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Jun 17, 20261
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SpaceX Alum Raises $22M to Build Modular Geothermal Turbines Based on Rocket Engine Design
Critical Energy, founded by SpaceX engineer Spencer Jackson, has raised $22 million to manufacture modular geothermal turbines designed using rocket engine principles. The startup aims to address turbine shortages constraining geothermal expansion, with its first power plant scheduled for 2027 and a long-term goal of producing 300 gigawatts annually by 2045.
Quick Facts
Who
Spencer Jackson
What
Raised $22 million in seed funding and venture debt
When
June 17, 2026
Where
Northern California
- Raised $22 million in seed funding and venture debt
- Developing modular geothermal turbines
- Designing turbines based on rocket engine principles
- Planning first 2.5 megawatt power plant deployment
- Creating 5 megawatt modules for enhanced geothermal operators
Critical Energy, a geothermal technology startup founded by SpaceX veteran Spencer Jackson, has secured $22 million in early-stage funding to develop modular turbines for geothermal power plants. The capital comprises $19 million in seed funding and $3 million in venture debt from Silicon Valley Bank. 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.
Critical Energy aims to address a significant bottleneck in geothermal energy expansion: the shortage of compatible turbines. Jackson, who previously worked on SpaceX's Falcon Heavy, Starship, and Raptor rocket engine programs, is applying aerospace engineering principles to geothermal turbomachinery. The turbine components resemble rocket engines in design and are being manufactured through partnerships with machine shops, with other parts sourced off-the-shelf. Jackson envisions scaling to eventual in-house production similar to Tesla and SpaceX's vertically integrated approaches.
The company's first deployments are imminent. A 2.5 megawatt power plant using Critical Energy's turbines is scheduled for completion by 2027 at an existing geothermal site, with locations similar to those in Iceland or Northern California's The Geysers. The startup is also designing a larger 5 megawatt module targeted at enhanced geothermal operators like Fervo Energy, which use deeper drilling to access more heat. Jackson projects that by the early 2030s, Critical Energy will be manufacturing gigawatt-scale turbine capacity annually, with a long-term goal of 300 gigawatts per year by 2045.
Geothermal energy represents a compelling alternative to nuclear power development. The International Energy Agency estimates at least 42 terawatts of geothermal capacity available worldwide—more than double current global energy consumption. Advanced geothermal could power nearly two-thirds of new data centers by 2030, addressing the technology sector's accelerating energy demands. While nuclear fusion and fission startups target commercial deployment in the early 2030s, Jackson argues geothermal's faster development trajectory will enable earlier grid deployment at scale.
Jackson anticipates that mature geothermal technology will attract major oil and gas companies seeking to leverage their drilling expertise. "The oil and gas industry has the replicability to do hundreds and then thousands of wells," he noted, pointing to an expected "massive shortage" of compatible turbines as demand accelerates. This convergence of aerospace engineering innovation, renewable energy demand, and traditional energy sector involvement positions geothermal as a potential dark horse in the global energy transition.
Why This Matters
Critical Energy addresses a critical infrastructure bottleneck that has constrained geothermal energy expansion globally. By applying aerospace engineering to geothermal turbomachinery, the company could unlock deployment of the IEA's estimated 42 terawatts of available geothermal capacity—more than double current global energy consumption. This matters for readers because geothermal offers a faster-to-deploy alternative to nuclear fusion for powering AI data centers, and the turbine shortage has prevented major energy operators from scaling clean baseload power. Success here could accelerate grid decarbonization and reshape energy sector competition.
Timeline & Sources
Jun 16, 2026
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Jun 16, 2026
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Jun 17, 2026
WireCritical Energy announces $22 million funding round (TechCrunch exclusive)
Jan 1, 2027
WireFirst 2.5 megawatt geothermal power plant using Critical Energy turbines scheduled for completion
Jan 1, 2045
WireCritical Energy's long-term goal of 300 gigawatts annual turbine production