Mitsubishi Heavy Industries announced a substantial investment in Houston-based Fervo Energy, helping the geothermal development company reach $244 million in funding to advance its carbon-free technologies.
The funding, backed by a consortium of investors including Mitsubishi, Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners and Mercuria, will support Fervo’s ongoing Cape Station project in Utah, a 400-megawatt operation that aims to deliver clean electricity to the grid by 2026.
“Demand for around-the-clock clean energy has never been higher, and next-generation geothermal is uniquely positioned to meet this demand,” said Tim Latimer, Fervo CEO and Co-Founder, in a news release. “Our technology is fully derisked, our pricing is already competitive, and our resource pipeline is vast. This investment enables Fervo to continue to position geothermal at the heart of 24/7 carbon-free energy production.”
The groundbreaking project, located in Beaver County, Utah, began drilling in June 2023. It has since seen remarkable success, surpassing the Department of Energy’s (DOE) expectations for enhanced geothermal systems (EGS) with a 70 percent reduction in drilling times and lower production costs, according to Fervo.
With an abundance of innovative companies like Fervo, Houston has garnered significant acclaim for its energy transition ecosystem, attracting investors from around the world to the region. According to a Partnership analysis, Houston-based energy transition startups, businesses, and companies secured $6.1 billion in financing from private market investments in 2022, a 62 percent increase compared to 2021.
This announcement marks Mitsubishi’s second major investment in Houston companies engaged in emission-reducing technologies. Last year, the company signed an investment agreement with deep-decarbonization company Syzygy Plasmonics to scale and commercialize its technology that works to transform various industries by reducing costs and emissions.
Mitsubishi’s continuous investment in the region not only solidifies the company’s dedication to advancing sustainable solutions to achieve the world’s net zero climate goals, but also positions Houston at the forefront of propelling the global energy transition forward.
“This announcement is a testament to the dynamic spirit of partnership and opportunity thriving within Houston’s energy ecosystem,” said Jane Stricker, the Partnership’s senior vice president of energy transition and executive director of Houston Energy Transition Initiative (HETI). “The investment in Fervo Energy from Mitsubishi Heavy Industries is another example of the growing number of strategic investments by energy and industrial companies into innovative startups with promising technologies, which is why the Houston region continues to lead commercial deployment of solutions for the transition.”
