fresh funding

Fervo Energy lands $200 million in capital for new geothermal project

Houston's Fervo Energy has secured new funding for Cape Station, its Utah geothermal energy plant. Photo courtesy Fervo Energy.

Houston-based Fervo Energy, a producer of geothermal power, has secured $205.6 million in capital to help finance its geothermal project in southern Utah.

The money will go toward the first and second phases of Cape Station, a geothermal energy plant being developed in Beaver County, Utah. Beaver County is roughly an equal distance between Salt Lake City and Las Vegas.

The $205.6 million in capital came from three sources:

  • $100 million in equity from Breakthrough Energy Catalyst, a Kirkland, Washington-based platform that invests in emissions-reducing projects.
  • $60 million addition to Fervo’s existing loan from Mercuria, a Swiss energy and commodities trader. The revolving loan now totals $100 million.
  • $45.6 million in additional bridge debt financing from XRL-ALC, an affiliate of Irvington, New York-based X-Caliber Rural Capital. X-Caliber is a USDA-approved lender. The initial bridge loan was $100 million.

The first phase of Cape Station will supply 100 megawatts of carbon-free electricity to the power grid starting next year. Another 400 megawatts of capacity is supposed to go online by 2028. Fervo has permission to expand Cape Station’s capacity to as much as 2 gigawatts. On an annual basis, 2 gigawatts can supply enough electricity to power about 1.4 million homes.

“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,” David Ulrey, Fervo’s CFO, said in a news release.

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A View From HETI

A team of Rice University researchers has found a way to convert data center waste into clean power using rooftop solar collectors. Photo courtesy Rice University.

As data centers expand, their energy demands rise as well. Researchers at Rice University have discovered a way to capture low-temperature waste heat from data centers and convert it back into usable power.

The team has introduced a novel solar thermal-boosted organic Rankine cycle (ORC)—a power system that uses a safe working fluid to make electricity from heat. The design incorporates low-cost rooftop flat-plate solar collectors, which warm the data center’s coolant stream before it enters the ORC. The findings, published in Solar Energy, show that the additional “solar bump” helps surpass the technical roadblocks with data center waste, which has typically been too cool to generate power on its own.

The research was supported by the Alliance for Sustainable Energy LLC, the National Renewable Energy Laboratory and the U.S. Department of Energy.

“There’s an invisible river of warm air flowing out of data centers,” Laura Schaefer, the Burton J. and Ann M. McMurtry Chair of Mechanical Engineering at Rice and co-author of the paper, said in a news release. “Our question was: Can we nudge that heat to a slightly higher temperature with sunlight and convert a lot more of it into electricity? The answer is yes, and it’s economically compelling.”

Traditionally, electric heat pumps have been used to raise temperatures before recovery, but the benefits were limited because the pumps consumed significant extra power.

Kashif Liaqat, a graduate student in mechanical engineering at Rice, and Schaefer achieved a "temperature lift” by using solar energy to create thermoeconomic models. They modeled affordable, low-profile rooftop solar collectors that fed into an ORC and tied into a liquid-cooling loop. The collectors were validated against industry tools and tested at some of America’s largest data center hubs in Ashburn, Virginia, and Los Angeles, which provided varying climate challenges.

The system recovered 60 percent to 80 percent more electricity annually from the same waste heat, with a 60 percent boost in Ashburn and an 80 percent boost in Los Angeles, according to Rice. It also achieved over 8 percent higher ORC efficiency during peak hours, and an increase in annual average efficiency. The approach also lowered the cost of electricity from the recovered power by 5.5 percent in Ashburn and by 16.5 percent in Los Angeles.

“What the industry considers a weakness becomes a strength once you add solar,” Liaqat said in a news release. “That’s great news for modern data centers.”

Next up, the team will look to pilot its hybrid system in operational sites and explore thermal storage, which the researchers hope could bank solar heat during the day to assist with energy recovery efforts at night.

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