Fervo Energy has secured $255 million in new funding, including $135 million from Capricorn Investment’s Technology Impact Fund II, as it seeks to meet skyrocketing demand for clean, firm power, the geothermal developer said Dec. 19.

Fervo also secured a $120 million letter of credit and term loan facility from Mercuria, an independent energy and commodity group. The facility will provide additional liquidity for Fervo to accelerate the deployment of the company’s enhanced geothermal systems projects across the U.S.

“The demand for 24/7 carbon-free energy is at an all-time high, and Fervo is one of the only companies building large projects that will come online before the end of the decade,” said Tim Latimer, Fervo CEO and co-founder. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.”

Fervo is backed by a variety of investors including Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments and Sabanci Climate Ventures.

“In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable,” said Brian Falik, group chief investment officer of Mercuria. “We believe in Fervo not just because their EGS approach is cost-effective, commercially viable, and already being deployed at scale, but because they set ambitious targets and consistently deliver.”

Fervo’s first greenfield development, Cape Station in Utah, is now fully permitted for up to 2 gigawatts and will begin generating electricity in 2026.

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