Fervo geothermal power contracts have reached $11.9 billion in expected revenue, up from $7.2 billion last quarter. The company reported the increase Monday, Nov. 9, as its Cape Station project in Utah began delivering commercial electricity.
Fervo Energy now has binding agreements covering 1,054 megawatts of generating capacity, compared with 658 megawatts at the end of June. Growing demand from AI data centers has helped attract customers seeking reliable electricity.
Fervo Geothermal Power Contracts Expand With Google Deal
A major contributor is Google’s 396-megawatt power purchase agreement at Cape Station. The 15-year contract is expected to begin delivering electricity in mid-2028, with full capacity targeted by year-end.
Google also has an option to purchase approximately 600 additional megawatts. That could increase the company’s agreement to nearly 1 gigawatt.
As TechAmerica previously reported, the arrangement supports Google’s growing electricity requirements for data centers.
Fervo’s Cape Station project uses enhanced geothermal technology to extract heat from underground rock. Its wells supply thermal energy that is converted into electricity.
An updated independent assessment estimates the site could support 8.4 gigawatts of generating capacity, nearly double its previous estimate. That figure represents potential development capacity, not currently available electricity.
Cape Station Begins Commercial Power Generation
Fervo’s first 33-megawatt GeoBlock began commercial operations Sept. 30. Two additional units are expected to enter commercial service by Jan. 1, 2027, completing the project’s initial 100-megawatt phase.
The company is building larger 50-megawatt units for Google’s expansion. These modular installations allow generating capacity to increase gradually as construction progresses.
TechAmerica previously covered Cape Station’s first commercial operations, which followed approximately 23 months of construction.
Construction Costs Remain a Challenge
Fervo reported a third-quarter operating loss of $43.7 million. It ended September with $1.9 billion in cash and cash equivalents and approximately $301.6 million in debt.
The company estimates its initial Cape Station phase will cost about $7,000 per kilowatt of generating capacity. Its Google project targets a lower cost of $5,500 per kilowatt.
Fervo’s longer-term goal is $3,000 per kilowatt, although achieving that figure will require further construction efficiencies.
The $11.9 billion contract portfolio represents expected revenue under long-term agreements, not revenue already earned. Delivering that value will depend on completing projects and meeting electricity supply commitments.
