US tight-oil and -gas producer Devon Energy has made a $10-million equity investment in startup firm Fervo Energy, which relies on hydraulic fracturing and multistage completions to develop enhanced geothermal system (EGS) wells.
This is according to a joint announcement issued 18 April that describes Houston-based Fervo as “the first geothermal company to successfully drill and complete a horizontal well pair for commercial geothermal production—leveraging technologies, skills, and processes pioneered by Devon for oil and gas production.”
The deal marks the biggest investment made so far by Devon’s new venture arm. The Oklahoma City-based operator launched the venture group a year ago to identify emerging technologies in the oil and gas arena as well as in the low-carbon space.
“We are thrilled to have Devon as a partner,” said Tim Latimer, cofounder and CEO of Fervo, adding, “We expect this partnership will help unlock further potential for geothermal as the primary 24/7 renewable energy source.”
David Harris, chief corporate development officer and executive vice president for Devon, called Fervo “an innovator and leader” in geothermal. “This investment is a good match for Devon’s new energy ventures strategy.”
Before Devon’s involvement, Fervo raised more than $180 million from other investment groups and government agencies hoping to accelerate geothermal technology development.
Fervo’s test wells were drilled and completed in Nevada, where the company has plans to supply geothermal power to data centers owned by search engine giant Google. The firm recently shared at an SPE conference details about the wells, including modeling results that indicated it achieved commercial production volumes with a fracture network capable of heating up to 60,000 B/D of steam per well.
Fervo’s stated goal is to produce over 1 GW of geothermal power by 2030, which, in addition to electric utility companies, could be supplied to new low-carbon projects such as direct air capture or hydrogen production.
