Mazama Energy secures $135M for superhot
Geothermal startup Mazama Energy has raised $135 million to advance its superhot rock drilling project near Oregon's Newberry Volcano, aiming to prove a
Mazama Energy has raised $135 million to accelerate its next-generation geothermal work near Oregon's Newberry Volcano. The startup aims to generate electricity from superhot rocks, an emerging approach that could significantly boost geothermal power's competitiveness.
According to CEO Sriram Vasantharajan, superhot rock is almost essential for geothermal to become cost-competitive with fossil fuels. The hotter the resource, the fewer expensive wells are needed to build powerful and efficient systems.
Funding and backers
The Series B funding round was oversubscribed and led by billionaire John Arnold's Centaurus Capital and Doerr Capital. Oil and gas giants ConocoPhillips and Shell Ventures participated, alongside existing investors Khosla Ventures and Gates Frontier.
In a news release, John Arnold stated that superhot geothermal offers the promise of firm, carbon-free power with a relatively small footprint, but realizing that promise requires significant technical innovation. He said Mazama has made impressive progress.
Sector context and technology
Mazama's announcement follows heightened activity in next-generation geothermal. Fervo Energy went public this year, Sage Geosystems started producing power from a Texas pilot, and Quaise Energy closed a $180 million funding round last month. These companies are trying to overcome constraints that have limited traditional geothermal projects.
Conventional plants rely on natural pockets of hot water. Enhanced geothermal systems involve drilling miles underground and fracturing rocks to create artificial reservoirs, potentially unlocking hundreds of gigawatts of constant power in the western U.S.
Mazama's progress and plans
The company, which has roots in the fossil fuel industry, achieved a key milestone in October 2023. It built what it calls the world's hottest enhanced geothermal system, reaching 331 degrees Celsius at its Newberry Volcano pilot site. The project received a U.S. Department of Energy grant.
John McLennan of the federally funded Utah Forge laboratory said this proof of concept opens the door to deeper and hotter opportunities. Mazama's first well reached a depth of 10,350 feet. The company drilled a second well to the same depth about 80% faster this year, a critical improvement given rig costs can exceed $100,000 per day.
The company continues drilling to reach 400 degrees Celsius. At that temperature, a project could deliver up to ten times more power than a conventional well operating at 200 degrees Celsius.
The new financing will fund Project Ceres, a Department of Energy-supported initiative. It involves drilling horizontally to demonstrate a potential capacity of 15 megawatts of clean electricity per well. Vasantharajan said the startup plans to start drilling wells later this year and begin testing the system early next year. He described Ceres as the blueprint for a scalable, commercial deployment pathway for superhot rock.
