Fervo Energy is targeting a listing on the Nasdaq exchange. Photo courtesy Fervo Energy

Fervo Energy has officially filed for IPO.

The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO."

The number and price of the shares have not yet been determined, according to a news release from Fervo. J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays are leading the offering.

The highly anticipated filing comes as Fervo readies its flagship Cape Station geothermal project to deliver its first power later this year

"Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid," Fervo CEO Tim Latimer shared in the filing. "Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology."

Fervo has been preparing to file for IPO for months. Axios Pro first reported that the company "quietly" filed for an IPO in January and estimated it would be valued between $2 billion and $3 billion.

Fervo also closed $421 million in non-recourse debt financing for the first phase of Cape Station last month and raised a $462 million Series E in December. The company also announced the addition of four heavyweights to its board of directors last week, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE.

Fervo reported a net loss of $70.5 million for the 2025 fiscal year in the S-1 filing and a loss of $41.1 million in 2024.

Tracxn.com estimates that Fervo has raised $1.12 billion over 12 funding rounds. The company was founded in 2017 by Latimer and CTO Jack Norbeck.

Baker Hughes announced partnerships this week with Google Cloud and geothermal startup XGS Energy. Photo courtesy Baker Hughes

Baker Hughes teams up with Google and XGS on energy tech

project partners

Houston-based energy technology company Baker Hughes recently forged two significant partnerships—one with tech titan Google and another with geothermal power startup XGS Energy.

Under the Google Cloud partnership, announced at CERAWeek 2026, Baker Hughes technology will be paired with Google Cloud AI and data analytics to improve the performance of AI data centers’ power systems and energy-transfer machinery. Furthermore, the two companies will explore opportunities for data centers to extract greater value from underused industrial and operational data.

“Infrastructure that powers the growing demand for AI and cloud computing is becoming one of the most critical drivers of global electricity needs,” Lorenzo Simonelli, chairman and CEO of Baker Hughes, said in the announcement.

“Through this partnership with Google Cloud, we are bringing together world-class power technologies and digital capabilities to help data center operators improve efficiency, enhance reliability, and accelerate progress toward lower-carbon operations,” he added.

Through the XGS partnership, Baker Hughes will provide engineering services for XGS’ 150-megawatt geothermal project in New Mexico. The project will supply energy to the Public Service Co. of New Mexico grid in support of New Mexico data centers operated by Meta Platforms, the parent company of Facebook and Instagram.

“With this single project for Meta in New Mexico, XGS will increase the state’s operating geothermal capacity by tenfold,” says Ghazal Izadi, chief operating officer at XGS.

“Geothermal energy plays a vital role in delivering reliable, cleaner power at scale,” added Maria Claudia Borras, chief growth and experience officer and interim executive vice president of industrial and energy technology at Baker Hughes. “By collaborating with XGS at this early stage, we are applying our ground‑to‑grid capabilities to reduce technical risk, accelerate reservoir validation, and engineer an integrated solution to deliver … power efficiently and reliably.”

California-headquartered XGS, which has a major presence in Houston, is known for its proprietary solid-state geothermal system that uses thermally conductive materials to deliver affordable energy wherever there is hot rock.

Fervo Energy has unlocked multigigawatt potential from a new geothermal energy site. Photo courtesy Fervo Energy.

Fervo taps into its hottest-ever geothermal reservoir

heat record

Things are heating up at Houston-based geothermal power company Fervo Energy.

Fervo recently drilled its hottest well so far at a new geothermal site in western Utah. Fewer than 11 days of drilling more than 11,000 feet deep at Project Blanford showed temperatures above 555 degrees Fahrenheit, which exceeds requirements for commercial viability. Fervo used proprietary AI-driven analytics for the test.

Hotter geothermal reservoirs produce more energy and improve what’s known as energy conversion efficiency, which is the ratio of useful energy output to total energy input.

“Fervo’s exploration strategy has always been underpinned by the seamless integration of cutting-edge data acquisition and advanced analytics,” Jack Norbeck, Fervo’s co-founder and chief technology officer, said in a news release. “This latest ultra-high temperature discovery highlights our team’s ability to detect and develop EGS sweet spots using AI-enhanced geophysical techniques.”

Fervo says an independent review confirms the site’s multigigawatt potential.

The company has increasingly tapped into hotter and hotter geothermal reservoirs, going from 365 degrees at Project Red to 400 degrees at Cape Station and now more than 555 degrees at Blanford.

The new site expands Fervo’s geologic footprint. The Blanford reservoir consists of sedimentary formations such as sandstones, claystones and carbonates, which can be drilled more easily and cost-effectively than more commonly targeted granite formations.

Fervo ranks among the top-funded startups in the Houston area. Since its founding in 2017, the company has raised about $1.5 billion. In January, Fervo filed for an IPO that would value the company at $2 billion to $3 billion, according to Axios Pro.
Bill Gates says companies like Fervo push the geothermal technology 'to new depths.' Photo via fervoenergy.com

Fervo Energy spotlighted by Bill Gates as geothermal’s global growth driver

geothermal predictions

In a new blog post spotlighting Houston-based geothermal power startup Fervo Energy, billionaire Bill Gates — a Fervo investor — predicts geothermal will eventually supply up to 20 percent of the world’s electricity, up from his previous estimate of as much as 5 percent.

Today, geothermal accounts for less than 1 percent of electricity generated around the world, according to the International Energy Agency. The agency forecasts geothermal will represent up to 15 percent of global power by 2050.

“Geothermal power will have a big role to play in our clean energy future, and it’s exciting to see companies like Fervo push the technology to new depths,” Gates wrote.

Gates’ more than $1 billion Breakthrough Energy Ventures fund has contributed to the $982 million pool of money that Fervo has raised since its founding in 2017. Fervo is now a unicorn, meaning its valuation as a private company exceeds $1 billion. Its valuation has been estimated at $1.4 billion.

The Microsoft billionaire published the blog post on his Gates Notes website after touring the site of Fervo’s Cape Station geothermal project, which is under construction in Utah. Fervo says Cape Station will be the world’s largest geothermal plant, capable of someday producing up to 2 gigawatts of power.

Earlier this year, Fervo raised $206 million to put toward the development of Cape Station. Of that amount, $100 million came from Breakthrough Energy Catalyst, a green tech investment program backed by Gates, according to Inc.com.

The first phase of Cape Station is scheduled to be completed in 2026, with first-year power generation pegged at 100 megawatts. An additional 500 megawatts of power-producing capacity is slated to go online in 2028.

“Geothermal is one of the most promising ways to deliver clean energy that’s reliable and affordable,” Gates wrote.

In the blog post, Gates praised the simplicity of geothermal energy.

“The interior of the Earth is incredibly hot, and the deeper you go, the hotter the ground becomes,” he explained. “If you pump fluid deep enough to be warmed by this heat and then pump it back to the surface, you can turn the hot liquid into steam and use it to spin turbines and generate electricity — just like many other types of power plants.”

Gates noted that horizontal drilling is one of Fervo’s biggest innovations. The company extends its wells horizontally by as much as 5,000 feet at the deepest point. It couples horizontal drilling with hydraulic fracturing, or fracking, to extract geothermal energy from rock formations.

Most wells at Cape Station are 8,000 to 9,000 feet deep, and the deepest one is 15,000 feet below the surface, Gates pointed out.

Gates also emphasized the water-conserving, closed-system setup at Cape Station.

“Geothermal energy is one of the more climate-friendly sources of power, but one of its downsides is how much water it uses. … Fervo’s technology captures all the water that would’ve been lost and recirculates it underground to keep the system running,” he wrote.

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

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

fresh funding

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.

The Meta and Sage Geosystems project is reportedly the first next-generation geothermal project located to the east of the Rocky Mountains. Rendering by Sage Geosystems and Meta

Meta taps Houston geothermal co. to power data center growth with clean energy

big tech

A Houston company has signed a new agreement with Meta Platforms Inc. — Facebook's parent company — to power the tech giant's data center growth.

Houston-based Sage Geosystems agreed to deliver up to 150 megawatts of new geothermal baseload power to Meta. The companies made the announcement this week at the United States Department Energy’s Catalyzing Next Generation Geothermal Development Workshop.

The deal is significant because it's the first next-generation geothermal project located to the east of the Rocky Mountains, the companies report in a news release.

“This announcement is the perfect example of how the public and private sector can work together to make the clean energy transition a reality,” Cindy Taff, CEO of Sage Geosystems, says in the release. “We are thrilled to be at the forefront of the next generation of geothermal technology and applaud the DOE for supporting the commercialization of innovation solutions.

"As energy demand continues to grow, the need for reliable, resilient and sustainable power is paramount and our partnership with Meta underscores the critical need for innovative and sustainable energy solutions like ours,” she continues.

The project's first phase will aim to be operating in 2027. The plans reflect how geothermal is being recognized as a growing carbon-free energy source in the country, and how Meta is committed to clean energy initiatives.

“The U.S. has seen unprecedented growth in demand for energy as our economy grows, the manufacturing sector booms thanks to the Biden-Harris Administration’s Investing in America agenda, and new industries like AI expand,” U.S. Energy Deputy Secretary David Turk says. “The Administration views this increased demand as a huge opportunity to add more clean, firm power to the grid and geothermal energy is a game-changer as we work to grow our clean power supply.”

Sage's technology — called Geopressured Geothermal System — works deep in the earth to develop energy storage and geothermal baseload power.

“Meta thanks the Department of Energy’s leadership on promoting and supporting the exploration of new energy sources like geothermal," Urvi Parekh, head of renewable energy at Meta, says. "That leadership supports Meta’s goal to enable the addition of reliable, affordable, and carbon-free power to the grid with this geothermal energy deal. We are excited to partner with such an innovative company like Sage Geosystems that is a proven leader in geothermal development on this project and beyond.”

Sage recently teamed up with a utility provider for an energy storage facility in the San Antonio metro area to build its three-megawatt EarthStore facility.

The company is also working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas, which is the third U.S. Department of Defense geothermal initiative in the Lone Star State.

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Texas Gov. Abbott broadens crackdown on data centers by halting all permits

data center crackdown

Responding to public outcry, Gov. Greg Abbott has stepped up his campaign against data centers by temporarily halting approval of environmental permits for data center projects.

This and previous moves by Abbott essentially amount to a temporary freeze on the development of new data centers in Texas. His actions come at a time when Texas’ stature as a data center hub has been soaring.

On Monday, Abbott directed the Texas Commission on Environmental Quality to stop issuing permits for data center developments until the Electric Reliability Council of Texas (ERCOT) and Public Utility Commission of Texas complete their review of projects seeking power grid connections.

With regulatory reviews underway and environmental permitting now frozen, state regulators currently cannot approve or deny requests from data center developers, Abbott said.

In a letter to the environmental quality commission’s executive director, Kelly Keel, Abbott said this directive is “consistent with my whole-of-government approach to ensure Texans’ natural resources and way of life are protected.”

Abbott previously ordered the Texas Water Development Board to require data centers to meet reporting requirements for water use. He also told the board to impose penalties for failure to comply with those requirements and to collaborate with ERCOT on its review.

Abbott launched his crackdown on data centers in August by ordering the Public Utility Commission and ERCOT to review data center projects in Texas. The audits will examine all data centers in the queue for interconnections before any more projects can move forward. Interconnections enable data centers to share power, data and computing resources.

In calling for those audits, Abbott cited concerns over data centers’ use of water and electricity, and the centers’ effect on infrastructure expenses and consumers’ utility rates.

“Simply put, Texans must come first,” the governor said.

During next year’s legislation session, Abbott will push for the elimination of state financial incentives for data center projects.

Ed Hirs, an energy fellow ⁠at the University of Houston, told Reuters that Abbott was backtracking on “his earlier pronouncements about data centers leading to lower electricity prices.”

Abbott’s actions come amid growing public backlash over data centers. A recent University of Houston survey found that nearly 63 percent of Houston-area residents opposed construction of a data center within a mile of their home.

Only 8 of 160 utility companies in Texas have filed wildfire response plans

Utility News

Only eight of 160 utility companies that operate in fire-prone areas of Texas have complied with a law that helps mitigate wildfires, lawmakers recently learned. The revelation comes on the heels of a chaotic wildfire season that has continued through the summer.

Lawmakers learned about the slow progress last week during a House State Affairs committee hearing, led by Rep. Ken King, who led the charge on the new law last year. The law under House Bill 145 requires utility companies to file wildfire mitigation plans to the Public Utility Commission.

The plans must include emergency protocols in the case of a wildfire, utility operating plans during high-risk weather conditions, management of grass, shrubs and other vegetation in areas that are at risk of wildfires, inspection of poles and other electric equipment and identified areas of wildfire risks within a utility’s service territory.

King, a Republican from Canadian where much of the wildfire damage occurred during the Panhandle wildfires, pressed utility companies on the lack of compliance.

“I’m very, very disappointed with the industry,” King said. “I think it’s imperative for anybody that has not filed that report to realize January is coming. You will file that wildfire mitigation plan, and if you’re dragging your feet, there’s no excuse good enough for me.”

Last year, King filed a slew of bills in response to the devastating Smokehouse Creek wildfires in the Texas Panhandle and parts of Oklahoma in 2024. It was the largest wildfire in Texas history, started when a decayed power pole owned by Xcel Energy snapped and landed in dry grass.

It was one of a spate of fires, the majority of which were linked to electrical ignitions.

This year alone has been a very active wildfire season. Nim Kidd, chief for the Texas Division of Emergency Management, said the state has helped local governments respond to more than 1,200 fires since the start of the year. The Ross Fire, which burned for more than three weeks in North Texas, was finally contained by firefighters last week. It’s now the second largest wildfire in the region’s history.

Two wildfires have broken out on Craig Cowden’s Panhandle ranch this year, both ignited by electrical equipment used by oil and gas companies. Cowden extinguished them, before they could spread beyond 5 acres — a fraction of the 20,000 acres he lost to wildfires in 2024.

Cowden was one of many ranchers who worked with lawmakers last year to address the problem. Over the years, several fires have started on Cowden’s land, most of which were the result of faulty or damaged electrical equipment.

“It’s kind of discouraging that there hasn’t been more proactively submitting their wildfire plan,” Cowden said.

Slow progress

There has been progress since the bill was filed. According to King, six fires have been linked to electrical issues this year, a significant decrease from 80 in 2024.

Connie Corona, director at the PUC, explained the lag in filings to lawmakers, stating that on top of the eight who have submitted, four more have given the PUC a date for when they intend to file their plans. Corona said another 135 have indicated to the PUC they are in the process of preparing their plan. This leaves 13 who have not communicated their plans to the PUC.

“We’ve asked for a heads-up notice of when the utility plans to file, and try to ensure that meets with the resources we have available,” Corona told lawmakers.

Corona said PUC staff had created a model wildfire mitigation plan that utility companies can use as a template. The model is intended to support smaller utility companies that lack sufficient resources to make their own plan. King asked Corona for a list of entities who complied with the requirement.

“When eight out of 160 have complied, and we’re sitting here in September, that doesn’t sound like a very good response to me,” King said.

A looming deadline

Brad Baldridge, interim president of Southwestern Public Service Company, which operates as Xcel Energy, told lawmakers what his company is doing to mitigate wildfires. The company was heavily criticized in the wake of the fires and has since deployed 97 wildfire detection cameras across its service territory. The cameras use AI to detect smoke and provide that information in real-time to utility personnel, local fire responders and emergency managers. It also uses Public Safety Power Shutoffs to turn off power in certain areas during critical wildfire conditions to prevent an electrical start. Baldridge said since 2024, the company has had to shut off power five times.

When King asked if the company had submitted its wildfire mitigation plans, Baldridge said it was submitted last month. It would have been submitted earlier, he said, but there was “tremendous” vegetation that grew from rain earlier in the year.

“All of our experts were focusing on wildfire mitigation,” Baldridge said. “Which delayed us a little bit in our filing.”

Mark Bell, CEO for the Association of Electric Companies of Texas, said they are using remote cameras and sensors to detect wildfires and are taking a more aggressive approach to manage vegetation. They also use power shutoffs in extreme conditions to minimize the risk. Bell testified that their utility companies were on track to file their wildfire mitigation plans.

“I think all the plans are going to be filed by the end of the year,” Bell said.

King reminded Bell that it’s September, and many haven’t filed yet.

“That’d be 148 (plans) approved before January,” King said.

Bell assured King that five of them have filed their plans and one is scheduled to file in October.

Corona, with the PUC, said there are also pole and maintenance plans due in January that will detail a complete inventory of those assets owned by utilities. King said the plan is to have the companies list everything they own in Texas, where it is and how old it is. However, he said they aren’t being compliant and lawmakers will see what happens in January.

Cowden, the rancher in the Panhandle, told the Tribune that while it’s not technically fire season anymore, there are still small fires that ignite around the area.

Cowden sees the amount of work being done by Xcel Energy to upgrade their electrical poles and infrastructure in the area. He said it’s different than before the wildfires in 2024. He thinks the fires got their attention.

“You can tell they’re making a conscious effort to try to upgrade their infrastructure,” Cowden said.

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This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.

Houston-based ‘grid in a box’ provider Branch Energy raises $33M

fresh funding

Houston-based startup Branch Energy, which offers a self-contained “grid in a box,” has collected $33 million in a Series B round.

Piva Capital and Clean Energy Ventures led the round, according to a news release. Active Impact Investments, Whitecap Venture Partners, Prelude Ventures, Zero Infinity Partners and Inovia Capital also contributed to the round.

In 2024, Branch raised $10.8 million in an oversubscribed Series A round.

Branch’s business model

Branch, which launched in 2021, says its proprietary Arc “grid in a box” contains everything needed to store and supply electricity. A container about the size of a parking space holds an industrial-grade battery, grid connection equipment, cooling capabilities, autonomous controls and cloud-based management software.

The startup installs Arc systems at warehouses, hotels, factories, stores and other commercial properties. Each system arrives on a flatbed truck and can be online within two days, Branch says.

Under Branch’s business model, a property owner avoids upfront payment for an Arc system.

Aside from equipping a host business with an Arc system, Branch serves as the business’ power provider. The startup says it guarantees savings on the host’s energy bills and delivers backup power during outages.

Branch generates revenue by sending the battery’s stored power to the grid or to customers like hyperscale data centers. It also benefits by shifting energy from low-cost periods at night to high-cost periods during daily power peaks.

The startup handles permitting, installation, insurance and operations for each Arc system. The host provides a parking-lot-sized plot of land for the system.

Alex Ince-Cushman, co-founder and CEO of Branch, says the startup’s “grid in a box” can quickly meet the substantial power requirements of hyperscale data centers.

“We can do it on the timeline of a delivery, not a construction project. Our customers don’t lift a finger, don’t pay a dime and get guaranteed savings,” Ince-Cushman said in the release.

Entering the Illinois market

Branch already operates in Texas and is entering the Illinois market.

PJM, which operates Illinois’ power grid, recently paved the way for major energy users like data centers to connect to the grid sooner when they rely on their own electricity generation. PJM’s territory covers roughly 1.2 million commercial buildings and represents 20 percent of U.S. power demand, according to Branch.

“Grids around the country need the distributed capacity that [the Arc] system can supply, especially in states with fast-growing power demand like Texas and Illinois,” Lee Larson, principal at Piva Capital added in the release.

To keep up with that demand, Branch plans to build tens of thousands of Arc systems in the U.S.

A multibillion-dollar company in the making?

Daniel Goldman, co-founder and managing partner of Clean Energy Ventures, said Branch holds the potential to become a multibillion-dollar competitor in the emerging market for distributed power.

“With utility-scale generation and storage challenged by interconnect and siting constraints, behind-the-meter commercial, and industrial storage sites have become the ultimate market opportunity with ease of interconnect, ability to combine distributed AI data centers, and identifiable savings in rapidly growing markets,” Goldman said.