Exclusive: Mazama raises $135M for superhot geothermal

Exclusive: Mazama raises $135M for superhot geothermal

Mazama Energy, a superhot geothermal energy developer, closed $135 million in Series B funding and grants, CEO Sriram Vasantharajan tells Axios Pro exclusively.

Why it matters: Few startups have amassed a war chest to challenge geothermal frontrunner Fervo Energy.

Flashback: Axios Pro first reported in April that Mazama Energy was raising $100 million.

The latest: Centaurus Capital and Doerr Capital led the round, which closed in August.

  • ConocoPhillips, Shell Ventures, SiteGround Capital, H. Barton Asset Management, the Jeffrey and Marieke Rothschild Foundation, and existing investors Khosla Ventures and Gates Frontier participated.

    • Follow the money: Mazama Energy last year raised a $36 million Series A led by Khosla Ventures.

  • The Frisco, Texas-based company also received a $20 million grant from the U.S. Department of Energy in 2024.

    • Context: Geothermal startups are surfing the momentum from Fervo Energy's (Nasdaq: FRVO) blockbuster IPO in May.

  • Developers Quaise Energy and Zanskar this year raised $180 million and $115 million, while Sage Geosystems closed $97 million.
  • XGS Energy and Eavor are evaluating going public, Axios Pro reported.

    • How it works: Geothermal plants shoot water into scorching rock deep underground, creating steam that spins a turbine to generate electricity.

  • Mazama Energy and rival Quaise Energy are focused on producing energy using ultra-hot resources.
  • The approach can limit wells to certain locations and require drilling much deeper. But if successful, it can produce more power from fewer wells, reducing costs.

    • What we're watching: Mazama is developing a 15 MW demonstration at Newberry Volcano in central Oregon.

  • The company expects to bring the site online and connect to the grid next year. Its first commercial project, also at Newberry, will target 200 MW.