Dig Energy has raised $5 million in venture capital to move its innovative geothermal drilling technology from testing into real-world pilot installations. Azolla Ventures and Avila VC led this funding round. Several other investors also joined the round, including Conifer Infrastructure Partners, Suffolk Technologies, Mercator Partners, Koa Labs, and early backers Baukunst and Drew Scott. In addition to financial support, Dig has received recognition and assistance from programs like Suffolk Technologies’ BOOST accelerator and the U.S. Department of Energy’s EPIC Prize.
The company was founded with a clear mission: to find a scalable and sustainable alternative to traditional heating and cooling systems, which currently account for about 35 percent of all energy consumption. Most of this energy still comes from fossil fuels, and with energy prices climbing and the electrical grid under increasing pressure, Dig saw an opportunity to rethink how buildings are heated and cooled. Their solution centers on geothermal energy, which uses the consistent temperature found a few hundred feet underground to regulate building temperatures through geothermal heat pumps. This method essentially turns the earth into a massive thermal battery.
Although shallow geothermal systems are widely recognized as one of the most energy-efficient ways to heat and cool buildings, they are used in only about 1 percent of buildings in the United States. One of the main reasons for this low adoption rate is the high cost of drilling. Most current geothermal projects rely on large, expensive drilling rigs originally designed for oil and gas operations. These rigs are not only costly but also limited in where they can be deployed.
Dig Energy is tackling this problem head-on by developing a compact drill designed for geothermal applications. Instead of using traditional carbide drill bits, their system relies on high-pressure fluid drilling, which significantly lowers the cost of installation. In fact, Dig’s technology can reduce drilling expenses by up to 80 percent, making geothermal systems much more affordable and accessible.
How the funding will be used: With the new funding, Dig plans to move beyond testing and begin installing its systems in pilot locations. The company also aims to raise awareness about geothermal energy among developers, building owners, utilities, and municipalities. Their broader goal is to provide a dependable and cost-effective method for decarbonizing heating and cooling systems on a large scale, thereby helping to unlock clean, low-cost energy for communities worldwide.
KEY QUOTES:
“The heat beneath our feet is abundant, reliable, and always on. Our purpose-built, reliable, robust drill finally unlocks the most efficient on-site source of heating and cooling for buildings. By making geothermal heating and cooling simple, scalable, and cost competitive with less efficient approaches such as delivered fuels and air source heat pumps, we can deliver true energy independence to buildings everywhere.”
Dulcie Madden, Dig Energy CEO
“Dig holds potential to finally make geothermal heat pumps – by far the most efficient way to heat and cool buildings – cost effective to install. They’ve developed a new drilling method that imparts minimal added costs to the overall HVAC system. Next, pilot installations will show that Dig’s technology is the missing link to unlock geothermal as a mainstream solution for heating and cooling.”
Johanna Wolfson, co-founder and General Partner at Azolla Ventures
“Dig’s deceptively simple drill leverages an existing supply chain and proven materials to tackle drilling cost – the single biggest barrier to geothermal adoption. They’ve built a proprietary solution from the ground up that is ready to scale at exactly the right time in the energy market.”
Patricia Wexler, founder and General Partner of Avila VC
“Dig Energy aligns perfectly with my focus on every family having the ability to live in a safe, happy, healthy, and affordable home. Heating and cooling costs are wildly unpredictable today. Dig will give homeowners and business owners reliable comfort and greater control over their energy future.”
Drew Scott, co-founder of Scott Brothers Global
