Mazama Energy raises $135M to support commercial-scale superhot geothermal development

Mazama Energy Inc. (Mazama) has announced raising USD 135 million in new capital, including an oversubscribed Series B round, to support commercial development of its superhot rock geothermal project in Oregon. More specifically, the funding will go towards Project Ceres, which will advance horizontal well development in superhot rock, aiming for 15 MWe capacity per well and power generation by 2027.

The Series B funding round was led by Centaurus Capital, founded by John Arnold, and Doerr Capital. ConocoPhillips and Shell Ventures joined the round, with repeat investment from Khosla Ventures and Gates Frontier. Additional investors include SiteGround Capital, H. Barton Asset Management, and the Jeffrey and Marieke Rothschild Foundation.

Just a few weeks ago, Mazama made an announcement on achieving an 80% reduction in drilling time on its second geothermal well, Project Athena, against the baseline set by its first well. Drilling of this well will continue to a total depth 15,500 feet (4724 meters), with an expected temperature exceeding 750 ºF (~ 400 ºC).

The first well drilled by Mazama still holds the record for being the hottest enhanced geothermal system (EGS) with a temperature of 629°F (331°C). Moreover, the well was a validation of technologies and methods in reservoir creation, connectivity, and heat recovery.

Project Ceres, which is supported by the U.S. Department of Energy, is being designed as a near-term proof point for Mazama’s ambition of getting an independent certification for at least 10 GWe of resource potential at the Newberry site in Oregon. The company also plans to evaluate additional sites in the United States and internationally as it works to make superhot rock a scalable development model for geothermal power generation.

“The breakthrough in superhot geothermal is turning extreme heat into a repeatable, economic power system,” said Sriram Vasantharajan, CEO of Mazama Energy. “At Newberry, we have demonstrated the critical pieces together: extreme-temperature drilling, reservoir creation and heat harvesting, at temperatures no other engineered geothermal system has achieved. We are now driving that integrated system toward greater speed, efficiency and scale. That is the foundation for commercial superhot power.”  

Source: Mazama Energy via GlobeNewsWire