Rodatherm Energy Wants to Make Geothermal More Efficient, But Will It Be Cheaper?
Rodatherm Energy wants to make geothermal more efficient, but will it be cheaper? That’s the big question as the startup emerges from stealth with $38 million in fresh funding and a bold plan to build a pilot plant in Utah. Investors and industry watchers are closely tracking whether this technology can finally push geothermal into the mainstream.
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A Different Approach to Geothermal Energy
Unlike many enhanced geothermal companies, Rodatherm Energy is testing a closed-loop system. Instead of water, its boreholes are likely lined with steel and filled with a refrigerant to move heat from deep underground. This could improve efficiency and reduce some of the technical risks tied to water-based systems.
Backing From Top Investors
The Series A round was led by Evok Innovations, with participation from Active Impact Investments, Giga Investments, Grantham Foundation for the Protection of the Environment, MCJ, TDK Ventures, Tech Energy Ventures, and Toyota Ventures. The backing signals strong confidence that geothermal energy, long overshadowed by solar and wind, is gaining new momentum.
Competition Is Fierce
Rodatherm Energy is entering a competitive field that already includes Fervo Energy, Sage Geosystems, XGS Energy, and Quaise. Fervo stands out as the frontrunner, having raised nearly $1 billion and nearing completion of a 100-megawatt first phase at its Cape Station power plant. By 2028, Fervo plans to add another 400 megawatts. It even has a landmark deal to supply electricity to Google’s data centers.
XGS Energy has also struck a major deal with Meta to build a 150-megawatt power plant in New Mexico, showing just how valuable geothermal energy could become for powering AI-driven data centers and other energy-intensive operations.
Will Rodatherm Deliver Cheaper Geothermal Power?
Rodatherm’s biggest challenge will be proving not just efficiency, but affordability. Enhanced geothermal systems are notoriously expensive to drill and operate. If Rodatherm’s refrigerant-based closed loop reduces costs while improving energy output, it could shift the balance of the entire industry.
The race isn’t just about innovation—it’s about economics. Utilities and tech giants want reliable clean power, but they’ll only scale up geothermal if the price per megawatt-hour competes with solar, wind, and natural gas.
What’s Next
With its Utah pilot plant, Rodatherm Energy has the chance to validate its approach in real-world conditions. Success would attract more investment and potentially push geothermal into the spotlight as a key player in the clean energy transition. But until the numbers are clear, the question remains: Rodatherm Energy wants to make geothermal more efficient, but will it be cheaper?
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