Mitsui & Co. has invested in Fervo Energy as part of the Houston-based geothermal startup’s oversubscribed $462 million Series E funding round, seeking to expand the technology’s reach into Japan and other markets.
The investment, reportedly amounting to several hundred million yen (¥100 million equals roughly $639,000), positions Mitsui to introduce Fervo’s enhanced geothermal systems to companies pursuing clean energy solutions, Nikkei reported. The Japanese conglomerate also intends to leverage the technology for power plant development domestically and abroad.
Fervo’s round, led by B Capital, attracted a diverse coalition including Google, Tesla co-founder JB Straubel, and fellow Japanese investor Mitsubishi Heavy Industries, which had previously backed the company. The startup employs horizontal drilling and hydraulic fracturing techniques adapted from the oil and gas sector to tap heat from deep rock formations in locations where traditional geothermal development proved uneconomical.
The capital will fund continued construction of Cape Station, a 500-megawatt facility in Utah expected to deliver its first 100 megawatts to the grid in 2026. Fervo has reduced well drilling times from approximately one month to around 16 days, a critical improvement since drilling represents roughly half of project costs.
For Mitsui, the deal reflects broader Japanese corporate interest in next-generation energy technologies as the country seeks alternatives to its fossil fuel dependence. Whether Fervo’s U.S.-proven approach can translate effectively to Japanese geological conditions remains to be seen.
