Rodatherm Energy just shook up the geothermal sector by emerging from stealth with $38 million in Series A funding and a bold claim – their refrigerant-based closed-loop system runs 50% more efficiently than traditional water-based geothermal plants. The Utah-based startup now faces the challenge of proving their technology can compete with billion-dollar players like Fervo Energy and deliver cheaper power.
Rodatherm Energy just threw down the gauntlet in geothermal energy's hottest race. The startup emerged from stealth Monday with $38 million in Series A funding and a technology that could reshape how we tap Earth's heat – if they can prove it actually works at scale.
The company's refrigerant-filled closed-loop system promises 50% better efficiency than water-based competitors, but it's entering a market where Fervo Energy has already raised nearly $1 billion and signed deals with tech giants. The question isn't whether Rodatherm's technology is clever – it's whether it can be cheap enough to matter.
Evok Innovations led the funding round with participation from Active Impact Investments, Giga Investments, Grantham Foundation for the Protection of the Environment, MCJ Collective, TDK Ventures, Tech Energy Ventures, and Toyota Ventures. The investor lineup signals serious institutional backing for what amounts to a refrigerator-sized bet on geothermal's future.
Rodatherm's approach replaces the industry-standard water circulation with steel pipes filled with refrigerant – the same stuff that makes your heat pump work. While competitors pump water through underground fractures to capture geothermal heat, Rodatherm's closed system keeps everything contained. According to their patent filing, this eliminates filtration needs and reduces water consumption.
But efficiency gains come with a price tag. The closed-loop design requires more complex drilling and installation compared to open-loop water systems. Whether Rodatherm's 50% efficiency boost can offset those higher upfront costs remains the $38 million question – literally.
The startup faces formidable competition in a sector that's suddenly attracting massive investment. Fervo Energy dominates with its 100-megawatt Cape Station project launching next year and an additional 400 megawatts planned for 2028. The company also secured a deal supplying with electricity for data centers.
