“We are very, very focused on deploying megawatts — and of course now we say gigawatts,” she said. “The majority of our equity raised today will go to that.”
In its IPO filing, Fervo identified a total of 3.65 gigawatts of power plant capacity that is under construction, ready to be built, or in advanced stages of development. The U.S. currently has roughly 4 GW of installed geothermal capacity.
Fervo’s success will depend on its ability to drive down the cost of the power it produces.
Phase 1 of the Cape Station project is set to deliver power at $7,000 per kilowatt, a price that is competitive with traditional and next-generation nuclear power but far higher than that of natural gas or renewables. Phase 2 of Cape Station, which is also now underway, will deliver power at $5,500 per kW, Jewett said. The company aims to slash that rate to $3,000 per kW.
Fervo has shown some ability to cut costs to date. Between 2022 and 2025, Fervo says it has reduced drilling times by about 75% and slashed per-foot drilling costs by about 70%, marking a significant achievement for the nascent industry. Those trends will need to hold up as the company completes larger-scale installations in the years to come.
