Startup raises $135 million to develop superhot geothermal power at an Oregon volcano
Mazama Energy's new funding will support drilling near Newberry Volcano as it tries to make next-generation geothermal power cost-competitive with fossil fuels.
Geothermal startup Mazama Energy has raised $135 million to accelerate development of its next-generation geothermal technology near Oregon's Newberry Volcano. The company is developing "superhot rock" geothermal systems, an emerging approach that taps unusually hot underground resources to generate power using fewer, less expensive wells than conventional geothermal projects.
"Superhot rock is almost essential for geothermal to become cost-competitive with fossil fuels," said Mazama chief executive Sriram Vasantharajan. The Series B round was led by billionaire John Arnold's Centaurus Capital and Doerr Capital, with participation from ConocoPhillips, Shell Ventures, and existing investors Khosla Ventures and Gates Frontier. Last October, Mazama said it built what it called the world's hottest enhanced geothermal system, reaching 331 degrees Celsius at its pilot site.
The new funding will support Project Ceres, a Department of Energy-backed initiative using horizontal drilling to demonstrate 15 megawatts of clean electricity capacity potential per well; drilling is set to begin later this year, with system testing planned for early 2027. Mazama is one of several companies racing to commercialize next-generation geothermal: Fervo Energy went public this year and signed a major power deal with Google, Sage Geosystems recently began producing power from a pilot system in Texas, and Quaise Energy, also drilling near Newberry Volcano, closed a $180 million round last month.
Based on reporting by Maria Gallucci for Canary Media. Read the original: https://www.canarymedia.com/articles/geothermal/mazama-energy-raises-135m-oregon-geothermal
This article was produced with the assistance of AI tools and reviewed by an editor before publication.
