Capricorn Investment Group
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Fervo Energy Secures Additional $255 Million Funding to Meet Unprecedented Energy Demand
Fervo Energy, the leader in next-generation geothermal development, announced that it has secured $255 million in new funding and capital availability as it continues to build the world’s largest enhanced geothermal systems (“EGS”) power development. The announced funding comprises both opportunistic corporate equity and new debt financing.
Capricorn’s Technology Impact Fund II led the $135 million corporate equity round. Fervo is excited to welcome new investment and continued support from a suite of high-caliber investors, including Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, and Sabanci Climate Ventures.
In addition to corporate equity, Fervo secured a $120 million letter of credit and term loan facility from Mercuria, one of the world’s largest independent energy and commodity groups. The facility will provide additional liquidity for Fervo to accelerate the deployment of EGS projects across the U.S. as it seeks to meet skyrocketing demand for clean, firm power.
Cyclotron Road Alumni Team Awarded $28 Million
In 2015, Fervo Co-Founder Tim Latimer left his career as a Texas drilling engineer in the oil and gas industry. He moved to California, studied at Stanford, and met Jack Norbeck — together they founded Fervo Energy with the goal of advancing technology and innovations in geothermal energy. In 2018, they came to Lawrence Berkeley National Lab (Berkeley Lab) as fellows in the Cyclotron Road division Cyclotron Road hosts a program in partnership with the nonprofit Activate that supports leading entrepreneurial scientists as they advance technology projects with the potential for global impact.
At Cyclotron Road, Latimer and Norbeck were fellows for two years, learning skills that are needed in the high-tech entrepreneurial world and collaborating with Berkeley Lab’s scientists to increase the productivity and lower the cost of geothermal power generation. They worked with lab scientists to advance technology for high-temp, high-pressure materials that can be used in the extreme environments of geothermal development. They also worked to find more sophisticated fiber-optic sensing technology to make measurements in the subsurface, thousands of feet below the earth. Fervo has 15 employees with offices in Houston and Berkeley.
With $28 million in new funding led by Capricorn Investment Group, Latimer says that Fervo is set to expand to the next level.