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Fervo becomes clean energy’s biggest-ever IPO with $10 billion valuation—powered by the earth’s heat and AI’s hunger
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Houston geothermal startup Fervo scored Wall Street’s biggest clean energy IPO ever, and its stock opened 35% higher on May 13 for a market cap above $10 billion.
Key facts
- The medium-term goal is to cut costs by more than 50%—from $7,000 per kilowatt to $3,000—approaching the lowest-cost solar farms and gas plants
- After raising $1.89 billion in an upsized IPO—70 million shares at $27 apiece, up from an initial range of $21 to $24—shares quickly spiked to a close of $36.54 on their first day of trading
- Houston geothermal startup Fervo scored Wall Street’s biggest clean energy IPO ever, and its stock opened 35% higher on May 13 for a market cap above $10 billion
- The 500-megawatt project—enough to power nearly 400,000 homes—will begin delivering some power by year’s end and come fully online in 2028
Summary
Bill Gates-backed Fervo aims to take the nascent industry mainstream to power the AI boom in short order. “Geothermal is resonating because it’s a proven technology,” Fervo cofounder and CEO Tim Latimer, 36, told Fortune. After raising $1.89 billion in an upsized IPO—70 million shares at $27 apiece, up from an initial range of $21 to $24—shares quickly spiked to a close of $36.54 on their first day of trading. Fervo is different type of next gen, also known as enhanced geothermal systems (EGS, not to be confused with ESG), designed to address the scalability limitations of traditional geothermal.