Wall Street is betting big on clean energy tech

When the NASDAQ opens on Wednesday morning, the exchange will include a new ticker symbol: FRVO. The company, Fervo Energy, is in the geothermal electricity business and aims to raise $1.8 billion. An initial public offering of that magnitude would be one of the biggest Wall Street debuts for renewable energy in U.S. history and a promising sign for clean tech’s future. “This is a very, very big deal,” said Gernot Wagner, a climate economist at Columbia Business School. “Money speaks.” At the simplest level, geothermal generation is the process of harnessing the heat within the earth to produce steam, which then spins turbines to generate much-needed electricity. But locating suitable geology and getting deep enough to make power on a utility-scale isn’t easy. Fervo uses horizontal drilling and fiber-optic sensing to tap previously out of reach sources. “Innovation is allowing these technologies to cover a wider variety of sites,” said Zainab Gilani, a geothermal analyst with research firm Cleantech Group. Fervo, she noted, is using some of the same techniques that the oil and gas industry uses, with the hope of cutting the price of geothermal from $7,000 to $3,000 per kilowatt as it grows. This initial public offering, or IPO, could prove a bellwether for not only that technology, but clean tech more broadly. “If Fervo demonstrates that there is money to be made for investors,” said Wagner, that “is going to draw a lot of attention well beyond just the narrow advanced geothermal community.” Fervo has successfully deployed its technology in Nevada, producing enough clean energy to power for about 2,600 homes. It is building a much bigger facility, Cape Station, in Utah that would produce more than 100 times that amount of electricity and is slated to go online later this year. The prospect has attracted a slew of high profile investors, including Bill Gates’s Breakthrough Energy Ventures, and Alphabet, the parent company of Google, which has also signed contracts wi