Fervo Energy, a leader in next-generation geothermal development, has announced securing an additional $255 million in funding and capital availability [1]. This funding will support the construction of the world’s largest enhanced geothermal systems (EGS) power development. The funding includes $135 million in corporate equity led by Capricorn’s Technology Impact Fund II, along with new debt financing.
The company has received continued support from high-caliber investors such as Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, and Sabanci Climate Ventures. Fervo’s CEO and Co-Founder, Tim Latimer, emphasized the high demand for 24/7 carbon-free energy and the company’s ability to scale quickly to meet this demand.
“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,” noted Fervo CEO and cofounder Tim Latimer. “Investors recognize that Fervo’s ability to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.”
Brian Falik, Group Chief Investment Officer of Mercuria believes that Fervo is cost-effective, commercially viable, and consistently delivers in their set a.mbitious targets
In addition to the equity funding, Fervo secured a $120 million letter of credit and term loan facility from Mercuria, which will provide additional liquidity to accelerate the deployment of EGS projects across the U.S. Brian Falik, Group Chief Investment Officer of Mercuria, highlighted the importance of next-generation geothermal energy in meeting the growing energy demand.
Fervo’s first greenfield development, Cape Station in Beaver County, Utah, is fully permitted for up to 2 gigawatts and is expected to begin generating electricity in 2026. This project represents a significant step towards providing clean, firm power to the U.S.
Earlier in February, Fervo raised $244 million in funding, led by Devon Energy, to foster its next growth phase. Investors such as Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria, Mitsubishi Heavy Industries, and existing investors Capricorn’s Technology Impact Fund, Congruent Ventures, DCVC, Elemental Excelerator, Helmerich & Payne, and Impact Science Ventures also participated in this round.
This autumn, Fervo partnered with Southern Utah University (SUU) and Elemental Impact to launch a unique geothermal apprenticeship program to assist oil and gas workers and Southwest Utah residents in transitioning to the renewable energy sector. The program, administered by SUU and partially funded by Elemental, aims to enroll at least 40 apprentices by the end of the year, offering a blend of on-the-job training and college-level coursework on geology and energy systems to prepare participants for careers in geothermal energy.
Sources:
[1] Fervo Energy secures additional US$255 million
