Fervo Energy Secures $255 Million Funding for Geothermal Expansion

Fervo Energy, a leader in next-generation geothermal energy development, has secured $255 million in new funding. This capital comes from a combination of $135 million in corporate equity, primarily led by Capricorn’s Technology Impact Fund II, and $120 million in debt financing via a letter of credit and term loan facility from Mercuria, one of the largest independent energy and commodity groups globally. The funding will aid Fervo's efforts to enhance the scale and deployment of enhanced geothermal systems (EGS) projects throughout the U.S. as part of its mission to meet the soaring demand for round-the-clock carbon-free energy. Key investors include high-profile entities such as Breakthrough Energy Ventures, CalSTRS, and CPP Investments. The company is on track to develop significant EGS power projects, with its first greenfield project aiming to generate electricity by 2026. Given its strategic position and track record, Fervo is poised to meet unprecedented energy demands, driven by sectors such as AI.