The geothermal energy sector is heating up as Fervo Energy and Sage Geosystems announce pivotal deals that bring their advanced drilling technologies closer to commercial reality. With Congressional support intact and $206 million in fresh funding, these startups are positioning themselves to capture the growing demand for 24/7 clean power from data centers and utilities.
Fervo Energy just locked in a critical piece of its geothermal puzzle. The Houston-based startup announced Tuesday that Baker Hughes will design and deliver five steam turbines for the second phase of its Cape Station project in Utah, marking a significant step toward commercial deployment of next-generation geothermal technology.
The deal represents more than just equipment procurement—it signals that Fervo's ambitious plan to generate 300 megawatts of round-the-clock electricity is moving from concept to reality. That's enough clean power to supply roughly 180,000 homes continuously, a compelling proposition as utilities scramble to meet growing energy demands without adding carbon emissions.
Fervo's approach adapts the directional drilling techniques that revolutionized oil and gas extraction, but instead of hunting for fossil fuels, the company targets superhot rock formations nearly 16,000 feet below ground. At those depths, temperatures maintain a steady 520°F—hot enough to generate substantial amounts of steam for electricity production.
The technology breakthrough comes at a pivotal moment for geothermal energy. When Congressional Republicans took a sledgehammer to the Inflation Reduction Act last summer, advanced geothermal projects largely survived the cuts. The bipartisan appeal of drilling-based renewable energy appears to have provided political cover that other clean tech sectors didn't enjoy.
Behind Fervo's Baker Hughes agreement sits $206 million in financing the company secured in June—a complex funding package split between $100 million in project-level preferred equity from Breakthrough Energy Catalyst, a $60 million loan expansion from Mercuria, and $45.6 million in bridge debt from an X-Caliber Rural Capital affiliate.
The financing carries particular political significance, as Trump's energy secretary Chris Wright previously oversaw an investment into Fervo in 2022 when he led Liberty Energy. The connection suggests continued Republican support for advanced geothermal development regardless of broader climate policy shifts.
