Hustler Words – A former SpaceX engineer is spearheading a groundbreaking initiative to revolutionize geothermal energy, securing a substantial $22 million in early capital. Critical Energy, the startup founded by Spencer Jackson, aims to transform the design and deployment of geothermal power plants by adapting principles from rocket engine manufacturing. This innovative approach could unlock the immense, often-overlooked potential of geothermal, an energy source that promises to significantly outpace other emerging clean power technologies.
Geothermal energy boasts an extraordinary global capacity, with the International Energy Agency (IEA) estimating at least 42 terawatts available worldwide – more than double the planet’s total energy consumption last year. Despite this vast potential, investment in geothermal startups has historically lagged behind the significant capital flowing into advanced nuclear fission and fusion projects. However, Critical Energy’s recent funding round, including $19 million in seed capital and an additional $3 million in venture debt from Silicon Valley Bank, signals a growing recognition of geothermal’s disruptive capabilities.
Critical Energy is strategically positioned to address a critical bottleneck in geothermal development: the availability of suitable turbines. Many existing projects rely on large, custom-built turbines that can take months or even years to assemble on-site. Jackson, Critical Energy’s co-founder and CEO, emphasizes the inefficiency of this approach. "It’s still way faster and cheaper to make it the other direction, to build it in a factory," he stated in an exclusive interview with Hustler Words.
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The company’s solution lies in developing modular turbines, designed for rapid, factory-based production. Jackson’s background at SpaceX, where he contributed to projects like Falcon Heavy, Starship, and the Raptor rocket engine, directly informs this strategy. Critical Energy is collaborating with specialized machine shops to produce turbomachinery and other turbine components, leveraging manufacturing techniques reminiscent of rocket engine construction. While initially sourcing some parts off-the-shelf, the startup plans to integrate more production in-house over time, mirroring the vertical integration strategies of companies like Tesla and SpaceX.
Critical Energy’s ambitions are aggressive. The $19 million seed funding is specifically allocated to construct its inaugural 2.5-megawatt project, slated for completion by 2027. This initial plant will be situated at an existing geothermal site, similar to those found in Iceland or Northern California’s Geysers. Concurrently, the company is developing a larger 5-megawatt module, tailored for enhanced geothermal systems pioneered by companies like Fervo Energy, which drill deeper to access greater heat reservoirs.
Jackson is confident that geothermal will outpace its nuclear counterparts. While nuclear fission and fusion projects are targeting commercial deployment in the early 2030s, Critical Energy envisions building gigawatt-scale geothermal power plants well before then. "Geothermal is going to beat them to it. By a lot," Jackson asserted to Hustler Words, projecting the company could be deploying "many gigawatts a year" within four to five years. The long-term vision is even more audacious: 300 gigawatts annually by 2045.
The expansion of advanced geothermal energy could profoundly impact industries with escalating energy demands, particularly the tech sector. A recent report suggested that advanced geothermal could power nearly two-thirds of new data centers by 2030, highlighting its potential as a reliable, always-on clean energy source.
Jackson also anticipates a significant influx of oil and gas companies into the geothermal sector as the technology matures. Their extensive expertise in drilling thousands of wells will be invaluable for scaling geothermal operations. However, this shift will inevitably create a "massive shortage" of the specialized turbines that Critical Energy is poised to provide.
The $22 million in early capital was secured through a seed round co-led by Susa Ventures and Upfront Ventures, with additional participation from MaC Venture Capital, Susquehanna Sustainable Investments, Humba Ventures, Scribble Ventures, and Underground Ventures. This robust backing underscores investor confidence in Critical Energy’s innovative approach and the transformative potential of modular geothermal power.
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