Geothermal startup Fervo Energy Co. secured a substantial $244 million round, led by shale oil and gas giant Devon Energy Corp. The Houston-based geothermal developer’s fundraising topped this week’s Crunchbase biggest funding rounds.
The raised funds exceeded what Fervo Energy disclosed in its recent SEC filing, aiming for $221.5M funding. The capital infusion will bolster Fervo’s drilling endeavors in Utah. The project could start supplying clean electricity to the grid by 2026.
Founded in 2017, Fervo has amassed $431 million in funding, according to Crunchbase records.
Tapping Earth’s Heat: Fervo Energy’s Geothermal Breakthrough
Fervo Energy focuses on leveraging horizontal drilling technology, originally pioneered by the oil and gas sector, to harness geothermal resources for power generation.
In collaboration with Google LLC, the company completed an enhanced geothermal system (EGS) pilot project in Nevada in November 2023. This initiative caters to some Google data centers in the state.
- READ MORE: Fervo Energy’s Breakthrough in Enhanced Geothermal Systems: A Game-Changer for Renewable Energy
Fervo’s successful demonstration is the first instance of an enhanced geothermal system implemented on a commercial scale.
Geothermal energy, often dubbed the “heat beneath our feet,” currently contributes 3.7 gigawatts of electricity in the U.S. That amount could power over 2.7 million homes, but this constitutes only a fraction of its immense potential.
A considerable portion of geothermal energy remains untapped due to technological limitations, leaving vast energy reservoirs unexploited.
This is where the EGS holds promise in unlocking these resources and introducing clean, and dispatchable electricity to the grid. This geothermal system employs man-made reservoirs to facilitate fluid flow, enabling the extraction of hot water for electricity generation.
Drilling for Tomorrow
The technical potential of EGS in the US alone could meet global electricity demands.
Even harnessing a fraction of this resource through widespread deployment could feasibly power 40+ million American homes and businesses affordably. Moreover, investments in EGS will promote the proliferation of geothermal heating and cooling solutions nationwide. This, in turn, will provide exponential opportunities for sustainable energy utilization.
Currently, Fervo Energy is engaged in a drilling campaign at its 400-MW Cape Station project in southwestern Utah. Early results from this endeavor have surpassed the expectations set by the US Energy Department for enhanced geothermal systems.
The company has received a grant from the DOE for the Utah project to showcase the potential of EGS in delivering reliable and cost-effective electricity.
Before this offering, Fervo Energy had secured a combined $176.63 million across three disclosed funding rounds, according to data from S&P Global Market Intelligence. Investors in the company include oil and gas firms Devon Energy Corp., Liberty Energy Inc., and Helmerich & Payne Inc., as well as Breakthrough Energy LLC, a venture capital firm backed by Bill Gates.
DOE’s Green Push for America’s Clean Energy Future
The U.S. DOE announced a plan to allocate up to $60 million to 3 geothermal pilot projects as part of the enhanced geothermal systems pilot demonstrations funding opportunity. Fervo Energy’s project is one of them, aiming to generate at least 8 MW of power from each of 3 wells.
The initiative is spearheaded by the DOE’s Geothermal Technologies Office, a component of the Office of Energy Efficiency and Renewable Energy.
The other two selected projects include Chevron New Energies’ pilot endeavor. It will use drilling and stimulation techniques to access geothermal energy in Sonoma County, California.
Additionally, Mazama Energy LLC’s demonstration on an enhanced geothermal system near a volcano in Oregon was chosen.
US Secretary of Energy Jennifer Granholm expressed enthusiasm for the projects, noting their potential to expand geothermal power into previously untapped regions. She also noted that:
“…these pilot demonstrations will help us realize the full potential of the heat beneath our feet to reduce carbon emissions, create domestic jobs, and deliver clean, cost-effective, reliable energy to American[s] nationwide.”
The DOE plans to support further demonstrations in the eastern US in the second round of funding. With a goal to slash the cost of enhanced geothermal systems by 90% by 2035, the Biden administration aims for 100% clean electricity by that year.
Geothermal resources currently contribute around 4 GW of electricity in the US. Still, advancing enhanced geothermal systems could potentially yield 90 GW of power by 2050, which power over 65 million households. That projection is according to a January 2023 analysis by the DOE’s National Renewable Energy Laboratory.
Fervo Energy’s groundbreaking geothermal system, fueled by a $244 million funding round, signify a pivotal shift towards sustainable energy solutions. With ambitious projects and support from industry giants, Fervo is poised to lead the charge towards a cleaner, greener future.
The post Hot Funds for Cool Tech: Geothermal Company Fervo Energy Raises $244M appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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