SpaceX alum nabs $22M to turn rocket engines into geothermal power plants

A groundbreaking startup, Critical Energy, is making waves in the energy sector by securing $22 million in funding to innovate geothermal power technology. With a staggering potential of 42 terawatts available globally, geothermal energy is emerging as a formidable player in the race for sustainable power sources, yet it remains underfunded compared to advancements in nuclear energy. The significant investment will primarily support the development of a modular turbine specifically designed for geothermal power plants. Critical Energy aims to kick off its first project featuring a 2.5 megawatt capacity, with a timeline for completion set for 2027. Co-founder and CEO Spencer Jackson expressed confidence in geothermal's ability to outpace nuclear energy advancements, stating, “Geothermal is going to beat them to it. By a lot.” Jackson envisions that within four to five years, his company could be generating multiple gigawatts of energy annually. Recent reports highlight the growing demand for energy in the tech industry, predicting that advanced geothermal systems could power nearly two-thirds of new data centers by 2030. However, Jackson has noted a critical shortage of compatible turbines, particularly large ones that often take considerable time to assemble on-site. He emphasizes that producing turbines in a factory setting will be significantly faster and more cost-effective. Leveraging his experience from SpaceX, where he contributed to the Falcon Heavy and Starship projects, Jackson is steering the design of these turbines. Critical Energy is collaborating with machine shops to manufacture the turbomachinery and components, which share similarities with rocket engines, while also sourcing some parts from existing suppliers. Looking ahead, Critical Energy is also developing a larger 5 megawatt module aimed at enhanced geothermal projects, which delve deeper into the Earth for greater heat extraction. With aspirations to produce gigawatts of turbines by the early 2030s, Jackson has set an ambitious long-term goal of reaching 300 gigawatts annually by 2045. As geothermal technology matures, Jackson predicts that oil and gas companies will increasingly invest in this field, capitalizing on their expertise in drilling. He warns, however, that a significant shortage of turbines looms on the horizon. The impressive seed funding was led by Susa Ventures and Upfront Ventures, with participation from several other investors, including Silicon Valley Bank, which provided an additional $3 million in venture debt.