Advanced Geothermal Startups Are Just Getting Warmed Up
When it comes to the clean energy race, advanced geothermal startups are just getting warmed up. Even after congressional Republicans cut into the Inflation Reduction Act last summer, geothermal drilling managed to survive mostly untouched. The reason? Unlike other renewable energy projects, it’s one of the few solutions that has attracted rare bipartisan support.
Image Credits:Feifei Cui-Paoluzzo / Getty Images
With political uncertainty out of the way, geothermal innovators are moving fast. Companies are announcing deals that could unlock wider adoption of this powerful, always-on renewable energy source.
Fervo Energy’s Big Move in Utah
Houston-based Fervo Energy just announced a major step forward. The startup has partnered with Baker Hughes, a global leader in energy technology, to design and deliver five steam turbines for the second phase of its Cape Station project in Utah.
These turbines will generate 300 megawatts of clean electricity around the clock — enough to power roughly 180,000 homes. That’s baseload renewable energy, something wind and solar alone can’t always provide.
Why Advanced Geothermal Is Different
Fervo and other startups are pursuing a deeper and hotter form of geothermal power. Instead of relying on naturally occurring hot springs, they’re adapting oil and gas drilling techniques to reach nearly 16,000 feet underground, where rock temperatures stay at a blazing 520°F.
This extreme heat provides a constant, renewable energy source that could help stabilize the grid and reduce reliance on fossil fuels. Unlike solar and wind, geothermal power runs 24/7, regardless of weather or daylight.
Financing the Future of Geothermal
Behind Fervo’s latest deal is a massive $206 million funding boost. In June, the company secured:
-
$100 million in project-level preferred equity from Bill Gates’ climate-focused Breakthrough Energy Catalyst.
-
$60 million increase in loans from Mercuria, a global energy and commodities group.
This level of investment signals growing confidence in advanced geothermal startups and their ability to scale. With both private and public backing, the sector is gaining momentum.
Advanced geothermal startups are just getting warmed up, but the stakes are high. As the U.S. works to decarbonize its grid, geothermal could become a cornerstone technology. By delivering reliable, always-on renewable power, it can complement wind, solar, and battery storage.
With new financing, bipartisan support, and proven technology, geothermal might finally be ready for its breakout moment.
Post a Comment