Project Obsidian

Executive Overview

Project Obsidian is a 50 MW initial phase / 250 MW total target superhot enhanced geothermal system (EGS) under development by Quaise Energy in central Oregon, near Newberry Volcano. Quaise, founded in 2018 and spun out of MIT, uses millimeter-wave energy (gyrotrons adapted from fusion research) to vaporise rock at depth, enabling drilling to 16,000 feet and beyond to reach formations at 300–500°C. The project has a signed PPA for the initial 50 MW with an undisclosed customer, and Quaise is seeking an additional 200 MW in PPAs for the full 250 MW build-out. Quaise has raised $120 million to date and is seeking $100 million in Series B equity and $100 million in grants and debt to fund Project Obsidian. Target COD is 2030. In July 2025, Quaise drilled to 100 metres (330 feet) using its millimeter-wave technology in Central Texas — a world record for millimeter-wave drilling and the first field demonstration outside of a laboratory — and has set a target of 1 kilometre depth in 2026. A Forest Service closure order was issued in December 2025 for drilling activity at the Newberry #2 well site, confirming active field operations in Oregon.

How It Works & Differentiation

Quaise's millimeter-wave drilling system uses a gyrotron (100 kW system currently operational; 1 MW unit expected in early 2026) to direct high-intensity microwave energy at the rock face, vaporising rather than mechanically fracturing rock — enabling drilling rates and depths that conventional rotary drilling cannot reach economically. At target 300–500°C formation temperatures, water transitions to supercritical conditions, dramatically increasing energy extractable per unit of fluid. The Oregon project initially uses conventional drilling to establish the EGS infrastructure while Quaise advances its millimeter-wave technology in parallel, planning to deploy the novel drilling technique at the site as that technology matures. The system can also repurpose existing fossil-fuel power plant infrastructure for geothermal output, enabling potential coal-to-geothermal conversion.

Commercialization & Traction

Quaise's roadmap targets first thermal energy from a superhot EGS in 2026 and commercial operation by 2030. The Forest Service closure order confirms active drilling operations at the Oregon site. The company is targeting $200 million total financing for Project Obsidian, including a $100 million Series B round currently being sought. The 100m Texas milestone in July 2025 was significant: prior to that, millimeter-wave drilling had only been demonstrated in laboratory conditions with depths of a few centimetres.

Scalability & Strategic Context

Quaise's core thesis — that millimeter-wave drilling can access deep geothermal energy anywhere on Earth, not only in volcanic regions — has large implications if proven at commercial scale. The Oregon Project Obsidian is the critical proof-of-concept: if Quaise can demonstrate first thermal energy in 2026 and commercial operation by 2030, it would validate the millimeter-wave drilling approach at conditions relevant to global deployment. Quaise uses less than 1% of the land and materials of comparable-output wind or solar installations, and its ability to co-locate with retiring fossil fuel plants could enable coal-to-geothermal conversion without major transmission investment.