Tapping the geothermal energy stored beneath the Earth\u2019s surface as a way to generate renewable power is one of the new visions for the future that\u2019s captured the attention of environmentalists and oil and gas engineers alike.<\/p>\n
That\u2019s because it\u2019s not only a way to generate power that doesn\u2019t rely on greenhouse gas emitting hydrocarbons, but because it uses the same skillsets and expertise that the oil and gas industry has been honing and refining for years.<\/p>\n
At least that\u2019s what drew the former completion engineer (it\u2019s not what it sounds like) Tim Latimer to the industry and to launch Fervo Energy<\/a>, the Houston-based geothermal tech developer that\u2019s picked up funding from none other than Bill Gates\u2019 Breakthrough Energy Ventures (that fund\u2026 is so busy) and former eBay executive, Jeff Skoll\u2019s Capricorn Investment Group<\/a>.<\/p>\n With the new $28 million cash in hand, Fervo\u2019s planning on ramping up its projects, which Latimer said would \u201cbring on hundreds of megawatts of power in the next few years.\u201d<\/p>\n Latimer got his first exposure to the environmental impact of power generation as a kid growing up in a small town outside of Waco, Texas near the Sandy Creek coal power plant, one of the last coal-powered plants to be built in the U.S.<\/p>\n Like many Texas kids, Latimer came from an oil family, and got his first jobs in the oil and gas industry before realizing that the world was going to be switching to renewables and the oil industry \u2014 along with the friends and family he knew \u2014 could be left high and dry.<\/p>\n It\u2019s one reason he started working on Fervo, the entrepreneur said.<\/p>\n \u201cWhat\u2019s most important, from my perspective, since I started my career in the oil and gas industry, is providing folks that are part of the energy transition on the fossil fuel side to work in the clean energy future,\u201d Latimer said. \u201cI\u2019ve been able to go in and hire contractors and support folks that have been out of work or challenged because of the oil price crash\u2026 And I put them to work on our rigs.\u201d<\/span><\/p>\n\n Fervo Energy chief executive, Tim Latimer, pictured in a hardhat at one of the company\u2019s development sites. Image Credits:<\/strong> Fervo Energy<\/p>\n When the Biden administration talks about finding jobs for employees in the hydrocarbon industry as part of the energy transition, this is exactly what they\u2019re talking about.<\/p>\n And geothermal power is no longer as constrained by geography, so there are a lot of abundant resources to tap and the potential for high-paying jobs in areas that are already dependent on geological services work, Latimer said (late last year, Vox published a good overview of the history and opportunity presented by the technology<\/a>).<\/p>\n \u201cA large percentage of the world\u2019s population actually lives next to good geothermal resources,\u201d Latimer said. \u201c[There are] 25 countries today that have geothermal installed and producing and another 25 where geothermal is going to grow.\u201d\u00a0<\/span><\/p>\n Geothermal power production actually has a long history in the Western U.S. and in parts of Africa where naturally occurring geysers and steam jets pouring from the earth have been obvious indicators of good geothermal resources, Latimer said.<\/p>\n \u201cFervo<\/span>\u2019s technology unlocks a new class of geothermal resource that is ready for large-scale deployment. Fervo<\/span>\u2019s geothermal systems use novel techniques, including horizontal drilling, distributed fiber optic sensing and advanced computational modelling, to deliver more repeatable and cost effective geothermal electricity,\u201d Latimer wrote in an email. \u201cFervo<\/span>\u2019s technology combines with the latest advancements in Organic Rankine Cycle generation systems to deliver flexible, 24\/7 carbon-free electricity.\u201d<\/p>\n Initially developed with a grant from the TomKat Center at Stanford University and a fellowship funded by Activate.org at the Lawrence Berkeley National Lab\u2019s Cyclotron Road division, Fervo has gone on to score funding from the DOE\u2019s Geothermal Technology Office and ARPA-E to continue work with partners like Schlumberger, Rice University and the Berkeley Lab.<\/p>\n The combination of new and old technology is opening vast geographies to the company to potentially develop new projects.<\/p>\n Other companies are also looking to tap geothermal power to drive a renewable power-generation development business. Those are startups like Eavor, which has the backing of energy majors like bp Ventures, Chevron Technology Ventures, Temasek, BDC Capital, Eversource and Vickers Venture Partners; and other players including GreenFire Energy<\/a> and Sage Geosystems.<\/a><\/p>\n Demand for geothermal projects is skyrocketing, opening up big markets for startups that can nail the cost issue for geothermal development. As Latimer noted, from 2016 to 2019 there was only one major geothermal contract, but in 2020 there were 10 new major power purchase agreements signed by the industry.\u00a0<\/span><\/p>\n ClimateTech is the new hot space for investors in a warming planet<\/a><\/p>\n<\/blockquote>\n\n\n