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Devon Energy finances Texas firm’s geothermal energy development

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Oklahoma City’s Devon Energy has invested more funds into geothermal development, helping Houston’s geothermal company Fervo Energy raise $244 million in its latest funding round.

The funds will finance the geothermal company’s next phase of growth as it puts to use oil and gas technology and techniques to scale geothermal energy.

“Demand for around-the-clock clean energy has never been higher, and next-generation geothermal is uniquely positioned to meet this demand,” said Fervo CEO Tim Latimer. “Our technology is fully derisked, our pricing is already competitive and our resource pipeline is vast. This investment enables Fervo to continue to position geothermal at the heart of 24/7 carbon-free energy production.”

Devon Energy was joined in the funding round with investments from companies that included Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria and Mitsubishi Heavy Industries, according to an announcement by Fervo.

The announcement did not reveal the amount of Devon’s investment in the firm.

“Fervo’s approach to geothermal development leverages leading-edge subsurface, drilling, and completions expertise and techniques Devon has been honing for decades,” said David Harris, Chief Corporate Development Officer and Executive Vice President at Devon. “We look forward to deepening our partnership with Fervo to capture the full value of Fervo’s first-mover advantage in geothermal and the adjacencies to Devon’s core business.”

Since its last fundraiser, Fervo has successfully brought its first commercial project online, establishing Fervo’s system as the most productive enhanced geothermal system (EGS) in history. Fervo has also begun drilling at Cape Station, a 400 MW project in Beaver County, Utah. Early drilling results show reduced drilling times and lower costs that significantly exceed Department of Energy expectations for EGS.