In a quiet but determined entrance, Rodatherm Energy has emerged with a plan to reimagine geothermal power. Backed by a $38 million Series A round led by TDK Ventures, the Canadian company proposes a system that replaces traditional water-based geothermal with a pressurised, closed-loop design. Investors include names such as Toyota Ventures, Evok Innovations and the Grantham Foundation — each placing a bet on geothermal’s long-term relevance.
Unlike conventional systems that rely on direct contact with underground water or steam reservoirs, Rodatherm’s model circulates a refrigerant through sealed pipes embedded in hot rock formations. This change is not cosmetic. By eliminating contact with the reservoir, the design addresses common challenges in geothermal energy: scaling, fluid loss, contamination, and mineral buildup.
Rodatherm claims its setup can deliver up to 50% more thermal conversion performance than conventional binary-cycle systems. A significant figure in a field where efficiency gains often come in single digits. The company also reports a fivefold reduction in fluid usage, a potential advantage in arid regions or areas where water permits are tightly regulated.
Testing Ground: Utah’s Pilot
The company’s first major test will be a 1.8 megawatt pilot plant in Utah, scheduled for development by the end of 2026. This site was not selected by chance. Utah sits on accessible sedimentary basins with enough subsurface temperature to support closed-loop geothermal operation. The power generated will be sold to the Utah Associated Municipal Power Systems.
Success here would not only validate the technology but also provide a model for replication across similar geographies. Rodatherm is aiming to prove that closed-loop systems can deliver dependable, dispatchable energy in more places than traditional geothermal allows.
A Technology Aimed at Scale
At its core, the ambition is not just to build isolated plants but to scale geothermal like solar and wind. Rodatherm wants to develop modular systems that can be installed in varied geological contexts, without relying on the rare conditions typical of open-loop geothermal.
Closed-loop systems, in theory, can be deployed wherever subsurface temperatures are sufficient — regardless of water availability or reservoir permeability. Thus, it opens the door to some markets that were otherwise deemed unsuitable for geothermal, some of which are in Europe and Asia, where sedimentary formations are the rule and not fractured-rock systems.
Shifting the Baseline for Renewable Energy
The importance of stable, non-intermittent renewable sources is growing. In grids with increasing shares of wind and solar, the role of base load power — historically filled by gas or coal — is being re-evaluated. Rodatherm’s model offers a low-emission alternative that can operate continuously, without dependence on weather or time of day.
While solar and wind power dominate renewable energy investment, geothermal sites have had far less global funding. While in 2023, the global geothermal capacity sits at about 16 GW, solar capacity stands way ahead, at over 1,300 GW. Growth has been limited by the high cost of drilling and uncertain subsurface conditions. This is where Rodatherm’s concept hopes to break the trend, lowering geological risk and easing permitting.
Where Costs Still Matter
The technology remains capital-intensive. Drilling to required depths — even in sedimentary basins — can cost millions per well. Moreover, the materials used in pressurised, closed-loop systems, including specialised refrigerants and high-grade casing, introduce new expenses. Whether these costs are offset by higher energy output and lower maintenance remains to be confirmed.
Data from the Utah pilot will be critical. If the project delivers reliable output with lower operating costs, it could shift perceptions of geothermal across global energy boards. Until then, many of the economic claims remain projections.
Global Implications of a Local Test
Rodatherm’s work carries implications beyond North America. In Europe, where urban density limits the space for large wind or solar farms, geothermal offers a compact footprint. If the company’s closed-loop system can be adapted to local conditions, it may provide a viable solution for cities with limited renewable options.
In countries facing increasing water scarcity, the reduced fluid demand of Rodatherm’s model could be a deciding factor. Similarly, markets with high regulatory barriers for subsurface water use may view closed-loop geothermal as a workaround, avoiding the legal complexities associated with traditional fluid injection.
These considerations are already drawing interest from international stakeholders. Conversations around early-stage collaboration in Europe and Asia are reportedly underway, although no firm deployments outside North America have been announced.
Looking Ahead
Rodatherm is still at the beginning of its commercial journey. The next 24 months will determine whether the company becomes a mainstream energy brand or a case study in technical ambition. It enters a space with high barriers but few scalable competitors.
What distinguishes it is not just its technology but its timing. As nations set more aggressive decarbonisation targets and grid operators search for dependable supply, the search for firm, renewable power is no longer theoretical.
If Rodatherm’s pilot in Utah delivers as planned, it will not only advance geothermal innovation but also broaden the map for global renewable development.