Since launching in 2023, it has been all systems go for the experts behind South Australia startup, CoilRig. The company’s expertise in developing coiled tubing drilling technology for the burgeoning shallow geothermal industry has been gaining attention at home and overseas.
This year, the business was ranked on CORE Innovation Hub’s Hot 30 which recognises technology specialists who are driving innovation across Australia’s mining, energy, resources, oil and gas, space and defence industries, as well as being awarded the iAwards National Finalist – Start Up Category.
Also in 2025, CoilRig was recognised by the South Australian Government when it was awarded a $450,000 Department of State Development Seed-Start grant. The startup also received $250,000 in Australian Government funding through the Industry Growth Program.
The confidence shown by governments in CoilRig’s potential has been well-placed with the launch of the CT Energy 500 drilling rig. The company’s flagship innovation integrates state-of-the-art technology and advanced engineering expertise to ensure geothermal drilling operations are more efficient, safer and affordable.
Soren Soe, Co-Founder of CoilRig, says the CTEnergy500 coiled tubing rig can improve productivity by around 30 per cent compared to conventional drilling rigs, and the coiled tubing drill rig provides hands-free operation of the drill string.
Soren says the company’s coiled tubing rig, that has been in development for two years, represents a strategic shift towards more sustainable drilling practices and sets a new benchmark for the geothermal industry.
“CoilRig came to life when we began to build coiled tubing rigs for the geothermal industry in New York in the United States. We’re addressing a vast and essential market. Heating and cooling account for nearly 50% of energy use in buildings, and every building worldwide requires heating, ventilation and air Conditioning (HVAC) solutions. With increasing electrification mandates and rising energy costs, the potential for geothermal systems is immense,” Soren explains.
“We are building a drilling rig that has been purpose built to drill boreholes for geothermal HVAC installations at a cheaper, faster and safer rate than any other rigs in the market.”
Shallow geothermal systems use the stable temperatures just below the earth’s surface to efficiently heat and cool buildings. By drilling boreholes and installing geo-loops, fluid is then circulated through these underground loops, transferring heat to or from the ground and dramatically reducing energy use.
“Our rig is unique in that in enables continuous, rodless drilling, which makes the process faster, safer and more compact. Its streamlined design reduces labor, minimises site disruption, and is ideal for tight urban environments and geothermal installations,” says Soren.
“Conventional drill rigs use a drill rod that is 3m to 6m long and the rods have to be disconnected and reconnected at intervals, so you often need two operators and spend a lot of time not drilling the hole deeper. With the CTEnergy, operators don’t have to stop and start drilling flows and the rig can be operated by one person.”
Cost and scalability are the biggest barriers to geothermal adoption, with drilling accounting for between 25 per cent to 60 per cent of the total cost of installation. By reducing the time that it takes to drill, the CTEnergy500 significantly decreases the cost of installation, making geothermal more accessible.
The first coiled tubing rig has been built for a customer in North America and will be delivered later this year. It is powered by a DEUTZ TCD 7.8 L6 Stage V engine which Soren says was a deliberate choice based on performance, price and the fact that it could be supplied by DEUTZ Australia as a turnkey solution.
“One critical requirement was that we wanted a power pack – we wanted the complete engine supplied and we didn’t want to have to become engine builders to make the drill rig work. We wanted a turnkey solution,” says Soren.
The engine also had to be certified to meet EU Stage 5 and US EPA Tier 4 emission requirements. The TCD 7.8 L6 Stage V engine can run on biofuels and alternative fuels which also made it a perfect fit for the rig.
With the first rig about to enter the market backed by rigorous research, development and testing and based on the high level of interest, CoilRig is quietly confident that more orders will arrive from the geothermal industry.
“In the US, the geothermal market is growing by 5 or 6 per cent each year and in central Europe it is also expanding, so there is a need for additional drill rigs,” says Soren.
“We think there is a great future for our innovative equipment in this space as it will empower building owners to view geothermal as a practical, mainstream renewable energy solution.”