Houston cleantech startup secures $134M to develop ‘superhot’ geothermal plant

deep round

A rendering of a Quaise Energy geothermal plant. Rendering via quaise.com

Houston-based Quaise Energy, a producer of utility-scale geothermal power, raised $134 million in a Series B round to advance its “superhot” geothermal power plant.

Climate-focused San Francisco-based investment firm Prelude Ventures led the round, with participation from JERA Co., Japan’s largest power generation company, and Idemitsu Kosan, one of Japan’s largest energy companies. Nearly all existing investors, including cleantech-focused investment firm Safar Partners, participated in the round.

“We have backed Quaise since the beginning because we believed accessing superhot rock would unlock geothermal energy at a scale the world has never seen,” Mark Cupta, managing director at Prelude Ventures, said in a press release.

The startup expects more equity and debt deals to close “imminently.” Quaise has raised $230 million since its founding in 2018.

Quaise says some of the fresh funding will go toward building the world’s first commercial-scale “superhot” geothermal power plant —Project Obsidian in central Oregon. In addition, Quaise is earmarking money for continued development and commercialization of its millimeter-wave drilling system toward depths exceeding 5 kilometers (about 16,400 feet).

Quaise uses a millimeter-wave drilling system developed at the Massachusetts Institute of Technology to remove rock at depths and temperatures that aren’t economically feasible with conventional drilling. With this technology, Quaise can reach rock at temperatures of around 570 degrees to 930 degrees in most places worldwide, enabling construction of geothermal systems that rival fossil fuels and nuclear energy in power density and that rival renewables in cost.

“Our ambition is to power civilization with Earth's most compelling energy source. This round takes us from field-proven technology to first commercial revenues,” Carlos Araque, co-founder, president and CEO of Quaise, added in the release.

Quaise has demonstrated the capability of its millimeter-wave drilling system at its Central Texas test site, drilling more than about 330 feet through granite in 2025—the first time the technology penetrated basement rock at full scale in the field. The company is approaching a depth of about 3,300 feet at the same site.

Construction of Project Obsidian is underway at Oregon’s Deschutes National Forest. The project, which has the potential to generate gigawatt-scale power, is slated to deliver electricity to the Pacific Northwest grid by 2030.

From Your Site Articles

Quaise Energy is developing Project Obsidian, a superhot geothermal plant in central Oregon. Rendering via quaise.com.

Houston cleantech startup seeks $200M for superhot geothermal plant

seeing green

Houston-based Quaise Energy is looking to raise $200 million to support the development of a 50-megawatt superhot geothermal plant in Oregon.

The company is seeking $100 million in Series B funding, plus an additional $100 million from grants, debt and project-level finance, a representative from the company tells Energy Capital. Axios first reported the news late last month.

Quaise specializes in terawatt-scale geothermal power. It is known for its millimeter-wave drilling technology, which was developed at MIT.

The company's Project Obsidian development in central Oregon will combine conventional drilling with its millimeter-wave technology. Quaise says the project, targeted to come online in 2030, could be the first commercial plant to operate in superhot rock, a more efficient and abundant resource, but one that requires more advanced and durable drilling technology.

Quaise says Obsidian would initially generate 50 megawatts of "always-on" power and would be designed to add 200 megawatts as additional wells are developed. A power-purchase deal has already been signed for the initial 50 megawatts with an undisclosed customer.

A representative from the company says Quaise would also use the funding to continue advancing its millimeter-wave technology and prepare it for commercialization.

Last year, the company drilled to a depth of about 330 feet using its millimeter-wave technology at its field site in Central Texas.

“Our progress this year has exceeded all expectations,” Carlos Araque, CEO and president of Quaise Energy, said at the time. “We’re drilling faster and deeper at this point than anyone believed possible, proving that millimeter-wave technology is the only tool capable of reaching the superhot rock needed for next-generation geothermal power. We are opening up a path to a new energy frontier.”

Canary Media reports that Quaise plans to drill to nearly 3,300 feet later this year and to deploy its millimeter-wave technology at its power plant in 2027.

Quaise raised $21 million in a Series A1 financing round in 2024 and a $52 million Series A in 2022. Major investors include Prelude Ventures, Safar Partners, Mitsubishi Corporation, Nabors Industries, TechEnergy and others.

Quaise was one of eight Houston-area companies to appear on Time magazine and Statista’s list of America’s Top GreenTech Companies of 2025.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Houston researchers land four projects in DOE's Genesis Mission

federal funding

The U.S. Department of Energy has named the nearly 300 projects selected under the Trump Administration's Genesis Mission, which aims to address some of the largest science and technology challenges in the country. The group features four projects from Houston universities and companies.

The initiative aims to unite government, industry, academia and philanthropy to lead to breakthroughs in energy, scientific discovery and national security, according to a release.

The selected projects feature 87 led by DOE and National Nuclear Security Administration (NNSA) National Laboratories, 168 led by universities, 19 led by companies and 4 led by nonprofit organizations—totalling 342 participating institutions.

“America has no shortage of bold ideas or talented scientists, and the response to the Genesis Mission proves that,” U.S. Secretary of Energy Chris Wright said in a news release. “The 278 projects selected today represent the very best of our nation’s scientific enterprise. The remarkable number of high-quality proposals we received demonstrates that America’s innovation pipeline is strong, and it points to even greater opportunities for future investment and continued expansion of the Genesis Mission portfolio.”

Twelve Texas-based projects were selected among the 278. The Houston projects and their researchers include:

Caroline Ajo-Franklin

Ajo-Franklin recieved a Phase I grant for her project "Predictive AI to Map Point Mutation Effects on Protein Function: Measurement and Biosynthesis of Isoprenoids." Ajo-Franklin is a professor of biosciences at Rice University, a CPRIT Scholar in Cancer Research and member of the Rice Synthetic Biology Institute. The project aims to accelerate the engineering of microbes that can produce isoprenoids, which are natural compounds that could replace petroleum-derived fuels, solvents and materials.

“This project creates a continuous feedback loop in which AI guides experiments and each experiment generates more detailed data to better hone the AI model,” Ajo-Franklin said in a news release. “In addition, it demonstrates the extraordinary star power Rice has recruited in protein engineering and synthetic biology.”

Anastasios Kyrillidis

Kyrillidis recived a Phase I grant for his project "Cracking the VQA Optimization Bottleneck: AI Methods for Quantum Chemistry and Materials." Kyrillidis is the Noah Harding Associate Professor of Computer Science at Rice and a member of the Ken Kennedy Institute. The project aims to develop AI tools to resolve bottlenecks in quantum computing for chemistry and materials research.

“Our goal is to replace fragile, hand-tuned optimization methods with intelligent systems that can learn from quantum computations while still operating within frameworks that provide strong mathematical guarantees,” Kyrillidis added in the release.

Myoungkyu Lee

Lee received a nearly $750,000 Phase I grant for his project "Physics-Informed AI Surrogates for Turbulent Forced Convection in Energy System." Lee is an assistant professor of mechanical aerospace engineering at the University of Houston. Lee will collaborate with researchers from Lawrence Livermore National Laboratory and University of Pennsylvania on the project and develop artificial intelligence to accelerate the design of materials for advanced nuclear fission and fusion reactors.

“The goal is to develop a tool that runs much faster than today’s most detailed simulations while keeping errors small,” Lee said in a news release. “If successful, the approach could support better heat-transfer predictions for molten-salt reactor design and provide a starting point for studying heat removal in fusion blankets. This is one contribution among many toward reliable, carbon-free energy.”

Amit Padhi

Padhi recieved a grant for his project "Probabilistic Inference of Subsurface Fracture Connectivity for Stimulation Control with Physics-Informed AI." Padhi is a scientific advisor for Halliburton.

The DOE first called for applications for the Genesis Mission in March. At the time, the DOE shared that it would grant approximately $293 million to the selected teams via Phase I awards, ranging from $500,000 to $750,000 for nine-month project periods, and Phase II awards, for $6 million to $15 million over a three-year project period.

Since then, however, the initiative has grown with 15 federal agencies now granting research awards and funding opportunities under the Genesis umbrella. The White House announced this week that it had secured more than $5 billion in federal commitments to expand the initiative.

SLB teams with Liberty Energy on modular power for AI data centers

ai alliance

Houston-headquartered SLB and Denver-based Liberty Energy Inc. announced a strategic agreement this month to support the rapid growth of new data center capacity.

Under the agreement, SLB will supply modular data center infrastructure and oversee large-scale execution, while Liberty will provide modular power generation systems and behind-the-meter power management technology for developers looking to add capacity. According to Reuters, the power will come from natural gas generation.

“The bottleneck in AI infrastructure is no longer just compute. It is the ability to deliver infrastructure and power on the timelines the market now demands,” Gavin Rennick, president of SLB’s New Energy and Industrial business, said in a news release. “By bringing together complementary infrastructure and power capabilities, we will help developers accelerate deployment of new data center capacity.”

The companies seek to specifically offer the modular technologies in areas without traditional grid connections or where grid capacity is limited.

They also aim to improve the "efficiency, flexibility and environmental performance of future data center energy systems," potentially through solutions like hybrid power systems and digital energy management, according to the news release.

Goldman Sachs estimates that U.S. data center capacity will more than double from 31 gigawatts in 2025 to 66 gigawatts in 2027. Other reports predict that Houston and Texas will be home to a significant portion of the data center boom, with capacity in the city and the state also expected to double in the next few years.

“The scale and complexity of AI energy infrastructure is fundamentally changing how power systems are built and deployed,” Ron Gusek, CEO of Liberty Energy, added in the release. “Liberty’s comprehensive power service platform is engineered to meet this transition, as customers increasingly prioritize tailored, integrated solutions. Building on our long-standing relationship with SLB, we are excited to bring power solutions that address immediate capacity constraints while supporting the next generation of energy systems.”

SLB sold its onshore hydraulic fracturing business in the United States and Canada to Liberty Energy in December 2020 in exchange for a 37 percent equity interest in the company.

New Rice study details how carbon capture could reduce AI data center emissions

by the numbers

A new study out of Rice University points to carbon capture and storage methods as pivotal solutions to addressing emissions from AI-driven data centers.

The study was authored by Hon Chung Lau, an adjunct professor in the Department of Chemical and Biomolecular Engineering at Rice University and founder of Low Carbon Energies LLC, and Steve C. Tsai, an energy transition consultant at Low Carbon Energies LLC, and published in the journal Energy & Fuels.

According to the study, U.S. data center power capacity could more than quadruple in five years, growing from 40 gigawatts in 2025 to 169 gigawatts by 2030. Without proper regulation of emissions, the report estimates that carbon dioxide produced by fossil-fuel power plants supplying electricity to data centers could grow at the same scale, increasing from 90 million metric tons to more than 404 million metric tons over the same time period.

The researchers analyzed publicly available data on announced U.S. data centers, which included energy sources, locations, and projected power capacity before estimating data center-related carbon emissions based on each state’s electricity mix. From there, they examined whether those emissions could be captured and stored underground in saline aquifers.

The team estimates that 34 states have enough saline aquifer storage capacity to store more than 100 years of projected data center-related carbon dioxide emissions beyond 2030. Aquifers could store an estimated 59 million metric tons of data center-related carbon dioxide, or about 66 percent of the sector’s emissions in 2025. However, that calculation could grow to 299 million metric tons, or about 74 percent of projected data center-related emissions by 2030.

The researchers found that more than 90 percent of data center-related carbon dioxide emissions could potentially be mitigated through carbon capture and storage when out-of-state storage options are included, even though they note that carbon capture isn’t the only solution.

“It does show that the geology exists to make a meaningful impact, especially in states where data center growth is strongest,” Lau said in a news release.

Rapid growth in states including Texas, Virginia, Pennsylvania, Ohio, Arizona, Colorado, Utah and Illinois was considered in the study. According to the findings, Texas would need to add 25 gigawatts of power capacity by 2030 to meet projected data center demand, as data centers require reliable electricity 24/7.

“Data centers are becoming one of the defining energy challenges of the AI era,” Lau added in the news release. “The question is not only whether we can build enough computing infrastructure, but whether we can power it in a way that is reliable, affordable and compatible with decarbonization goals.”

View All Listings

ENERGYCAPITALHTX EMAILS ARE AWESOME