Fervo Energy and Shell Energy have signed a historic geothermal power purchase agreement for the delivery of 31 MW over the next 15 years. This carbon-free energy supply will be destined for Shell Energy’s retail customers, who will begin benefiting from this clean energy starting in 2026.
The agreement is linked to the Cape Station geothermal project, one of Fervo’s most ambitious initiatives, located in Beaver County, Utah. With this transaction, Shell Energy becomes the first electricity offtaker of Phase I of Cape Station , which will increase its initial capacity from 400 MW to 500 MW. This capacity increase is achieved through technological innovations that optimize the drilling and spacing of geothermal wells .
Technological advances for greater efficiency
The Cape Station expansion represents an increase in production capacity and a significant advance in geothermal efficiency. Fervo has managed to increase energy production per well without the need for additional drilling , through innovations such as increasing casing diameters and using fiber optic sensors to improve well spacing. These improvements, in addition to optimizing project performance, also make geothermal energy more cost-effective and scalable.
This agreement highlights Fervo Energy’s leadership in geothermal development and responds to the growing demand for clean, reliable energy, especially in states like California, where the California Public Utilities Commission (CPUC) has required utilities to purchase 1,000 MW of weather-neutral power to ensure grid reliability. This mandate underscores the importance of geothermal energy as a stable, emissions-free energy source.
The future of geothermal energy
With this agreement, Fervo Energy has secured the full capacity of Cape Station’s Phase I. It also continues to expand its portfolio of power purchase agreements (PPAs) with major energy companies, such as Southern California Edison , with whom it signed the largest geothermal energy agreement in history in 2024.
These agreements are just the beginning of a series of initiatives that position geothermal energy as a key element in the transition to a cleaner and more sustainable energy future.
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Source and photo: Fervo Energy
