“Fervo Energy Could Be First Geothermal Company to Go Public in 2022”

Geothermal startup Fervo Energy eyes IPO in next 2 years amid growing power demand from data centers. Recent fundraising success and commercialization progress set company up for future growth.

“

Fervo Energy, a geothermal startup, is reportedly considering going public within the next two years. The surge in power demand from data centers, expected to double by 2029, is a driving force behind this decision. CEO Tim Latimer highlighted the public market’s keen interest in solving the power demand challenge.

Although an immediate IPO is not on the horizon, Fervo Energy is currently in a strong position following successful fundraising rounds. The company secured $244 million in February 2024 and another $255 million in December, with an equal split between equity and debt. Fervo Energy’s innovative approach to geothermal power, using directional drilling techniques to extract resources, has shown promising results. The company has been focused on reducing drilling costs, achieving a significant 70% decrease in drilling time for its horizontal wells.

The collaboration with Google on Project Red, a groundbreaking geothermal power plant in Nevada capable of supplying 3.5 megawatts to the grid, showcases Fervo Energy’s commitment to sustainability. With a goal of cutting project costs by 50% this year, Fervo Energy is at the forefront of the geothermal energy sector.

Given the similarities between advanced geothermal startups and oil and gas companies, Fervo Energy is viewed as a safe investment, especially during the current political climate. Secretary of Energy Chris Wright’s past involvement in Fervo Energy during his tenure at Liberty Energy underscores the industry’s potential for growth and government support. The partnership with Google and advancements in geothermal technology position Fervo Energy as a key player in the renewable energy transition.

🔗 Source