TDK has recently announced an investment in Rodatherm through its venture-capital subsidiary TDK Ventures. Rodatherm is a pioneering company in the geothermal power generation sector, and it is part of a $38 million Series A funding round.
The goal of this strategic investment is to support the advancement of Rodatherm’s innovative closed-loop advanced geothermal system (AGS) technology, a promising solution that aims to provide affordable, long-lasting, sustainable energy that can be produced consistently, known as baseload energy.
Rodatherm has been operating quietly since 2022, establishing its presence in both Calgary, Alberta, Canada, and Salt Lake City, Utah. The company has developed a cutting-edge geothermal system that is fully cased and pressurized, designed for sedimentary basins. This system is capable of facilitating both conductive and convective heat transfer into its working fluid, which is a crucial component of the energy generation process.
One of the remarkable features of Rodatherm’s system is that its working fluid is completely isolated from the reservoir, allowing it to be used directly within a turbine that generates power. This design results in an impressive increase in efficiency—about 50% higher—compared to conventional water-based geothermal systems. Additionally, the operating and maintenance costs of Rodatherm’s technology are exceptionally low, making it a competitive player in the energy space.
The advanced geothermal system that Rodatherm has developed is expected to deliver competitive levelized costs of energy, which means that it can provide power at a price comparable to traditional fossil fuels, even at the early stages of project development. The system’s design also ensures that it can sustain operation for several decades, making it a reliable energy source in the long term.
Leading the team at Rodatherm is CEO Curtis Cook, who brings a wealth of experience to the company. Cook has founded and successfully managed several energy companies, including Vesta Energy Corp, which turned a single well discovery into a business valued at over $1 billion. The Rodatherm team is composed of individuals with extensive backgrounds in the energy industry, and they have a proven ability to work effectively together in high-stakes environments, particularly in the geothermal sector.
Rodatherm’s AGS offers several distinct advantages that set it apart from traditional geothermal systems. First, it utilizes a well-understood design process similar to that of a heat pump, but applied at depth underground. Second, the system is thermodynamically closed, which means that it can be installed in any type of reservoir environment without worrying about losing working fluid or contamination. This feature significantly lowers both operating and maintenance costs when compared to other systems that expose their working fluid directly to the surrounding rock.
Additionally, Rodatherm employs a novel working fluid that is capable of extracting the necessary heat from underground reservoirs using five times less fluid than what is typical for traditional geothermal systems. The design also incorporates a small and energy-dense surface footprint and does not rely on fresh water, which is increasingly becoming a valuable resource.
Every aspect of the technology utilized in Rodatherm’s system is already mature and commercially available. However, it is the unique combination of these technologies into a patented modular system that achieves the most economical performance overall. This innovative approach allows for efficient and effective energy production.
The proceeds from the Series A funding will be used to construct Rodatherm’s first pilot system in Utah. This pilot is crucial as it will demonstrate the company’s capability to build and deploy its advanced geothermal system according to projected capital and operational expenditures, as well as its anticipated energy conversion efficiency. Successfully realizing this pilot project will enable Rodatherm to develop full-scale power projects in Utah, utilizing non-dilutive financing options.
TDK Ventures’ investment in Rodatherm is part of a broader strategy linked to its $150 million Fund EX1. This fund is specifically designed to support electrification and decarbonization startups located in both Europe and North America, covering early-stage companies from Seed to Series B levels.
KEY QUOTES:
“We are thrilled to partner with Rodatherm as they redefine what’s possible in geothermal energy. This investment reflects TDK Ventures’ commitment to supporting transformative technologies that address critical global challenges, including the urgent need for clean and affordable energy. We believe geothermal can play a significant role in near-term energy generation, and Rodatherm’s innovative closed-loop system, combined with its strong leadership team, has the potential to unlock reliable, clean power for millions—an ambitious mission we are proud to help accelerate.”
Nicolas Sauvage, President of TDK Ventures
“We are thrilled to have TDK Ventures join our valued group of investors. Their investment will accelerate the deployment of our geothermal technology, enabling us to bring reliable and cost-effective clean energy to market faster. We believe geothermal energy is poised to be a major contributor to the global energy transition. And with TDK Ventures assistance both financially, and in providing access to TDK Goodness, as well as the many synergy opportunities within TDK Corporation, our road to success is now shorter and smoother.”
Curtis Cook, CEO of Rodatherm
