Boom Supersonic Secures $300M for Natural Gas Turbines with Crusoe Data Centers

Boom Supersonic Diversifies into Stationary Power Generation

Boom Supersonic, the company developing supersonic aircraft, announced on Tuesday its intention to market a version of its turbine engine for use as a stationary power source. Their inaugural client for this venture will be Crusoe, a data center startup.

Turbine Deal with Crusoe

Crusoe has committed to purchasing 29 of Boom’s 42-megawatt turbines for a total investment of $1.25 billion. This acquisition will provide 1.21 gigawatts of power for their data center operations. Boom anticipates revealing further specifics regarding a dedicated turbine manufacturing facility in the coming year, with initial deliveries scheduled for 2027.

Funding for Superpower Turbine Commercialization

To facilitate the commercialization of its Superpower stationary turbine, Boom secured $300 million in funding. This funding round was spearheaded by Darsana Capital Partners, with contributions from Altimeter Capital, Ark Invest, Bessemer Venture Partners, Robinhood Ventures, and Y Combinator.

Funding Overture Aircraft Development

According to Boom’s founder and CEO, Blake Scholl, the revenue generated from Superpower unit sales will be allocated towards the ongoing development of the company’s Overture supersonic aircraft.

Strategic Parallel to SpaceX’s Starlink

Scholl draws a comparison to SpaceX’s Starlink satellite constellation, noting that the satellite internet service is currently profitable and supports the funding of rocket development. He stated he had been searching for a similar revenue stream for a decade.

A Carefully Considered Diversification

“I’ve been actively seeking opportunities for the past decade that could serve as our ‘Starlink’ equivalent,” Scholl explained. “Numerous proposals were declined as potential distractions. This particular venture, however, aligns perfectly with our strategic objectives.”

Shared Technology Between Engines

Boom reports that the Superpower turbine and its airborne counterpart, the Symphony engine, share 80% commonality in parts. Earlier this year, Boom’s XB-1 demonstrator became the first privately developed civil aircraft to surpass the sound barrier.

Crusoe’s Investment Breakdown

Crusoe is investing $1,033 per kilowatt of generating capacity. This includes the turbines themselves, generators, control systems, and preventative maintenance services. Crusoe will be responsible for providing supplementary infrastructure, such as pollution controls and electrical connections.

Cost Comparison with Aeroderivative Turbines

The cost per kilowatt is relatively high for this type of power plant. A typical aeroderivative turbine generally costs around $1,600 per kilowatt, a price that encompasses pollution controls, engineering, construction, land acquisition, permitting, and pipeline installation.

Total Project Costs

Considering that the turbine and pollution controls typically account for approximately 46% of a project’s total cost, applying this percentage to Boom’s figures suggests a total cost exceeding $2,000 per kilowatt. This is a premium price point, more akin to combined-cycle gas turbines planned for operation in the early 2030s.

Efficiency and Future Upgrades

Boom’s Superpower turbine is designed to achieve 39% efficiency, comparable to its competitors. Combined-cycle turbines, however, can attain efficiencies exceeding 60% by recovering heat from exhaust gases.

Combined Cycle Conversion Potential

Scholl indicated that Boom is developing a “field upgrade” to convert its turbines from simple cycle to combined cycle operation. While existing combined-cycle kits are available, their implementation would necessitate extended installation periods. “Such plants typically require substantial construction efforts,” he noted.

Delivery and Installation Responsibilities

Similar to other aeroderivative turbine generators, Superpower turbines will be delivered in standard shipping containers. Developers, like Crusoe, will be responsible for electrical and gas connections, as well as pollution control systems.

Noise Levels

Scholl asserts that the power plants should generate noise levels comparable to existing aeroderivative turbines. However, these turbines are not silent; residents near xAI’s Colossus data center have reported hearing similar-sized turbines from a distance of at least half a mile.

Production Scaling Plans

Initial stationary turbine production will occur at Boom’s current facilities while a larger factory is constructed. The company aims to produce 1 gigawatt’s worth of turbines in 2028, 2 gigawatts in 2029, and 4 gigawatts in 2030. Achieving these targets would significantly increase the availability of these turbines.

Challenges and Future Prospects

Boom faces considerable challenges in the coming years. Successful execution could accelerate the timeline for commercial supersonic flights. However, scaling production is inherently difficult, and numerous startups have faltered when attempting to bridge the gap between early-stage hardware development and commercial viability.