geothermal startups target deeper and hotter rock. Mazama, for example, has drilled past 10,000 feet in just 15 days on its way to approximately 15,000 feet. At those depths, the company accesses 750°F (400°C) heat, which under high pressure turns water into a "supercritical" fluid—neither fully liquid nor fully gas—that absorbs far more energy than ordinary steam. Mazama says this will allow each well to produce up to 10 times more power than traditional geothermal technologies.
Significant Potential
Given the depths Mazama is targeting, the potential payoff is substantial. Tapping just 1% of super-hot rock worldwide could generate more than 63 terawatts of electricity, according to the University of Twente and the Clean Air Task Force.
While work at its Oregon site is still in early stages, the startup has already secured land for a second development. Mazama aims to complete development of the first site by 2030, at which point it expects to generate 200 megawatts of electricity.
Investor Syndicate
The new round was led by Centaurus Capital and Doerr Capital, with participation from ConocoPhillips and Shell Ventures. Existing investors including Khosla Ventures and Gates Frontier returned, and new investors SiteGround Capital, H. Barton Asset Management, and the Jeffrey and Marieke Rothschild Foundation also joined. Mazama was incubated at Khosla Ventures.
via TechCrunch