Geothermal startup Fervo Energy has reportedly filed confidential paperwork for an initial public offering, signaling its next major move as it scales up development of next-generation geothermal projects.

An IPO, or Initial Public Offering, is when a private company offers its shares to the public for the first time by listing on a stock exchange. It’s how companies “go public.”

Before an IPO, the company is privately owned — usually by founders, early investors, and employees. After the IPO, anyone can buy a piece of the company by purchasing stock. This helps the company raise money to grow, build new projects, or pay off debt.

In short: an IPO lets regular people invest in a company, and it gives the company access to a much bigger pool of funding.

The Houston-based company is preparing to bring the first 100 megawatts of its Cape Station project online later this year. When fully completed by 2028, the Utah-based site is expected to be the world’s largest enhanced geothermal system, using advanced drilling and reservoir stimulation methods to unlock clean, always-on energy from deep underground.

Since its founding in 2017, Fervo has raised roughly $1.5 billion to commercialize its geothermal approach, which adapts technologies from the oil and gas industry to tap into heat resources that were previously inaccessible. The company completed a successful 3.5-MW pilot in Nevada in 2023 and is working on a larger 115-MW project in partnership with Google to support data center operations.

The IPO filing comes amid growing momentum across the geothermal sector. Other startups like Zanskar and Sage Geosystems have also announced major funding rounds this week, each bringing new tools and strategies to the challenge of expanding geothermal energy. While geothermal still accounts for a small fraction of U.S. electricity, interest is accelerating as utilities, governments, and tech companies look for 24/7 carbon-free power sources.

Fervo’s IPO and upcoming project milestones could mark a major turning point for the industry, positioning enhanced geothermal as a serious contender in the clean energy mix.