Geothermal Startup Uses Refrigerants, Not Water, to Make Energy
(Bloomberg) -- A next-generation geothermal startup is planning to build a pilot system in Utah following a $38 million Series A fundraising round, as it takes initial steps to capitalize on the artificial intelligence-driven power boom.
Rodatherm Energy Corp. has developed a closed-loop geothermal energy system that uses refrigerants instead of water used in traditional systems. The technology is optimized to work in hot sedimentary rock, which is commonly found in basins throughout the western US and Gulf Coast. The raise was led by Evok Innovations.
The raise follows a rash of good news for the geothermal industry over the past year, as the data center boom has swelled. In February, Fervo Energy raised $244 million to scale its enhanced geothermal systems, and developer Ormat Technologies Inc. has seen shares surge 35% this year. In June, Fervo struck a deal to supply power to Alphabet Inc.’s Google via Nevada utility NV Energy.
“We have fantastic tailwinds for geothermal as we move forward,” said Rodatherm Chief Executive Officer Curtis Cook, citing the Trump administration’s push to fast-track regulatory approval as well as continued federal tax credits.
Still, geothermal energy accounts for less than 1% of US energy generation and has failed to take off due to high costs. That includes the need to redrill bore holes every decade or so and pricey components that need to be replaced due to their exposure to corrosive water, said Cook.
By creating an encased, closed-loop system that utilizes refrigerants similar to those used in heat pumps instead of water to generate electricity, Rodatherm will be able to lower costs and increase its projects’ bankability, he said. The technology can also help reduce water use, something that’s a concern in the increasingly arid western US.
The company is building its first pilot loop, which it expects to be operating by the end of 2026, with a modest capacity of 1.8 megawatts. Rodatherm has contracted with the Utah Associated Municipal Power Systems as its first offtaker, with a power purchase agreement of $80 per megawatt-hour, an amount on par with what Meta Platforms Inc. is estimated to have paid for nuclear power from Constellation Energy Corp.
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