Rodatherm is pioneering an innovative geothermal technology that could significantly reduce water use and lower costs, Bloomberg reported.
The company has developed a closed-loop system using refrigerants instead of water, which allows it to operate efficiently in hot sedimentary rock. This breakthrough technology is expected to increase the viability of geothermal projects, particularly in the increasingly arid western US.
The company is working on its first pilot system in Utah, which is scheduled to be operational by the end of 2026. With a capacity of 1.8 megawatts, Rodatherm has secured Utah Associated Municipal Power Systems as its first offtaker, with a power purchase agreement set at $80 per megawatt-hour. This rate is comparable to what Meta paid for nuclear power from Constellation Energy Corp.
Despite geothermal energy currently accounting for less than 1% of US energy generation, the sector is growing rapidly, driven by the increasing demand for clean energy. However, the industry has faced challenges due to high costs, including the need to redrill boreholes and replace parts exposed to corrosive water. Rodatherm’s closed-loop system, which uses refrigerants similar to those in heat pumps, addresses these issues, while also reducing water consumption.
Rodatherm is capitalising on the expanding clean energy market by integrating artificial intelligence with geothermal power. CEO Curtis Cook expressed optimism about the sector’s future, citing the Trump administration’s push to fast-track regulatory approvals and ongoing federal tax credits as key drivers of growth.
The company recently raised $38 million in a Series A funding round led by Evok Innovations, reflecting growing investor confidence in the geothermal sector. This funding follows significant growth in the industry, including a $244 million raise by Fervo Energy in February and a 35% share increase for Ormat Technologies Inc. this year. Fervo also secured a deal to supply power to Google through Nevada utility NV Energy in June.