fresh funding

Houston researchers secure funding for superconductivity project

Liangzi Deng (left) and Paul C.W. Chu of the Texas Center for Superconductivity and the Dept. of Physics at the University of Houston received funding for their work. Photo courtesy of UH

Researchers at the Department of Physics at the University of Houston and Texas Center for Superconductivity have received a second-year funding from global leader in business of invention Intellectual Ventures to continue their work on exploring superconductivity,

The project, which is led by Paul C. W. Chu, T.L.L. Temple Chair of Science, professor of physics and founding director of the TcSUH and assistant professor of physics and a new TcSUH principal investigator Liangzi Deng, has been awarded $767,000 to date.

“Working with IV gives us the freedom known for scientific pursuit and at the same time provides intellectual guidance and assistance in accord with the mission goal,” Chu says in a news release.

The researchers are working on making superconductivity easier to achieve. At room temperature and normal atmospheric pressure is where the researchers are looking to simplify superconductivity. One finding from Chu and Deng’s team is called pressure-quench protocol, or PQP.The PQP will help maintain key properties (like superconductivity) in certain materials after the high pressure needed to create them is removed.

“Intellectual Ventures funded this research because Paul Chu is one of the acknowledged thought leaders in the area of superconductivity with a multi-decade track record of scientific innovation and creativity,” Brian Holloway, vice president of IV’s Deep Science Fund and Enterprise Science Fund, adds. “The work led by Chu and Deng on pressure quenching could result in game-changing progress in the field. We are very excited about the preliminary results from the first year and we look forward to continuing this collaboration.”

The project showed early success the first year, as the research used a special system to synthesize materials under high temperatures and pressure. The second-year projects will include the investigation of pressure-induced/enhanced superconductivity in cuprates and hydrides.

“If successful, UH will once again break the record for the highest superconducting Tc at atmospheric pressure,” Deng says in the release. “Additionally, we will collaborate closely with theorists to uncover the mechanism of PQP. Our research has far-reaching implications, with the potential to extend beyond superconductors to other material systems.”

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A View From HETI

Fervo Energy has closed financing to support the remaining construction costs for the first phase of Cape Station. Photo via fervoenergy.com

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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