Bedrock Energy raises $8.5m to decarbonize commercial real estate with geothermal energy

Bedrock Energy raises $8.5m to decarbonize commercial real estate with geothermal energy

Published: 13-10-2023 13:41:00 | By: Pie Kamau | hits: 2123 | Tags:

Bedrock Energy, a technology startup that designs, constructs, and delivers geothermal heating and cooling systems, announced $8.5 million in seed capital. The financing round is led by Wireframe Ventures, with participation from Overture Climate VC, Long Journey Ventures, Cantos, Toba Capital, First Star Ventures, Divergent Capital, and Climate Capital. The funding will accelerate manufacturing and deployment of technologies that improve the economics of all-electric geothermal HVAC systems, thus helping real estate properties achieve Net Zero operations.

Bedrock is developing a novel technology stack that combines autonomous drilling and advanced subsurface modeling to triple the speed and space-efficiency of geothermal projects. These advantages enable geothermal HVAC to fit onto dense, urban locations, with sensors that uniquely validate real-time construction accuracy. Payback periods under five years enable real estate owners and investors to decarbonize large properties with double-digit internal rates of return.

Joselyn Lai, Co-founder and CEO, Bedrock Energy: "For decades, geothermal heat pumps have been the most energy-efficient form of HVAC, but adoption has historically been slow due to the upfront cost, time, and space required to construct the borefields that provide such stellar thermal efficiency. We believe our technologies fundamentally change the equation. A huge swath of commercial and industrial real estate can now benefit economically from carbon-free geothermal HVAC due to Bedrock's unparalleled speed, cost, compactness, and reliability - making adoption a logical business and sustainability decision." 

Federal incentives can offset the upfront cost of geothermal systems by 30%-60%, while local and state climate policies are increasingly pressuring large real estate owners to look for ways to decarbonize their assets. These factors, combined with Bedrock's technology innovations, position geothermal heating and cooling as a leading path to reduce emissions and energy costs for urban buildings across the U.S.

Paul Straub, Managing Partner, Wireframe Ventures: "We believe Bedrock Energy will significantly lower the carbon intensity and cost to heat and cool commercial buildings. We are so impressed by this team's approach to product. They have built a solution that can scale in a market where federal incentives, decarbonization mandates and rising energy prices are all conspiring to form a perfect moment for Bedrock's mission."

Bedrock's team combines decades of experience in oil and gas technology, oilfield operations, software, and startup operations. Since its inception in 2022, the company has focused its efforts on designing and manufacturing its drilling assets, developing subsurface physics modeling software, and building out its multi-disciplinary team.

Bedrock's approach is versatile, with applications across a wide range of retrofits and new construction. With initial applications across retail, light industrial, office, education, or commercial, the company is open to projects across the continental U.S. in 2024 including academic, non-commercial, or other strategic partnership opportunities.