Zanskar

Here is a summary of the key points about Zanskar and its geothermal exploration technology:

Company Overview

• Zanskar is a Utah-based startup focused on using AI and machine learning to improve geothermal energy exploration and development
• Founded in 2018 by Carl Hoiland (CEO) and Joel Edwards (CTO), who met 15 years ago while studying geology
• Just raised a $30 million Series B round led by Obvious Ventures, valuing the company at $115 million
• Total funding to date is $45 million

Technology

• Uses machine learning models to analyze huge amounts of data to find ideal drilling locations for geothermal plants
• Data sources include satellites, geological surveys, seismic data, and their own exploratory drilling
• Aims to significantly reduce exploration and drilling costs, which are the biggest expenses in geothermal development
• Claims to have “discovered more hidden geothermal resources in the past year and a half than the entire industry combined had done over the prior decade”

Business Model

• Plans to both build its own geothermal power plants and partner with existing players to co-develop sites
• Aiming to bring its first facility online in about 4 years

Market Opportunity

• Geothermal currently provides less than 1% of US electricity due to high development costs
• Geothermal projects cost about $8.7 million per megawatt vs $1.8 million for wind
• Drilling accounts for about half the cost of most geothermal projects
• Improving exploration success rates could make geothermal more cost competitive

Competitive Landscape

• Part of a growing geothermal startup space that has attracted over $1.5 billion in VC funding since 2019
• Other players include Fervo Energy, which raised $244 million in February 2024

The company believes its AI-powered exploration technology gives it an “unfair advantage” in unlocking more geothermal energy resources cost-effectively. However, it is still in relatively early stages and faces competition from other well-funded startups in the space.