Quaise Energy (quaise.com), a Houston-based developer of superhot geothermal power plants, has raised $134 million in Series B funding led by Prelude Ventures. The company uses millimeter wave drilling technology derived from MIT fusion research to access 300–500°C rock at depths of 3–20 km. The capital will advance Project Obsidian, the world's first commercial superhot geothermal plant in Central Oregon, targeting first power by 2030.
Geothermal Funding Surges Amid AI Demand
The timing comes amid surging investor interest in next-generation geothermal. Fervo Energy raised over $1.5 billion in equity and completed a $1.89 billion IPO in June 2026. Eavor Technologies secured roughly $245 million. Quaise's millimeter wave approach — vaporizing rock with gyrotron-powered microwaves instead of mechanical bits — targets depths and power densities competitors have not yet reached.
Conventional Geothermal Constrained by Geography
Traditional geothermal is limited to rare geologic hotspots and shallow depths. Most wells deliver modest power output because rock temperatures rarely exceed 200°C. This geographic constraint has kept global installed capacity at just 15.1 GW despite vast untapped heat resources deeper underground.
Millimeter Waves Unlock Deeper Heat
Quaise's gyrotron system beams high-frequency microwaves downhole to vaporize granite and basement rock without mechanical contact. Field tests have already penetrated more than 100 meters through granite. The approach enables 10–100x more power per well than conventional geothermal by reaching superhot conditions.
Hybrid Drilling Reduces Technical Risk
Initial wells at Project Obsidian will use conventional rotary drilling before switching to millimeter wave technology at greater depths. This staged method leverages proven oil and gas techniques while introducing the novel vaporization step only where it delivers the greatest advantage.
Mission Capital Validates Superhot Thesis
Prelude Ventures led the round with participation from JERA, Japan's largest power generator, and Idemitsu. The strategic involvement of Asian energy majors signals conviction that superhot geothermal can scale beyond niche applications. Total funding now stands at $230 million.
Market Projected to Reach $118.81 Billion
The geothermal energy market is projected to grow from $74.4 billion in 2025 to $118.81 billion by 2034. Next-generation geothermal startups have attracted more than $1.5 billion in private investment since 2021. Policy support remains intact even as incentives for other renewables face uncertainty.
Oil and Gas Expertise Accelerates Deployment
Quaise is deliberately recruiting from the oil and gas sector and partnering with contractors such as Nabors. The strategy repurposes existing drilling supply chains, regulatory frameworks, and workforce skills to build gigawatt-scale plants rather than starting from scratch.
Project Obsidian Moves Toward First Power
Construction is underway on federal leases near Newberry Volcano. The company plans to drill validation wells to 1 km in 2026 and reach 5 km depths by the end of 2027. Phase I targets 50 MW, scaling to 250 MW and ultimately more than 1 GW.