- Fervo Energy has signed a 15-year power purchase agreement with Shell Energy for 31 MW of carbon-free geothermal power. - The agreement will enable Shell Energy to serve its retail customers with renewable power starting in 2026. - This contract marks the first time Shell Energy will receive electricity from Fervo's Cape Station located in Beaver County, Utah. - The agreement also increases Cape Station's capacity from 400 MW to 500 MW due to advancements in Fervo's well design and field development strategy. - Innovations include increasing casing diameter, optimizing well spacing with fiber optic sensing, and implementing staggered bench development. - These improvements allow for a 100 MW capacity increase without additional drilling. - Dawn Owens, VP at Fervo, emphasized that this agreement highlights the demand for 24/7 carbon-free energy, positioning geothermal energy as a vital solution. - Cape Station is regarded as the world’s largest enhanced geothermal systems development, set to begin generating electricity in 2026. - With this agreement, Shell Energy's renewable portfolio expands to include firm, zero-emission geothermal power alongside wind, solar, and battery storage. - The agreement aligns with California's CPUC mandate for load-serving entities to secure non-weather-dependent, zero-emission energy to enhance grid reliability. - Fully contracted capacity at Cape Station now totals 500 MW, indicating robust interest from utilities for clean, firm power. - Existing significant contracts include agreements with Southern California Edison and an expanded deal with Clean Power Alliance for additional geothermal energy. - Fervo Energy aims to provide 24/7 carbon-free energy through innovative geothermal power development, contributing to the global energy transition. - The company focuses on leveraging advancements in geoscience to make geothermal energy cost-competitive and scalable worldwide.

New PPA expands Fervo’s Cape Station to 500 MW, driven by surging demand for 24/7 clean energy

HOUSTON, TX (April 15, 2025) – Fervo Energy (“Fervo”), the leader in next-generation geothermal development, today announced the execution of a 15-year power purchase agreement with Shell Energy North America (US), L.P. (“Shell Energy”) for 31 MW of 24/7 carbon-free geothermal power (the “Agreement”). Shell Energy will use the power purchased under the Agreement to serve its retail load customers beginning in 2026.

The Agreement will make Shell Energy the first offtaker to receive electrons from Phase I of Cape Station, Fervo’s flagship geothermal development in Beaver County, Utah. The Agreement also marks the official upsizing of Cape Station from 400 MW to 500 MW – a major milestone enabled by recent breakthroughs in Fervo’s well design and field development strategy. By increasing casing diameter, optimizing well spacing using fiber optic sensing, and implementing staggered bench development, Fervo is now able to generate more megawatts per well. These innovations significantly improve project efficiency and economics, allowing for a 100 MW capacity increase without the need for additional drilling.

“We’re thrilled to work with Shell Energy,” said Dawn Owens, VP, Head of Development & Commercial Markets at Fervo. “This agreement demonstrates that Fervo is stepping up to meet the moment. As customers seek out 24/7 carbon-free energy, geothermal is clearly an essential part of the solution.”

Cape Station is the world’s largest enhanced geothermal systems (EGS) development and will begin delivering electricity to the grid in 2026. With this agreement, Shell Energy expands its renewable energy portfolio, which already includes wind, solar, and battery storage, by adding firm, zero-emission geothermal energy to serve retail load customers.

This agreement further illustrates market demand for firm, zero-emission energy – a demand that Fervo is uniquely primed to meet. In 2021, the California Public Utilities Commission (CPUC) issued a mid-term reliability (MTR) mandate requiring load serving entities in California to procure a combined total of 1,000 MW of non-weather-dependent, non-battery, zero-emission energy to support grid reliability. Fervo’s firm, carbon-free geothermal power directly addresses this mandate and is a critical component of the state’s evolving energy mix.

With this agreement, 500 MW of capacity at Fervo’s Cape Station are fully contracted, underscoring strong demand from utilities and large energy purchasers for clean, firm power. This includes major existing agreements such as the PPAs with Southern California Edison – announced in June 2024 as the world’s largest geothermal power purchase agreements – and an expanded deal with Clean Power Alliance that adds 18 MW of carbon-free geothermal energy to their existing PPA with Fervo.
About Fervo Energy

Fervo Energy provides 24/7 carbon-free energy through the development of next-generation geothermal power. Fervo’s mission is to leverage innovation in geoscience to accelerate the world’s transition to sustainable energy. Geothermal has a major role to play in the future electric grid, and Fervo’s key advancements in drilling and subsurface analytics bring a full suite of modern technology to make geothermal cost competitive and globally scalable. For more information, please visit www.fervoenergy.com.

Fervo Media Contact
Chelsea Anderson
comms@fervoenergy.com