Two Houston-based energy companies have been selected for nearly $45 million in federal funding to advance next-generation geothermal projects.
Fervo Energy and Quaise Energy are among 21 projects chosen by the Department of Energy (DOE) as part of a $99 million investment aimed at accelerating geothermal development across the U.S.
How Will Fervo Use Its DOE Funding?
Fervo received two grants totaling $20 million for its Enhanced Geothermal Systems (EGS) projects in Idaho and Nevada.
In Idaho, Fervo will use the funding to drill and complete EGS wells in partnership with multiple national laboratories. The project will also test new technology for high-temperature geothermal operations, which Fervo says is expected to unlock advanced geophysical data collection.
The company will also use the funding to study a potential geothermal site in Humboldt County, Nevada, and determine whether it’s suitable for EGS development. Fervo’s commercial pilot, Project Red, is also located in Nevada and has been generating 3 megawatts of gross power to the grid since 2023.
“This is an excellent example of how public and private entities can partner together to scale critical energy technologies,” said Tim Latimer, CEO and Co-Founder of Fervo Energy, in a press release. “With this funding, the Department of Energy is making important investments to help Americans across the country gain access to clean, affordable geothermal energy.”
The awards come as Fervo enters its next stage of growth. The Houston-based company recently filed for an initial public offering, less than a decade after it was founded in 2017.
GET THE BACKSTORY: Houston-Based Fervo Energy Moves Toward IPO
How Will Quaise Use Its DOE Funding?
Quaise was selected for up to $25 million to advance Project Obsidian, its geothermal power plant under construction in Oregon. The funding will support the project’s first three wells, which are targeting temperatures above 300°C and are designed to demonstrate more than 25 megawatts of gross electric power.
The company is working with Pacific Northwest National Laboratory, Lawrence Berkeley National Laboratory and Oregon State University on the project. Findings from the first three wells will inform future drilling, including plans to reach temperatures above 400°C, beyond the range of current commercial geothermal projects.
Phase one is expected to produce more than 50 megawatts of electric power for the Pacific Northwest grid by 2030.
The DOE selection follows Quaise’s recent $180 million Series B financing, which will also help fund Project Obsidian.
Why Houston Companies Lead in Geothermal
These awards underscore Houston’s leadership in the geothermal sector, where companies are leveraging the region’s deep expertise in drilling, subsurface engineering and energy technology to help scale power production across the nation.
Learn more about Houston’s role in energy at the Greater Houston Partnership’s annual Future of Global Energy Conference on October 14, 2026.