World’s largest geothermal PPAs highlight increasing utility demand for clean, reliable next-generation geothermal energy

Fervo Energy (“Fervo”), the leader in next-generation geothermal energy, announced today the execution of two power purchase agreements (PPAs) totaling 320 MW with Southern California Edison (SCE), one of the nation’s largest utilities. The 15-year agreements for 24/7 carbon-free geothermal energy will provide reliable, clean, and affordable power for the equivalent of 350,000 homes across Southern California and support SCE’s vision to help California transition to a cleaner energy future.

SCE will purchase the power from Fervo Energy’s 400 MW Cape Station project currently under construction in southwest Utah. The first 70 MW phase of the project is expected to be operational by 2026 and the second phase will be operational by 2028.

"This announcement is another milestone in California’s commitment to clean, zero-carbon electricity," said California Energy Commission Chair David Hochschild. "Enhanced geothermal systems complement our abundant wind and solar resources by providing critical base load when those sources are limited. This is key to ensuring reliability as we continue to transition away from fossil fuels."

In 2021, the California Public Utilities Commission issued a mid-term reliability (MTR) mandate requiring utilities to procure 1,000 MW of non-weather-dependent, non-battery, zero-emission energy to increase the reliability of the state’s electric grid. This decision catalyzed demand for geothermal, which provides firm, carbon-free power, filling gaps left by weather-dependent renewables like solar and wind.

Fervo’s breakthrough drilling technology enables geothermal to address this growing demand for renewable firm power. By using techniques adapted from the oil and gas industry, Fervo has de-risked a scalable approach to geothermal development. Early drilling results, released in February 2024, show faster drilling times and an overall reduction in costs at Cape Station, Fervo’s 400 MW development in Beaver County, Utah. These positive results support continued commercialization and a readiness for large-scale agreements like this, the world’s largest geothermal PPA. Fervo has now contracted 373 MW of renewable power from Cape Station.

“Geothermal stands as the dependable and adaptable solution essential for California's journey towards a fully decarbonized grid,” said Dawn Owens, VP, Head of Development & Commercial Markets for Fervo Energy. “As electrification increases and climate change burdens already fragile infrastructure, geothermal will only play a bigger role in U.S. power markets. Fervo looks forward to continuing to meet these needs, providing firm, clean power to help balance California’s energy portfolio.”

In 2022, Fervo contracted 53 MW of power from Cape Station to California community choice aggregators, and in 2021, Fervo and Google signed the world’s first corporate agreement to develop next-generation geothermal power. Fervo’s commercial pilot in Nevada came online in November 2023 and is sending carbon-free electricity to the local grid that powers Google’s data centers.

About Fervo Energy

Fervo Energy provides 24/7 carbon-free energy through the development of next-generation geothermal power. Fervo’s mission is to leverage innovation in geoscience to accelerate the world’s transition to sustainable energy. Geothermal has a major role to play in the future electric grid, and Fervo’s key advancements in drilling and subsurface analytics bring a full suite of modern technology to make geothermal cost competitive and globally scalable. For more information, please visit www.fervoenergy.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240625544692/en/