Google Backs Record Geothermal Deal with Fervo Energy in Utah

Fervo Energy has secured the largest enhanced geothermal system contract on record, agreeing to deliver close to 400 megawatts of round-the-clock power to Google from a Utah project that could reshape how the technology attracts investment.

The deal is built around EGS technology, which unlocks heat from deep dry rock formations rather than relying on naturally occurring hydrothermal resources. It advances a partnership the two companies began in 2021 with a 3.5 MW Nevada pilot, followed by a 115 MW agreement with NV Energy for Nevada data centers. The Utah commitment is on a different order of magnitude.

Cape Station, the Utah facility, will be developed in two phases. The first targets 100 MW, with a 33 MW test run expected before year-end. The larger 400 MW tranche is planned roughly two years after that. Google is weighing the supply for a future Utah data center; the company’s director of advanced energy technologies, Lucia Tian, described the generation as a foundation for its regional presence.

The agreement also gives Google an option to add approximately 600 MW of additional purchases by mid-2030 and a right of first refusal on up to 3 GW from Fervo’s future plants. Fervo plans to invest more than $2 billion toward what could become the world’s largest EGS installation by 2028. Its shares rose 15% following the announcement. The company’s COO put target capital costs at $7,000 per kilowatt in phase one and $5,500 per kilowatt in phase two.

Geothermal currently supplies just 0.4% of US electricity, limited by where conventional resources exist. EGS sidesteps those constraints, though financing early projects without guaranteed offtake has been challenging. CEO Tim Latimer has noted that customers requiring 24/7, scalable supply are the critical ingredient for the technology to grow — precisely what this contract delivers.

Source: Canary Media