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Houston-based Fervo Energy continues to make waves in the renewable energy sector, securing $255 million in new funding, bringing its total funding this year to an impressive $600 million. The company is leading the charge in harnessing geothermal energy to meet rising energy demands, and its innovative technology is driving sustainable growth.
The funding includes $135 million in corporate equity, led by Capricorn’s Technology Impact Fund II, with participation from prominent investors such as Breakthrough Energy Ventures, CPP Investments, CalSTRS, Liberty Mutual Investments, and others. Additionally, Fervo secured a $120 million letter of credit and term loan facility from Mercuria, one of the world’s most considerable independent energy and commodity groups. This financial support provides liquidity to accelerate EGS project deployment across the U.S.
“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 online before the end of the decade,” Fervo CEO and Co-Founder Tim Latimer says in a news release. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.”
Fervo’s first large-scale development, Cape Station, has received full permitting for up to 2 GW of capacity and is expected to generate electricity by 2026. This project highlights the scalability and potential of advanced geothermal solutions, setting the stage for future developments.
Enhanced Geothermal Systems (EGS) mark a breakthrough in clean energy, enabling geothermal energy production in areas without natural hydrothermal resources. Fervo’s projects will expand the applicability of geothermal power across diverse geographies, providing clean, firm baseload energy to meet the rising demand for renewable solutions.
This funding milestone reflects a broader investment trend in clean energy innovations. Geothermal energy, with its unique ability to provide reliable baseload power, is emerging as a critical component in achieving global Net Zero goals. Investors are increasingly drawn to its dual benefits—significant climate impact mitigation and high returns in a burgeoning market.
Key Funding Highlights:
$135 million corporate equity round led by Capricorn’s Technology Impact Fund II, with participation from Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, and Sabanci Climate Ventures.
Mercuria, an independent energy and commodity group, secured a $120 million letter of credit and term loan facility.
“In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable,” Brian Falik, group chief investment officer of Mercuria, adds. “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.”
The funds will support Fervo’s current and future geothermal projects, advancing its mission to scale geothermal energy as a clean and reliable power source.
Major Milestones in 2023:
Significant achievements have marked Fervo’s year:
Project Cape:
Located in Utah, this project is fully permitted for up to 2 GW and represents a 100x growth opportunity for the company.
The project will begin generating electricity in 2026.
Strategic Investments:
In February, Fervo raised $244 million in a financing round led by Devon Energy.
In September, the company secured a $100 million bridge loan to accelerate the first phase of Project Cape.
Expanding Operations:
Opened a new headquarters in downtown Houston.
Secured a power purchase agreement with California.
Strengthened its partnership with Google.
Recognition:
Named one of the top inventions of the year by Time Magazine.
Fervo’s innovative approach to geothermal energy positions it as a leader in the renewable energy market. By leveraging advanced drilling and energy technology, the company aims to unlock the potential of geothermal energy to provide reliable, scalable, and sustainable power.
As Fervo Energy continues to attract significant investments and achieve milestones, it is driving a critical shift in how clean energy is harnessed and deployed globally.
Fervo Energy’s approach redefines geothermal energy's role in the renewable sector. By scaling projects and advancing EGS technology, the company is solidifying its position as a leader in clean energy innovation.
With its ambitious pipeline, Fervo Energy is poised to play a pivotal role in the global energy transition, pushing technological boundaries and proving that geothermal energy is more than an alternative—it’s a game-changer.