Critical Energy has raised $19 million in seed funding to develop factory-built turbines for geothermal power plants. The company will use the capital to complete its first 2.5-megawatt commercial project, which is scheduled to begin operating in 2027.
Susa Ventures and Upfront Ventures led the funding, with participation from MaC Venture Capital, Susquehanna Sustainable Investments, Humba Ventures, Scribble Ventures, and Underground Ventures. Critical Energy also secured $3 million in venture debt from Silicon Valley Bank, bringing its total early capital to $22 million.
Modular Design Targets Turbine Supply Shortage
Critical Energy is developing turbine systems that can be assembled in factories, transported in standard shipping containers, and installed with less work at the power plant. Founder and CEO Spencer Jackson said conventional large turbines can require months or years of on-site assembly, creating a potential supply constraint as geothermal projects expand.
The company’s Apex modular power units convert underground heat into electricity through a closed-loop system. Heat vaporizes a working fluid, which spins a turbine before cooling, condensing, and circulating through the system again.
Critical Energy is working with machine shops to manufacture the turbomachinery and other custom components while purchasing some parts from existing suppliers. Jackson said the company could bring more manufacturing work in-house as production increases.
Jackson previously spent seven years at SpaceX, where he worked on Falcon Heavy, Starship, and the Raptor engine. Critical Energy’s wider team has more than 50 years of combined experience at the aerospace company.
First Project Is Scheduled for 2027
The first 2.5-megawatt system will be installed at an existing geothermal site similar to facilities operating in Iceland and Northern California. Critical Energy is also designing a larger five-megawatt module for enhanced geothermal developers that drill deeper to access hotter underground resources.
The company’s demonstration system has already generated more than 50 kilowatts during testing. Critical Energy plans to scale production to several gigawatts annually within four or five years, with a longer-term target of producing 300 gigawatts of equipment each year by 2045.
The International Energy Agency estimates that geothermal resources located less than five kilometres underground could provide 42 terawatts of power capacity. Deeper resources could increase that technical potential to almost 600 terawatts.
A Rhodium Group analysis found that advanced geothermal systems could economically supply up to 64% of expected US data centre electricity-demand growth by the early 2030s. Jackson expects oil and gas companies to support expansion because they already have the equipment and experience needed to drill large numbers of wells.
Featured image credits: PickPik
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