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Fervo Energy, Geothermal Startup, Sets Terms for Nasdaq IPO
Geothermal developer Fervo Energy will begin trading Wednesday on the NASDAQ under ticker FRVO after raising its offering to 70 million shares priced at $25 to $26 each, targeting a $7.4 billion valuation. The company has deployed its horizontal drilling technology in Nevada and is building the much larger Cape Station project in Utah.
May 13, 4:45 AM·2m read1 source
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U.S. history. 8 billion in its IPO.
4 billion. 6 million shares at around $21 to $24 each earlier this year, the line was reportedly out the door. Fervo uses horizontal drilling and fiber-optic sensing to tap geothermal sources previously out of reach.
The company has successfully deployed its technology in Nevada, producing enough clean energy to power about 2,600 homes. It is building the Cape Station facility in Utah that would produce more than 100 times the electricity of the Nevada deployment. Cape Station is slated to go online later this year.
Fervo has secured hundreds of millions of dollars in additional financing for Cape Station. The prospect has drawn high-profile investors including Bill Gates’s Breakthrough Energy Ventures and Alphabet, which has signed contracts to supply power to its data centers. Fervo hopes of cutting the price of geothermal from $7,000 to $3,000 per kilowatt.
“Innovation is allowing these technologies to cover a wider variety of sites,” said Zainab Gilani, a geothermal analyst with research firm Cleantech Group. The IPO comes against a backdrop of surging electricity demand driven by data centers for artificial intelligence. The Iran war has only exacerbated energy prices.
Grist reported that some view the offering as a promising sign for clean tech despite recent policy shifts. The Inflation Reduction Act was signed in 2022 by former President Joseph Biden. The Inflation Reduction Act included billions for solar, wind, geothermal and other green technologies.
