Latest news with #BreakthroughEnergyCatalyst
Yahoo
11-06-2025
- Business
- Yahoo
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°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' 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. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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
Boston Globe
12-03-2025
- Business
- Boston Globe
Climate group funded by Bill Gates slashes staff in major retreat
Advertisement 'Bill Gates remains as committed as ever to advancing the clean energy innovations needed to address climate change,' a spokesperson for Gates said in a statement when asked about the cuts. 'His work in this area will continue and is focused on helping drive reliable, affordable, clean energy solutions that will enable people everywhere to thrive.' Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Gates, a cofounder of Microsoft and one of the richest men in the world, has poured billions of dollars from his own fortune into efforts to combat climate change. With books, public appearances, and a high-profile campaign to support clean energy entrepreneurs over the past decade, he has established himself as one of the leading voices pushing businesses and governments to address the threats of a rapidly warming world. Winding down much of the Breakthrough Energy team's work is a sharp reversal for Gates and reflects a rapidly shifting landscape in politics, philanthropy, climate change, and global development. President Trump is dismantling the federal government's capacity to address climate change, and he is significantly cutting support for clean energy while promoting the consumption of gas, oil, and coal, the burning of which is dangerously heating the planet. Instead of trying to influence policy, Gates is now focused on building clean energy companies through the Breakthrough Energy Catalyst program, Breakthrough Energy Ventures, and the Breakthrough Energy Fellows, the people familiar with the matter said. Those efforts, which fund startup companies and entrepreneurs working on a range of renewable technologies, were not affected by the cuts. Advertisement The emphasis on clean energy production could be in line with Trump's interest in 'American energy dominance.' Trump declared a 'national energy emergency' on his first day in office, and his administration says it wants to expand American energy production at a moment when demand for electricity is rising sharply. Gates, who resisted partisan politics for almost his career, was deeply concerned about the 2024 election and how a victory by Trump could set back progress on climate and global health. Gates donated about $50 million to a political nonprofit supporting Kamala Harris's presidential bid. 'I support candidates who demonstrate a clear commitment to improving health care, reducing poverty, and fighting climate change in the US and around the world,' Gates told The New York Times last year. 'I have a long history of working with leaders across the political spectrum, but this election is different, with unprecedented significance for Americans and the most vulnerable people around the world.' After Trump's win, Gates has tried to make amends. Like other tech billionaires, he traveled to Trump's Mar-a-Lago resort in Florida for a three-hour dinner during the transition period and said publicly he was 'impressed' by Trump's interest in his global-health priorities, although he did not say if they discussed climate change during the meeting. But Gates has been caught off guard by Trump's dismantling of the US Agency for International Development, which provided medical assistance to vulnerable people around the world, according to one person familiar with his thinking. Advertisement Gates's foundation shares many grant recipients with USAID, and he has predicted 'millions of deaths' if the cuts are not restored. Appeals have been made to Gates to try to use his foundation, which has a budget of almost $9 billion, to fill the vacuum being left by the aid agency, which disburses about $40 billion a year. But the foundation has warned its grant recipients that it cannot make up such a large gap. But on climate change, Gates has not been as outspoken. Like other billionaires and chief executives who once spoke up loudly about climate change, Gates went silent in the face of Trump's early efforts to reduce federal support for clean energy, promote fossil fuels, and dismantle the government programs aimed at addressing climate change. Philanthropists and donors are concerned that Trump might come after their foundations. Gates has been viciously attacked by Elon Musk, one of Trump's closest advisers. Gates's personal life and philanthropy have seen some upheaval since his divorce from Melinda French Gates, who ran the foundation with him but stepped down from the post last year. Warren Buffett, the billionaire founder of Berkshire Hathaway who has worked closely with Gates on charitable efforts, resigned from the foundation in 2021. There had been recent signs of turmoil at Breakthrough Energy. Last month, Heatmap News reported that the group was slashing its grant-making budget. There were also a smaller number of staff cuts in recent months, including employees who ran the Breakthrough Energy Summit, a lavish event that took place last year in London. Breakthrough Energy is also looking for a new funding source for Cipher News, a clean energy news site it launched, according to a person familiar with the situation who was not authorized to discuss it publicly. Advertisement This article originally appeared in
New York Times
12-03-2025
- Business
- New York Times
Climate Group Funded by Bill Gates Slashes Staff in Major Retreat
Breakthrough Energy, an umbrella organization funded by Bill Gates that works on a sprawling range of climate issues, announced deep cuts to its operations in an internal memo on Tuesday. Dozens of staff were cut, including Breakthrough Energy's unit in Europe, its team in the United States working on public policy issues and most of its employees working on partnerships with other climate organizations, according to three people familiar with the matter who were not authorized to speak publicly. The change shows how Mr. Gates is retooling his empire for the Trump era. With Republicans controlling both houses of Congress and the White House, Mr. Gates calculated that the Breakthrough policy team in the United States was not likely to have a significant effect in Washington, said the people familiar with his thinking. The U.S. policy team was also one of the largest and most expensive parts of the organization. 'Bill Gates remains as committed as ever to advancing the clean energy innovations needed to address climate change,' a spokeswoman for Mr. Gates said in a statement when asked about the cuts. 'His work in this area will continue and is focused on helping drive reliable affordable, clean energy solutions that will enable people everywhere to thrive.' Mr. Gates, a co-founder of Microsoft and one of the richest men in the world, has poured billions of dollars from his own fortune into efforts to combat climate change. With books, public appearances and a high-profile campaign to support clean energy entrepreneurs over the past decade, he has established himself as one of the leading voices pushing businesses and government to address the threats of a rapidly warming world. Winding down much of the Breakthrough Energy team's work is a sharp reversal for Mr. Gates and reflects a rapidly-shifting landscape in politics, philanthropy, climate change and global development. President Trump is dismantling the federal government's capacity to address climate change, and he is significantly cutting support for clean energy while promoting gas, oil and coal, the burning of which is dangerously heating the planet. Instead of trying to influence policy, Mr. Gates is now focused on building clean energy companies through the Breakthrough Energy Catalyst program, Breakthrough Energy Ventures and the Breakthrough Energy Fellows, the people familiar with the matter said. Those efforts, which fund start-up companies and entrepreneurs working on a range of renewable technologies, were not affected by the cuts. The emphasis on clean energy production could be in line with Mr. Trump's interest in 'American energy dominance.' Mr. Trump declared a 'national energy emergency' on his first day in office, and his administration says it wants to expand American energy production at a moment when demand for electricity is rising sharply. Mr. Gates, who resisted partisan politics for almost his entire career, was deeply concerned about the 2024 election and how a victory by Mr. Trump could set back progress on climate and global health. Mr. Gates donated about $50 million to a political nonprofit supporting Kamala Harris's presidential bid. 'I support candidates who demonstrate a clear commitment to improving health care, reducing poverty and fighting climate change in the U.S. and around the world,' Mr. Gates told The Times last year. 'I have a long history of working with leaders across the political spectrum, but this election is different, with unprecedented significance for Americans and the most vulnerable people around the world.' After Mr. Trump's win, Mr. Gates has tried to make amends. Like other tech billionaires, he traveled to Mar-a-Lago for a three-hour dinner during the transition period and said publicly he was 'impressed' by Mr. Trump's interest in his global-health priorities, although he did not say if they discussed climate change during the meeting. But Mr. Gates has been caught off guard by Mr. Trump's complete dismantling of the United States Agency for International Development, which provided medical assistance to vulnerable people around the world, according to one person familiar with his thinking. Mr. Gates's foundation shares many grant recipients with U.S.A.I.D., and he has predicted 'millions of deaths' if the cuts are not restored. There have been appeals made to Mr. Gates to try to use his foundation, which has almost a $9 billion budget, to fill the vacuum being left by the aid agency, which disburses about $40 billion a year. But the foundation has warned its grant recipients that it cannot make up such a large gap. But on climate change, Mr. Gates has not been as outspoken. Like other billionaires and chief executives who once spoke up loudly about climate change, Mr. Gates went silent in the face of Mr. Trump's early efforts to reduce federal support for clean energy, promote fossil fuels and dismantle the government programs aimed at addressing climate change. Philanthropists and donors are concerned that Mr. Trump might come after their foundations. Mr. Gates has been viciously attacked by Elon Musk, one of Mr. Trump's closest advisers. Mr. Gates's personal life and philanthropy have been in some upheaval since his divorce from Melinda French Gates, who ran the foundation with him but stepped down from the post last year. Warren Buffett, the billionaire founder of Berkshire Hathaway who has worked closely with Mr. Gates on charitable efforts, resigned from the foundation in 2021. There had been recent signs of turmoil at Breakthrough Energy. Last month, Heatmap News reported that the group was slashing its grant making budget. There were also a smaller number of staff cuts in recent months, including employees who ran the Breakthrough Energy Summit, a lavish event that took place last year in London. In an essay describing how he became interested in climate change and why he founded Breakthrough Energy, Mr. Gates said that he hoped to accelerate the deployment of solutions. 'Climate change is already affecting most people's lives, and when we think about the impact on our families and future generations, it can feel overwhelming,' he wrote. 'The scale and speed of the transformation required to build a clean energy future is unprecedented.'
