Fervo Energy raised $1.9 billion in its initial public offering, using advanced drilling techniques from the oil and gas industry to unlock geothermal energy potential. The company sold 70 million shares at $27 each, giving it a valuation of approximately $7.7 billion, signaling strong investor confidence in a technology that could transform clean energy production.

For decades, geothermal remained a niche source providing just 0.4% of U.S. electricity. Fervo aims to expand this by drilling thousands of feet into hot, dry granite to create steam-powered generation plants. The technology offers 24/7 clean electricity with no emissions, gaining rare bipartisan support as data centers and AI drive rising energy demands nationwide.

While Fervo's Utah plant will generate at least 500 megawatts of power for companies like Google, the industry still faces cost challenges. Geothermal plants currently cost about $7,000 per kilowatt, more than twice as expensive as natural gas facilities. However, analysts expect costs to decrease as the industry becomes more efficient, potentially competing with natural gas within a decade.