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FinanceFervo Energy signs record 396 MW geothermal PPA with Google
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Fervo Energy signed a landmark 396-megawatt enhanced geothermal power purchase agreement with Alphabet's Google on September 1, 2026, the largest such deal on record. The agreement covers output from Fervo's Cape Station project in southwestern Utah, expected online in 2028, with an option for Google to expand purchases by roughly 600 megawatts by June 2030, potentially reaching nearly 1 gigawatt. The carbon-free electricity is intended to power a potential Google data center in Utah, though final plans depend on engineering reviews and approvals. The deal builds on an existing partnership, including Fervo's Project Red in Nevada (2023) and a 115-megawatt deal in June 2024. Fervo, which raised over $2 billion in its May 2026 IPO, uses oil-and-gas drilling and hydraulic fracturing techniques for geothermal reservoirs. The company's total contracted capacity now stands at about 1,000 megawatts, with other buyers including Shell and Southern California Edison.
Source report
By: Cris Tolomia Source: Quartz Reading Time: 2 minutes
Fervo Energy has signed a 396-megawatt power purchase agreement (PPA) with Alphabet's Google, marking the largest enhanced geothermal power purchase agreement on record. The deal will supply carbon-free electricity for a potential data center in Utah.
Key Details
- Project: Fervo's Cape Station enhanced geothermal systems (EGS) project in southwestern Utah
- Expected Online Date: 2028
- Expansion Option: Google holds an option to increase its purchase by approximately 600 megawatts by June 2030, potentially bringing the total to nearly 1 gigawatt
- Final Data Center Plans: Subject to engineering feasibility reviews, state and local approvals, and commercial conditions
Statements from Executives
Tim Latimer, CEO and co-founder of Fervo Energy:
"This agreement reinforces that EGS is ready to power the next generation of computing infrastructure. As demand for reliable electricity grows, customers like Google need energy resources that can be deployed at scale, operate around the clock, and deliver where power is needed."
Lucia Tian, Google's Director of Advanced Energy Technologies (via The Wall Street Journal):
"Even though right now we don't have clarity yet on how this will serve a data center…we know that it will be a foundational building block of power generation for a data center presence in Utah."
Michael Terrell, Google's Head of Advanced Energy:
"The next chapter of advanced power generation technology is being written in Utah. This project will drive meaningful economic benefit to the local community and help catalyze long-term energy cost reductions by making enhanced geothermal more affordable and accessible."
Background and Existing Partnership
- Project Red: Fervo's commercial pilot project in Nevada came online in 2023 and delivers power to the local grid, including Google's data centers in the state.
- June 2024 Agreement: Fervo, Google, and utility NV Energy signed a 115-megawatt deal in Nevada tied to the Clean Transition Tariff.
- Cape Station Expansion: Tuesday's deal is part of Cape Station's expansion beyond its initial 100-megawatt phase. The initial phase is expected to begin feeding electricity into the grid before the end of 2026.
Company Profile
- Headquarters: Houston, Texas
- Technology: Applies drilling and hydraulic fracturing methods from the oil-and-gas sector to engineer underground geothermal reservoirs
- Investment: More than $2 billion committed to the Cape Station project
- IPO: Fervo's May 2026 initial public offering raised over $2 billion
- Total Contracted Capacity: Approximately 1,000 megawatts, with Shell and Southern California Edison among other buyers
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Source
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Google and Fervo Energy sign record 396 MW geothermal deal for Utah data center