Fervo Energy, a leader in next-generation geothermal energy, has announced the signing of two power purchase agreements (PPAs) totaling 320MW with Southern California Edison (SCE), one of the largest electricity providers in the United States. These 15-year contracts will provide free, reliable and affordable 100% carbon geothermal energy for the equivalent of 350,000 homes in Southern California, supporting the state’s transition to cleaner energy. SCE is also behind new transmission infrastructures.
A step towards clean energy independence
These agreements concern Fervo Energy‘s Cape Station project, currently under construction in southwestern Utah, which is expected to generate 400MW when completed. The first 70MW phase should be operational by 2026, followed by the second phase in 2028. This project is in line with SCE’s vision of promoting a clean energy transition in California.
According to David Hochschild, Chairman of the California Energy Commission, “Enhanced geothermal systems complement our wind and solar resources by providing essential base load when these sources are limited. This is crucial to ensuring reliability as we continue to move away from fossil fuels.”
Revolutionary technology for growing needs
In 2021, the California Public Utilities Commission imposed a medium-term reliability mandate (MTR) requiring utilities to purchase 1,000MW of zero-emission, non-weather-dependent, non-battery-stored power to improve the reliability of the state’s power grid. This decision has boosted demand for geothermal energy, a reliable, carbon-free source that fills the gap left by weather-dependent renewables.
Fervo’s innovative drilling technology, adapted from the oil and gas industry, helps meet this growing demand for continuous renewable energy. The first drilling results, published in February 2024, show faster drilling times and an overall reduction in costs at the Cape Station project. These positive results support ongoing marketing and preparation for large-scale agreements such as this geothermal APP, the world’s largest to date.
Future prospects for geothermal energy
“Geothermal is emerging as the essential reliable and adaptable solution for California’s journey towards a fully decarbonized grid,” says Dawn Owens, VP, Head of Development & Commercial Markets at Fervo Energy. “With increasing electrification and the pressures of climate change on an already fragile infrastructure, geothermal’s role in U.S. energy markets will only grow. Fervo looks forward to continuing to meet these needs by providing clean, stable energy to balance California’s energy portfolio.”
Since 2021, Fervo has signed several contracts, including a 53 MW agreement with community aggregators of choice in California and a partnership with Google to develop the first next-generation geothermal power plant dedicated to a company. Fervo’s commercial pilot in Nevada, operational since November 2023, supplies the local grid with carbon-free electricity for Google’s data centers.
