Fervo Energy raises $138 million for 24/7 carbon-free geothermal energy
Utah —Fervo Energy, the leader in next-generation geothermal power, announced that it had raised $138 million in new funding led by DCVC to build, own, and operate 24/7 carbon-free power plants.
Fervo has adapted innovations pioneered by the oil and gas industry, such as horizontal drilling and distributed fiber optic sensing, to make reservoirs of hot rock that exist beneath the earth’s surface into practical, economically viable, clean sources of energy. The new funding helps Fervo complete power plants in both Nevada and Utah and evaluate new projects in California, Idaho, Oregon, Colorado, New Mexico, and internationally.
“Power buyers are interested in geothermal power because they are actively looking for reliable energy sources that can address climate change and rising energy prices,” says Tim Latimer, CEO of Fervo. “Our mission is to meet that growing demand by putting gigawatts of 24/7 carbon-free energy on the grid. This latest investment enables us to execute on those ambitious plans.”
Last year, Fervo announced the world’s first corporate agreement to develop geothermal, a project to power Google’s data centers in Nevada. Recently, Fervo also signed a 40 MW power purchase agreement with East Bay Community Energy, a leading California clean energy provider.
According to the U.S. Department of Energy, geothermal holds the potential to power tens of millions of American homes and businesses. “Fervo is the right company at the right time,” says Matt Trevithick, Partner at DCVC. “The United States needs 200 GW of reliable clean power to achieve a zero-carbon electricity grid. Fervo is poised to make geothermal as important as solar and wind to our energy future.”
Other new investors included Canada Pension Plan Investment Board (CPP Investments), Liberty Energy, Macquarie, Grantham Foundation for the Protection of the Environment, Impact Science Ventures, and Prelude Ventures. The round also saw strong participation from existing investors such as Capricorn’s Technology Impact Fund, Breakthrough Energy Ventures, Congruent Ventures, 3X5 Partners, Helmerich & Payne, and Elemental Excelerator.
“Fervo represents a compelling opportunity to invest in a company that is working to unlock the potential of geothermal energy to provide clean, reliable energy at a sustainable price point,” says Bruce Hogg, Managing Director and Head of Sustainable Energies at CPP Investments, which committed $20 million to the financing round. “Fervo fits well into our strategy as we expand our portfolio of renewable assets in support of the global energy transition.”
In advancing geothermal energy, using the technologies of hydrocarbon exploration and extraction, Fervo is the model of energy transition, deploying the workforce of the oil and gas industry to clean energy projects. “Fervo has figured out how to adapt de-risked technology from the oil and gas industry to geothermal,” says Chris Wright, CEO of Liberty Energy.