#United States #Manchester #energy innovation #Dig Energy #Geothermal Heating

Dig Energy Secures Funding to Revolutionize Heating and Cooling

In a significant move for sustainable energy, Dig Energy has announced the successful raising of $5 million in venture financing. This funding is aimed at advancing their innovative geothermal heating and cooling solutions. The company’s patented drilling technology is expected to facilitate pilot installations, marking a crucial step towards making geothermal options more accessible and cost-effective for property owners and developers.

The financing round was co-led by Azolla Ventures and Avila VC, both of which are recognized leaders in climate investments. Other contributors included Conifer Infrastructure Partners, Suffolk Technologies, Mercator Partners, Koa Labs, as well as notable preseed investors such as Baukunst and Drew Scott. The investment is further strengthened by additional support from programs like Suffolk's BOOST accelerator and the U.S. Department of Energy's EPIC Prize, aimed at fostering innovative energy solutions.

Addressing a Significant Energy Challenge

Heating and cooling systems are responsible for 35% of the total energy consumption in the United States, primarily reliant on fossil fuels. As energy prices rise and the strain on the electrical grid increases, the Dig Energy team is focused on finding scalable alternatives. Their research led them to geothermal systems, which utilize the earth's stable underground temperature to efficiently regulate building climates using geothermal heat pumps. This method essentially transforms the earth into a massive thermal battery, offering a sustainable energy resource.

Despite the known efficiency of shallow geothermal systems, which are widely regarded as the best available technology for building climate control, adoption rates have remained relatively stagnant—hovering around 1% throughout the U.S. One major barrier has been the high costs associated with drilling, as traditional geothermal projects depend on oversized drilling rigs typically designed for oil and gas extraction. These rigs are not only expensive but also limited in accessibility.

Revolutionary Drilling Solutions

To overcome these barriers, Dig Energy is tackling drilling costs directly with their newly developed compact, purpose-built drill. This innovative technology relies on high-pressure fluid drilling, significantly reducing drilling costs by up to 80%. Consequently, this will dramatically expand the market opportunity for geothermal heat pumps, making them a viable option in comparison to fossil fuels and other air source alternatives.

Dulcie Madden, CEO of Dig Energy, stated, "The heat beneath our feet is abundant, reliable, and always on. Our robust drill unlocks the most efficient on-site heating and cooling solutions, making geothermal systems simpler, scalable, and more competitive against less efficient options. This technology empowers buildings to achieve true energy independence."

Azolla Ventures co-founder Johanna Wolfson emphasized the potential for Dig Energy to revolutionize the HVAC landscape, remarking, "Dig’s new drilling method adds minimal costs while significantly enhancing the installation of geothermal systems. Pilot installations will be critical in demonstrating that their technology can make geothermal solutions mainstream."

Patricia Wexler, General Partner of Avila VC, also praised the simplicity and efficiency of the new drilling technology, noting how it leverages existing supply chains and materials, thereby tackling the major obstacle of drilling expenses within the geothermal sector.

A Focus on Affordable Energy Solutions

Drew Scott from Scott Brothers Global highlighted the company's commitment to fostering affordable living conditions, stating, "Dig Energy aligns perfectly with the vision of ensuring that every family can live in a safe, healthy, and reasonably priced home amidst unpredictable heating and cooling costs. Their solutions will equip homeowners and businesses with reliable comfort and greater control over energy challenges."

With this new capital, Dig Energy plans to transition from field testing to the initial stage of pilot installations. The company's overarching mission revolves around offering developers, building owners, utilities, and municipalities a reliable, cost-competitive avenue for harnessing low-cost, dependable energy, while promoting the decarbonization of heating and cooling processes on a broad scale.

About Dig Energy

Dig Energy is on a mission to develop specialized drilling technology that propels geothermal heating and cooling systems into a position of cost competitiveness against traditional fossil fuel mechanisms. The firm aims to streamline the adoption of geothermal heat pumps worldwide by effectively addressing the high costs of drilling and complex equipment requirements. With a reduction in costs by 80%, Dig Energy is poised to become a leader in the global market for sustainable energy solutions. Explore more at Dig Energy's website.