Geothermal energy is gaining fresh momentum as Critical Energy, a startup led by former SpaceX engineer Spencer Jackson, secured $19 million in seed funding and $3 million in venture debt, bringing its early capital to $22 million.
The company is focused on a key bottleneck in geothermal expansion: turbines designed specifically for these plants. Its answer is a modular system built to be manufactured faster and more efficiently in factories, rather than assembled slowly on site.
Jackson says his experience working on Falcon Heavy, Starship, and the Raptor engine helped shape the design approach. Critical Energy is now partnering with machine shops to produce the turbomachinery and other core components, while sourcing additional parts off the shelf for the first phase.
The startup's first 2.5-megawatt project is planned for completion by 2027 at an existing geothermal site. It is also developing a larger 5-megawatt module aimed at enhanced geothermal developers that drill deeper to access more heat from the Earth.
Industry forecasts suggest advanced geothermal could play a major role in powering new data centers and supporting rising electricity demand. Jackson believes the sector could scale quickly once turbine supply catches up, with the long-term ambition of producing gigawatts of capacity each year.
Backers in the round include Susa Ventures and Upfront Ventures, alongside several other climate and technology investors. If the model succeeds, modular geothermal hardware could help accelerate cleaner baseload power in the years ahead, shaping a more scalable energy future.
