Fervo CEO says geothermal is the US answer to Chinese renewable dominance

US clean tech investments plummeted the first half of this year as China’s dominance in renewables continued. But there is a domestic bright spot—or, rather, hot spot—that could give the US a leg up: geothermal energy.

Tim Latimer, the CEO of geothermal developer Fervo, said at an NYC Climate Week event this week that the US should lean into geothermal production because doing so would be irreplicable by China. While China can drive down the cost of solar and wind energy and battery equipment, geothermal is location-based.

“One thing that makes geothermal a little bit different than solar or battery installation is the percent of the project cost that’s actually on-site value at work is really high,” Latimer said at an event hosted by venture capital firm SOSV. “We put a hole into the ground, which by definition, you get into right there at that spot.”

Fervo’s geothermal developing method is an “extension” of oil and gas drilling techniques, a sector that Latimer said the US has a “multi-decade enduring cost advantage” that’s “very difficult to replicate” in China.

“[Geothermal is] a very niche industry, but it’s right here in the US. And with the right investments, at the right speed, that can be that way forever,” Latimer said.

With geothermal’s center of gravity being in the US, Latimer said that Fervo’s goal is to become “the biggest electricity company in the world,” and do so within the next 15 years.

“What we are going to end up doing is creating a more reliable energy grid, unlocking economic development, control the cost of electricity for consumers going forward,” Latimer said. “Oh, and by the way, it’s also is going to address the carbon emissions problem and climate problem.”