Geothermal energy project developer Fervo Energy announced the finalized pricing of its initial public offering, with the company selling 70 million shares at $27, following strong demand which saw the IPO upsized from an initial planned 55.6 million shares at an expected price of $21 to $24. The IPO values the company at approximately $7.7 billion.
The IPO comes as the U.S. power market faces surging clean energy demand driven by factors including a rapid buildout of power-hungry AI infrastructure and a shift to electrification. In a letter included in the company’s SEC IPO filing documents, Fervo Co-Founder and CEO Tim Latimer wrote:
“American economic prosperity has always depended on affordable, reliable energy. And as the U.S. confronts a global AI race, and increasing geopolitical and environmental uncertainty, this fundamental truth will only deepen. There is no AI revolution without power for data centers. There is no industrial renaissance without power for manufacturing facilities and military bases. There is no future where we address the emissions causing climate change without power for mass electrification.”
Founded in 2017, Houston, Texas-based Fervo Energy focuses on the development of enhanced geothermal systems (EGS) projects to deliver carbon-free energy. The company uses techniques utilized by the oil and gas industry such as horizontal drilling and distributed fiber optic sensing to transform reservoirs of hot rock beneath the earth’s surface into clean energy sources.
The company has signed a series of power purchase agreements with hyperscalers, including Google, and with utilities and energy companies including Southern California Edison, NV Energy, and Shell, with over 658 MW in contracted offtake deals to date.
Fervo is currently developing its first greenfield development, Cape Station, in Beaver County, Utah. The project produces energy by injecting water into hot subsurface rock formations, extracting the heated water, and using it to generate electricity. Cape Station is expected to begin delivering first power to the grid in 2026, reaching approximately 100 MW of capacity by early 2027, with plans to scale to 500 MW.
In the letter, Latimer added:
“Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid. Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology.”
