Houston-based Fervo Energy began trading on the Nasdaq exchange on 13 May, raising approximately $1.9 billion in its initial public offering (IPO), implying a market capitalization of more than $10 billion in the first day of trading.
The company priced 70 million shares at $27 each, an increase of 14.4 million shares from its original plan. Fervo also raised its expected price range from between $21 to $24 prior to the IPO upsizing. The shares reached an intraday high of $36.89 on 13 May under the ticker symbol FRVO.
Fervo has emerged in recent years as a leading developer of enhanced geothermal systems (EGS), applying horizontal drilling and hydraulic fracturing techniques adapted from unconventional oil and gas development to access and circulate heat from hot rock formations.
Proceeds from the offering are expected to support development of the company’s Cape Station project in Utah. The first phase plans to deliver 500 MW of geothermal capacity. Fervo has said initial power deliveries could begin later this year, with nearly 100 MW targeted by early 2027. The project’s output is fully contracted under power purchase agreements with Southern California Edison, Shell Energy, and other electricity aggregators.
Fervo is also advancing smaller-scale deployments. Its Project Red pilot in Nevada supplies about 3.5 MW of geothermal power to support data center operations for Google. In a separate agreement announced in 2024, the company committed to deliver 115 MW of EGS capacity to Google in a project that includes NV Energy.
On the technical front, Fervo reported earlier this year that it drilled its highest-temperature well to date in Utah, with reservoir temperatures exceeding 555°F at a measured depth of nearly 11,200 ft.
To support scaling toward a combined 600 MW of EGS capacity, the company has secured key supply agreements, including a 5‑year tubular contract with Vallourec and a 3‑year agreement with Turboden America for organic Rankine cycle turbines that are used to convert geothermal heat into electricity.