High-temperature geothermal drilling specialists Hephae Energy Technology has raised $4 million in new funding to support prototyping and field trials.
Hephae Energy Technology (Hephae) has raised USD 4 million in a new funding round led by Underground Ventures (UGV), followed by The Grantham Foundation for The Protection of the Environment and existing investors Exascale Fund and Nabors Industries.
“Next-generation geothermal is the answer to providing 24/7 carbon free energy,” said Steve Krase, Hephae CEO and Co-Founder. “In order for next generation geothermal to achieve its full potential, drilling and completions technology capable of operating at higher and higher temperatures are required. We are focused on delivering all the building blocks required to achieve this.”
John Clegg, Hephae President, CTO and Co-Founder adds, “Our first product, Pandora 210, an MWD system rated to operate at 210° Celsius will be in the ground drilling for geothermal energy in QII 2025. Moving forward we have a plan to add Rotary Steerable technology in 2026 with an eye towards reaching 300 °C by 2030 and the potential to go higher as the market demands.”
Since its last fundraise, Hephae have de-risked the electronics by demonstrating that the system will operate for greater than 200 hours at temperatures above 210 °C. Additionally, multiple patents have been filed around the revolutionary packaging scheme which has been developed by the Hephae engineering teams based in Houston, USA, Cheltenham, England and Bilbao, Spain. The fundraise will support Hephae’s production of prototype tools for field trials scheduled for QII 2025.
Torsten Kolind, CEO and Co-Founder of Underground Ventures said: “High-temperature steering and sensors are essential for scaling geothermal globally. In our view, Hephae has the most promising technology path, and we are excited to back the team towards this goal.” The investment company had also previously supported GA Drilling and Canopus Drilling.
Nico Enriquez, Principal at Future Ventures said: “After interviewing 150+ grid, data center, and power generation stakeholders during my time at ARPA-E and Stanford, I believe that geothermal will be the next key baseload power source. Hephae’s technology is essential to unlock this universal power by allowing wells to go deeper, faster. We’re excited to support their rapid growth.”
Caroline de Bossart, Director of Climate Investing at The Grantham Foundation, said: “Geothermal energy offers a vital complement to solar and wind by providing a continuous and reliable source of power. Hephae’s tools will significantly expand the potential of geothermal electricity generation by reducing the complexity and expense of drilling. We’re excited to support their growth.”
Tove Lilliestierna, partner at Exascale Fund said: “Hephae is pioneering high-temperature drilling technology, making geothermal energy extraction more efficient and reliable. We are proud to continue to support their journey as they help accelerate the adoption of geothermal energy worldwide.”
Guillermo Sierra, VP Strategic Initiatives – Energy Transition at Nabors said: “Nabors has been grateful to be able to support Hephae from its early stages. We believe Hephae will play a key role in realizing the potential of geothermal energy as a baseload power source. Hephae’s team have achieved impressive technological advances in the last year and this funding round should propel them towards accomplishing their next set of goals. We look forward to supporting them as they deploy tools in 2025 and continue to introduce needed innovations thereafter.”
About Hephae Energy Technology
Hephae Energy Technology was founded to push the temperature limits of electronics and sensor technologies to allow the exploitation of geothermal energy. Our team brings more than 100 years’ experience developing and running technologies in some of the harshest drilling conditions in the world. Our first task will be to develop an innovative integrated drilling system that enables geothermal to become the go-to source of clean power anywhere on the planet.
About UGV
UGV invests in early-stage technology companies focused on scaling geothermal energy. This financing will unlock Hephae’s next phase of growth, deploying high temperature Measurement While Drilling systems that will allow the precise placement of next generation geothermal wells at scale that promise to deliver commercially viable 24/7 carbon-free energy.
About Future Ventures
At Future Ventures, we support passionate founders who are forging the future. For the past 25 years, we have backed the visionaries who push the boundaries of possibility and explore the frontier of the unknown. We focus on seed and early-stage investments in trailblazing, purpose-driven entrepreneurs with unique ideas that have the potential to reinvent entire industries.
About The Grantham Foundation
Our mission is to protect and conserve the natural environment. The actions needed to prevent catastrophic change will be impossible without widespread public support. Communicating the risks from climate change and environmental degradation, and the urgency of counteracting those risks, is our top priority. These risks are immense compared to environmental philanthropic resources available. We believe alliances between like-minded groups and individuals are needed to make those resources count.
About Exascale Fund
Exascale Fund (”Exa”) is an early-stage investor backing entrepreneurs who are tackling climate change through disruptive and scalable technologies. We get involved as an active partner from the earliest moments of concept on paper, to proven tests and commercial roll-out (pre-seed to Series A). We are fast moving and agile, with flexibility in terms of geography and ticket sizes, and with our evergreen structure we are a partner with patient capital.
About Nabors
Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership.
Source: Email correspondence
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