Geothermal energy project developer Fervo Energy has announced a $462 million fundraising initiative to support the development of its large-scale project in Utah and other new carbon-free energy projects. The Series E funding round introduces Google as a new investor, while Breakthrough Energy Ventures, backed by Bill Gates, returns as a participant.
Founded in 2017 and based in Houston, Texas, Fervo Energy specialises in enhanced geothermal systems (EGS) to provide carbon-free energy. The company employs techniques such as horizontal drilling and distributed fibre optic sensing to transform subsurface hot rock reservoirs into clean energy sources.
Fervo is currently advancing its first greenfield development, Cape Station, located in Beaver County, Utah. The project generates energy by injecting water into hot subsurface rock formations, extracting the heated water, and using it to produce electricity. Cape Station is projected to deliver 100 MW of power to the grid in its initial phase by 2026, with an additional 400 MW anticipated in a second phase by 2028. The project has been granted permitting approval for expansion up to 2 GW.
This financing round comes amid a surge in clean energy demand in the U.S. power market, driven by factors such as the rapid expansion of power-intensive AI infrastructure and a shift towards electrification.
Google announced an agreement last year to purchase 115 MW of enhanced geothermal energy from Fervo, supporting its commitment to operate its data centres and office campuses on [24/7 carbon-free energy](https://www.esgtoday.com/google-achieves-zero-lifetime-net-carbon-footprint-now-aiming-for-100-carbon-free-energy/) by 2030.
Tim Latimer, CEO and Co-Founder of Fervo Energy, stated: “Energy markets are demanding dependable, carbon-free power at an unprecedented scale, and Fervo is uniquely positioned to supply it. This funding sharpens our path from breakthrough technology to large-scale deployment at Cape Station and beyond. We’re building the clean, firm power fleet the next decade requires, and we’re doing it now.”
The financing round was led by venture capital investor B Capital and included participation from Google and Breakthrough Energy, along with AllianceBernstein, Atacama Ventures, Carbon Equity, Climate First, Mitsui & Co., Holtec International founder Kris Singh, JB Straubel, and returning investors such as CalSTRS, Capricorn Investment Group, and others.
Jeff Johnson, General Partner at B Capital, commented: “Fervo is setting the pace for the next era of clean, affordable, and reliable power in the U.S. With surging demand from AI and electrification, the grid urgently needs scalable, always-on solutions, and we believe enhanced geothermal energy is uniquely positioned to deliver.”
