fresh funding

Innovative Houston energy startup secures $10M investment

Fervo Energy has raised additional funding to continue executing on its mission of more reliable geothermal energy production. Photo via FervoEnergy.com

A next-generation geothermal tech company announced a new investment from an Oklahoma City-based oil and gas producer.

Fervo Energy secured the $10 million strategic investment from Devon Energy Corporation (NYSE: DVN) this week. The deal creates a partnership between the two entities.

“We are thrilled to have Devon as a partner,” says Tim Latimer, co-founder and CEO of Fervo, in a news release. “Devon is a technology leader with historic and unparalleled expertise in drilling and completing wells. We expect this partnership will help unlock further potential for geothermal as the primary 24/7 renewable energy source.”

Fervo's technology includes drilling horizontal wells for commercial geothermal production as well as distributed fiber optic sensing to geothermal reservoir development, per the release. The strategy allows for more accessible geothermal power.

“We are excited about this partnership with Fervo, an innovator and leader in the enhanced geothermal space,” says David Harris, chief corporate development officer and executive vice president at Devon. “This investment is a good match for Devon’s new energy ventures strategy.”

Last year, Fervo raised a $138 million series C round to support the completion of power plants in Nevada and Utah and evaluate new projects in California, Idaho, Oregon, Colorado, and New Mexico, as well as in other countries. This latest investment brings the company's total funds raised to $187 million since its inception in 2017.

This article originally ran on Innovation Map.


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A View From HETI

Dallas-based CBRE has acquired NRG's renewable advisory group. Photo via NRG.com

NRG Energy, headquartered in Houston, has sold its renewable advisory group to Dallas-based commercial real estate services powerhouse CBRE. Financial terms weren’t disclosed.

The advisory group, led by Miro Sutton, brokers renewable energy deals, such as community- and utility-scale transactions, and advises clients on handling tax credits for renewable energy projects. The team works primarily with Fortune 500 companies.

Sutton joined CBRE as head of renewables and energy after overseeing the NRG advisory group. The group has arranged deals involving more than 5,000 megawatts of clean power.

“CBRE targeted this specific advisory team because of their unique approach to renewable procurement and expansive coverage of renewable offerings. They have enabled hundreds of projects and thousands of [megawatts] through their innovative contract structures that reduce risk and enhance economics for their customers,” Robert Bernard, CBRE’s chief sustainability officer, told Utility Dive.

In a news release, Bernard says market demand for renewable energy continues to grow rapidly as companies seek to meet their net-zero goals and other energy-related commitments.

“However, integrating renewable energy into a company’s real estate can be a complex process,” Bernard adds. “This acquisition enables CBRE to offer a wide range of energy-related sustainability services to all our clients, both occupiers and investors, and help them simplify the complexity associated with planning, sourcing and managing renewable energy.”

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