Fervo Energy signs 320 MW PPA with Southern California Edison

Fervo Energy, a leader in next-generation geothermal energy, announced the signing of two power purchase agreements (PPAs) with a total capacity of 320 MW with Southern California Edison (SCE), one of the largest electricity suppliers in the United States. These 15-year contracts will provide free, reliable and affordable 100% coal-fired geothermal energy for the equivalent of 350,000 homes in Southern California, supporting the state’s transition to cleaner energy. SCE is also behind the new transmission infrastructure.

A step towards independence from clean energy

These agreements relate to Fervo Energy’s Cape Station project, which is currently under construction in southwestern Utah and is expected to generate 400 MW upon completion. The first 70 MW phase is expected to be operational by 2026, with the second phase in 2028. This project is consistent with SCE’s vision to promote a clean energy transition in California.
According to David Hochschild, chairman of the California Energy Commission, “Improved geothermal systems complement our wind and solar energy resources, providing essential baseload when these sources are limited. This is critical to ensuring reliability as we continue to transition away from fossil fuels.”

Revolutionary technology for growing needs

In 2021, the California Public Utilities Commission imposed a Medium Term Reliability Order (MTR), requiring utilities to purchase 1,000 MW of zero-emission, weather-neutral, unstored energy to improve the reliability of the state’s power grid. This decision has increased demand for geothermal energy – a reliable, zero-emission source that fills the gap left by weather-dependent renewable energy sources.
Fervo’s innovative drilling technology, adapted from the oil and gas industry, helps meet the growing demand for continuous renewable energy. Initial drilling results, released in February 2024, indicate shorter drilling times and overall cost reductions at the Cape Station project. These positive results support ongoing marketing and preparation for large-scale contracts, such as this geothermal application, the largest ever in the world.

Prospects for the future of geothermal energy

“Geothermal energy is becoming an essential, reliable and flexible solution on California’s path to a fully decarbonized grid,” says Dawn Owens, vice president, director of development and commercial markets at Fervo Energy. “As electrification increases and climate change pressures already fragile infrastructure, the role of geothermal energy in U.S. energy markets will only grow. Fervo looks forward to continuing to meet these needs by providing clean, stable energy to balance California’s energy portfolio.”
Since 2021, Fervo has signed several agreements, including a 53 MW agreement with select community aggregators in California and a partnership with Google to develop the company’s first next-generation geothermal power plant. Fervo’s commercial pilot project in Nevada, operating since November 2023, is providing the local grid with zero-emission electricity for Google’s data centers.