Fervo Energy, a leading next-generation geothermal energy company, has successfully raised $138 million in new funding. The funding, led by DCVC, comes from investors including CPP Investments, Liberty Energy, Macquarie, Impact Science Ventures and Prelude Ventures.
The funds raised will invest in the construction and operation of 24/7 carbon-free power plants. Last year the developer had already raised $28 million forgeothermal innovation.
Fervo has modernized geothermal operations by taking innovations from the oil and gas industry. Fervo uses horizontal drilling and distributed fiber optic sensing to exploit underground hot rock reservoirs. These methods have made it a reliable, affordable and practical source of energy.
Tim Latimer, CEO of Fervo, explains:
“Electricity buyers are interested in geothermal energy because they are actively seeking reliable energy sources that can cope with climate change and rising energy prices.”
The funds raised by Fervo will allow the company to purchase power plants in Nevada and Utah. The company is also interested in projects in California, Oregon, Colorado, Idaho and New Mexico as well as internationally. The money raised will be used to evaluate the potential of the latter sites.
Fervo also initiated the first corporate agreement to develop geothermal energy and power a Google data center. Another partnership has emerged between Fervo and East Bay Community Energy for the purchase of 40 MW of electricity.
The promise of geothermal energy
The purchase of these plants is to meet the growing demand for clean energy. Tim Latimer states:
“Our mission is to meet this growing demand by putting gigawatts of carbon-free energy on the grid 24/7. This latest investment allows us to implement these ambitious plans.”
The Department of Energy itself is very interested in this promising energy source. In fact, the department considers that geothermal energy could power tens of millions of homes and businesses in the United States.
Matt Trevithick, a partner at DCVC, argues that Fervo will be able to ensure that geothermal energy can support such needs in the future:
“The U.S. needs 200 GW of clean, reliable energy to achieve a carbon-free power grid. Fervo is ready to make geothermal as important as solar and wind to our energy future.”
In particular, Fervo’s geothermal energy has attracted investors interested in contributing to the global energy transition. Bruce Hogg, Managing Director and Head of Sustainable Energy at CPP Investments, said:
“Fervo fits perfectly with our strategy of expanding our portfolio of renewable assets to support the global energy transition.”
CPP Investments has committed $20 million to Fervo’s capital raising. By using hydrocarbon exploration and extraction technologies for geothermal energy, Fervo appears as a model of energy transition.