Fervo Energy has raised $462 million in an oversubscribed Series E financing round led by B Capital. The goal is to scale up the Cape Station plant in Utah, which will become the world’s largest next-generation geothermal project.
Cape Station, a leap in the energy transition
Located in Beaver County, the Cape Station project will begin contributing 100 megawatts (MW) of clean energy to the grid in 2026 and will reach 500 MW by 2028. According to the company, the work is progressing at a good pace and showing steady improvements in operational efficiency, especially in drilling times and well performance, key to any geothermal project.
Who invested in the geothermal project?
In addition to B Capital, the round attracted giants such as Google, AllianceBernstein, Carbon Equity, Mitsui & Co. and JB Straubel. Existing investors such as Breakthrough Energy Ventures, CalSTRS and CPP Investments also participated.
This funding allows us to move from innovative technology to full-scale deployment in Cape Station and beyond. We are building the clean and stable energy fleet that the next decade requires, and we are doing it now.
Tim Latimer, CEO and co-founder of Fervo.
Impact on the U.S. energy outlook.
This financing is part of two important trends:
- Energy supply and demand crisis: the U.S. power grid has a very fast growing demand, especially due to electrification and huge data centers for artificial intelligence but not enough new power is being generated to meet it.
- The need for “firm” and clean energy: Solar and wind energy are intermittent, so clean energy that is available 24 hours a day is needed to stabilize the grid.
This is where Fervo Energy comes in; geothermal energy is a clean, consistent and reliable source. The big challenge has been to make it economically viable and scalable on a large scale.
Source: Fervo Energy