Fervo Energy

Fervo Energy is a next-gen geothermal startup that has developed a range of proprietary solutions to increase productivity and lower the cost of geothermal power generation. The company incorporates proven technologies from the oil and gas industry such as horizontal drilling and distributed fiber optic sensing in geothermal applications. 

Fervo’s technology enables the development of geothermal projects in areas that would have been previously uneconomical. Following its funding round in August 2022, Fervo reported plans to build, own, and operate 24/7 carbon-free power plants. This includes completing power plants in Nevada and Utah as well as evaluating new projects in California, Idaho, Oregon, Colorado, New Mexico, and international locations. In July 2023, the company successfully completed a full-scale well test, indicating the commercial feasibility of its technology approach.

In September 2023, Fervo began construction of its “Cape Station” project. The planned 400 MW geothermal power plant in Beaver County, Utah will reach the full capacity of electricity generation by 2028 as is slated to be the the world’s largest geothermal facility to use next-generation technologies.

Key customers and partnerships

In October 2022, Fervo signed a 15-year, 33 MW power purchase agreement (PPA) with Clean Power Alliance (CPA), a Southern California electricity provider. Under this agreement, Fervo will provide 24/7 carbon-free geothermal power to CPA’s 32 member communities across Los Angeles and Ventura counties, consisting of more than 3 million residential and commercial customers.

In May 2021, Fervo signed an agreement with Google to develop a next-gen geothermal power project and develop AI and machine learning to boost its productivity. The company began supplying power from its geothermal power plant in Nevada in November 2023. Fervo also partnered with Helmerich & Payne, a leading global drilling solutions provider, to provide tailored geothermal drilling solutions.

Funding and financials

Fervo Energy’s most recent funding was in February 2024, when it raised USD 244 million in a funding round led by Devon Energy. The company intended to use the funds to scale its technology commercially. During the same month, the company was awarded USD 25 million from the Department of Energy to advance geothermal energy technology. Fervo intended to use the funds for its first utility-scale project in Utah, known as "Cape Station."

In April 2023, the company secured a USD 10 million investment from Devon Energy Corporation. The funding was to be used to enhance Fervo's geothermal capabilities and strengthen the collaboration between the two companies. 

In August 2022, Fervo Energy raised USD 138 million in a Series C funding round led by DCVC. The company planned to use the proceeds to build, own, and operate 24/7 carbon-free power plants. In April 2021, Fervo raised USD 28 million in a Series B funding round led by Capricorn Investment Group.