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Quaise Energy is raising about $200 million to develop its first commercial geothermal power plant, a source familiar tells Axios Pro.

Follow the money: The raise is being driven by an anticipated 250 MW power supply contract.

Zoom in: Quaise Energy began raising about $100 million in Series B funding in September, the source says, and is seeking another $100 million in grants, debt and project-level equity tied to its debut commercial plant.

The round is expected to close in the second quarter.

The Houston-based startup previously raised $120 million in equity and grant funding from investors including Mitsubishi, Nabors Industries, Prelude Ventures, Engine Ventures, Fidelity and Vinod Khosla.

How it works: Quaise Energy aims to go deeper than competitors to produce more power.

Rivals drill 3 to 4 miles, but Quaise wants to go as deep as 12 miles, where "superhot" rock can reach 750 degrees Fahrenheit.

The idea is to generate higher-capacity energy at lower cost to supply industrial loads, such as power-hungry data centers.

What's next: The company this year broke ground on Project Obsidian, a commercial site where the well will be a comparatively modest 3 miles deep, but will run hotter than rival wells. 

The company expects to bring an initial 50 MW online by 2030, expanding to 250 MW to fulfill its first power purchase agreement with an undisclosed customer.

What we're watching: Quaise has said that the site can produce electricity for $80-$100 per megawatt-hour — competitive with natural gas — and potentially reach below $50 at gigawatt scale. 

Scoop: Quaise Energy is raising $200M for ultra-hot geothermal power

The round is split between equity and other funding sources.

an illustration of a lightning bolt made out of glowing magma rock

Quaise Energy is raising about $200 million to develop its first commercial geothermal power plant, a source familiar tells Axios Pro.Follow the money: The raise is being driven by an anticipated 250 MW power supply contract.

Scoop: Quaise Energy is raising $200M for ultra-hot geothermal power

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