Critical Energy Raises $22M Seed Round and Venture Debt to Develop Modular Geothermal Turbines

Why It Matters

Modular turbines could dramatically lower the cost and construction time of geothermal plants, unlocking a vast, underutilized clean‑energy resource and attracting traditional oil‑and‑gas players to the sector.

Key Takeaways

• Critical Energy raised $19M seed to build modular geothermal turbines.
• Founder Spencer Jackson leverages SpaceX rocket engine experience for turbine design.
• First 2.5‑MW turbine plant slated for completion in 2027.
• Goal: produce 300 GW of turbines annually by 2045.
• Oil and gas firms may adopt geothermal turbines, easing shortage.

Pulse Analysis

Geothermal energy holds more than twice the world’s annual electricity consumption in untapped potential, according to the International Energy Agency. Yet the sector has lagged behind nuclear and fusion startups due to a critical bottleneck: turbines sized for high‑temperature, high‑pressure wells are expensive, custom‑built, and take years to install. By standardizing turbine modules and manufacturing them in a factory setting, Critical Energy aims to slash both capital expenditures and lead times, making geothermal projects financially competitive with other emerging clean‑energy technologies.

Critical Energy’s approach draws directly from Spencer Jackson’s tenure at SpaceX, where he helped develop the Raptor rocket engine. The company’s turbines borrow the same high‑speed turbomachinery principles, but are adapted for continuous, low‑emission power generation rather than brief thrust bursts. The seed round, led by Susa Ventures and Upfront Ventures with participation from several sustainability‑focused funds, provides the runway to build a 2.5‑megawatt pilot plant slated for 2027 at an existing site in California or Iceland. A larger 5‑megawatt module is also in development for enhanced‑geothermal operators like Fervo Energy, signaling a clear path toward scaling.

If Critical Energy can achieve its ambitious target of 300 GW of turbine capacity per year by 2045, the ripple effects could reshape the energy landscape. Oil and gas companies, already adept at drilling at scale, may pivot to geothermal projects once turbine supply constraints ease, accelerating deployment across data centers and industrial hubs. Moreover, the influx of venture capital into modular clean‑tech hardware underscores a broader investor shift toward tangible, infrastructure‑level solutions that promise rapid, decarbonized growth.

Deal Summary

Critical Energy, a startup building modular turbines for geothermal power plants, announced a $19M seed round led by Susa Ventures and Upfront Ventures, with participation from MaC Venture Capital, Susquehanna Sustainable Investments, Humba Ventures, Scribble Ventures and Underground Ventures. The company also secured $3M in venture debt from Silicon Valley Bank, bringing total early capital to $22M. The funds will be used to develop its first 2.5MW turbine project and larger modules.