(Bloomberg) —
Fervo Energy, the US geothermal startup whose technology uses the earth’s heat to generate power, raised $462 million from a group of new and existing investors.
The series E funding round was led by B Capital, Fervo said Wednesday in a statement. Other new investors include Alphabet Inc.’s Google, Tesla Inc. co-founder JB Straubel, and Kris Singh, the founder of nuclear company Holtec International Corp. Existing investors participating in the latest fundraising include Bill Gates’ investment firm Breakthrough Energy Ventures and shale oil producer Devon Energy Corp.
Geothermal energy, which makes up only 0.4% of global power capacity, has experienced a recent boom in interest amid the skyrocketing power demands from electrification and artificial intelligence. Data centers powering AI are hungry for always-available, carbon-free sources of energy such as geothermal.
Fervo is the first startup to commercialize what’s known as an enhanced geothermal system, or EGS, that applies fracking techniques borrowed from the oil and gas industry to extract the earth’s heat from hot rocks deep underground.
The company has a commercial pilot operating in northern Nevada with an agreement to supply electricity to data centers owned by Google. In addition, Fervo is building a 500-megawatt facility in Utah that will be the world’s largest enhanced geothermal facility. It is expected to begin delivering 100 megawatts to the grid by 2026, according to the company.
Other companies, including startups Mazama Energy Inc. and Quaise Energy Inc., also are piloting nonconventional geothermal systems, including some attempting to drill into even hotter rock than Fervo. Oil and gas companies, including SLB Ltd. and Occidental Petroleum Corp., also have started to invest in geothermal.
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