Google Acquires 400 MW from Fervo: A Major Win for Enhanced Geothermal Energy

Geothermal energy firm Fervo secured another significant milestone as Google agreed to acquire nearly half a gigawatt of electricity for a forthcoming data center in Utah.

The power purchase agreement, revealed on Tuesday, confirms Google will buy 396 megawatts from Fervo’s Cape Station plant in Utah, anticipated to commence operations in 2028. Additionally, Google has the option to procure another 600 megawatts through June 2030.

This agreement emerges at a time when Google and other large-scale companies are actively seeking new electricity sources across the nation. Google has consistently been one of the major buyers of clean energy in the U.S. and beyond, procuring power from wind, solar, and battery sources to fulfill its commitment to achieving net-zero emissions by 2030.

However, in April, that objective became more challenging after Google established a contract with data center developer Crusoe for 933 megawatts of natural gas power in Texas.

The Fervo agreement may assist Google in advancing its AI goals while minimally compromising its net-zero target.

Fervo has the regulatory approval to generate up to 2 gigawatts of geothermal energy at Cape Station, but Sarah Jewett, Fervo’s senior vice president of strategy, informed TechCrunch in May that a third-party engineer indicated the site has sufficient heat to produce twice that amount of electricity.

If fully developed, the potential 4 gigawatts could nearly double the total geothermal generating capacity in the U.S., according to a recent report from the U.S. Department of Energy. There’s a possibility that Google’s gigawatt deal may expand further if Fervo’s projects progress as planned.

Enhanced geothermal technologies developed by Fervo can access deeper heat sources. The report suggests that utilizing such technologies, the U.S. could generate up to 57 terawatts of electricity.

The new agreement between Fervo and Google adds to their ongoing partnership. The two companies have collaborated for over five years, with Google purchasing some of Fervo’s initial electricity. Recently, Google participated in Fervo’s latest funding round prior to the geothermal startup’s public listing.

While Fervo’s stock surged on its debut trading day, it has since lost those gains and then some over the past few months. However, news of the agreement with Google boosted the stock by about 30% yesterday, before traders took some profits today.