Fervo Signs 396MW Geothermal Deal with Google for 2028 Start
Fervo Energy has secured a significant contract with Alphabet (Google) for up to 396MW of geothermal power from 2028, with an option to expand to 600MW by 2030. This deal involves a prospective Utah data center and comes as the European Union aims to boost its geothermal electricity capacity.
Key Points:
- Capacity: Fervo will provide up to 396MW in Utah, with potential for expansion to 600MW.
- Start Date: Deliveries begin in 2028.
- Comparison: This single contract equals the EU's total net geothermal electricity capacity of 1GW in 2022.
- Geothermal Potential: Geothermal currently supplies only 0.5% of the EU's renewable electricity as of 2024.
- European Plant: Europe's flagship next-generation plant, Eavor’s Geretsried facility in Bavaria, generates approximately 8.2MW of electricity and 64MW of heat.
- Financials: Fervo shares rose significantly upon announcement. The Cape Station project still requires Utah regulatory approval.
Context:
- Policy Gap: There is a lack of comparable contracts between European countries and hyperscalers, despite good resources.
- Strategic Need: Growing data center loads across Europe create a demand for clean, round-the-clock power sources, aligning with the region's climate goals.
- Lack of Strategy: The EU has yet to present a comprehensive geothermal strategy despite calls from MEPs as early as January 2024.