Fervo moves toward IPO despite Trump climate storm
Add Axios as your preferred source to
see more of our stories on Google.
Photo Illustration: Shoshana Gordon/Axios. Photos: Josh Posamentier
HOUSTON — The prominent geothermal startup Fervo Energy has its eyes on an IPO, CEO Tim Latimer tells Axios.
- The company is targeting a multibillion-dollar valuation in discussions with Wall Street banks, a source familiar with the negotiations says.
Why it matters: The discussions come as power demand rises, big tech seeks clean electrons, and geothermal enjoys the Trump administration's atypical embrace.
State of play: Latimer said a potential IPO is likely in 2026 or 2027. "It's looking a lot more like a serious consideration than it has in the past," he said on the sidelines of CERAWeek.
- "There's clearly a huge hunger in the public markets right now to figure out, how are we going to solve the power demand story?"
Driving the news: The company is targeting a $2 billion to $4 billion valuation, a source familiar with the offering discussions tells Axios.
- "Next year, they can be a multibillion-dollar company," the source says.
Zoom in: Fervo's had meetings with Bank of America, Barclays, Goldman Sachs, HSBC, Royal Bank of Canada and SMBC, as well as talks about debt facilities.
- Fervo did not respond to a request for comment about the financial details of the IPO discussions.
Follow the money: The company's investors include Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy and Galvanize Climate Solutions.
Catch up quick: Founded in 2017, Fervo has raised $556 million in equity finance and another $220 million in debt finance, most recently in 2024 at a $1.02 billion valuation, per PitchBook.
- It has a 3 megawatt pilot project running in Nevada and is planning a 115 megawatt development in Nevada in partnership with Google and NV Energy.
- A larger, 400 MW commercial project in Utah has broken ground, with the first 100 MW slated to start sending power to the grid in 2026.
The intrigue: Geothermal, which applies oil industry skillsets and services, is among the technologies President Trump's energy "emergency" order looks favorably on.
- Liberty Energy, the oilfield services firm Secretary of Energy Chris Wright led, is an investor in Fervo.
Yes, but: GOP control of Washington is also bringing new risks, with various clean energy tax credits in the 2022 climate law on the chopping block in Congress.
- Latimer is lobbying lawmakers to ensure the incentives remain available.
What we're watching: Fervo is in discussions with big tech companies about deals in addition to their ongoing work with Google, Latimer said.
- "Anybody who is building a data center in the United States is somebody we're talking to," he said.
Alan Neuhauser covers climate dealmaking for Axios Pro Deals. Learn more
