Geothermal Energy: Fervo's Plan to Power the Planet

Harnessing Earth's Internal Heat: The Rise of Geothermal Energy

Utilizing the geothermal energy residing beneath the Earth’s surface for renewable power generation represents a forward-thinking approach gaining traction among both environmental advocates and professionals within the oil and gas sector.

A Familiar Skillset Applied to a New Energy Source

This interest stems not only from its potential to produce energy without emitting greenhouse gases, but also from the fact that it leverages the established skills and expertise cultivated over years within the oil and gas industry.

Fervo Energy: Pioneering Geothermal Technology

This realization prompted Tim Latimer, a former completion engineer, to establish Fervo Energy, a Houston-based geothermal technology developer. The company has secured funding from prominent investors including Bill Gates’ Breakthrough Energy Ventures and Jeff Skoll’s Capricorn Investment Group.

With a recent $28 million investment, Fervo intends to expand its projects, aiming to deliver “hundreds of megawatts of power in the coming years,” as stated by Latimer.

Early Exposure and a Vision for the Future

Latimer’s awareness of power generation’s environmental impact began during his childhood in Texas, near the Sandy Creek coal power plant – one of the last coal-fired facilities constructed in the United States.

Coming from an oil-industry family, Latimer recognized the potential shift towards renewable energy sources and the possible challenges this could pose for the oil industry and those connected to it.

Facilitating a Just Energy Transition

This concern motivated the creation of Fervo, according to the entrepreneur. He emphasized the importance of providing opportunities for individuals from the fossil fuel sector to transition into the clean energy future.

“I’ve been able to employ contractors and offer support to those affected by oil price fluctuations, putting their skills to work on our projects,” Latimer explained.

Aligning with National Energy Goals

Fervo’s approach directly addresses the Biden administration’s focus on creating employment opportunities for hydrocarbon industry workers within the evolving energy landscape.

Expanding Geographic Potential

Geothermal power is becoming less geographically restricted, unlocking access to abundant resources and creating high-paying jobs in regions already reliant on geological services, Latimer noted. A recent Vox article provided a comprehensive overview of the technology’s history and potential.

“A significant portion of the global population resides near viable geothermal resources,” Latimer stated. “Currently, 25 countries have operational geothermal installations, with another 25 poised for growth.”

A History of Utilization and New Innovations

Geothermal power production has a long-standing history in the Western U.S. and parts of Africa, where naturally occurring geysers and steam vents have indicated promising geothermal resources.

“Fervo’s technology enables the utilization of a new category of geothermal resource suitable for large-scale implementation,” Latimer elaborated in an email. “We employ innovative techniques, including horizontal drilling, distributed fiber optic sensing, and advanced computational modeling, to ensure more reliable and cost-effective geothermal electricity.”

Fervo’s systems, combined with advancements in Organic Rankine Cycle generation, deliver flexible, 24/7 carbon-free electricity.

Collaboration and Funding

Initially developed with support from the TomKat Center at Stanford University and a fellowship from Activate.org at Lawrence Berkeley National Lab’s Cyclotron Road, Fervo has since received funding from the DOE’s Geothermal Technology Office and ARPA-E, collaborating with partners like Schlumberger, Rice University, and Berkeley Lab.

A Growing Field of Innovation

The convergence of established and emerging technologies is broadening the geographic scope for potential project development.

Other companies, such as Eavor (backed by bp Ventures, Chevron Technology Ventures, and others), GreenFire Energy, and Sage Geosystems, are also actively pursuing geothermal power for renewable energy generation.

Rising Demand and Cost Considerations

Demand for geothermal projects is rapidly increasing, creating substantial market opportunities for startups capable of addressing the cost challenges associated with geothermal development. From 2016 to 2019, only one major geothermal contract was signed, but in 2020, ten new major power purchase agreements were executed.

Currently, geothermal contracts range from $65 to $75 per megawatt, while solar plants are coming in between $35 and $55 per megawatt, as reported by The Verge last year.

Reliability and Grid Stability

However, Latimer emphasized that the stability and predictability of geothermal power make the cost difference acceptable for utilities and businesses requiring uninterrupted power supplies. His personal experience during this year’s Texas winter freeze, which left him without power for five days, underscores this point.

Geothermal’s Potential Contribution

Geothermal’s capacity to provide consistent, clean power makes it a highly attractive option. A recent Department of Energy study suggests geothermal could meet up to 16% of U.S. electricity demand, with some estimates reaching nearly 20% in a fully decarbonized grid.

“We have always believed in the potential of geothermal energy and have waited for the right technology and team to drive innovation in this sector,” stated Ion Yadigaroglu of Capricorn Investment Group. “Fervo’s technological capabilities and partnerships with leading research organizations position them as a clear leader in the new wave of geothermal energy.”