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Houston geothermal companies secure more than $45M in DOE funding

geothermal boost

The geothermal projects are among 21 selected to receive a total of $99 million in DOE funding. Photo courtesy Fervo Energy

Three Houston-based companies—Fervo Energy, Quaise Energy and XGS Energy—have been selected by the U.S. Department of Energy to advance geothermal technologies and field tests.

Combined, the companies will receive more than $45 million in funding from the DOE's Next-Generation Geothermal Field Tests and Geothermal Resource Characterization and Confirmation initiative. The projects were among 21 selected from around the country to receive a total of $99 million.

Fervo was selected to conduct two projects under the initiative for approximately $20 million in funding. For the first project, the geothermal unicorn, which achieved first power at its flagship geothermal plant last week, will drill and complete enhanced geothermal systems (EGS) wells in Elmore County, Idaho, and will deploy high-temperature seismic monitoring technology at record-high temperatures at or above 200°C.

For the second project, the company will conduct an appraisal drilling campaign at a "high-priority" site in Humboldt County, Nevada, to confirm if the reservoir is suitable for EGS development.

“We are grateful to the Department of Energy for funding these grants. We believe this is a clear indication from the federal government that expanding geothermal energy to new states is a national priority,” Jack Norbeck, CTO and co-founder of Fervo Energy, said in a news release. “We expect this funding to accelerate Fervo’s pipeline and advance the cutting edge of geothermal technologies.”

Fresh off a $180 million Series B, Quaise Energy also received $25 million in DOE funding through the initiative to support its Project Obsidian super hot geothermal plant in Central Oregon. The funding will go toward the analysis of the drilling, stimulation and flow results of the first two wells at the Project Obsidian site, which will help the company optimize its third well on site.

“This DOE support is a recognition of what we are building at Quaise and the progress we are making in the field, including the confirmation well currently being drilled at Project Obsidian,” Carlos Araque, CEO and president of Quaise, said in a release. “Our ambition has always been to make superhot geothermal a commercial reality, and Project Obsidian is where we first deliver on that promise.”

XGS Energy, which recently relocated its headquarters from Palo Alto, California, to Houston, was also selected for an exploration drilling project. The company will drill a deep vertical appraisal well in Socorro County, New Mexico, to determine if the site is a viable source of geothermal energy. XGS had not disclosed a funding estimate at press time.

The full value of the proposed DOE funding is subject to completion of award negotiations, according to Quaise.

Data from these projects will be shared through DOE’s Geothermal Data Repository (GDR), providing valuable information to researchers and stakeholders in the geothermal sector.

“This is an excellent example of how public and private entities can partner together to scale critical energy technologies,” Tim Latimer, CEO and co-founder of Fervo, added in a release. “With this funding, the Department of Energy is making important investments to help Americans across the country gain access to clean, affordable geothermal energy.”

Other geothermal companies and institutions from around the country will complete the 17 remaining projects. They include:

  • Denver-based 400C Energy Inc.
  • Salt Lake City-based AlterG Resources
  • Denver-based DAVINCI EP LLC
  • Anchorage-based GeoAlaska LLC
  • Oklahoma City-based GreenFire Energy Inc.
  • Virginia-based Hexagon Energy LLC
  • Virginia-based INTEK Inc.
  • Chicago-based Invenergy Geothermal Development LLC
  • Massachusetts-based LiPower Geothermal LLC
  • Fort Worth-based Oriah Geothermal LLC
  • Reno-based Raser Power Systems LLC
  • Santa Fe-based San Ildefonso Services LLC
  • Salt Lake City-based The University of Utah
  • Reno-based TLS Geothermics Corp.
  • Salt Lake City-based Zanskar Geothermal and Minerals

Read more about the full list of projects here.

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Fervo's Cape Station geothermal project is ahead of schedule. Photo courtesy Fervo Energy

Fervo produces first geothermal power at flagship Utah project

energy milestone

Fervo Energy’s flagship project in Utah just generated its first geothermal power.

The electricity is now flowing to the power grid from one of Cape Station’s three generation units, Houston-based Fervo said in a news release. This represents an early but important milestone for the project, as the unit isn’t scheduled to deliver contracted power until Oct. 1.

The achievement, coming four months after Fervo’s roughly $2.2 billion IPO, demonstrates the viability of enhanced geothermal systems (EGS).

“This is a gamechanger for the geothermal industry. It establishes EGS as the defining new power generation technology of our time, and we believe it shows that the commercial and technical maturity of EGS is ready to meet the urgent need for reliable, clean power,” Tim Latimer, co-founder and CEO of Fervo, said in the release.

The plant’s two other units are scheduled to launch commercial operations on Jan. 1.

The three units make up the project’s 99-megawatt first phase. The next phase, which will add 400 megawatts of capacity, is under construction. The second phase is set to go online in 2028.

Altogether, Cape Station will provide more than 4 gigawatts of capacity, with 900 megawatts already spoken for. The 900 megawatts of contracted electricity would be enough to power nearly 1 million U.S. homes per year.

“Cape Station works because we treated the subsurface like an engineering challenge,” Jack Norbeck, co-founder and chief technology officer of Fervo, added in the release. “Years of drilling, completion design, subsurface modeling, and flow testing led to this moment, and this is the validation that matters most.”

Enhanced geothermal continuously draws on heat that’s deep underground, producing electricity around the clock regardless of weather or time of day. That makes it one of the only carbon-free resources capable of constant power delivery, which is critical for data centers and AI infrastructure.

Tim Latimer, CEO and co-founder of Fervo Energy. Photo courtesy of Fervo Energy

Fervo and Google strike major deal and more top energy transition news

Top Energy News

Editor's note: September is a big month for the energy sector in Houston, bringing marquee events to town, alongside big news headlines. From a Fervo-Google powerhouse deal to NVIDIA's $2 billion investment, here are the five most-read energy transition headlines published September 1-15, 2026:

Fervo Energy strikes largest-ever power deal with Google

In its largest-ever purchase agreement, Houston-based geothermal company Fervo Energy will supply 396 megawatts of power to tech powerhouse Google. The deal includes an option for Google to expand capacity by about 600 megawatts, for a total of 1 gigawatt, by June 2030, according to Fervo. Financial terms weren’t disclosed. Google will purchase carbon-free energy from Fervo for a potential data center in Utah, where Fervo is building its more than $2 billion Cape Station geothermal project. Continue reading.

In $2 billion deal, NVIDIA takes 20% stake in Woodlands-based Lancium

Lancium has partnered with AI leader NVIDIA. Photo courtesy Lancium

With an initial investment of $2 billion, AI chip manufacturer NVIDIA just acquired a 20 percent stake in The Woodlands-based Lancium, which develops large-scale campuses that combine AI data centers and onsite power supplies. Lancium didn’t disclose the dollar amount. The Information, a news website, reported NVIDIA’s investment totaled $2 billion, with the possibility of an additional $1 billion if Lancium achieves certain milestones. Continue reading.

Meet the 80+ startups pitching at Houston Energy and Climate Week

One of the highlights from Houston Energy and Climate Week is hearing directly from the up-and-coming founders working to reshape the energy landscape. This year, dozens of startups from Brazil to Berkeley and from right here in the Bayou City will compete for cash prizes and bragging rights while showcasing their concepts at HECW pitch events. Continue reading.

San Antonio company breaks ground on 347MW solar project outside of Houston

Crews have broken ground on the forthcoming 347-megawatt direct-current SunRoper Solar project in Wharton County, Texas, that will add capacity to the ERCOT grid. The solar project, which is slated to begin operations in December 2027, will provide electricity to an undisclosed Fortune 100 company under a long-term power purchase agreement. Continue reading.

UH team lands $2.9M DOE grant to develop next-gen magnets with AI

University of Houston researchers are leading an effort to find alternatives to a key element of the U.S. economy. A UH-led coalition is exploring the use of AI to design and manufacture next-generation permanent magnets for the energy and industrial sectors. The project seeks to develop new, more sustainable magnets that reduce U.S. reliance on vulnerable foreign sources of critical minerals, primarily China. A nearly $2.9 million grant from the U.S. Department of Energy supports the work. Continue reading.

Houston Energy and Climate Week returns Sept. 12-18. Photo via rice.edu

10 can't-miss events at Houston Energy and Climate Week 2026

where to be

Editor's note: Houston Energy and Climate Week returns for its third year, Sept. 12–18, with panels, happy hours, pitch days and tours focused on the energy transition.

The Ion District will host many of the week's events. Here are details on some can't-miss, signature events and how to register. Find the full schedule here. Please note: this article may be updated to add more events.

Sept. 13 — The & Awards

Kick off the week by celebrating Houston honorees leading the future of energy at the & Awards. The & Awards will honor Zay Zeidman, chairman of Houston First and managing partner of Altitude Ventures; The University of Houston's Renu Khator and Ramanan Krishnamoorti; Maryanne Maldonado, CEO of the World Affairs Council; and Fervo Energy co-founders Tim Latimer (CEO) and Jack Norbeck (CTO). The inaugural posthumous Lifetime Ambassador Award will honor former Houston Mayor Sylvester Turner, and this year’s Allies in Energy grant recipients will also be recognized. The evening will include a fireside chat, an immersive gallery, live music, passed hors d'oeuvres, Champagne and plenty of networking opportunities.

This event is Sunday, Sept. 13, from 6-9 p.m. at ARTECHOUSE Houston. Register here.

Sept. 14 — Brews on the Bayou

Head to Saint Arnold Brewery for a more laid-back kickoff event. Grab a beer and take in a live conversation with Paul Hobby, managing director of Genesis Park, and Katie Mehnert, CEO of The Bee Suite and co-founder of HECW. Rice University's Aaron Pomerantz will moderate the discussion. Then hear a live performance from AY Young.

This event is Monday, Sept. 14, from 6-9 p.m. at Saint Arnold Brewery. Register here.

Sept. 14–18 — Sip For Sustainability

Enjoy a signature cocktail at five H Town Restaurant Group spots each night of Houston Energy and Climate Week. A portion of every purchase will go toward Allies in Energy, which supports education, collaboration, and community programs that drive a more sustainable future. Participating eateries include Hugo's, Xochi, Uber, Zaranda and Caracol.

These events begin Monday, Sept. 14, from 3-5 p.m. Find more information on each day's happy hour here.

Sept. 15 — HTX Tech Tours

HECW will present two Tech Tours this year, offering attendees a closer look at the region's climatech scene. The Metro Innovation Tour & Market will visit Sugar Land Town Square, Shell Technology Center Houston, SLB West Houston Campus, University of Houston at Sugar Land, Ambrosia Space, NanoTech Materials and Syzygy Plasmonics. The Bay City South Innovation Tour will visit Sugar Land Town Square and Erthos Project Bravo in Matagorda County. Both tours will head to Astros Night at Daikin Park to wrap up the day.

These events are Tuesday, Sept. 15. Find more information here.

Sept. 15 — Meet the Activate Houston Cohort 2026 Fellows

Meet Activate's latest cohort, which was named this summer, and learn more about their hardtech and climate-focused solutions. Also meet founders from the organization’s 2025 cohort during Houston Energy and Climate Startup Week.

This event is Tuesday, Sept. 15, from 5-7 p.m. at the Ion. Register here.

Sept. 15 – Cypher Pilotathon and Startup Showcase

Grab coffee and take in keynotes and panels featuring leaders from Amperon, Aramco Ventures, New Climate Ventures, Syzygy Plasmonics and many others during this signature event, this year under the theme “The NEW Energy Industrial Revolution.” After lunch, hear pitches from 31 ventures during the Pilotathon. This year's event will also feature a startup showcase with interactive booths where attendees can meet founders and see demonstrations, plus an industry hub where corporates and investors can engage with emerging technologies and identify the pilots they want to move forward with.

This event is Tuesday, Sept. 15, from 9 a.m.-5 p.m. at POST Houston. Get tickets here.

Sept. 15 — Houston Astros Energy Night

Catch a game and chat with fellow clean energy enthusiasts during Houston Astros Energy Night. The 'Stros take on the Kansas City Royals. A bonus? Dollar Hot Dog Night at Daikin Park.

This event is Tuesday, Sept. 15, starting at 7:10 p.m. at Daikin Park. Get tickets here.

Sept. 16 — Greentown Labs Climatech Summit

Entrepreneurs, investors, corporate leaders, policymakers and philanthropists will head to Houston this month for the annual Greentown Climatetech Summit. Hear from Greentown CEO Georgina Campbell Flatter and keynote speaker Tim Latimer, CEO and co-founder of Houston geothermal unicorn Fervo Energy, plus numerous other engaging panels at the Ion. Then head to Greentown Labs for an open house and startup showcase, where attendees can meet some of the climatech incubators' members, before taking in the startup pitch competition followed by happy hour over at the Continental Club.

This event is Wednesday, Sept. 16, from 8 a.m.–9 p.m. at multiple locations. Register here.

Sept. 17 — Rice Alliance Energy Tech Venture Forum

Hear from clean energy startups from around the world at the 23rd annual Energy Tech Venture Forum. In addition to the pitches, this event will also host keynotes from Sean Maher, chief economist at Phillips 66, and Ira Ehrenpreis, founder and managing partner of DBL Partner. Panels will focus on technologies, infrastructure and commercialization strategies needed to deploy breakthrough innovations at scale. Following the event, the Rice Alliance will also name its annual “Most Promising” startup.

This event is Thursday, Sept. 17, from 7:30 a.m.-5 p.m. at Rice University’s Jones Graduate School of Business. Register here.

Sept. 18 — Halliburton Labs Finalists Pitch Day

Hear from Halliburton Labs' latest cohort of entrepreneurs. The incubator aims to advance the companies’ commercialization with support from Halliburton's network, facilities and financing opportunities. Its latest cohort includes one company from Texas.

This event is Friday, Sept. 18, from 8 a.m.-noon at The Ion. Register here.

The deal builds upon an existing partnership between Fervo and Google. Photo courtesy Fervo Energy

Fervo Energy strikes largest-ever power deal with Google

geothermal milestone

In its largest-ever purchase agreement, Houston-based geothermal company Fervo Energy will supply 396 megawatts of power to tech powerhouse Google.

The deal includes an option for Google to expand capacity by about 600 megawatts, for a total of 1 gigawatt, by June 2030, according to a news release from Fervo. Financial terms weren’t disclosed.

Google will purchase carbon-free energy from Fervo for a potential data center in Utah, where Fervo is building its more than $2 billion Cape Station geothermal project.

Fervo applies oil-and-gas fracking technology to create geothermal reservoirs and generate electricity.

The first phase of Cape Station is expected to begin delivering geothermal power by late 2026, reaching about 100 megawatts of capacity by early 2027. The second phase, set for completion in 2028, will add 400 megawatts of capacity.

Fervo co-founder and CEO Tim Latimer said in a release that the Google agreement supports enhanced geothermal systems as a key power source for “the next generation of computing infrastructure.”

“The next chapter of advanced power generation technology is being written in Utah,” said Lucia Tian, director of advanced energy technologies at Google.

The Fervo-Google agreement builds on an existing partnership. Fervo’s Project Red pilot development in Nevada, which came online in 2023, supplies power to the local grid. Users of the grid power include Google’s data centers in Nevada.

Fervo subsequently signed a 115-megawatt purchase agreement with Google and NV Energy. The deal enabled Google to bring more geothermal energy to the Nevada grid while insulating everyday customers from the project’s costs.

The latest Google deal is part of the ongoing expansion of Cape Station beyond its initial 100-megawatt phase. Fervo says Cape Station will be the world’s largest enhanced geothermal facility.

The Google agreement comes during a milestone year for Fervo, which was founded in 2017. In May, Fervo’s IPO raised $2.2 billion. The company, whose early investors include Bill Gates, is now valued at $5.65 billion.

TEX-E has launched its new Expert-in-Residence partnership. Photos via LinkedIn

Fervo Energy, Mercury Fund leaders named first experts in residence for TEX-E

energy mentors

Two leading companies in Houston's clean energy scene have been named the Texas Exchange for Energy & Climate Entrepreneurship's first experts in residence.

TEX-E announced this month that Houston-based geothermal unicorn Fervo Energy and venture capital firm Mercury Fund have joined the nonprofit's new Expert-in-Residence partnership. The program aims to connect TEX-E Fellows with "the people and organizations shaping the future of energy and entrepreneurship."

The 2026 TEX-E Fellows were named in June and include 67 students from six Texas universities and the Massachusetts Institute of Technology. Nineteen are from Houston universities. See the full list here.

Through the Expert-in-Residence program, fellows will be able to network and work with:

"More than anything, students need the determination and creativity to step outside of their comfort zones and tackle problems that lack clear answers. At Fervo, we've consistently bet on young people who lack traditional 'hard skills' but are willing to embrace uncertainty and learn on the job. That open-mindedness will take students far," Jewett said in a prepared statement. Fervo named Jewett as COO in June.

TEX-E was founded in 2022 through partnerships with MIT Martin Trust Center for Entrepreneurship and Greentown Labs. It works with university students from six schools: Rice University, University of Houston, Prairie View A&M University, The University of Texas at Austin, Texas A&M University and MIT.

The organization named Houston venture capital and innovation leader Sandy Guitar as its new executive director last year. Guitar previously served as general partner and managing director at Houston-based VC firm HX Venture Fund and is co-founder of Weathergage Capital.

TEX-E is known for its student track within the Energy Venture Day and Pitch Competition at CERAWeek. It awarded $50,000 to student teams from the University of Texas and Rice University. Read more here.

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Hertha Metals raises $133M Series A round, plans high-purity iron plant

cleaner steel

Conroe-based Hertha Metals has closed a $133.65 million Series A round that includes a $65 million equity investment from the Pentagon. The startup uses a one-step process to convert iron into molten steel or high-purity iron.

Khosla Ventures and Doerr Capital co-led the round, with participation from CEV, Pear Ventures, Gates Frontier, Niterra SUISO no MORI Fund, Toyota Ventures, and Siemens Financial Services.

The federal investment came from the U.S. Department of Defense’s Industrial Base Analysis and Sustainment program. The program aims to strengthen and modernize the U.S. Defense Industrial Base, a network that researches, designs, builds, and maintains military weapons, equipment, technology, and services.

The Series A funding will finance construction of Hertha Chalyx, a plant that will be capable of producing 10,000 metric tons of steel-grade and magnet-grade high-purity iron.

Hertha says Chalyx will provide U.S.-made material for manufacturers of rare-earth magnets. Today, China controls more than 90 percent of the global manufacturing of rare-earth magnets.

Rare-earth magnets can be found in fighter jets, smart bombs, submarines, satellites, drones and other military hardware. These magnets are also key components in electric vehicle motors, wind turbines, computer hard drives, smartphones, headphones, cordless tools and an array of other products.

“Every electric vehicle, aerospace platform, radar system, and data center depends on domestic iron and magnet feedstock suppliers,” Laureen Meroueh, founder and CEO of Hertha, said in a press release.

“Hertha Chalyx closes that gap,” she added. “We are building the supply chain this country needs, and we are doing it by providing a domestic cost-competitive option for manufacturers while unlocking safer and cleaner production.”

Hertha says Chalyx, alongside its Pi100 pilot project, will be the first modern-day “iron and steel innovation complex.” The startup expects to break ground on Chalyx this year.

Since its founding in 2022, Hertha has raised more than $150 million from investors.

This spring, Hertha led the manufacturing category on Fast Company’s list of the World’s Most Innovative Companies of 2026.

3 must-know fall application deadlines for Houston energy innovators

Editor's note: As fall reaches full swing, Houston's innovation and cleantech scene is calling on the latest batch of founders and startups looking to make a difference. A number of accelerators have opened applications. Read below to see which might be a good fit for you or your venture. And take careful note of the deadlines. Please note: this article may be updated to include additional information and programs.

Did we miss an accelerator or competition accepting applications? Email innoeditor@innovationmap.com for editorial consideration.

Greentown Lab's Go Make 2027: Advanced Carbon Materials with ExxonMobil

Deadline: Oct. 9

Details: Greentown Labs is seeking applications from startups developing novel carbon-based technologies for its latest Go Make cohort in conjunction with ExxonMobil. The structured accelerator is designed to facilitate validation activities and explore potential long-term collaborations with Exxon, according to Greentown. Founders will have the opportunity to engage directly with industry leaders to test, validate and scale their carbon technologies in real commercial contexts. The program tentatively starts on Jan. 20, 2027 and concludes June 16, 2027. Find more information here.

Activate's U.S. Fellowship Cohort 2027

Deadline: Oct. 30

Details: Activate supports scientists at "the outset of their entrepreneurial journey." It partners with U.S.-based funders and research institutions to support its fellows in developing high-impact technology. Its fellows receive a living stipend, research and development funding, connections from Activate's robust network of mentors and access to a curriculum specific to the program for two years. Applicants must have a bachelor’s degree and 4-plus years of post-baccalaureate scientific research, engineering or technology development experience. Their work must be based in the physical or biological sciences or related engineering disciplines. Find more information here.

Rice Innovation Fellows

Deadline: Oct. 30

Details: The Liu Idea Lab for Innovation and Entrepreneurship (Lilie)'s Rice Innovation Fellows program supports Rice Ph.D. students and postdocs in turning their research into real-world ventures. Participants receive $10,000 in translational research funding, co-working space and personalized mentorship. Candidates from all Rice engineering and science-related disciplines are encouraged to apply. Find more information here.

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A version of this article originally appeared on our sister site, InnovationMap.

Houston carbon removal company secures $35M in financing

national scale

Houston-based Vaulted Deep, a waste management and carbon removal company, has announced a major $35 million debt facility from Italian investment bank Mediobanca to support its national expansion.

U.K.-based market energy solutions CFP Energy arranged the deal, which is “the largest publicly disclosed U.S. commercial debt deal in durable carbon removal to be secured by long-term purchase contracts,” according to a news release from the companies.

The financing will support new waste disposal sites for Vaulted Deep and advancements of the company’s AI-enabled site development platform. The platform helps identify locations, navigate permitting and optimize injection operations. When candidates are looking for sites, the platform will pull from regulatory, geology and waste-supply data to assist, which Vaulted Deep says will help streamline the permitting process. After the site is operating, the platform helps control algorithms to maximize safe disposal capacity and monitor the process along the way.

"Waste operators across the country need new options as traditional disposal options become limited,” Julia Reichelstein, CEO and co-founder of Vaulted Deep, said in the release. “This financing lets us take on more projects and invest in the tools that help us evaluate and develop new sites faster. This is a meaningful milestone for Vaulted as we move into the next phase of building infrastructure at a much larger scale."

The deal is supported by Vaulted Deep's long-term waste service and carbon removal purchase contracts. The company says it delivered more than 20,000 tons of carbon removal to buyers in the first half of 2026, which is more than it delivered in all of 2025.

"By facilitating these types of transactions, we connect institutional capital with innovative climate technologies, helping accelerate the deployment of high-integrity carbon removal solutions,” Tyler Manchester, head of voluntary carbon for CFP Energy, added in the release. “It reflects growing investor confidence in these solutions, driven by rising demand from corporate buyers seeking permanent pathways to support net-zero commitments and long-term climate strategies."

Beyond the facility, Vaulted Deep has secured $48 million in equity financing in addition to its $8 million from the XPRIZE Carbon Removal competition, backed by Elon Musk’s charitable organization, The Musk Foundation.

The company's well injection technology is used to store organic waste deep underground in stable geologic formations. In 2025, it inked a 12-year deal with Microsoft to remove up to 4.9 million metric tons of carbon dioxide from the environment.

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