Quaise Energy develops deep geothermal energy using a millimeter-wave drilling system to reach temperatures above 400°C at depths up to 20 kilometers. The goal is to retrofit existing coal and gas power plants to tap a stable, weather-independent clean energy source, avoiding hydraulic fracturing. The company leverages gyrotron-based drilling technology adapted from fusion research and has demonstrated field tests to show progress toward scalable deep geothermal deployment.
Company Size
51-200
Company Stage
Grant
Total Funding
$298M
Headquarters
Cambridge, Massachusetts
Founded
2018
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Kyoto Fusioneering supplies gyrotron system to Quaise Energy. Kyoto Fusioneering (KF) has received an order from Quaise Energy, Inc. for a gyrotron system that will support Quaise's millimeter-wave drilling technology for superhot geothermal development. The agreement was signed on August 17, 2026, marking a significant step in the commercial application of technology originally developed for fusion research. The order represents the first customer outside the fusion sector for KF's plasma heating business. While gyrotrons have traditionally been associated with heating plasma in experimental and developing fusion systems, the Quaise project demonstrates how the same high-power technology can be adapted for another demanding energy application. Quaise is developing a drilling approach designed to reach extremely deep, high-temperature geothermal resources that conventional mechanical drilling methods can struggle to access economically. Its technology uses millimeter waves generated by a gyrotron to ablate rock, potentially enabling drilling at depths and temperatures associated with superhot geothermal resources. Millimeter waves for advanced geothermal drilling. Conventional drilling relies heavily on mechanical equipment to break and remove rock. As wells become deeper and temperatures rise, however, mechanical drilling systems face increasing technical and economic challenges. High temperatures can affect downhole equipment, while hard rock formations can increase drilling time, equipment wear and operational costs. Quaise's approach takes a different route. Instead of relying on conventional mechanical cutting at the deepest sections of a well, its system uses high-frequency electromagnetic energy to interact with and break down rock. The millimeter waves are generated by a gyrotron, making the high-power source a central component of the drilling system. The technology traces its origins to more than a decade of research at the Massachusetts Institute of Technology. Quaise has sought to apply advances in high-power millimeter-wave technology to geothermal drilling, with the objective of unlocking geothermal resources that conventional drilling technologies cannot economically reach. The potential significance extends beyond conventional geothermal development. Superhot geothermal resources could provide access to very high-temperature energy stored deep within the Earth's crust. If these resources can be accessed commercially, they could expand the geographic and technical potential of geothermal power. KF's gyrotron experience. Kyoto Fusioneering brings extensive experience in the development and manufacture of gyrotron systems. The company designs and builds gyrotrons operating across frequencies ranging from 28 GHz to 236 GHz, including systems capable of operating at multiple frequencies. Its technology has already been deployed in major fusion research facilities. KF has delivered two dual-frequency gyrotrons for the United Kingdom Atomic Energy Authority's MAST Upgrade program, as well as a 1 MW system for Tokamak Energy's ST40 fusion device. The company has also supplied the first of two gyrotron units for the U.S. Department of Energy's DIII-D National Fusion Facility. In addition, KF has completed the design of a 1.5 MW to 2 MW-class gyrotron intended for the Wendelstein 7-X stellarator and ASDEX Upgrade at the Max Planck Institute for Plasma Physics. These projects have helped KF establish capabilities in high-power millimeter-wave generation, engineering and system integration. Those capabilities are now being extended into geothermal drilling through the Quaise order. Continuous operation brings a New requirement. One of the most important distinctions between the geothermal application and many current fusion experiments is operating duration. Many existing experimental fusion facilities operate plasma heating systems in pulses that may last only seconds. A drilling system, by contrast, must operate continuously while the well is being advanced. The millimeter-wave source therefore needs to support sustained operation for extended periods. The gyrotron KF is supplying to Quaise has been specified and designed around continuous operation. This requirement creates engineering challenges that differ from those encountered in pulsed fusion experiments, while also providing experience that could ultimately be valuable to future commercial fusion power plants. Future fusion power stations will require heating and supporting systems capable of substantially longer operating periods than many present-day experimental facilities. Consequently, developing hardware for continuous operation in another commercial energy application can provide relevant experience for the eventual deployment of fusion systems. Support from Japan's Deep-Tech programs. KF's work on continuous-operation gyrotrons for geothermal applications has also received support through Japan's energy technology development programs. In September 2024, KF was selected for the New Energy and Industrial Technology Development Organization's Deep-Tech Startups Support Program in the Green Transformation field. NEDO is Japan's national agency responsible for supporting research and development in energy, industrial technology and related areas. Under the program, KF has been developing high-power, continuous-operation gyrotrons and associated power supplies for superhot geothermal applications. The Quaise order represents the first commercial outcome of that development work. The project therefore provides KF with an opportunity to apply its fusion-derived technology in an operating environment outside the fusion sector while continuing to advance equipment that could have applications in both industries. Expanding the gyrotron supply chain. The commercial development of gyrotrons is also relevant to the broader fusion industry. As fusion projects move from experimental research toward commercial power generation, demand for specialized plasma-heating equipment is expected to increase. "The gyrotron supply chain has to grow well beyond its current size to meet what fusion will need, and it has to grow before that demand arrives, not after," said Takashi Imai, Group CEO of the Plasma Heating Group at Kyoto Fusioneering. "KF is investing in that capability now and taking commercial work that builds it. This work with Quaise is an important part of that." Orders from non-fusion customers can help suppliers develop manufacturing capacity, engineering expertise and quality systems while commercial fusion projects are still progressing. For companies operating in specialized technology markets, expanding into adjacent applications can also provide opportunities to validate equipment under different operating conditions. Potential for Japan's geothermal resources. Japan has one of the world's largest geothermal resource bases, although a significant portion remains undeveloped. Deep, high-temperature resources present particular technical challenges because reaching them economically requires drilling technologies capable of operating under demanding conditions. Japan's Ministry of Economy, Trade and Industry and NEDO are supporting research into superhot geothermal resources, Enhanced Geothermal Systems and closed-loop geothermal technologies through initiatives including the Green Innovation Fund. For Kyoto Fusioneering, the Quaise project creates a pathway to apply its experience in fusion technology to the geothermal sector while contributing to the development of advanced drilling equipment. Lessons from the project could also support future geothermal deployments in Japan and other markets where deep geothermal resources remain difficult to access. The order illustrates how technology developed to address the extreme requirements of fusion can find applications in other energy sectors. By combining KF's gyrotron expertise with Quaise's millimeter-wave drilling technology, the companies are pursuing a method designed to overcome some of the limitations associated with conventional deep geothermal drilling and potentially expand access to high-temperature geothermal energy.
Kyoto Fusioneering has received an order from Quaise Energy for a gyrotron system to be used in millimeter wave drilling technology for superhot geothermal development. The agreement was signed on 17 August 2026. This marks the first order KF's plasma heating business has received from a customer outside the fusion sector. Quaise's drilling system uses millimeter waves generated by a gyrotron to ablate rock, aiming to reach depths and temperatures that conventional mechanical drilling cannot access economically. The gyrotron KF is supplying is designed for continuous operation, distinguishing it from pulsed systems used in current fusion experiments. KF designs and builds gyrotrons across frequencies from 28 GHz to 236 GHz. The order represents the first commercial outcome of KF's work under NEDO's Deep-Tech Startups Support Programme, which began in September 2024.
DOE awards $99 million to 21 geothermal projects for field tests and exploration drilling. The U.S. Department of Energy (DOE) announced more than $99 million for 21 projects selected to advance geothermal energy development across the United States. The selection was made on September 21, 2026. The announced amount, up to $99 million, represents a ceiling for the first budget period and does not constitute a final award or disbursement. The selection opens a negotiation phase between the DOE and project developers. Actual funding would depend on appropriated funds and on each project reaching defined milestones. Two tracks: field tests and exploration drilling. Five projects will conduct field-scale enhanced geothermal systems (EGS) tests to validate technologies under real-world conditions, while 16 additional projects will conduct exploration drilling to identify and characterize promising next-generation geothermal resources. The split reflects the agency's stated goal of proving that next-generation geothermal technology works at scale while also building a pipeline of confirmed resource sites for future commercial development. Who was selected and where. Among the recipients is Fervo Energy, which was selected for two projects: an enhanced geothermal systems demonstration in Idaho and exploration drilling in Nevada. Quaise Energy, Zanskar Geothermal, XGS Energy, and Invenergy are also among the selectees. Three Utah-based firms and institutions, Zanskar Geothermal and Minerals, AlterG Resources, and the University of Utah, made the cut, though their projects are deployed at out-of-state sites, including locations in Hidalgo County, New Mexico; Pershing and Churchill Counties, Nevada; and the Dixie Valley West geothermal field, also in Nevada. Quaise Energy is developing a millimeter-wave technique that uses directed energy to melt and vaporize rock rather than relying on conventional mechanical drilling. Zanskar Geothermal and Minerals was selected to design, drill, and hydraulically stimulate a short-lateral horizontal injection well at the Lightning Dock Geothermal field in Hidalgo County, New Mexico, to deliver engineered pressure support to an actively producing hydrothermal reservoir and capture heat from impermeable, hot rock in the vicinity of the hydrothermal system. The program is not limited to enhanced geothermal systems. The 16 exploratory drilling projects also cover conventional hydrothermal resources, where heat and underground fluids occur naturally, as well as next-generation geothermal resources. Public data to guide future investment. Data generated by these projects will be publicly available through DOE's Geothermal Data Repository, giving industry, researchers, and other stakeholders access to information from the field tests and geothermal exploration activities. That data-sharing requirement is intended to reduce subsurface uncertainty and lower the commercial risk that has historically slowed private capital deployment into geothermal exploration. The repository push follows record commercial interest in the sector: geothermal developers invested record amounts in federal lease sales in 2025 and 2026, and a June 2026 Bureau of Land Management sale of 152,381 acres in New Mexico generated $16.6 million, a new single-sale record. Wider industry backdrop. The DOE's selection comes as geothermal energy has attracted growing interest from investors and energy companies as a source of around-the-clock power. The DOE's portfolio is designed to accelerate domestic geothermal development by reducing the technical and financial barriers that have kept the resource underexploited outside of established hotspots in California, Nevada, and Utah. GCN has previously reported on the world's largest enhanced geothermal power purchase agreement at 396 megawatts. DOE Under Secretary of Energy Kyle Haustveit said the awards will "empower American innovators to unlock the tremendous geothermal resources beneath our feet." The 21 selections follow a series of related federal moves in September 2026 alone, including an extended EGS test at Utah FORGE and a separate $1.2 million workforce prize for geothermal heat pump training programs. The full project list and fact sheet are available at the DOE's official announcement. Hugo Rojas is the editor of GCN. With a Master of Science in Engineering, he specializes in technology, data, and science, and brings a human-centered perspective informed by psychology.
Quaise Energy has been selected by the US Department of Energy to receive up to $25 million in funding for ultra-high temperature geothermal development. The funding will support the Obsidian Project in central Oregon, the world's first commercial ultra-high temperature geothermal plant. The grant will fund analysis of drilling, stimulation, and flow results from the first two wells to optimise a third well. The three-well configuration targets reservoir temperatures above 300°C and is designed to demonstrate gross power generation capacity exceeding 25 megawatts. The Obsidian Project is expected to deliver power to the Pacific Northwest grid by 2030, with potential expansion to one gigawatt. The first phase aims to generate over 50 megawatts by 2030. The selection follows Quaise's $180 million Series B funding round completed in August 2024, led by Nabors Industries and Prelude Ventures.
Nabors invests $35 million in Quaise Energy as deep geothermal drilling moves toward commercial deployment. Nabors Industries has completed a $35 million strategic equity investment in Quaise Energy, taking a 14% ownership stake and becoming the geothermal technology company's largest shareholder. Nabors funded the transaction through the issuance of approximately 392,000 common shares, expanding its exposure to geothermal while leveraging capabilities developed through its conventional oil and gas drilling business. Quaise is developing a hybrid drilling system that combines conventional rotary drilling with high-power millimeter-wave technology designed to penetrate deeper, hotter rock beyond the practical limits of traditional drilling methods. The objective is to access superhot geothermal resources, potentially allowing geothermal development in areas that are not dependent on naturally occurring shallow hydrothermal systems. The relationship has already moved into field execution. A Nabors PACE-B drilling rig is operating at Quaise's Project Obsidian in Oregon, which is being developed as a potential first commercial deployment of a superhot enhanced geothermal system (EGS). Nabors' participation gives it direct exposure to the drilling requirements and operational challenges associated with bringing the technology into the field. Strategically, the investment could open another market for Nabors' rigs, drilling services, engineering and automation technologies if Quaise successfully moves from demonstration to commercial deployment. For suppliers, the project is also worth monitoring for requirements involving high-temperature drilling equipment, tubulars, cementing, well control, instrumentation and other technologies already supported by the oilfield service (OFS) supply chain. Industry impact. The investment illustrates how oil and gas drilling expertise can be redeployed into emerging energy markets without abandoning the industry's core capabilities. The United States' position as a "safe barrel" - a politically stable, technologically advanced and infrastructure-rich source of energy - extends beyond oil and natural gas: the same drilling expertise, equipment, workforce and supply chain supporting domestic hydrocarbon production can potentially support geothermal development. That gives North American drilling and service companies another avenue to commercialize existing capabilities while maintaining their core oil and gas businesses. Sales strategy. OFS suppliers should treat Project Obsidian as an early-stage account-development opportunity and track the project as it progresses toward commercial deployment. Prioritize companies providing high-temperature equipment, tubulars, cementing, drilling fluids, well control, instrumentation, automation and specialized drilling engineering, while also watching for additional Quaise projects that could signal movement toward repeatable commercial development. Two-Sentence summary. Nabors Industries has invested $35 million for a 14% stake in Quaise Energy as the companies advance deep geothermal drilling technology at Project Obsidian in Oregon. The investment could create a new market for conventional drilling rigs, engineering, automation and OFS capabilities if superhot geothermal development progresses toward commercial scale.