Fervo Energy has signed two power purchase agreements (PPAs) with Southern California Edison (SCE), a major US utility company.
The PPAs total 320 MW over 15 years, making it the world’s largest geothermal PPA to date.
This will provide a consistent supply of geothermal power from Fervo’s Cape Station project to SCE, expected to be operational by 2026.
Pioneering Geothermal Development
Fervo Energy is currently developing the 400 MW Cape Station geothermal project in Beaver County, Utah, following the success of Project Red in Nevada.
Leveraging techniques from the oil and gas industry, Fervo has created a scalable and de-risked approach to geothermal development.
Recent drilling results at Cape Station have demonstrated improved performance and cost reductions.
Two-Phase Project Implementation
The project is divided into two phases, with the first 70 MW phase expected to be operational by 2026 and the second phase by 2028.
For the first phase, Fervo has partnered with Turboden S.p.A. to provide engineering and procurement of power plant equipment.
Supporting California’s Clean Energy Goals
The PPA will supply clean energy to the equivalent of 350,000 homes in Southern California, aligning with SCE’s vision of a cleaner energy future for the state.
In 2021, California’s Public Utilities Commission mandated that utilities procure 1,000 MW of non-weather-dependent, zero-emission energy to enhance grid reliability.
This decision has spurred demand for geothermal energy, which offers a reliable, carbon-free power source that complements intermittent renewables like solar and wind.
California’s Commitment to Clean Energy
David Hochschild, Chair of the California Energy Commission, highlighted the announcement as a significant milestone in California’s commitment to clean energy.
He emphasized the role of enhanced geothermal systems in complementing wind and solar resources, providing critical baseload power when those sources are limited and ensuring grid reliability during the transition away from fossil fuels.
Fervo Energy’s Vision for Geothermal
Dawn Owens, VP, Head of Development & Commercial Markets for Fervo Energy, underlined geothermal energy’s crucial role in California’s path to a fully decarbonized grid.
As electrification expands and climate change impacts infrastructure, geothermal energy will become increasingly important in U.S. power markets. Fervo Energy aims to meet this growing demand by supplying reliable, clean power to balance California’s energy portfolio.