Japanese Firms Invest in Next-Generation Geothermal Project

Tokyo-based Marunouchi Innovation Partners through its Marunouchi Climate Tech Growth Fund (MIP), and fellow Japanese investor Mitsubishi Heavy Industries, are investing in Houston based start-up Fervo Energy (Fervo), an industry leader in next generation geothermal development.

Fervo raised US$244 million in new funding led by Devon Energy, a pioneer in shale oil and gas. This latest financing round will unlock Fervo’s next phase of growth, deploying proven technology adapted from the oil and gas industry at scale to deliver commercially viable 24/7 carbon-free energy.

The Enhanced Geothermal System (EGS) being developed by Fervo involves creating an artificial reservoir in underground hot rock formations, injecting fluid from the surface through a well, extracting and circulating high-temperature hot water and steam to generate electricity.

EGS significantly reduces the geologic constraints that are typically associated with conventional geothermal power developments. Accordingly, EGS has high potential as a scalable, cost-effective, 24/7 and emission-free power source.

Commercialization of EGS has been a challenge for decades, but Fervo has achieved a breakthrough in this space with its innovative approach, and successfully developed a commercial project in Nevada. Now, Fervo is currently drilling the 400 MW Cape Station project in Utah.

Ichiro Miyoshi, MIP CEO said: “We see significant potential in geothermal power, a clean baseload renewable energy source, as one of the critical pieces to achieve net zero CO2 emissions by 2050. We are very pleased to invest in Fervo, who is the forerunner in this field. Fervo’s technology is already highly mature and their execution capability is outstanding. We will continue to support Fervo’s growth and the adoption of geothermal power generation not only by providing growth capital to the company but also by providing necessary support.”