Fervo raises USD 244m to advance Utah geothermal project

US geothermal start-up Fervo Energy has secured USD 244 million (EUR 226m) in a funding round led by shale oil and gas specialist Devon Energy (NYSE:DVN).

Houston, Texas-based Fervo uses drilling techniques from the oil and gas industry to harness previously inaccessible subsurface heat. It is working on a 400-MW project at Cape Station in Beaver County, Utah, where, according to the company, early drilling results have shown better drilling times and costs than the US Department of Energy’s expectations for enhanced geothermal system (EGS).

Fervo said the new capital, announced last week, will support its operations at Cape Station, which is planned to start supplying clean electricity to the grid in 2026.

Also participating in the round were Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria and Mitsubishi Heavy Industries, as well as existing investors Capricorn’s Technology Impact Fund, Congruent Ventures, DCVC, Elemental Excelerator, Helmerich & Payne and Impact Science Ventures.

According to Fervo CEO and co-founder Tim Latimer, next-generation geothermal is uniquely placed to meet strong demand for around-the-clock clean energy.

“We look forward to deepening our partnership with Fervo to capture the full value of Fervo’s first-mover advantage in geothermal and the adjacencies to Devon’s core business,” said David Harris, chief corporate development officer and executive vice president at Devon, which made a strategic investment in Fervo last year.

Fervo brought online its first commercial project, which will serve Google, in late 2023.

(USD 1 = EUR 0.925)

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