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Manitoba Invests $4 Million in Geothermal Neighbourhood Development

Manitoba Invests $4 Million in First Large-Scale Geothermal District Manitoba is moving geothermal energy from individual buildings toward large-scale community heating and cooling, with the provincial government committing up to $4 million to a planned geothermal district at the University of Manitoba's Fort Garry campus in Winnipeg. The project, known as Southwood Circle , is planned as an approximately 80-acre mixed-use development that could eventually include more than 1,000 homes alongside office, commercial, retail and hospitality space. According to the Manitoba government, the geothermal system is expected to provide heating and cooling for at least 1,000 new homes by 2028 , making it the province's first large-scale geothermal district energy system. The announcement forms part of Manitoba's new Net Zero Action Plan , released on September 9, 2026. The plan sets out 90 actions intended to guide the province toward its stated net-zero emissions objective by 20...

Mazama vs Quaise: Superhot Geothermal Technology Comparison Guide

The Race to the Earth’s Core: A Superhot Geothermal Showdown

After half a century of being confined to geologically unique hotspots, geothermal energy is finally going global. At the heart of this revolution are two very different companies. Mazama Energy and Quaise Energy are both racing to do something that has never been done before: create a commercially viable, superhot rock (SHR) geothermal power plant. But while their destination is the same, their maps for getting there could not be more different. Mazama is taking the most advanced version of the oil and gas industry’s playbook and running it at record temperatures. Quaise is throwing that playbook away entirely and betting on a new kind of drill powered by fusion-grade technology. This is a head-to-head comparison of their technologies, their timelines, and their ultimate potential to reshape our energy landscape.

Part 1: Mazama Energy – The Record‑Breaking Reservoir Creator

Mazama is not a newcomer to the geothermal scene. It is the new entity formed from the collective expertise of two legacy players, AltaRock Energy and Blade Energy Partners. The company is focused on one audacious goal: creating the world’s first “thermal lattice” deep inside a volcano to unlock a 200 MW baseload power plant by the end of the decade.

The Technology: Advanced EGS

Mazama is an advanced “Enhanced Geothermal Systems” (EGS) developer. While conventional EGS simply fractures hot rock, Mazama uses a patented approach it calls the Modular Unconventional Superhot Energy (MUSE™) system, at the heart of which is its “Thermal Lattice” stimulation.

Here’s how Mazama breaks down the problem:

1. Drill: They utilize standard oil and gas rigs and crews to drill two wells (an injector and a producer) into a known superhot resource.
2. Stimulate: They pump high-pressure fluid down to the target depth, but unlike standard fracking, their proprietary Thermal Lattice technique uses cyclic pressure pulsing. This creates a complex, stable network of tiny fractures that act as a giant, subterranean heat exchanger.
3. Generate: Cold water is pumped down the injector well through this fractured “lattice,” where it superheats into steam. The steam is then recovered from the producer well to spin a turbine.

The Record‑Breaking Proof

Mazama has already achieved significant technical milestones at its pilot project on the Newberry Volcano in Oregon. It successfully created an EGS reservoir with a bottomhole temperature of a record‑breaking 331°C (629°F), the hottest ever achieved by any EGS project. In drilling its 10,200‑foot deviated producer well, the team achieved a peak penetration rate of 100 feet per hour across hard rock like granite and basalt, with no downhole motor failures. They also confirmed full hydraulic connectivity between the injector and producer wells. The company claims that by operating at superhot temperatures, it can extract up to ten times more power per well, use 75% less water, and drill 80% fewer wells than conventional geothermal systems.

The Roadmap to 200 MW

Mazama is on a clear, staged path. Between 2024 and 2025, it will complete the SHR EGS demonstration project, funded by a $20 million grant from the DOE, with partners like the National Renewable Energy Laboratory (NREL) and Oregon State University. In 2026, the company plans to build a 15 MW pilot plant using horizontal well technology. By the late 2020s, it aims to scale up to a massive 200 MW commercial development project at the Newberry site.

Key Backers & Cost Target

Mazama is well‑funded. The company was incubated by Khosla Ventures (Vinod Khosla’s firm) and is also backed by Gates Frontier (Bill Gates’ investment fund). It has a $36 million Series A from Khosla Ventures alongside the $20 million DOE grant. The ultimate goal for Mazama is to produce power for less than $0.05 per kilowatt‑hour once scaled.

Part 2: Quaise Energy – The MIT “Death Ray” Driller

If Mazama is about optimizing existing tools for a new environment, Quaise Energy is about inventing a whole new toolbox. A spin‑out from the Massachusetts Institute of Technology (MIT), Quaise is developing what its CEO calls “the first drilling innovation in 100 years”: a system that uses high‑power millimeter waves to melt and vaporize rock.

The Technology: Millimeter‑Wave Drilling

Conventional drilling is mechanical; a bit grinds against the rock until it breaks. Millimeter‑wave drilling is thermal. Quaise’s system works in two stages. First, they use standard rotary drilling rigs to bore through the softer upper layers of the earth’s crust until they hit hard basement rock. Then, at that point, the system switches to its core innovation. A device called a gyrotron (a machine originally developed for nuclear fusion research) generates a powerful beam of millimeter‑wave electromagnetic energy. This beam is channeled down the borehole where it literally melts and vaporizes the rock in its path, creating a clean, glass‑lined borehole with no mechanical wear and tear. The technology uses a 2.45 GHz millimeter wave generator to melt rock.

By eliminating physical contact with the rock, Quaise’s approach bypasses the fundamental problem that has always limited geothermal: drill bits wear out and fail in the deepest, hottest, hardest conditions. This unique approach is supported by a $21 million Series A1 and a $40 million Series A raised in 2022.

The Proof of Concept

Quaise has rapidly moved its technology out of the lab and into the field. In 2025, the company conducted a live public demonstration at a quarry in Marble Falls, Texas, where it successfully drilled a 4‑inch wide, 100‑meter deep hole into solid granite. The video of the “death ray” boring into rock is impressive and a major proof point for the technology. Quaise is now preparing for a 2026 test to drill to nearly 1,000 meters (3,300 feet). To better understand the geochemistry of superhot rock, Quaise gave a $750,000 grant to Oregon State University’s EDGE lab, which will build a special reactor to recreate the extreme conditions found several kilometers down.

The Roadmap: Project Obsidian

Quaise is not just building a drilling gadget; it is developing a power plant. Its first planned commercial facility is Project Obsidian in Central Oregon, about a 40‑minute drive from Mazama’s Newberry site. The target start of operations for the first phase is 2030, aiming to deliver 50 MW of always‑on power from just a handful of wells. To build the plant, Quaise is seeking $200 million, composed of a $100 million Series B and another $100 million in grants and project financing. The facility is designed for expansion to 250 MW, with a potential long‑term goal of 1 GW from the same site – a scale previously unimaginable for a geothermal project.

Key Backers

Quaise’s backers read like a who’s who of deep‑tech and industrial capital. In addition to receiving funding from MIT and Khosla Ventures, its investors include Prelude Ventures, Safar Partners, Mitsubishi Corporation, Nabors Industries (a major oil driller), and Collab Fund.

Part 3: Head‑to‑Head Analysis

Mazama Energy (The “Fracker”)

· Technology: Advanced EGS using a patented “Thermal Lattice” stimulation technique.
· Approach: Adapts and enhances existing oil & gas technology (drilling, hydraulic fracturing) to work in extreme heat.
· Status & Milestones: World record holder for the hottest EGS reservoir at 331°C. Demonstration phase complete.
· Timeline to Scale: Fast‑track; planning a 15 MW pilot in 2026, scaling to 200 MW by the late 2020s.
· Project: Newberry Volcano, a proven, highly studied geothermal site.
· Main Risk: The long‑term durability of downhole equipment and fracture connectivity in such an extreme, corrosive volcanic environment.

Quaise Energy (The “Vaporizer”)

· Technology: Millimeter‑wave drilling using a powerful gyrotron to melt and vaporize rock.
· Approach: A completely new paradigm – a non‑contact, “drill‑less” drilling system that can theoretically go as deep as needed.
· Status & Milestones: Successfully drilled a 100m hole in solid granite in a public demo. Mid‑stage R&D.
· Timeline to Scale: Accelerating but later; seeking funding for a 50 MW pilot plant with commercial operations targeted for 2030.
· Project: Project Obsidian (Oregon), a greenfield site that will combine conventional and millimeter‑wave drilling.
· Main Risk: The core technology has not yet been proven at the depths and durations required for a commercial power plant. The leap from 100 meters to 5,000 meters is immense. Investors call this “the nuclear fusion of geothermal” for a reason.


Final Verdict

Mazama Energy aims to reduce risk first with a staged 200 MW build‑out. Quaise Energy is a high‑risk, high‑reward moonshot aiming to unlock the mother lode. For a direct investment comparison between the two superhot rock pioneers, here is the bottom line.

Mazama Energy is the safer, near‑term bet for investors looking for a “pick and shovel” play. By utilizing existing supply chains (drilling rigs, fracking crews), Mazama de‑risks execution. Its roadmap to revenue (15 MW in 2026 → 200 MW in the late 2020s) is concrete and supported by DOE grants. The main question is long‑term durability of artificial fractures at extreme temperatures.

Quaise Energy is the long‑shot moonshot capable of reshaping the entire energy sector. If successful, Quaise’s ability to drill anywhere to depths of 10‑20 km would tap into effectively infinite, terawatt‑scale geothermal resources. The payoff is global primacy, but technological risk remains daunting.

The smart capital is in both. These two companies do not compete directly; they complement each other by tackling different parts of the superhot rock value chain. Bet on Mazama for near‑term cash flow and real‑world scaling of EGS. Keep a long‑term position in Quaise to capture the immense upside of a true breakthrough in deep‑rock penetration.

The biggest winner could be the investor who recognizes that these two approaches will eventually converge. A future where cheap conventional drilling puts the first wells in place before millimeter‑wave technology deepens them to supercritical levels is not far‑fetched.

The race is on. One company is hammering a path forward; the other is trying to beam one through the mountain.


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