Geothermal technology startup Hephae Energy Technology announced that it has raised $17.8 million in a Series A funding round, with proceeds aimed at accelerating the commercial deployment of its ultra-high temperature robotics-based drilling technology aimed at enabling developers to access deeper and hotter rock.
Founded in 2020, Houston-based Hephae develops ultra-high-temperature drilling and measurement systems designed to support enhanced geothermal and superhot rock projects. The company’s downhole sensing, measurement, communications, and control systems are designed to operate beyond the temperature limits of the existing oil and gas drilling technology currently in use in the geothermal industry.
According to the company, as geothermal activity accelerates globally, access to reliable drilling technologies capable of operating in extreme downhole conditions will become increasingly important. The company’s technology is designed to support operators reduce non-productive time and access hotter, deeper geothermal resources, resulting in lower produced energy costs.
The company said that the new capital will be used to support the commercial deployment of the company’s Pandora 210 system, which can operate at temperatures up to 210°C, exceeding commercial benchmarks of 175°C for legacy MWD systems, and will also fund research and development into next-generation drilling technology capable of exceeding temperatures of 300°C.
Steve Krase, Chief Executive Officer of Hephae Energy Technology, said:
“This investment enables Hephae to transition from development to scale, delivering the ultra-high temperature drilling technologies needed to support the rapid growth of the geothermal industry in the US and international markets.”
The funding round was co-led by Susquehanna Sustainable Investments and Underground Ventures, with participation from new investors alfa8, Baruch Future Ventures, Centaurus Capital LP, Elemental Impact, Exa Ventures, Future Ventures, Grantham Foundation for The Protection of the Environment, New System Ventures, and True North Institute, alongside existing investor Nabors Industries. The funding round brings Hepahae’s total capital raised to $24.7 million.
Torsten Kolind, Managing Partner, Underground Ventures, said:
“The geothermal industry is moving towards hotter temperatures, and Hephae is making sure equipment and tools are keeping up. We are proud to reinvest and support the Hephae team further on this exciting journey.”
