Latest news with #BreakthroughEnergy
TechCrunch
11-06-2025
- Business
- TechCrunch
Fervo Energy lands $206M in financing to build massive geothermal power plant
Geothermal frontrunner Fervo Energy said Wednesday that it had secured $206 million in financing to continue work on a new power plant in Utah. The startup is developing what promises to be the largest enhanced geothermal power plant in the world. The initial phase of Cape Station is expected to come online next year and produce 100 megawatts of electricity, and a subsequent expansion set to open in 2028 will add another 400 megawatts. Enhanced geothermal, which runs deeper and hotter than traditional geothermal, has become a favored technology in the quest to find new power sources for AI data centers. By tapping the Earth's heat, geothermal promises to provide 24/7 power without emissions. It doesn't hurt that it relies on skills pioneered by the oil and gas industry, something that likely helps its standing within the Trump administration. The news comes the day after Fervo announced that it had completed its hottest and deepest well to date. The company said it drilled down 15,765 feet in 16 days, and the temperature at the bottom of the well is expected to stabilize at around 520 degrees F. Drilling time represents a large share of geothermal power plant costs, which is why startups have been racing to see who can drill deeper and faster. Fervo's results have unlocked a new spigot of cash. The financing announced today includes $100 million in project-level preferred equity from Breakthrough Energy Catalyst, the project finance arm of Bill Gates's Breakthrough Energy group. Mercuria, which had previously provided a $120 million loan, provided another $60 million to that facility. And an X-Caliber Rural Capital affiliate contributed $45.6 million in bridge debt financing. The startup has been on a fundraising tear lately. Fervo raised $244 million in February 2024 and another $255 million in December that was split between equity and debt. Energy secretary Chris Wright was at the helm of Liberty Energy when the company invested in Fervo in 2022. Techcrunch event Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW The increasing amounts of debt are a sign that investors feel that enhanced geothermal has passed through the commercial valley of death and is ready for widespread commercial adoption.
Business Wire
11-06-2025
- Business
- Business Wire
Fervo Energy Secures $206 Million in New Financing to Accelerate Cape Station Development
HOUSTON--(BUSINESS WIRE)--Fervo Energy ('Fervo'), the market leader in commercial enhanced geothermal systems ('EGS') deployment, today announced it has successfully secured $206 million of additional capital required to continue the advancement of Cape Station, the world's largest EGS development. This milestone underscores Fervo's record-breaking progress in commercializing firm, carbon-free geothermal energy at scale. The confidence our investors have in Fervo and in the Cape asset affirms that next-generation geothermal is ready to play a defining role in America's energy future. Share The Cape Station development located in Beaver County, UT includes Cape Station Phase I, which will deliver 100 megawatts (MW) of baseload clean power to the grid beginning in 2026, and Cape Station Phase II, which will bring an additional 400 MW online by 2028. The full Cape Station development has received permitting approval to expand up to 2 GW. Fervo completed the successful close of three significant transactions to facilitate this growth: $100 million in project-level preferred equity from Breakthrough Energy Catalyst, a program within the larger Breakthrough Energy network focused on accelerating next-generation technologies from proof-of-concept to finance-ready infrastructure. $60 million upsize to Fervo's existing corporate term loan facility from Mercuria, one of the world's largest independent energy and commodity groups. $45.6 million in additional non-dilutive bridge debt financing from XRL-ALC, LLC ('XRA'), an affiliate of X-Caliber Rural Capital ('XRC') that offers conventional construction financing for commercial real estate and infrastructure projects located in 'micro-rural areas,' bringing their total funding to $145.6 million. 'With this capital in place, Fervo's ability to de-risk and finance multi-GW EGS project areas is becoming a reality,' said David Ulrey, Chief Financial Officer at Fervo Energy. 'These investments demonstrate what we've known all along: Fervo's combination of technical excellence, commercial readiness, and market opportunity makes us a natural partner for serious energy capital. The confidence our investors have in Fervo and in the Cape asset affirms that next-generation geothermal is ready to play a defining role in America's energy future.' Breakthrough Energy Catalyst's $100 million investment follows an intensive technical, financial, and environmental diligence process, reinforcing the case for EGS as a credible, investable pathway for reliable, zero-carbon power. 'Fervo embodies exactly what we look for at Breakthrough Energy Catalyst: strong development capabilities, technical rigor, and a clear path to scale,' said Mario Fernandez, Head of Catalyst at Breakthrough Energy. 'Cape Station marks a major step forward in unlocking the infrastructure capital and project financing needed to commercialize EGS. This project proves what's possible when breakthrough innovation meets disciplined delivery. It sets the foundation for a model that can be repeated well beyond this site to provide affordable, reliable, and clean energy to the world.' Fervo has also expanded its existing term loan facility with Mercuria from $40 million to $100 million, enhancing liquidity and reinforcing long-term alignment with one of the company's earliest strategic investors. Additionally, XRA upsized its original $100 million bridge loan to $145.6 million, reflecting continued conviction in Cape Station's performance and development trajectory. The facility supports both subsurface and surface infrastructure development. 'We are very proud to help complete the funding of Fervo Energy's Cape Station Phase I,' said Jordan Blanchard, Co-Founder of X-Caliber Rural Capital, one of the nation's leading rural lenders. 'This milestone is not just a win for the future of clean energy, but for rural America—demonstrating how innovative financing and investing can drive transformative projects that create jobs, support local economies, and deliver reliable, carbon-free power to communities nationwide. With the Phase I now fully funded and supported by visionary investors like Breakthrough Energy Catalyst, we are proving that rural investment can have a global impact on sustainability and energy security.' With full funding in place, key permits secured, and construction well underway, Cape Station Phase I remains on track for its 2026 commercial operation date. Fervo's ability to deliver fully contracted, firm renewable power positions it as the key generation player in the evolving American energy landscape. About Fervo Energy Fervo Energy provides 24/7 carbon-free energy through the development of next-generation geothermal power. Fervo's mission is to leverage innovation in geoscience to accelerate the world's transition to sustainable energy. The company's key advancements in drilling and subsurface analytics make geothermal cost competitive and globally scalable. For more information, visit
Yahoo
04-06-2025
- Business
- Yahoo
Bill Gates comes to Utah to help Sen. Curtis in his efforts to preserve clean energy
WASHINGTON — As Sen. John Curtis, R-Utah, pushes to preserve clean energy tax credits and boost domestic energy production, the junior Utah senator is getting an assist from a well-known figure: Bill Gates. Curtis met with Gates in the Beehive State last week as the pair toured Cape Station, a newly developed geothermal site run by energy company Fervo Energy in southwest Utah. The visit came at a crucial time: While Republicans look to enhance energy production, many federal tax credits incentivizing alternative resources are on the chopping block in President Donald Trump's tax bill. 'Utah is at the forefront of energy innovation, and the Cape Station Geothermal project in Beaver is a powerful example of that progress,' Curtis said in a statement. 'I believe America's energy future can be affordable, reliable, and clean—and geothermal will be a critical part of making that vision a reality." Fervo Energy, a green energy supplier based in Houston, is pouring more than $2 billion into the rural Utah site for what is expected to become the world's largest enhanced geothermal project. The undertaking is being backed by Breakthrough Energy, which was founded by Gates in 2015 to boost sustainable energy production. 'Enhanced geothermal is one of the most promising solutions for delivering reliable, low-carbon power, especially as demand for affordable energy grows,' Gates said in a press release. 'Breakthrough Energy Ventures invested in Fervo early because we believed in this vision, and it's exciting to see that potential becoming reality here in Utah.' The geothermal site is expected to become fully operational by 2028 — although that timeline could be delayed if Republicans in Congress vote to repeal clean energy tax credits established by the Biden administration. Without those subsidies, which incentivize clean energy production, completing the geothermal project could be punted to the next decade. 'The difference is, will we bring gigawatts on the grid this decade or will it be next decade?' Tim Lattimer, CEO and co-founder of Fervo Energy, told the Wall Street Journal, which was the first to report on the trip. 'And that's what the tax credits mean.' Gates has long pushed for deeper investments in geothermal energy, arguing federal support is necessary to keep production costs affordable to produce the alternative energy source. Much of that support comes from credits in the Inflation Reduction Act, former President Joe Biden's signature clean energy bill. The IRA created significant tax credits for renewable energy projects such as solar, wind and geothermal. These Investment Tax Credits are meant to incentivize households and businesses to install renewable energy systems by allowing them to deduct a percentage of the cost from federal taxes. Cape Station has benefited from those tax credits, lowering its operational costs over the last two years since its inception. However, some Republicans and conservative organizations argue the federal subsidies actually raise prices while reducing the reliability of power systems. As a result, several Republicans are pushing to repeal the law in full as part of Trump's massive tax reconciliation package making its way through Congress. Curtis is among those pushing to preserve some of those policies, particularly those dealing with nuclear energy, net-zero emissions, battery storage and geothermal. The first-term senator has long centered his climate policies on clean energy solutions, suggesting last week he will push for those changes as the Senate considers the bill. Geothermal energy is a rare renewable energy source that has garnered bipartisan support over the last several years. Unlike wind and solar energy, which Republicans have often criticized as being unreliable, geothermal energy can generate constant power. Most of the resources necessary to produce geothermal energy are located on federal land, prompting Republicans and Democrats to team up on legislation expanding access to those resources. The Senate is set to vote on the reconciliation package in the coming weeks, with Republican leaders pushing to get the bill to Trump's desk before the Fourth of July.
Wall Street Journal
04-06-2025
- Business
- Wall Street Journal
Bill Gates Is Backing This Geothermal Company. Will Trump's Republicans?
CAPE STATION, Utah—After a day touring Fervo Energy's geothermal site, Bill Gates reached a conclusion: 'It's pretty mind-blowing.' Whether Senate Republicans agree will largely determine how fast one of the most promising sources of energy is developed. In southern Utah, Houston-based Fervo is spending more than $2 billion to build what it says is the world's largest enhanced geothermal project. The enterprise, backed by Gates's climate-tech venture-capital firm Breakthrough Energy Ventures, harnesses technological advances pioneered by oil and gas drillers to tap in to underground heat.
Globe and Mail
27-05-2025
- Business
- Globe and Mail
The Climate Solutions Prize Festival Returns to Montreal to Accelerate Global Climate Innovation
Canada's Premier Climate Festival Will Spotlight a Global Community of Climate Innovators and Industry Leaders on June 17-18 in Montreal . MONTREAL , May 27, 2025 /CNW/ - The Climate Solutions Prize Festival, Canada's largest climate innovation award and event and a growing global platform for breakthrough technologies, returns to Montréal on June 17–18, 2025, at the iconic Marché Bonsecours . The two-day Festival will bring together more than 1,500 participants, including startups, researchers, investors, and policymakers from around the world, to highlight the most promising environmental technologies and bold solutions. "Our mission is to accelerate breakthroughs by connecting the brightest minds in science, technology, and business with the funding, mentorship, and networks they need to turn bold ideas into real-world solutions. In just three years, the Climate Solutions Prize Festival has grown from a Québec-based initiative with $300,000 in prize funding to a national platform offering $1.75 million in awards and a global stage for climate innovation," said Galith Levy, Co-founder and CEO of the Climate Solutions Prize. Featured Speakers Include : Fred Lalonde, Co-founder Deep Sky, Co-founder & CEO Hopper Michael Sonnenfeld , Founder and Chairman, TIGER 21 Catherine Bérubé, Partner at Cycle Capital and Chair of the Board at Cycle Momentum Mario Fernandez , Vice President, Head of Catalyst, Breakthrough Energy David Babson , Executive Vice President, Climate & Energy, XPRIZE Foundation Natalie Voland , President, Chief Vision Officer, GI Quo Vadis Rob Johnson , Senior Vice President, Sustainability, Seattle Kraken/Climate Pledge Arena Benjamin Kafri , Global Head of Innovation and Key Stakeholders, BloombergNEF Simon Olivier , Head of Cycle H2O Water Fund, Cycle H2O Water Fund For a full list of speakers, click here. Six Innovation Tracks Driving Real-World Impact The 2025 program will feature keynotes, panels, and pitch competitions across six critical innovation areas dedicated to accelerating climate action: Agricultural Technology, Built Environment (Real Estate), Carbon Removal, Energy Transition, Changemakers/From Lab to Market, and Water H2O. Breaking Barriers to Climate Innovation "We know that risk is often the greatest barrier for startups and researchers working on breakthrough technologies. Through our prizes and ecosystem of support, we're helping to de-risk and accelerate the path from idea to market, enabling innovators to push the boundaries of what's possible," said Levy. As the climate crisis intensifies, traditional funding models often fail to keep up with the urgency and scale of innovation required. Climate Solutions Prize Festival is rethinking this approach, creating a platform where purpose-driven innovation can thrive, accelerate, and scale across Canada and beyond. The 2025 Climate Solutions Prize Festival Will Award Prizes Across Multiple Categories: 2025 Breakthrough Research Prize 2025 Climate Startup Prize by Cycle Momentum 2025 Climate Tech Trailblazer Prize 2025 Canadian Student Entrepreneur Innovation Prize Canadian Energy Innovator Prize Powered by AtkinsRéalis! Each prize is designed to recognize and fast-track the most promising technologies, research, and innovators advancing real-world climate solutions. About the Climate Solutions Prize Founded in 2020, the Climate Solutions Prize (CSP) was created to serve as a catalyst for climate action by accelerating innovation, investment, and collaboration. Through its annual flagship event, the Climate Solutions Prize Festival brings together innovators, investors, academics, policymakers, and industry leaders to spotlight and scale breakthrough environmental technologies and solutions — creating a nexus between innovation and investment to accelerate a sustainable climate future.
