Fervo Energy raises capital to drive geothermal development
Site of Cape Station project by Fervo Energy (source: Fervo Energy)
Alexander Richter
19 Dec 2024
Fervo Energy has raised $255 million in equity and debt financing for its Cape Station geothermal EGS project in Utah, United States.
U.S.-based geothermal developer Fervo Energy has announced the successful closing of a substantial funding round, raising an additional USD 255 million in funding. This financial boost reflects increasing confidence in geothermal as a scalable, renewable energy source and positions Fervo to further innovate in the Enhanced Geothermal Systems (EGS) sector.
The announced funding comprises both opportunistic corporate equity and new debt financing, so the release. Capricorn’s Technology Impact Fund II led the $135 million corporate equity round. Fervo is excited to welcome new investment and continued support from a suite of high-caliber investors, including Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, and Sabanci Climate Ventures.
In addition to corporate equity, Fervo secured a $120 million letter of credit and term loan facility from Mercuria, one of the world’s largest independent energy and commodity groups. The facility will provide additional liquidity for Fervo to accelerate the deployment of EGS projects across the U.S. as it seeks to meet skyrocketing demand for clean, firm power.
“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,” said Fervo CEO and Co-Founder Tim Latimer. “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.”
“In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable,” said Brian Falik, Group Chief Investment Officer of Mercuria. “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.”
Fervo’s first greenfield development, Cape Station, is now fully permitted up to 2 GW and will begin generating electricity in 2026. This project is just a first step. As Fervo continues to meet and surpass its stated development milestones, expect additional exciting updates in the near future.
The funds will accelerate Fervo’s ambitious development pipeline, enabling the deployment of advanced geothermal projects that unlock energy potential in previously untapped regions. Enhanced Geothermal Systems are designed to operate in areas without natural hydrothermal resources, a critical factor in expanding the technology’s applicability across diverse geographies.
This latest capital injection signifies a broader trend of investment in clean energy solutions, highlighting geothermal energy’s unique position as a reliable and renewable baseload power source. Investors are recognizing the dual benefits of mitigating climate impact while achieving robust returns in a growing market.
Redefining Renewable Energy Investment
With this funding milestone, Fervo Energy is set to scale its projects and solidify its role as a leader in the geothermal space. The company’s innovative approach not only pushes technological boundaries but also aligns with global energy transition goals.
ThinkGeoEnergy congratulates Fervo Energy on this landmark achievement, which not only advances the company’s vision but also elevates geothermal energy as a critical component in the fight against climate change.
Source: company release
