Global electricity consumption grew by 4.3% in 2024. The rise was driven by heat and cooling demands, rapid EV adoption, and the explosive growth in digital infrastructure. Geothermal energy can meet this demand but it has not taken off due to barriers that have limited deployment.
A new generation of startups is working to change this. By applying innovations in drilling technology, geothermal working fluids, and extraction techniques, these companies are unlocking geothermal’s scalability. Some of these technologies are making it viable in regions where it was previously unimaginable. These breakthroughs position geothermal as a critical tool in the global energy transition.
This article highlights startups that demonstrate how geothermal energy is best for the environment due to its low greenhouse gas emissions and limited land use needs.
Lithium de France (France)
The Alsace region in northeastern France has natural deposits of geothermal brine rich in lithium. This presents a dual potential to allow production of geothermal energy and the extraction of lithium from the same wells with low environmental impact.
Lithium de France is leveraging this business opportunity to advance the energy transition by combining renewable energy production with sustainable extraction of minerals. Its mission is to supply renewable, local, and low-carbon heat while producing battery-grade lithium essential for industrial decarbonization.
The process begins with extracting heat from brine, which is fed into the local grid as a stable and continuous energy source. Once the heat is captured, the brines pass through a direct lithium extraction unit, where lithium is filtered. The cooled water, now with reduced lithium content, travels to the subsurface continuing a closed loop.
By unlocking Alsace’s geothermal resources, Lithium de France demonstrates how clean energy and mineral supply can be developed in harmony. The company raised $46.93 million in Series B funding to scale its projects and technology in September 2025.
Factor2 Energy (Germany)
Factor2 Energy was founded by Michael Wechsung, Joerg Strohschein, and Felix Boehmer, who previously collaborated at Siemens Energy. During their time there, they developed a novel approach to geothermal energy that uses CO₂ as the primary working fluid instead of water or brine.
This method can deliver up to twice the power output under comparable geological conditions while requiring significantly lower CAPEX. By improving cycle efficiency, the technique reduces OPEX making geothermal more competitive with other baseload energy sources.
The Factor2 system takes advantage of CO₂’s thermodynamic properties to generate more power with fewer components and simpler cycles. Natural circulation eliminates the need for pumps, helping avoid costly, maintenance-heavy parts and improving reliability. This streamlined design further enhances the economics of geothermal deployment.
The technology can be applied to geological formations that already contain CO₂ or are designated for carbon capture and storage. This way, Factor2 not only transforms passive storage reservoirs into active energy resources but also converts a greenhouse gas into a valuable asset for clean energy production. The company completed a $9.1 million Seed funding round in September 2025 to accelerate development and commercialization.
Fervo Energy (USA)
Fervo Energy was co-founded by Tim Latimer and Jack Norbeck, who met at Stanford University. Jack, with a Ph.D. in energy resources engineering, pioneered a new geothermal extraction technique, while Tim brought drilling expertise from the oil and gas sector. Both shared a passion that geothermal had yet to realize its potential in the clean energy transition leading them to establish Fervo Energy.
The company develops next-generation geothermal projects that integrates advanced drilling methods, optimized well design, fiber-optic sensing, and cloud-based analytics to improve performance. By applying precision directional drilling, Fervo drills horizontally within geothermal reservoirs, allowing multiple wells from a single site. This reduces the surface footprint, lowers drilling risks, and unlocks access to challenging geologies.
At its flagship Project Red in northern Nevada, Fervo became the first company to drill a horizontal well pair for commercial geothermal production. The pilot achieved:
- lateral lengths of 3,250 feet
- reservoir temperatures of 191°C
- controlled flow confirmed by tracer testing
A 30-day well test delivered a flowrate of 63 liters per second, enabling 3.5 MW of continuous carbon-free power.
Fervo was recently ranked #14 on TIME’s list of World’s Top Greentech Companies 2025 for its innovation in geothermal technology. To expand operations, the company secured $45.6 million in bridge financing in June 2025.
Borobotics (Switzerland)
Borobotics, a 2023 spin-off from the Zurich University of Applied Sciences, is redefining how geothermal energy can be deployed in urban areas. Traditional drilling rigs used for geothermal probes are large, noisy, and typically powered by fossil fuels, making them unsuitable for densely built environments. Borobotics tackles these problems with a compact, electric-powered drilling system designed specifically for cities and residential settings.
Its breakthrough machine, nicknamed Grabowski, measures just 5.3 inches in diameter and 9 feet in length. Standing only two meters high, compared to the six meters of conventional rigs, Grabowski can operate in confined spaces such as backyards, parking lots, and even basements. Despite its small size, the drill is capable of reaching depths of up to 250 meters. This depth is sufficient to access near-surface geothermal energy for heating and cooling applications.
The robot’s high degree of automation reduces manpower needs, lowering both operational costs and project timelines. Because it runs on electricity and can be powered from a standard household socket, Grabowski’s environmental impact is significantly lower. Each drilling operation generates just 288 kilograms of CO₂ emissions, an 86% reduction compared to diesel-driven rigs.
With Switzerland aiming to install around 450,000 heat pumps by 2035, Borobotics is positioned to play a central role in enabling the country’s heat transition. The company recently secured $1.43 million in seed funding.
Eavor (Canada)
Eavor, an Alberta-based clean energy company, has pioneered a breakthrough in geothermal power generation with its proprietary Eavor-Loop™ system. Unlike conventional geothermal projects that rely on aquifers or require fracking, Eavor’s closed-loop design eliminates many of the technical and environmental barriers that have historically limited geothermal development.
The Eavor-Loop™ consists of two vertical wells connected by multiple horizontal laterals, forming a sealed, radiator-like system. A proprietary working fluid is introduced at the surface and circulated underground, where it absorbs heat from surrounding rock through conduction rather than convection. This approach avoids issues of fluid loss, induced seismicity, or geographic dependency, since hot rock is widely accessible around the world.
Depending on the application, the system can deliver heat directly for district heating, cooling, or agricultural use. In June 2025, Eavor secured $65 million in late-stage VC funding.
What’s Next for Startups in Geothermal Energy
The companies featured in this article prove that geothermal is no longer limited by geography or technology. From compact, urban-friendly drills to closed-loop heat extraction systems, they are redefining what’s possible for one of the most underutilized renewable resources.
Together, these breakthroughs demonstrate that geothermal can power for homes, industries, and the transport sector. The path forward will depend on how quickly these innovations attract investment and reach commercial deployment.
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