Geothermal energy startup Fervo Energy today announced that it has raised $244 million, with proceeds from the new financing aimed at advancing the deployment of its round-the-clock clean energy solution.

Founded in 2017, Houston Texas-based Fervo Energy focuses on the development of geothermal projects to deliver carbon-free energy. The company uses techniques such as horizontal drilling and distributed fiber optic sensing to make reservoirs of hot rock that exist beneath the earth’s surface into clean energy sources.

According to Fervo, geothermal energy is ideally suited to address the growing need for 24/7 clean energy sources, complementing intermittent renewables such as wind and solar.

Tim Latimer, Fervo CEO and Co-Founder said:

“Demand for around-the-clock clean energy has never been higher, and next-generation geothermal is uniquely positioned to meet this demand. Our technology is fully derisked, our pricing is already competitive, and our resource pipeline is vast. This investment enables Fervo to continue to position geothermal at the heart of 24/7 carbon-free energy production.”

The new capital raise follows a $138 million financing by the company in 2022. Since that time, Fervo has brought its first commercial project online, and has begun drilling at Cape Station, a 400 MW project in Beaver County, Utah, with early drilling results indicating reduced drilling times and lower costs that significantly exceed Department of Energy expectations for enhanced geothermal system (EGS).

The company said that the new capital will support its operations at Cape Station, which will begin delivering clean electricity to the grid in 2026.

The round was led by shale oil and gas company Devon Energy. Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria, and Mitsubishi Heavy Industries also joined the round alongside existing investors Capricorn’s Technology Impact Fund, Congruent Ventures, DCVC, Elemental Excelerator, Helmerich & Payne, and Impact Science Ventures.         

David Harris, Chief Corporate Development Officer and Executive Vice President at Devon said:

“Fervo’s approach to geothermal development leverages leading-edge subsurface, drilling, and completions expertise and techniques Devon has been honing for decades. We look forward to deepening our partnership with Fervo to capture the full value of Fervo’s first-mover advantage in geothermal and the adjacencies to Devon’s core business.”