A startup founded by a former SpaceX engineer is bringing space expertise to the geothermal sector, aiming to build modular power plants on a gigawatt scale. Critical Energy, the company in question, has raised $22 million in equity and venture debt to develop modular turbines inspired by rocket engines, designed to fill a critical gap in the renewable energy market.
The potential of geothermal energy is immense: according to the International Energy Agency, globally available capacity exceeds 42 terawatts, more than double last year's world energy consumption. However, investment in this sector is still marginal compared to advanced nuclear fission and fusion. Spencer Jackson, CEO and co-founder of Critical Energy, told TechCrunch he aims to bridge the gap by building modular turbines in factories rather than assembling them on-site, reducing time and costs.
Sponsored Protocol
Jackson worked on Falcon Heavy, Starship, and the Raptor engine during his time at SpaceX. He now applies that expertise to designing turbomachinery for geothermal plants, leveraging machine shops to produce components similar to rocket engines. The modular approach enables mass production of turbines, accelerating deployment compared to traditional turbines that require months of on-site assembly. The startup plans to complete its first 2.5 megawatt plant by 2027, installed at an existing geothermal site similar to those in Iceland or The Geysers in Northern California. Simultaneously, it is developing a 5 megawatt module for enhanced geothermal companies like Fervo Energy, which drill deeper wells to extract more heat.
Sponsored Protocol
Geothermal energy is considered the dark horse of the energy transition. While advanced nuclear reactors and fusion plants target the early 2030s for commercialization, geothermal startups could already be building gigawatt-scale plants by then. Geothermal will beat them to it, by a lot, Jackson stated. A recent report indicates that advanced geothermal could power nearly two-thirds of new data centers by 2030, meeting the growing energy demands of the tech industry.
Critical Energy secured $19 million in a seed round led by Susa Ventures and Upfront Ventures, with participation from MaC Venture Capital, Susquehanna Sustainable Investments, Humba Ventures, Scribble Ventures, and Underground Ventures. An additional $3 million in venture debt came from Silicon Valley Bank. The funds will be used to build the first demonstration project. The long-term goal is ambitious: 300 gigawatts per year by 2045. Jackson expects that as the technology matures, oil and gas companies will enter the sector, further accelerating development. The oil industry has the replicability to drill hundreds and then thousands of wells, but they will need turbines, and there will be a massive shortage, he concluded.
Sponsored Protocol
For further reading, check the Wikipedia page on geothermal energy. Also, other startups are innovating in renewables, while SpaceX continues to dominate the space scene.
