Geothermal startup Fervo Energy to raise up to $1.3B in IPO

Source: TechCrunch

Image Credits: Fervo Energy

Fervo Energy IPO Details

Geothermal startup Fervo Energy announced on Monday that it aims to raise up to $1.3 billion in its initial public offering. If the shares sell at the top of the $21‑$24 price target range, the company could be valued at up to $6.5 billion—more than twice the valuation it had reportedly been seeking earlier this year when it confidentially filed paperwork with the SEC to start the IPO process.

The stock will trade on Nasdaq under the ticker FRVO.

Comparison with X‑energy

Fervo’s price target follows the successful IPO of nuclear‑power startup X‑energy, which raised $1 billion in an upsized offering. When X‑energy set its price target, it sought a valuation of around $7 billion; its market capitalization now exceeds $8 billion.

Market Context

Both Fervo and X‑energy have benefited from surging electricity demand driven by tech companies racing to secure power for AI data centers. This scramble has pushed prices for new natural‑gas power plants up 66 % over the past two years.

Cost Targets

Fervo states that its Cape Station power plant—its first large‑scale project—will generate electricity at $7,000 per kilowatt of installed capacity. The company’s goal is to reduce this cost to $3,000 per kilowatt, at which point geothermal power would become cost‑competitive with natural gas.