Houston Startup Aims to Unlock Geothermal’s Potential

Quaise Energy, a Houston-based startup, began drilling its first well in Oregon for Project Obsidian, a “superhot” geothermal power plant aiming to compete with fossil fuels on cost. The company recently secured $134 million in Series B funding to advance the project, which utilizes innovative drilling technology developed from research at MIT.

Traditional geothermal energy is limited to areas with specific geological conditions, but Quaise’s approach focuses on drilling deeper to access consistent heat sources found worldwide. The technology employs millimeter-wave technology, originally designed for fusion energy research, to vaporize rock and enable more efficient drilling.

Initial phases will leverage conventional drilling techniques at the Newberry Volcano site, reaching temperatures around 300 degrees Celsius. The company plans to eventually drill as deep as 12.9 miles, utilizing its new technology to tap into even hotter resources.

Quaise has secured a power purchase agreement with an unnamed hyperscaler for the first 50 megawatts of power generated, with plans to expand to 200 megawatts. Success could enable rapid scaling of the technology and provide a clean energy source to meet growing electricity demand.