Quaise Energy raised $134M in the first close of its Series B (led by Prelude Ventures with JERA and Idemitsu) to fund Project Obsidian, its pioneering superhot geothermal power plant in Oregon, and scale millimeter wave drilling technology.
Quaise Energy‘s $134 million first close of its Series B funding round marks a major milestone for the company as it transitions from technology development and field testing to commercial deployment of superhot geothermal power.
Led by existing investor Prelude Ventures, the round includes strategic participation from JERA Co., Inc. (Japan’s largest power generation company) and Idemitsu Kosan (one of Japan’s largest integrated energy companies), along with nearly all existing investors such as Safar Partners. This brings Quaise’s total funding raised to approximately $230 million. The Series B is framed as the initial equity component of a broader capital stack that includes additional equity, project level financing, and debt expected to close soon.
What is Quaise Energy?
Quaise Energy, an MIT spinout from the Plasma Science and Fusion Center (founded around 2018), develops a hybrid drilling approach for ultra deep geothermal energy. Conventional rotary drilling reaches basement rock, after which high power millimeter waves (generated by gyrotrons, drawing from fusion research) vaporize rock to create boreholes. This enables access to superhot rock at depths of 3–20 km and temperatures of 300–500°C in most locations worldwide, far beyond traditional geothermal limits.
Key advantages include:
- High power density and baseload reliability: Comparable to fossil or nuclear plants, with minimal land use and materials.
- Repurposing of oil & gas assets: Leverages existing workforce, rigs, supply chains, and infrastructure for faster scaling.
- Global accessibility: Reduces dependence on specific geological hotspots, supporting energy independence.
The technology aims to unlock terawatts of clean, dispatchable power nearly anywhere, addressing intermittency issues of solar/wind and supporting electrification demands (e.g., data centers).
Use of Funds and Project Obsidian
Proceeds primarily fund Project Obsidian in Central Oregon (Deschutes National Forest, near Newberry Volcano), designed as the world’s first commercial superhot geothermal power plant.
- Scale: Initial phase targets 50 MW, with potential expansion to 250 MW (gigawatt scale site potential overall). First power to the grid targeted for 2030.
- Offtake: A hyperscaler customer has already committed to the first 50 MW, capitalizing on Pacific Northwest grid needs amid rising demand and transmission constraints.
- Drilling progress: At a Central Texas field site, Quaise has drilled >100 meters through granite (2025 milestone) and is approaching 1 km depth, the deepest for millimeter wave or non contact drilling. This validates the system for Obsidian deployment.
Additional funds support scaling the millimeter wave drilling system toward >5 km depths and commercialization. The project combines federal geothermal leases with hybrid drilling for rapid development.
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This round reflects growing confidence in advanced geothermal amid surging clean firm power demand. Investors like JERA and Idemitsu signal international interest in scalable baseload renewables for energy security and decarbonization. Prelude’s continued leadership underscores long term belief in superhot rock’s potential.
Market positioning:
- Geothermal remains a small but high uptime renewable; superhot enhanced systems could dramatically expand it.
- Quaise differentiates via its drilling innovation, aiming for cost competitiveness by reusing fossil infrastructure and achieving high temperatures/power density.
- Timeline alignment: 2025 full scale hybrid rig demo, 2026 first thermal energy, 2030 commercial operation.
Challenges in the sector include technical risks in deep drilling, regulatory/permitting hurdles (even on federal leases), supply chain scaling for gyrotrons/waveguides, and proving long term reservoir performance. Quaise’s field results and hyperscaler offtake help derisk these.
The $134M Series B validates Quaise’s progress from MIT lab tech to near commercial deployment, positioning it as a leader in next generation geothermal. With total capital nearing $230M+ and a clear path to first revenues via Project Obsidian, the company is advancing a vision of abundant, equitable, zero carbon baseload power. Success here could catalyze broader adoption, repurposing energy industry assets for a faster transition while addressing global power needs. Further closes in the capital program will be key to hitting 2030 targets.
Quaise’s approach stands out for its ambition to make geothermal a dominant, location agnostic energy source, backed by credible strategic and financial partners.
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