US geothermal energy developer Fervo Energy has raised US$1.89 billion (approximately €1.74 billion) in its initial public offering on the Nasdaq, selling 70 million shares at US$27 apiece and securing a valuation of approximately US$7.66 billion. The listing, one of three billion-dollar IPOs to price in the same week alongside AI chipmaker Cerebras Systems and Blackstone Digital Infrastructure Trust, underscores robust investor appetite for reliable, round-the-clock clean energy in a market increasingly constrained by surging data centre and electrification demand.

Reuters reported that the offering was upsized from an initial target of 55.6 million shares priced between US$21 and US$24, with the revised price range of US$25 to US$26 per share drawing demand approximately 15 times the available allocation, reflecting the strongest reception for a clean energy IPO in the United States in recent years.

Fervo develops enhanced geothermal systems using horizontal drilling and fibre-optic sensing technology adapted from the oil and gas industry, designed to make geothermal power scalable beyond the volcanic hotspots on which conventional geothermal relies. The company's approach targets a cost reduction from approximately US$7,000 to US$3,000 per kilowatt as operations scale up.

At the heart of the IPO is Cape Station, Fervo's flagship project in Beaver County, Utah, designed for 500 MW of total capacity. Phase I is on track to deliver power by late 2026, reaching approximately 100 MW of operating capacity by early 2027, with Phase II targeted for 2028, potentially making it the world's largest next-generation geothermal project.

Follow the full details on Fervo Energy's Nasdaq IPO.