12 Houston climatetech startups join Greentown Labs' growing incubator

Startup Talk

More than 40 startups joined Greentown Labs in the second half of 2025. Photo via GreentownLabs.com

More than 40 climatetech startups joined the Greentown Labs Houston community in the second half of 2025, 12 of which hail from the Bayou City.

The companies are among a group of nearly 70 total that joined the climatetech incubator, which is co-located in Houston and Boston, in Q3 and Q4.

The new companies that have joined the Houston incubator specialize in a variety of clean energy applications, from green hydrogen-producing water-splitting cycles to drones that service wind turbines.

The local startups that joined Greentown Houston include:

  • Houston-based Wise Energie, which delivers turnkey microgrids that blend vertical-axis wind, solar PV, and battery storage into a single, silent system.
  • The Woodlands-based Resollant, which is developing compact, zero-emissions hydrogen and carbon reactors to provide low-cost, scalable clean hydrogen and high-purity carbon for the energy and manufacturing sectors.
  • Houston-based ClarityCastle, which designs and manufactures modular, soundproof work pods that replace traditional drywall construction with reusable, low-waste alternatives made from recycled materials.
  • Houston-based WattSto Energy, which manufactures vanadium redox flow batteries to deliver long-duration storage for both grid-scale projects and off-grid microgrids.
  • Houston-based AMPeers, which delivers advanced, high-temperature superconductors in the U.S. at a fraction of traditional costs.
  • Houston-based Biosimo, which is developing bio-based platform chemicals, pioneering sustainable chemistry for a healthier planet and economy.
  • Houston-based Ententia, which offers purpose-built, generative AI for industry.
  • Houston-based GeoKiln Energy Innovation, which is developing a new way to produce clean hydrogen by accelerating natural geologic reactions in iron-rich rock formations using precision electrical heating.
  • Houston-based Timbergrove, which builds AI and IoT solutions that connect and optimize assets—boosting visibility, safety, and efficiency.
  • Houston-based dataVediK, which combines energy-domain expertise with advanced machine learning and intelligent automation to empower organizations to achieve operational excellence and accelerate their sustainability goals.
  • Houston-based Resonant Thermal Systems, which uses a resonant energy-transfer (RET) system to extract critical minerals from industrial and natural brines without using membranes or grid electricity.
  • Houston-based Torres Orbital Mining (TOM),which develops autonomous excavation systems for extreme environments on Earth and the moon, enabling safe, data-driven resource recovery and laying the groundwork for sustainable off-world industry.

Other startups from around the world joined the Houston incubator in the same time period, including:

More than 100 startups joined Greentown this year, according to an end-of-year reflection shared by Greentown CEO Georgina Campbell Flatter.

Flatter joined Greentown in the top leadership role in February 2025. She succeeded former CEO and president Kevin Knobloch, who stepped down in July 2024.

"I moved back to the United States in March 2025 after six years overseas—2,000 miles, three children, and one very patient husband later. Over these months, I’ve had the chance to hear from the entrepreneurs, industry leaders, investors, and partners who make this community thrive. What I’ve experienced has left me brimming with urgent optimism for the future we’re building together," she said in the release.

According to Flatter, Greentown alumni raised more than $2 billion this year and created more than 3,000 jobs.

"Greentown startups and ecosystem leaders—from Boston, Houston, and beyond—are showing that we can move further and faster together. That we don’t have to choose between more energy or lower emissions, or between increasing sustainability and boosting profit. I call this the power of 'and,'" Flatter added. "We’re working for energy and climate, innovation and scale, legacy industry and startups, prosperity for people and planet. The 'and' is where possibility expands."

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This article originally appeared on EnergyCaptialHTX.com.

Greentown Labs has announced its newest climatetech incubator cohort. Photo via GreentownLabs.com

Greentown Labs adds 5 new Houston startups to climatetech incubator

Going Green

Greentown Labs announced that it added five startups to its Houston community in Q1 of 2025.

The companies are among a group of 19 that joined the climatetech incubator, which is co-located in Houston and Boston, in the same time period. The companies that joined the Houston-based lab specialize in a number of "green" applications, from converting plastic waste into sustainable materials to developing energy-storage solutions.

The new Houston members include:

  • Concept Loop, a project of Pakistan-based Innova8e Inc., aims to repurpose post-industrial and post-consumer plastic waste into sustainable building materials.
  • GeoFuels, a Sugar Land-based company that produces hydrogen by using baseload geothermal power and methane pyrolysis.
  • PLASENE, a Houston-based company with an innovative platform that converts plastic waste into liquid fuel and low-carbon hydrogen through its proprietary catalysts and modular, scalable, pre-engineered units platform. The company was named to Greentown's ACCEL Year 3 cohort earlier this year.
  • RepAir Carbon, an Israeli company with a fully electric, zero-heat carbon-removal technology that consumes minimal energy, operates without liquids or solvents, and produces no hazardous materials or waste.
  • RotorVault from Pasadena, California, is commercializing energy-storage and load-following solutions that are containerized, modular, and field-deployable systems built on flywheel technology.

Fourteen other companies will join Greentown Boston's incubator. See the full list here.

PLASENE and five other new members—Thola, Respire Energy, Andros Innovations, FAST Metals and Tato Labs—join Greentown Labs through its most recent Advancing Climatetech and Clean Energy Leaders Program, or ACCEL, cohort. ACCEL, which works to advance BIPOC-led startups in the climatetech space, announced its third cohort last month.

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A version of this story originally appeared on our sister site, EnergyCapitalHTX.

Health tech’s gradual success, fueled by policy support, public advocacy, and strategic investment, provides a blueprint for accelerating the growth and impact of climate tech. Photo via Getty Images

Houston innovator on how health tech’s rise offers roadmap for climatetech growth

guest column

Over the past several decades, climate tech has faced numerous challenges, ranging from inconsistent public support to a lack of funding from cautious investors. While grassroots organizations and climate innovators have made notable efforts to address urgent environmental issues, we have yet to see large-scale, lasting impact.

A common tendency is to compare climate tech to the rapid advancements made in digital and software technology, but perhaps a more appropriate parallel is the health tech sector, which encountered many of the same struggles in its early days.

Observing the rise of health tech and the economic and political support it received, we can uncover strategies that could stabilize and propel climate tech forward.

Health tech's slow but steady rise

Health tech’s slow upward trajectory began in the mid-20th century, with World War II serving as a critical turning point for medical research and development. Scientists working on wartime projects recognized the broader benefits of increased research funding for the general public, and soon after, the Public Health Service Act of 1944 was passed. This landmark legislation directed resources toward eradicating widespread diseases, viewing them as a national economic threat. By acknowledging diseases as a danger to both public health and the economy, the government laid the groundwork for significant policy changes.

This serves as an essential lesson for climate tech: if the federal government were to officially recognize climate change as a direct threat to the nation’s economy and security, it could lead to similar shifts in policy and resource allocation.

The role of public advocacy and federal support

The growth of health tech wasn’t solely reliant on government intervention. Public advocacy played a key role in securing ongoing support. Voluntary health agencies, such as the American Cancer Society, lobbied for increased funding and spread awareness, helping to attract public interest and investment. But even with this advocacy, early health tech startups struggled to secure venture capital. VCs were hesitant to invest in areas they didn’t fully understand, and without sustained government funding and public backing, it’s unlikely that health tech would have grown as quickly as it has.

The lesson here for climate tech is clear: strong public advocacy and education are crucial. However, unlike health tech, climate tech faces a unique obstacle — there is still a significant portion of the population that either denies the existence of climate change or doesn’t view it as an immediate concern. This lack of urgency makes it difficult to galvanize the public and attract the necessary long-term investment.

Government support: A mixed bag

There have been legislative efforts to support climate tech, though they haven’t yet led to the explosive growth seen in health tech. For example, the Federal Technology Transfer Act of 1986 and the Bayh-Dole Act of 1980 gave universities and small businesses the rights to profit from their innovations, including climate-related research. More recently, the Inflation Reduction Act (IRA) of 2022 has been instrumental in advancing climate tech by creating opportunities to build projects, lower household energy costs, and reduce greenhouse gas emissions.

Despite this federal support, many climate tech companies are still struggling to scale. A primary concern for investors is the longer time horizon required for climate startups to yield returns. Scalability is crucial — companies must demonstrate how they will grow profitably over time, but many climate tech startups lack practical long-term business models.

As climate investor Yao Huang put it, “At the end of the day, a climate tech company needs to demonstrate how it will make money. We can apply political pressure and implement governmental policies, but if it is not profitable, it won’t scale or create meaningful impact.”

The public’s role in scaling climate tech

Health tech’s success can largely be attributed to a combination of federal funding, public advocacy, and long-term investment from knowledgeable VCs. Climate tech has federal support in place, thanks to the IRA, but is still lacking the same level of public backing. Health tech overcame its hurdles when public awareness about the importance of medical advancements grew, and voluntary health agencies helped channel donations toward research and innovation.

In contrast, climate nonprofits like Cool Earth, Environmental Defense Fund, and Clean Air Task Force face a severe funding shortfall. A 2020 study revealed that climate nonprofits aiming to reduce greenhouse gas emissions only received $2 billion in donations, representing just 0.4% of all philanthropic funding. Without greater public awareness/sense of urgency and financial support, these groups cannot effectively advocate for climate tech startups or lobby for necessary policy changes. This type of philanthropic funding is also known as ‘catalytic capital’ or ‘impact-first-capital’. Prime Impact Fund is one such fund that does not ‘view investments as concessionary on return’. Rather their patient and flexible capital allows support of high risk, high-reward ventures.

A path forward for climate tech

The most valuable insight from health tech’s growth is that government intervention, while critical, is not enough to guarantee the success of an emerging sector. Climate tech needs a stronger support system, including informed investors, widespread public backing, and nonprofits with the financial resources to advocate for industry-wide growth.

If we can channel the same sense of urgency and public commitment toward climate change as we did for health crises in the past, climate tech could overcome its current obstacles.The future of climate tech depends not just on government policies, but on educating the public, rallying financial support, and building a robust infrastructure for long-term growth.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus, a startup hub for the energy transition.

This article originally ran on EnergyCapital.
Greentown Houston has two new automation tools from its corporate partners. Photo via Greentown Labs/LinkedIn

Houston climatetech incubator brings in new automation tools for startup use

Houston’s Greentown Labs announced new resources and equipment for its members thanks to two corporate partnerships.

Greentown Houston is now home to new tools from Emerson and Puffer to help members implement strong foundations for access to contextualized data.

Automation is the theme with the latest resources, as the process assists with a startup's journey to “standardization and scalability” according to a news release from Greentown Labs. Members will have access to these two units and platforms. The DeltaV Automation Platform is a data-driven decision-making resource that aims to improve operational performance while reducing risks, costs, and downtime. It integrates real-time analytics, advanced automation solutions, sophisticated control systems, and lifecycle services.

Puffer-Sweiven is a localized, single point of contact for sales, service, and applied engineering for Emerson Automation Solutions in the Texas Gulf Coast and Central Texas area with the capabilities to combine with other members in North America to leverage global reach and technologies. Puffer is an Emerson Impact Partner.

With access to the two units, Greentown Labs member companies can further explore easy-to-use, integrated-by-design DeltaV Distributed Control System. With the system, companies and members can better scale new technologies into pilot scale, optimize processes for high quality products, and implement a smart foundation for access to contextualized data. Global ROC is one company that is already utilizing the new resources at Greentown Labs.

“Our member Global ROC, which is developing a solution for cooling tower systems that reduces chemical consumption, saves water, and reduces energy costs, plans to use the system in two ways,” Global ROC CEO Ely Trujillo said to Greentown Labs via LinkedIn.

The startup will be able to create a control method that can be applied to future projects by using and comparing Global ROC’s products with the Delta V’s advanced function blocks. Trujilloalso plans to train team members to set up a Proportional Integral Derivative (PID) controller. The PID involves building a lab test box that connects to the DeltaV’s CHARM modules to control a process to a temperature by varying amperage through the DeltaV’s PID controller.

As part of the 3-year kickoff of the Texas Exchange for Energy and Climate Entrepreneurship (TEX-E), Greentown Labs also celebrated 87 Texas students from The University of Texas at Austin, Texas A&M University, University of Houston, Rice University, Prairie View A&M University, and the Massachusetts Institute of Technology have been accepted into this year's Fellowship. The students will gain access to hands-on experiences including internships, pitch competitions, entrepreneurship bootcamps, courses, and conferences geared to help the climate and energy-transition innovation field.

In

March, Greentown Labs and Browning the Green Space were named the newest accelerator for the Advancing Climatetech and Clean Energy Leaders Program, or ACCEL. The seven selected startups will have a year-long curated curriculum, incubation at Greentown's two locations, and a non-dilutive $25,000 grant.

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This article originally ran on InnovationMap.

Fervo Energy scored a $244 million round of funding thanks to existing and new investors. Photo via Fervo Energy

Houston geothermal startup secures $244M in funding round led by energy corporate

fresh funding

An Oklahoma-based shale oil and gas leader has backed Fervo Energy's latest round of funding, supporting the startup's geothermal technology yet again.

Fervo announced its latest round of funding this week to the tune of $244 million. The round was led by Devon Energy, a company that's previously backed the startup.

“Demand for around-the-clock clean energy has never been higher, and next-generation geothermal is uniquely positioned to meet this demand,” Tim Latimer, Fervo CEO and co-founder, says in a news release. “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.”

Founded in 2017, Fervo provides carbon-free energy through development of next-generation geothermal power. The company has recently reported its success at its Cape Station project, a400 MW project in Beaver County, Utah, as well as at its full-scale commercial pilot, Project Red, in northern Nevada and made possible through a 2021 partnership with Google.

Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria, and Mitsubishi Heavy Industries also contributed to the round with existing investors Capricorn’s Technology Impact Fund, Congruent Ventures, DCVC, Elemental Excelerator, Helmerich & Payne, and Impact Science Ventures.

“The energy trilemma is one of the defining global challenges of our time; how can we generate power that is affordable, reliable, and clean,” Houstonian John Arnold, founder of Centaurus Capital and co-chair of Arnold Ventures, says in the release. “Fervo has transformed geothermal into a scalable carbon-free resource ready to meet the moment.”

The fresh funding, according to the company, will go toward Fervo’s work in Cape Station, that is slated to begin delivering clean electricity to the grid in 2026.

“Fervo’s approach to geothermal development leverages leading-edge subsurface, drilling, and completions expertise and techniques Devon has been honing for decades,” David Harris, chief corporate development officer and executive vice president at Devon, says in the release. “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.”

In 2022, Fervo raised a $138 million series C round to support the completion of power plants in Nevada and Utah and evaluate new projects in California, Idaho, Oregon, Colorado, and New Mexico, as well as in other countries. This latest investment brings the company's total funds raised to $431 million since its inception in 2017, according to Crunchbase.

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This article originally ran on EnergyCapital.

A Houston energy professional shares his advice for those looking for a job in climate tech. Photo via Getty Images

5 tips for people looking to expand their career into climate tech, according to this Houston expert

guest column

If hard times build strong people, then extreme weather events build strong climate tech ecosystems. Nobody knows this conventional wisdom better than Houston.

The past six years alone have seen the second costliest natural disaster in United States history (Hurricane Harvey), the longest power outage in Texas history (Winter Storm Uri), and this June, a heat wave that pushed the ERCOT power grid to record levels.

Combine our ever more volatile climate with a post-COVID-19 reckoning of what it means to work for what you believe in, and you get a recipe for the most significant workforce shift the world has ever seen. This workforce shift rules in favor of climate tech, and it will largely target those who’ve grown up, come of age and started their careers in the midst of this increasing volatility. Climate tech will no longer be considered a standalone industry; it will be baked into all existing industries, and those that don’t accept it will die.

I’m proud to be a climate optimist, but I’m also a realist. The truth is no matter what we do, our volatile climate is going to get worse before it gets better. But if extreme weather events build strong climate tech ecosystems, I can live with that.

To students and young professionals considering a jump into climate tech: There is no better place to be right now. Here are five things to keep in mind as you make that jump.

1. Meet as many people from diverse backgrounds working on as many different things as you can. You will likely feel awkward at first, especially if you don’t naturally gravitate toward conferences and happy hours. At the risk of sounding trite, just treat every stranger like a friend you haven’t met yet. Some of us could probably use more friends anyway.

2. The advice in the self-help book How to Win Friends and Influence People, originally published in 1936, is timeless. Possibly the most useful (and most obvious) point is this: Remember that a person’s name is to that person the sweetest and most important sound in any language. Whenever possible, repeat your new friends’ names when you meet them. Especially if you’re seeking a business development, sales or other external-facing role, perfecting this point should be your Holy Grail.

3. Depending on how new you are to energy and climate tech, you’ll hear lots of unfamiliar lingo. Ask questions, take note of what you still don’t get, and do your best to fill in the gaps on the side. Eventually, acronyms will become your best friend. For example: Have you seen what the ITC and the PTC from the IRA will do to the LCOE of PV according to NREL? IYKYK.

4. Coachability is key. You may feel like you’re getting rejected 99 percent of the time, but the way you respond to and learn from those experiences will ensure the other one percent makes all the difference. At the end of the day, climate tech is so vast that it’s impossible to become an expert in everything, and that’s okay. We may not know what’s going on 70 percent of the time, but I’ll take a .300 batting average any day.

5. It may be impossible to become an expert in everything, but you should proactively learn as much as you can, especially given how quickly the ecosystem is expanding. If you’re not embarrassed by how little you knewone year ago, two years ago or even five years ago, then you’re probably not trying hard enough.

These are only five of my takeaways over the past few years and I’ll be the first to admit that I have a long way to go in implementing them. In a way, that’s what makes this journey what it is. I just can’t wait to see what we build.

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Ryan Davidson is business development lead for CalWave Power Technologies, a California-based company and Greentown Houston member that's focused on converting ocean waves’ hydrokinetic energy into reliable electricity. This article originally ran on EnergyCapital.

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Elon Musk's SpaceX files initial paperwork to sell shares to the public

Incoming IPO

Elon Musk's space exploration company has filed preliminary paperwork to sell shares to the public, according to two sources familiar with the filing, a blockbuster offering that would likely rank as the biggest ever and could make its founder the world's first trillionaire.

A SpaceX IPO promises to be one of the biggest Wall Street events of the year, with several investment banks lining up to help raise tens of billions to fund Musk's ambitions to set up a base on the moon, put datacenters the size of several football fields in orbit and possibly one day send a man to Mars.

The sources spoke on condition of anonymity because they were not authorized to talk publicly about the confidential registration with the Securities and Exchange Commission.

SpaceX did not respond immediately to a request for comment.

Exactly how much SpaceX plans to raise has not been disclosed but the figure is reportedly as much as $75 billion. At that level, the offering would easily eclipse the $29 billion that Saudi Aramco raised in its IPO in 2019.

The offering, coming possibly in June, could value all the shares of SpaceX at $1.5 trillion, nearly double what the company was valued in December when some minority owners sold their stakes, according to research firm Pitchbook, before an acquisition that increased its size.

Musk owns 42% of the SpaceX now, according to Pitchbook, though that figure will change with the IPO when new owners are issued shares. In any case, he is likely to pierce the trillion dollar mark because he is already close. Forbes magazine estimates Musk's net worth at roughly $823 billion.

In addition to making reusable rockets to hurl astronauts and hardware into orbit, SpaceX owns Starlink, the world’s largest satellite communications company. The company also recently brought under its roof two other Musk businesses, social media platform X, formerly Twitter, and artificial intelligence business, xAI, in a controversial transaction because both the seller and the buyer were controlled by him.

SpaceX has become the biggest commercial launch company in its industry, responsible for sending payloads into orbit for customers across the globe, but has also benefited from big taxpayer spending. That has raised conflicts of interest issues given that Musk was the biggest donor to President Donald Trump's campaign and is still a big backer.

In the past five years, SpaceX won $6 billion in contracts from NASA, the Defense Department and other U.S. government agencies, according to USAspending.gov.

Among current SpaceX owners is Donald Trump Jr, the president's oldest son. He owns a shares through 1789 Capital. That venture capital firm made him a partner shortly after his father won the presidency for a second time and has been buying up federal contractors seeking to win taxpayer money ever since.

The White House and Trump himself have repeatedly denied there are any conflicts of interest between his role as president and his family's businesses.

8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

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