Geothermal drillers at work. (Source: Shutterstock.com)
Devon Energy Corp. has invested $10 million in geothermal technology player Fervo Energy, the companies announced April 18.
Houston-based Fervo focuses on converting geothermal energy into low-carbon electric power. But unlike other players in the geothermal space, Fervo is using oil and gas drilling techniques and tapping the existing drilling supply chain to move to market quickly.
“Devon is a technology leader with historic and unparalleled expertise in drilling and completing wells,” said Fervo Co-Founder and CEO Tim Latimer, who started his career as an oil and gas drilling engineer. “We expect this partnership will help unlock further potential for geothermal as the primary 24/7 renewable energy source.”
Fervo uses techniques such as horizontal drilling and multistage well completion in geothermal reservoir development. The drilling process uses similar rigs, casing tools, imaging technology and other oilfield services, though geothermal drillers typically face more challenging subsurface conditions.
RELATED: Geothermal, Oil Drilling Bond Strengthens
Devon said its $10 million investment in Fervo demonstrates the E&Ps confidence in the growth of the growing U.S. geothermal industry.
“We are excited about this partnership with Fervo, an innovator and leader in the enhanced geothermal space,” said David Harris, chief corporate development officer and executive vice president at Oklahoma City-based Devon. “This investment is a good match for Devon’s new energy ventures strategy.”
Several oil and gas players are investing in geothermal drilling and renewable power production. Last year, Chevron Corp. formed a joint venture with Swedish firm Baseload Capital AB to develop geothermal energy projects in the U.S.
Occidental Petroleum landed federal funding last year for a project aimed at lowering geothermal drilling costs in the Denver-Julesburg Basin.
Geothermal company Criterion Energy Partners is working with Chesapeake Energy and Patterson-UTI on geothermal projects.
Drilling services provider Nabors Industries Ltd. has also partnered with several geothermal startups in recent years.
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