Geothermal energy pioneer Fervo Energy announced Wednesday that it has secured $206 million in new financing to advance its ambitious power plant project in Utah. When complete, the Cape Station facility is expected to become the largest enhanced geothermal power installation in the world.
The project’s first phase is set to begin generating electricity next year with an initial capacity of 100 megawatts. A subsequent expansion, scheduled for completion in 2028, will boost total output by an additional 400 megawatts.
Enhanced geothermal systems, which operate at greater depths and significantly higher temperatures than traditional geothermal facilities, have recently gained popularity, particularly as a sustainable, always-on energy source for AI-focused data centers. This technology leverages naturally occurring subterranean heat and harnesses advanced drilling techniques developed by the oil and gas industry, helping to ensure reliable and carbon-free electricity.
Wednesday’s funding news follows Fervo’s recent milestone—the successful completion of the company’s deepest and hottest geothermal well to date. Drilled to a depth of 15,765 feet in just 16 days, the well reached an estimated temperature of approximately 520 degrees Fahrenheit at its deepest point. The speed and efficiency of drilling are critical factors, as drilling often represents the majority of geothermal plant construction costs. As a result, there has been intense competition among industry leaders to make considerable strides in drilling depth and speed.
Fervo’s encouraging results have attracted new investment from several key players. Of the newly announced financing, $100 million in preferred equity was provided by Breakthrough Energy Catalyst, part of Bill Gates’ Breakthrough Energy initiative. Mercuria added an additional $60 million to an existing facility, complementing its previous $120 million loan. Meanwhile, an affiliate of X-Caliber Rural Capital contributed $45.6 million in bridge debt financing.
This recent funding reflects accelerating investor confidence. The startup has successfully attracted significant capital on several occasions, raising $244 million in February 2024 and an additional $255 million split between equity and debt shortly thereafter in December. Current U.S. Secretary of Energy Chris Wright had previously supported Fervo while serving as CEO of Liberty Energy, demonstrating long-term industry backing.
The growing inflow of investments is seen as a major sign that enhanced geothermal technology has matured from an experimental energy source through the “valley of death,” now appearing ready for widespread commercial deployment and market adoption.
