Fervo Energy IPO Raises $1.89 Billion as Geothermal Stock Surges 33%
Wall Street just gave geothermal energy its biggest vote of confidence yet. The Fervo Energy IPO priced at $27 per share on Tuesday, May 12, raising nearly $1.9 billion at a valuation of around $7.7 billion and when shares began trading on the Nasdaq the following day, they immediately popped 33% to over $36 per share. It is the largest clean energy public debut on record.
The Fervo Energy IPO was upsized multiple times before pricing, a clear signal of intense investor demand. The company and its bankers sold an additional 14.6 million shares while lifting the price range twice, settling on $27 and the stock, trading under the ticker FRVO, surged further on debut, pushing Fervo’s market valuation past $10 billion.
AI’s Power Hunger Is Driving the Excitement
Like many energy companies, Fervo has been buoyed by surging demand from data centers and AI companies desperate to secure electricity to power their facilities. Geothermal is more dependable than wind or solar because it does not suffer from weather-related intermittency it delivers carbon-free power around the clock, every day of the year. That reliability is exactly what tech giants need.
Fervo has about 500 megawatts of capacity currently under construction and 658 megawatts of contracted offtake by companies including Google, Shell, and California Edison. Its flagship Cape Station project in Utah, which broke ground in 2023, is on track to start sending electricity to the grid in late 2026, with permits in place to quadruple its current 500-megawatt footprint.
Fervo uses directional drilling techniques pioneered by the oil and gas industry, and after drilling 14 wells, has reduced both drilling time and cost per foot by two-thirds. Notable early backers include Bill Gates, Devon Energy, and Google’s parent Alphabet. The Fervo Energy IPO marks the first time a next-generation geothermal company has gone public, and the market has made clear it was ready.
