Fervo Energy received $100 million loan for its Utah Cape Station project. Photo via fervoenergy.com

Houston-based geothermal energy company Fervo Energy has secured a $100 million bridge loan for the first phase of its ongoing project in Utah.

The loan came from an affiliate of Irvington, New York-based X-Caliber Rural Capital. Proceeds will support construction of Fervo’s Cape Station project, which is being touted as the world’s largest geothermal energy plant.

The first phase of Cape Station, which is on track to generate 90 megawatts of renewable energy, is expected to be completed in June 2026. Ultimately, the plant is supposed to supply 400 megawatts of clean energy by 2028 for customers in California.

“Helping this significant project advance and grow in rural America is a true testament to how investing in communities and businesses not only has local influence, but can have a global, long-lasting impact by promoting sustainability and stimulating rural economies,” Jordan Blanchard, co-founder of X-Caliber Rural Capital, says in a news release.

X-Caliber Rural Capital is an affiliate of commercial real estate financing company X-Caliber Capital Holdings.

Fervo says its drilling operations Utah’s Cape Station show a 70 percent reduction in drilling times, paving the way for advancement of its geothermal energy system.

Tim Latimer, co-founder and CEO of Fervo, says his company’s drilling advancements, purchase deals, transmission rights, permit approvals, and equipment acquisitions make Fervo “an ideal candidate” for debt financing. In May, Latimer joined the Houston Innovators Podcast to discuss the company's growth and latest project.

With a new office in downtown Houston, Fervo recently signed up one of the country’s largest utilities as a new customer and expanded its collaboration with Google.

To date, Fervo has raised $531 million in venture capital funding, per Crunchbase data.

According to a new report, Houston is one of the top cities for funding for sustainability companies. Photo via Getty Images

Houston ranked a top market for attracting funding for sustainability-focused startups

by the numbers

From a financial standpoint, Houston appears to be a sustainable environment for sustainability-focused startups.

An analysis by PromoLeaf, a retailer of sustainable promotional products, that came out at the end of last year ranks Houston fourth among U.S. cities for the average funding raised by locally based startups in the sustainability sector, according to Crunchbase data.

Per the report, the Bayou City attracts $150.7 million in sustainability funding for startups. Ahead of Houston are Salt Lake City with $204.5 million; Santa Monica, California, with $154.3 million; and Fremont, California, with $153.4 million.

PromoLeaf’s analysis features cities where at least 20 companies are focused on sustainability.

The analysis indicates Houston has 20.6 sustainability startups per 100,000 residents. Ranking first in that regard is Boulder, Colorado (115 per 100,000 residents).

While Houston trails Boulder by a long distance, it fares well among the Texas cities in the analysis:

  1. Austin, 26.2 sustainability startups per 100,000 residents
  2. Houston, 20.6 sustainability startups per 100,000 residents
  3. Midland, 18.8 sustainability startups per 100,000 residents
  4. Plano, 11.9 sustainability startups per 100,000 residents
  5. Dallas, 11 sustainability startups per 100,000 residents
  6. Fort Worth, 5.3 sustainability startups per 100,000 residents
  7. San Antonio, 5.2 sustainability startups per 100,000 residents

PromoLeaf says more than 21,600 sustainability startups operate in the U.S. They’re in the renewable energy, recycling and pollution control, environmental engineering, green consumer goods, and environmental consulting industries.

The analysis shows Houston has:

  • 13.7 renewable energy startups per 100,000 residents
  • 5.8 recycling and pollution control startups per 100,000 residents
  • 3.5 environmental engineering startups per 100,000 residents
  • 2.9 environmental consulting startups per 100,000 residents
  • 0.70 green consumer goods startups per 100,000 residents

According to the Greater Houston Partnership, renewable energy startups leading Houston’s energy transformation include Energy Transition Ventures, Fysikes Biosolutions, Ionada, Katz Water Technologies, Pressure Corp., and Renewell Energy.

“A dynamic business climate combined with growth in venture capital funding in Houston has created fertile ground for companies of all stages aiming to power our world through the global energy transition,” the partnership says. “As the Energy Capital of the World, Houston has become a hub for startups and venture capital firms investing in the region’s energy future.”

Outside the energy sector, Houston startups like Trendy Seconds also are making their mark in sustainability. The company runs an online marketplace where women can find preowned clothing or shop for new clothing from sustainable brands.

“Our ultimate goal is to make responsible consumption super easy,” Maria Burgos, founder of Trendy Seconds, told InnovationMap last year.

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This article originally ran on InnovationMap.

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8 Houston energy companies land on Time's top greentech list for 2025

top honor

The accolades keep rolling in for Houston-based Fervo Energy, a producer of geothermal power.

Fervo lands at No. 6 on Time magazine and Statista’s new list of America’s Top GreenTech Companies of 2025. The ranking recognizes sustainability-focused companies based on factors such as impact, financial strength, and innovation.

Time notes that Fervo broke ground in 2023 in Utah on what the company claims will be the world’s largest geothermal plant. The plant is scheduled to start supplying carbon-free electricity to the grid next year and to reach its 400-megawatt capacity in three years.

“Technologies like this only make a difference if we deploy them at large-scale in a way that can reduce carbon emissions and increase the reliability of the grid,” Fervo CEO Tim Latimer told Time in 2023.

The startup was named North American Company of the Year by research and consulting firm Cleantech Group for 2025. Fervo topped the Global Cleantech 100, Cleantech Group’s annual list of the world’s most innovative and promising cleantech companies.

Last year, Fervo also made Time’s list of the 200 Best Inventions of 2024. Fervo was recognized in the green energy category for its FervoFlex geothermal power system.

Founded in 2017, Fervo is now a unicorn, meaning its valuation as a private company exceeds $1 billion. The startup’s valuation is estimated at $1.4 billion. According to PitchBook data, the company raised $634 million in the fourth quarter of 2024.

In all, eight Houston-area companies appear among the top 250 greentech companies ranked by Time and Statista. Other than Fervo, they are:

  • No. 43 Lancium Technologies, an energy storage and distribution company
  • No. 50 Solugen, a producer of sustainable chemicals.
  • No. 56 Quaise Energy, which specializes in terawatt-scale geothermal power.
  • No. 129 Plus Power, a developer, owner and operator of battery storage projects.
  • No. 218 Dream Harvest, which promotes sustainable vertical farming.
  • No. 225 Cemvita, which uses synthetic biology to convert carbon emissions into bio-based chemicals.
  • No. 226 Syzygy Plasmonics, which decarbonizes chemical production.
Vermont-based BETA Technologies claimed the No. 1 spot. The company manufactures electric aircraft.

Global co. opens state-of-the-art energy innovation hub in Houston

flagship facility

French multinational company Schneider Electric has opened a new 10,500-square-foot, state-of-the-art Energy Innovation Center in Houston.

The new facility is located in Houston’s Energy Corridor and is designed to “foster increased collaboration and technological advancements across the entire value chain,” according to a news release from the company. The new Houston location joins Schneider's existing innovation hubs in Paris, Singapore and Bangalore.

The venue will serve as a training center for process control engineers, production superintendents, manufacturing managers, technical leads and plant operations personnel. It can simulate various real-world scenarios in refineries, combined-cycle power plants, ethylene plants, recovery boilers and chemical reactors.

It includes an interactive control room and artificial Intelligence applications that “highlight the future of industrial automation,” according to the release.

"Digitalization is significantly enhancing the global competitiveness of the U.S. through continuous innovation and increased investment into next-generation technology," Aamir Paul, Schneider Electric's President of North America Operations, said in the release.

Texas has over 4,100 Schneider Electric employees, the most among U.S. states, and has facilities in El Paso, the Dallas-Fort Worth metroplex and other areas.

"This flagship facility in the Energy Capital of the World underscores our commitment to driving the future of software-defined automation for our customers in Houston and beyond,” Paul added in the release. “With this announcement, we are excited to continue supporting the nation's ambitions around competitive, efficient and cost-effective manufacturing."

Schneider Electric says the new Houston facility is part of its expansion plans in the U.S. The company plans to invest over $700 million in its U.S. operations through 2027, which also includes an expansion at its El Paso campus.

The company also announced plans to invest in solar and battery storage systems developed, built, and operated by Houston-based ENGIE North America last year. Read more here.