The Geothermal Energy Part Of “Unleashing American Energy” Is Beginning To Pay Off

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Following this year’s abrupt shift in federal energy policy, the domestic fossil fuel industry is to be protected against competition from wind and solar stakeholders, and utility-scale energy storage systems are a figment of the imagination. However, the President left the door wide open for other forms of renewable energy, and now the US geothermal industry is gearing up to help push fossil fuels out of the baseload power generation business.

500 Megawatts Of Geothermal Energy Are Coming For Your Fossil Fuels

Geothermal energy is in the news today because a US startup, Fervo Energy, has just announced a successful, oversubscribed Series E fundraise of $462 million. “This significant financing reflects strong market confidence in Fervo’s opportunity to make geothermal energy a cornerstone of the 24/7 carbon-free power future,” the Fervo reminded everyone.

At first glance, Fervo’s optimism about geothermal energy in the US may seem somewhat misplaced. Until very recently, technology shortcomings were among the factors limiting geothermal power plants to a few scattered locations, concentrated in western states.

That began to change in the early 2000s as the US Department of Energy (such as it was) began funneling taxpayer dollars into next-generation geothermal systems, with an assist from new drilling techniques and other key elements borrowed from the oil and gas services industry. Fervo was among the startups tapped for support before and during former President Joe Biden’s term in office, and now all that hard work is starting to pay off (see more Fervo background here).

The Cape Station Power Plant

Among other projects, Fervo’s showcase power plant is the Cape Station facility, located in Beaver County, Utah. CleanTechnica took note in 2023 when work on the new 500-megawatt power plant was under way. The timeline called for Cape Station to be up and running at an initial capacity in 2026, with more to be added in the following years.

According to Fervo, all is going to plan. “Cape Station will begin delivering 100 megawatts (MW) of firm clean power to the grid beginning in 2026, with an additional 400 MW online by 2028 for a total of 500 MW,” Fervo explained in today’s announcement.

“Cape Station is expected to be the largest next-generation geothermal development in the world,” Fervo emphasized.

Fervo also underscored the impact of new, time-saving drilling technology on the geothermal industry. “Construction is progressing rapidly, demonstrating best-in-class operational performance with drilling times decreasing and efficiencies improving with each new well,” Fervo elaborated.

Fervo CEO and co-founder Tim Latimer also emphasized the ability of new technology to turbo-boost the domestic geothermal industry in the near term. “This funding sharpens our path from breakthrough technology to large-scale deployment at Cape Station and beyond,” Latimer said. “We’re building the clean, firm power fleet the next decade requires, and we’re doing it now.”

Who’s Gonna Pay For All This?

In addition to taxpayer support, Fervo also enjoyed an early assist from Google and other A-list investors. Leading stakeholders in the oilfield services industry have also stepped up. Liberty Energy, for example, invested $10 million in Fervo back in 2022.

Liberty Energy rings a bell, you may be thinking of US Energy Secretary Chris Wright, who came into public service following a stint in the oilfield business as founder, Chairman of the Board, and CEO of Liberty Energy. The company’s $10 million investment in Fervo occurred in 2022, during his tenure there.

Since then, many other investors have piled onto Fervo. The new Series E round was spearheaded by the global invesetment firm B Capital, illustrating the ability of the global financial community to push the clean energy envelop in the US, regardless of which way the partisan policy winds blow.

“In addition to B Capital, new investors joining this round include AllianceBernstein, Atacama Ventures, Carbon Equity, Climate First, Google, Mitsui & Co., Dr. Kris Singh (Founder of Holtec International), and JB Straubel. They are joined by returning investors including Breakthrough Energy Ventures, CalSTRS, Capricorn Investment Group, Centaurus Capital, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Echelon, Galvanize, Impact Science Ventures, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria, Mitsubishi Heavy Industries, and Sabanci Climate Ventures,” Fervo recited.

Wait, How Did Geothermal Energy Get Into The “Unleashing American Energy” Plan?

As for whether or not Trump is aware that a renewable energy revolution is bubbling up under his nose, your guess is as good as mine. If you have any thoughts about that, drop a note in the comment thread.

Before you do, consider that Trump’s “Energy Emergency” declaration of January 20 embraced both geothermal heat and various forms of water power along with fossil fuels. His “Unleashing American Energy” Executive Order, issued on the same day, also included some forms of renewable energy. In Section 3 the EO calls for relieving key energy sectors from the “undue burden” of federal oversight, and it orders federal agencies to pay “particular attention” to relieving oil, natural gas, coal, and nuclear from whatever undue burdens they face. The EO also lists biofuels and hydropower for particular attention in the burden-relieving area.

Geothermal energy, on the other hand, is nowhere to be found in the January 20 EO. Nevertheless, in Section 3 the EO does leave a loophole for relieving unspecified energy sectors in cases that are found to be inconsistent with Section 2.

That loophole was promptly filled by incoming Energy Secretary Chris Wright, who added “geothermal” to his first Secretarial Order in his new position. Announced on February 5, the SO prioritizes “affordable, reliable, and secure energy technologies, including fossil fuels, advanced nuclear, geothermal, and hydropower.”

So, geothermal is in, but biomass is out? Not really. The 5 February SO doesn’t mention biofuel, but a $1.44 billion Biden-era loan guarantee for the massive Montana Renewables biofuel facility in Montana received a thumbs-up from the administration in February, shortly after Wright took office.

Marine energy also failed to get a shoutout in either Trump’s EO or Wright’s SO. Nevertheless, the Energy Department is continuing to support marine energy R&D programs.

Similarly, energy storage got the cold shoulder in both announcements, but the new policy does support critical materials, including those that go into battery manufacturing. Keep an eye on the Texas energy storage startup Solidion Technology, which has received an Energy Department award aimed at developing a sustainable battery-grade graphite supply chain derived from biomass.

Against this backdrop, the mystery of Trump’s vendetta against wind and solar power is wrapped in an enigma, although the President’s adventures in Scotland may have something to do with his animosity towards the US offshore wind industry.

As for the US geothermal industry, private sector investors are not the only ones pushing the envelop. The US Geological Survey is using advanced underground diagnostic technology to pinpoint likely spots for geothermal exploration, and the US Air Force, ever on the lookout for reliable, secure energy resources, is also supporting advanced geothermal pilot projects in various locations around the US.

Photo: The US geothermal industry is gearing up to move into new territory, helping to fossil fuels out of the power generation business (screenshot, courtesy of Fervo Energy).