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Geothermal HVAC startup Bedrock Energy has closed a $12 million Series A round to increase installations and continue to develop its tech, the company tells Axios. 

Why it matters: Geothermal systems that can heat and cool buildings are improving in efficiency and growing in demand but are still an early market.

Zoom in: The round was led by Titanium Ventures and included new Energy Impact Partners and Sustainable Future Ventures. 

Existing investors Wireframe Ventures, Overture Ventures, Toba Capital, Elemental Impact, First Star Ventures, and Cantos joined the round.

How it works: Geothermal heating and cooling companies drill a borehole and install a ground loop connecting underground hot rocks to a building. A heat pump communicates with the loop.

The systems are meant to replace heating and cooling systems that run off fossil fuels like natural gas, heating oil or propane.

Geothermal systems can be a more efficient and cheaper form of energy over their lifetime but often have a high upfront cost.

Catch up quick: Bedrock Energy, founded in 2022, recently finished building a project in Morgan County, Utah, and is developing one at a business park in Hayden, Colorado. 

Focused on large commercial and industrial buildings, particularly in urban environments, its first project was deployed in Austin, where it's headquartered, and Bedrock raised a $8.5 million seed round to kick off that project.

The startup plans to deploy geothermal systems across Utah, Colorado, and other Mountain states. 

The company says it can lower the costs of drilling and installing its systems by using underground thermal simulation software.

The big picture: Geothermal HVAC remains at an early stage in the U.S. 

One of the biggest geothermal HVAC players is Dandelion Energy, which spun out of Alphabet's X in 2017 and focuses on residential. The company had installed 3,000 heat pumps for over 2,000 homes as of the end of last year. 

The Inflation Reduction Act has offered a 30% tax credit for homeowners who install new geothermal HVAC systems.

Exclusive: Bedrock raises $12M for geothermal HVAC

The company uses underground thermal simulation software to slash costs.

Geothermal HVAC startup Bedrock Energy puts in loops under the ground to heat buildings with hot rocks.

Geothermal HVAC startup Bedrock Energy puts loops under the ground to heat buildings with hot rocks. Photo: Courtesy of Bedrock Energy

Geothermal HVAC startup Bedrock Energy has closed a $12 million Series A round to increase installations and continue to develop its tech, the company tells Axios. Why it matters: Geothermal systems that can heat and cool buildings are improving in efficiency and growing in demand but are still an early market.

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Exclusive: Bedrock raises $12M for geothermal HVAC

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