Apr 15, 2025
Fervo has entered into a 31 MW geothermal power purchase agreement with Shell Energy.
Geothermal developer Fervo Energy has secured a 31 MW Power Purchase Agreement (PPA) with Shell Energy North America, marking a significant advancement for geothermal energy in the U.S. This agreement is a milestone for geothermal in California, as Shell Energy will purchase 31 megawatts of reliable geothermal power from Fervo’s Cape Station project in Beaver County, Utah, which will be supplied to California’s grid to meet the energy needs of large customers and retail providers across the state.
The PPA aids California’s clean energy objectives by providing continuous, zero-emissions electricity that meets long-term reliability requirements, especially as the state moves away from fossil fuels and increases the use of intermittent renewables like solar and wind.
This agreement reflects a trend in corporate and utility geothermal PPAs, adding to Fervo's previous 115 MW PPA with Google from the same Cape Station project. Glenn Wright, President of Shell Energy North America, expressed pride in collaborating with Fervo to enhance the supply of 24/7 clean electricity to the grid, supporting decarbonization efforts.
Fervo’s Cape Station project utilizes enhanced geothermal systems (EGS) and advanced drilling methods from the oil and gas sector, allowing for geothermal development in previously inaccessible areas and significantly expanding resource potential. The Cape Station site is anticipated to be operational by 2026 and will become the largest next-generation geothermal project in the U.S.
This PPA with Shell Energy reinforces the increasing importance of geothermal energy as a reliable, clean energy source that complements intermittent resources. As more companies and utilities look for 24/7 carbon-free electricity, geothermal is emerging as a fundamental element of clean energy strategies. With this agreement, Fervo highlights the potential of innovative geothermal development to enhance grid reliability, reduce emissions, and facilitate scalable decarbonization—key goals in California and global energy markets.
The PPA aids California’s clean energy objectives by providing continuous, zero-emissions electricity that meets long-term reliability requirements, especially as the state moves away from fossil fuels and increases the use of intermittent renewables like solar and wind.
This agreement reflects a trend in corporate and utility geothermal PPAs, adding to Fervo's previous 115 MW PPA with Google from the same Cape Station project. Glenn Wright, President of Shell Energy North America, expressed pride in collaborating with Fervo to enhance the supply of 24/7 clean electricity to the grid, supporting decarbonization efforts.
Fervo’s Cape Station project utilizes enhanced geothermal systems (EGS) and advanced drilling methods from the oil and gas sector, allowing for geothermal development in previously inaccessible areas and significantly expanding resource potential. The Cape Station site is anticipated to be operational by 2026 and will become the largest next-generation geothermal project in the U.S.
This PPA with Shell Energy reinforces the increasing importance of geothermal energy as a reliable, clean energy source that complements intermittent resources. As more companies and utilities look for 24/7 carbon-free electricity, geothermal is emerging as a fundamental element of clean energy strategies. With this agreement, Fervo highlights the potential of innovative geothermal development to enhance grid reliability, reduce emissions, and facilitate scalable decarbonization—key goals in California and global energy markets.