Fervo Energy Signs 396 MW Geothermal Power Purchase Agreement with Google

en.Wedoany.com Reported - On September 1, Fervo Energy announced a 396 MW enhanced geothermal system power purchase agreement with Google, with electricity to be supplied from the Cape Station project in Beaver County, Utah, USA. According to U.S. Securities and Exchange Commission filings, Fervo Energy's wholly-owned subsidiary Cape Generating Station 6 LLC formally signed the agreement with Google Energy LLC on August 26, with a contract term of 15 years for power supply.

The 396 MW contracted capacity will be delivered in four 99 MW tranches, with the first tranche targeting commercial operation starting in the third quarter of 2028. Fervo Energy provides a parent company guarantee for the project company's performance obligations under the agreement, while Google's parent company Alphabet provides a parent company guarantee for Google Energy's related obligations. The specific transaction amount of the contract was not disclosed.

The agreement also grants Google an option to purchase approximately 600 MW of additional capacity. Fervo Energy is required to provide Google with a corresponding expansion plan. If the parties further execute formal agreements for the additional capacity, the contracted capacity from Cape Station to Google could increase to at least approximately 950 MW, with commercial operation for the additional portion no later than June 2030. This approximately 600 MW of capacity remains an option at this stage, and its exercise depends on Google accepting the offer and the parties reaching subsequent formal agreements.

This 396 MW agreement corresponds to the continued expansion of the Cape Station GeoCluster. Fervo Energy is currently building 500 MW of generating capacity at the project, of which Phase 1 is approximately 100 MW, consisting of 3 GeoBlocks. As of August, GeoBlock 1 and GeoBlock 2 have achieved mechanical completion. GeoBlock 1 is undergoing commissioning, with first power generation planned for the fourth quarter of 2026 and full production by year-end, while the other two units are expected to begin generating electricity in early 2027.

Phase 2 of Cape Station is approximately 400 MW, consisting of 8 GeoBlocks of 50 MW each, and is currently under construction with plans to enter operation in 2028. Fervo Energy uses standardized organic Rankine cycle generating units and applies the 3.0 well design with extended horizontal well sections and large-diameter casing in Phase 2. The company's progress update released in August shows that both Phase 2 drilling and surface power plant construction are advancing.

This power purchase agreement also represents a continuation of the existing geothermal collaboration between Fervo Energy and Google. The two parties first partnered through the Project Red project in Nevada, which entered operation in 2023. In 2024, Fervo Energy, Google, and NV Energy formed a 115 MW geothermal power purchase arrangement. In the first half of 2026, Fervo Energy signed a geothermal framework agreement with Google, planning to support the development of up to 3 GW of geothermal projects by 2033, with near-term project development scale reaching 1 GW.

The 396 MW of electricity purchased by Google is intended for its planned data center in Utah. The final construction plan for this data center remains subject to engineering feasibility, state and local approvals, and commercial conditions, and it cannot currently be confirmed that the relevant data center project has received final approval for construction.