Fervo Energy is the top geothermal energy project developer to raise $255m to help it achieve a vision of delivering 24/7 carbon-free energy. Fervo closed an equity round of corporate, worth $135 million. The round was led by Capricorn’s Technology Impact Fund II, featuring investment from Breakthrough Energy Ventures, CalSTRS, CPP Investments, among other prominent investors. In addition, Mercuria, a global energy and commodity group, provided $120 million in debt capital to accelerate the deployment of enhanced geothermal systems (EGS) across the U.S.
Fervo Energy, based in Houston, Texas, founded in 2017, is focused on utilizing technologies like horizontal drilling and distributed fiber optic sensing to transform the earth’s crust of hot rock reservoirs into a source of clean energy. These technologies have helped the company scale geothermal production to meet growing demand worldwide for sustainable power solutions.
One of the company’s flagship projects, Cape Station is now in construction at Beaver County, Utah. It has received an approval in October by the U.S. Bureau of Land Management, with plans for it to generate up to 2 GW of baseload power. Thus, Cape Station would rank among the biggest geothermal ventures in the United States. The project uses a state-of-the-art process that injects water into hot subsurface rock formations, extracts heated water, and converts it into electricity. The first phase of Cape Station is slated to come onstream in 2026, delivering continuous carbon-free power to the grid.
CEO and Co-Founder Tim Latimer of Fervo Energy commented on the present-day imperative for sustainable energy solutions:. “The demand for 24/7 carbon-free energy is at an all-time high and Fervo is one of the only companies building large projects that will come on before the end of the decade,” said Latimer, highlighting his firm’s agility to scale, a necessity as the need for electricity continues its steep rise to meet future requirements in advanced AI applications, other growing energy-intensity industries and increasingly high global population expectations.
Mercuria’s Chief Investment Officer, Brian Falik, also shared support for Fervo’s groundbreaking approach in geothermal energy. “In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable. We believe in Fervo not just because their EGS approach is cost-effective, commercially viable, and already being deployed at scale, but because they set ambitious targets and consistently deliver,” Falik stated.
This is the latest funding after a $244 million round earlier this year and a $138 million financing in 2022, which highlights the growing investor confidence in Fervo’s potential to disrupt the clean energy sector. The company’s efforts will play a vital role in helping meet the surging demand for renewable energy while aiding global decarbonization efforts.
With Fervo Energy’s unrelenting advancement of the next generation of geothermal technologies, Cape Station-like projects will come to reshape the near-future face of sustainable energy development-to provide steady and environmentally benign power supplies for a generation.