Mazama Energy Raises $135 Million for Newberry Geothermal Project
Published: September 18, 2026
Mazama Energy has successfully raised $135 million to further their drilling efforts beneath Newberry Volcano, signaling increasing investor interest in geothermal energy in Central Oregon.
The funding, announced on Thursday, was led by Centaurus Capital and Doerr Capital, with participation from ConocoPhillips, Shell Ventures, and existing investors such as Khosla Ventures and Gates Frontier.
Mazama’s spokesperson, Pete Lumley, noted that the financing round was oversubscribed, allowing the company to selectively choose investors with expertise in technology and energy.
The company aims to harness an engineered geothermal system in an area renowned for its extreme heat. By creating an underground network of cracks in superhot rock, Mazama circulates water that is heated by the surrounding rock, ultimately generating electricity.
Their efforts have already seen success, recording a temperature of 629 degrees Fahrenheit at their site last year, a significant milestone for engineered geothermal systems.
Advancements and Future Goals
The company’s Athena well recently reached a depth of 10,350 feet after just 15 days of drilling—80% faster than previous efforts in 2025. The well is projected to reach approximately 15,500 feet, targeting temperatures above 750 degrees Fahrenheit.
These high temperatures are critical; at around 705 degrees Fahrenheit, water hits its critical point and becomes supercritical, allowing it to carry significantly more energy. This means that a well reaching 750 degrees could potentially produce ten times the energy of a conventional well operating at about 390 degrees.
Mazama estimates that their technology could decrease water usage by 75% and reduce the number of wells needed by 80% compared to conventional systems.
Infrastructure and Power Generation
To manage these high temperatures, the wells are lined with steel casing and cement. As the drilling goes deeper, the diameter of the casing decreases, providing essential structural support and isolation for the underground formation.
Part of the new funding will also support Project Ceres, backed by the U.S. Department of Energy, which will test horizontal wells in superhot rock. Mazama aims to deliver its first electricity to the grid by 2029, with plans for a 50-megawatt facility, expanding to 200 megawatts by 2030. This energy could power local utilities and data centers in the region.
Lumley expressed optimism that this funding will enable the company to transition from demonstration projects to commercial development.
Funding Landscape
This investment follows a similar announcement from Quaise Energy, which raised $180 million for their geothermal project near Newberry, marking a total funding of $280 million. Although both companies are focused on next-generation geothermal technology, they utilize different approaches. Quaise is developing advanced drilling technology for superhot rock in a project named Obsidian.
Mazama Energy’s major funding marks a pivotal step forward, showcasing the growing interest and potential of geothermal energy as a sustainable and robust energy source.
