Fervo Energy secures $221 million in new funding, according to recent filings.
Introduction
Hot on the heels of its successful completion of a grid-connected geothermal power plant in Nevada, Fervo Energy is raising $221 million, according to SEC documents. This news comes as no surprise given the company’s direction and the growing interest in enhanced geothermal systems (EGS). As one of several startups racing to tap heat deep within Earth’s crust, Fervo is leveraging directional drilling techniques pioneered by the oil and gas industry to extend its wells far beyond their surface footprints.
Background
Previous geothermal plants have only scratched the surface by accessing hot springs or shallower rock formations. However, Fervo’s innovative approach enables it to access heat at greater depths, making it a promising player in the field of geothermal energy. The company’s executive team consists of veterans from the oil and gas industry, bringing valuable expertise to the table.
Techniques and Technologies
Fervo’s directional drilling techniques allow it to drill wells far beyond their surface footprints, increasing access to heat at greater depths. Once the wells are drilled, Fervo strings them with fiber-optic cables connected to a range of sensors. These sensors feed data to teams on the surface, who use this information to map subsurface heat patterns and monitor the performance of each well.
Recent Successes
Fervo has had a string of successes in recent months. Earlier this month, it reported that it had completed a horizontal well at a project in Utah in 21 days, a 70% reduction from the first well the company drilled in 2022. This achievement not only demonstrates Fervo’s rapid progress but also shows its ability to cut costs in half. Although drilling geothermal wells is still expensive, with a cost of $21 million per well, Fervo’s advancements are ahead of the Department of Energy’s expectations.
Funding and Support
This month, Fervo received a $25 million grant from the Department of Energy. The company last raised a $138 million Series C in July 2022 at a $308 million valuation, according to PitchBook data. Previous investors include BHP Ventures, Breakthrough Energy Ventures, Congruent Ventures, DCVC, and Prelude Ventures. Early angel investors include notable figures such as Jeff Bezos, Richard Branson, Bill Gates, and Masayoshi Son.
Project Red and Future Prospects
In November, Fervo connected the 3.5-megawatt Project Red power plant to the Nevada grid, marking a significant milestone in the company’s journey. The electrons generated by this facility will power Google’s data centers in the state, providing firm power as a so-called renewable source – no battery required.
Geothermal Potential
Geothermal energy has the potential to provide up to 90 gigawatts of electricity in the U.S. annually by 2050, according to the Department of Energy. This technology not only offers a carbon-free power solution but also presents an opportunity for oil and gas workers as demand for fossil fuels tapers off.
Future Plans
Fervo’s new proceeds are likely to be used to continue drilling more wells, improving its speed, and driving down costs. Given the high cost of geothermal drilling, which faces harder rock than that encountered by oil and gas rigs, this approach is necessary to make enhanced geothermal systems more viable.
The Potential of Enhanced Geothermal Systems
Enhanced geothermal systems (EGS) have the potential to transform the way we generate electricity while reducing our reliance on fossil fuels. By tapping heat deep within Earth’s crust, EGS can provide firm power 24/7 without the need for batteries or other energy storage solutions.
Conclusion
Fervo Energy’s $221 million raise is a testament to its innovative approach and promising prospects in the field of geothermal energy. With its advanced drilling techniques and commitment to accessing heat at greater depths, Fervo is poised to make a significant impact on the renewable energy landscape.
About Fervo Energy
Fervo Energy is a Houston-based company that has made significant strides in the development of enhanced geothermal systems (EGS). By leveraging directional drilling techniques and other innovative technologies, Fervo aims to unlock the full potential of geothermal energy while reducing costs and increasing efficiency.