A SpaceX alumnus is applying rocket engine expertise to solve a bottleneck in geothermal energy. Spencer Jackson, who previously worked on Falcon Heavy, Starship, and the Raptor rocket engine at SpaceX, co-founded Critical Energy to design and manufacture modular turbines tailored for geothermal power plants. The startup just secured $22 million in total early-stage funding, including $19 million in seed capital and $3 million in venture debt.

Why Is Geothermal Energy Suddenly Getting Attention?

Geothermal power represents one of the world's most underutilized energy sources. The International Energy Agency (IEA) estimates at least 42 terawatts of geothermal capacity is available globally, more than twice the world's total energy consumption last year. Despite this enormous potential, investment in geothermal technology has lagged far behind advanced nuclear fission and fusion startups, which are targeting commercial deployments in the early 2030s. Geothermal companies, however, could reach gigawatt-scale operations much sooner.

The timing matters especially for data centers. A recent report found that advanced geothermal could power nearly two-thirds of new data centers by 2030, addressing the energy-intensive demands of artificial intelligence and cloud computing infrastructure.

What Problem Is Critical Energy Actually Solving?

The geothermal industry faces a critical shortage of compatible turbines. Most existing projects rely on large turbines that can take months or even years to assemble on-site, creating a significant bottleneck for scaling production. Critical Energy's solution is to design and manufacture modular turbines in factories, then ship them ready for installation, dramatically reducing deployment timelines and costs.

"Geothermal is going to beat them to it. By a lot," Jackson stated. "In four or five years, I hope that we're doing many gigawatts a year."

Spencer Jackson, Co-founder and CEO of Critical Energy

Jackson's background in rocket engine design directly informed Critical Energy's approach. Turbomachinery components in geothermal turbines resemble rocket engines in complexity and precision requirements. The startup is currently working with machine shops to manufacture these components while sourcing other parts off-the-shelf. In the future, similar to how Tesla and SpaceX have evolved, Critical Energy may bring additional manufacturing in-house to improve efficiency and reduce costs.

How to Understand Critical Energy's Timeline and Scale Ambitions

• Near-term deployment: The first geothermal power plant using Critical Energy's turbines is scheduled for completion by 2027 and will be installed at an existing geothermal site similar to those in Iceland or at The Geysers in Northern California.
• Modular expansion: Critical Energy is designing a larger 5-megawatt module specifically for enhanced geothermal companies like Fervo Energy, which drill deeper into the Earth to extract more heat from underground reservoirs.
• Long-term manufacturing goal: By the early 2030s, Jackson hopes Critical Energy will be producing gigawatts' worth of turbines annually, with an ambitious target of 300 gigawatts per year by 2045.

The funding round was led by Susa Ventures and Upfront Ventures, with participation from MaC Venture Capital, Susquehanna Sustainable Investments, Humba Ventures, Scribble Ventures, and Underground Ventures.

Could Oil and Gas Companies Accelerate Geothermal Growth?

Jackson believes the geothermal industry is poised for rapid expansion once the technology matures further. He points to a significant advantage: the oil and gas industry already possesses the expertise and infrastructure to drill hundreds and thousands of wells efficiently. However, that industry currently lacks access to compatible turbines at scale.

"Geothermal is great because the oil and gas industry has the replicability to do hundreds and then thousands of wells. They're very, very good at drilling wells," Jackson explained. "But they need turbines and there's going to be a massive shortage of those."

Spencer Jackson, Co-founder and CEO of Critical Energy

If oil and gas companies enter the geothermal market with their drilling expertise combined with Critical Energy's turbine technology, the sector could experience exponential growth. This convergence could transform geothermal from a niche energy source into a mainstream power generation method capable of supporting the world's expanding electricity demands, particularly from data centers and artificial intelligence infrastructure.