'Geothermal Power' Drops 8% One Month After IPO: What Happened to the Big Debut?

Shares of U.S. geothermal developer Fervo Energy Company (NASDAQ: FRVO) plunged 8.56% on the Nasdaq, closing at $29.05. Its market capitalization fell to about $8.3 billion (approximately KRW 11.7 trillion), erasing roughly $657 million (around KRW 900 billion) in a single day. Trading volume topped 4.55 million shares, underscoring supply–demand concerns.

The company went public in May through a major IPO that raised about $2.2 billion. In its June 22 first-quarter earnings report, Fervo announced a 3-gigawatt framework agreement with Google, a 658-megawatt power-sales contract, and plans for the Cape Station project, which is slated to begin operations by year-end.

Founded in 2017 and based in Houston, Fervo Energy is a next-generation geothermal developer that applies oil and gas industry technologies—such as horizontal drilling—to its enhanced geothermal system, aiming to deliver 24/7 carbon-zero electricity. Major investors include Google, Shell and Japan’s Mitsui. The company is expanding commercial geothermal capacity through large-scale projects like Project Red in Nevada and Cape Station in Utah.