Fervo Energy raises $206M for geothermal mega-project
Fervo Energy, a leader in advanced geothermal technology, has secured $206 million in new financing to accelerate development of what could become the world’s largest enhanced geothermal power plant. The announcement, made Wednesday, underscores growing investor confidence in enhanced geothermal energy as a viable, scalable clean power source—particularly suited to meet the rising energy demands of AI data centers.
The funding will go toward Cape Station, Fervo’s flagship geothermal project in Utah. Once completed, the power plant is expected to deliver a total of 500 megawatts of carbon-free electricity. The first 100 megawatts are set to come online in 2026, with an additional 400 megawatts expected by 2028. If successful, Cape Station would mark a significant leap forward for geothermal energy, offering round-the-clock, emission-free power that can operate independently of weather conditions—something solar and wind power struggle to match.
Unlike traditional geothermal systems, which rely on naturally occurring underground hot water reservoirs, enhanced geothermal technology involves drilling deeper and injecting fluid into hot, dry rock to create artificial reservoirs. This approach allows for greater scalability and location flexibility. It also draws on techniques pioneered by the oil and gas industry, such as horizontal drilling and hydraulic fracturing, which gives it added credibility in both technical and political circles.
This week’s financing round was catalyzed by strong technical progress. Just a day prior to the funding news, Fervo announced it had successfully drilled its hottest and deepest well to date—reaching a depth of 15,765 feet in just 16 days, with temperatures expected to stabilize at an intense 520°F. Achieving these depths and speeds is crucial, as drilling accounts for a significant portion of geothermal project costs. Fervo’s breakthrough in this area has drawn investor enthusiasm.
The new funding includes $100 million in project-level preferred equity from Breakthrough Energy Catalyst, the clean energy investment platform founded by Bill Gates. Mercuria, a commodity trading group that had previously loaned Fervo $120 million, added another $60 million in expanded support. Rounding out the financing is $45.6 million in bridge debt from an affiliate of X-Caliber Rural Capital.
This round follows a string of successful fundraising efforts for Fervo. The company raised $244 million in February 2024 and another $255 million in December 2023. These funds have helped Fervo advance rapidly from pilot projects to commercial-scale deployments. Liberty Energy, led at the time by U.S. Energy Secretary Chris Wright, was one of Fervo’s early backers in 2022.
The influx of project-level debt and equity is widely seen as a signal that enhanced geothermal is emerging from the so-called “commercial valley of death”—a period where promising technologies often stall between prototype and profitability. With Cape Station on track and investor confidence high, enhanced geothermal may soon play a much larger role in the global energy transition.
