Mitsui & Co., Ltd. (Head Office: Tokyo; President and CEO: Kenichi Hori; hereinafter "Mitsui") has decided an investment in Fervo Energy Company ("Fervo"), a U.S.-based developer of next-generation geothermal production technologies and projects.

Geothermal power is attracting growing global attention as a renewable energy source capable of providing stable, weather-independent, round-the-clock electricity. Conventional geothermal development requires specific geological conditions such as natural permeability, which limits scalability and cost reductions. By contrast, one of the next-generation approaches—Enhanced Geothermal Systems (EGS)^*—applies subsurface drilling techniques established through shale gas development, such as horizontal drilling and hydraulic fracturing. This enables large-scale geothermal power generation without locational constraints. Demand for EGS is expected to increase further, particularly as data centers driven by AI and cloud services require additional stable power sources. In parallel, Japan's 7th Strategic Energy Plan also outlines a policy to accelerate early deployment of next-generation geothermal technologies.

Fervo is one of the leading companies in next-generation geothermal and is advancing EGS technology development. Leveraging strong technical capabilities, cost competitiveness, and execution capacity, the company has already commenced operations at its 3.5 MW pilot project in Nevada, with all electricity generated flowing onto the local grid that serves Google's data centers. Fervo is also constructing a 100 MW commercial project in Utah, which is scheduled to begin operations from 2026, with plans to expand the project to 500 MW, making it one of the world's largest geothermal developments. The project has secured power purchase agreements from off takers, including Southern California Edison.

Mitsui & Co. Ltd., together with its group companies, has built subsurface expertise, technologies, and partnerships through its upstream oil and gas and conventional geothermal businesses. Through this investment, Mitsui aims to strengthen collaboration with Fervo in project development and operations in the U.S., while also considering future expansion of next-generation geothermal businesses in Japan and Asia over the medium to long term.

Mitsui is expanding its portfolio of clean and firm power solutions, including next-generation geothermal and fusion. Mitsui has already invested in Kyoto Fusioneering and Commonwealth Fusion Systems in the fusion space. Mitsui has also invested in Crusoe, a U.S. company engaged in data center development and aims to support the growth of the AI and digital domains through its broader energy value chain initiatives.

*EGS involves creating artificial flow paths in subsurface formations, injecting water from the surface, utilizing underground heat to generate high-temperature brine, and bringing it back to the surface for power generation. Unlike conventional geothermal, it does not require naturally occurring hot water or steam, thereby reducing exploration and development complexity.

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