Rodatherm Energy Raises $38M for Innovative Refrigerant-Based Geothermal Pilot Plant in Utah, Challenging Established Players
A innovative geothermal startup, Rodatherm Energy, has emerged from stealth, announcing a $38 million funding round and intentions to construct a pilot plant in Utah.
Distinguishing itself from other enhanced geothermal companies, Rodatherm employs a closed-loop system for its boreholes, likely made of steel, filled with refrigerant. This approach differs from traditional methods that utilize water for heat transport from deep within the Earth.
The funding round was spearheaded by Evok Innovations, with contributions from Active Impact Investments, Giga Investments, Grantham Foundation for the Protection of the Environment, MCJ, TDK Ventures, Tech Energy Ventures, and Toyota Ventures.
Operating in a competitive landscape, Rodatherm competes against established players such as Fervo Energy, Sage Geosystems, XGS Energy, and Quaise. Notably, Fervo Energy leads the field, having raised close to $1 billion, and is set to complete the first phase of its 100-megawatt Cape Station power plant next year, with an additional 400 megawatts slated for 2028. The company also has a deal to supply Google with electricity for their data centers, while XGS Energy holds a contract with Meta for the development of a 150-megawatt power plant in New Mexico to power their data centers.
Rodatherm claims that its closed-loop, refrigerant-based system is 50% more efficient than conventional water-based systems. Air-source heat pumps, commonly known as minisplits, utilize hydrocarbon-based refrigerants to shift heat between indoor and outdoor environments.
The startup’s patent on the technology suggests that the closed-loop design eliminates the need for filters to screen grit and debris typically encountered by open-loop systems, as water flowing through the ground can break loose rock fragments. Additionally, the patent indicates a reduction in water usage with the closed loop system.
However, Rodatherm’s approach may incur increased drilling and installation costs compared to simpler systems. It remains uncertain if the added efficiency of its refrigerant-based design will offset those expenses until the company completes a well.
The Series A funding will be utilized by Rodatherm to construct a small pilot 1.8-megawatt plant in Utah, scheduled for completion by the end of 2026. Utah Associated Municipal Power Systems has agreed to purchase electricity from the project.
