396 Megawatts of Geothermal Power in Binding Deal Between Fervo and Google
Key Facts
Fervo Energy announced on November 9 its results for the third quarter ended September 30, and disclosed a binding 15-year power purchase agreement with Google for 396 megawatts. The agreement provides for power to be supplied through the grid under a “pay for contracted quantity” structure, across 8 project units. The company said the first electricity is expected in mid-2028, while it is targeting full capacity by the end of the same year. The announcement came alongside quarterly results that combined expanded contracting with progress in commissioning the Cape Station plant. The deal places a defined capacity under a long-term commitment, while any additional increase remains outside the currently confirmed volume.
Fervo disclosed to the U.S. Securities and Exchange Commission that the project is divided into 4 successive tranches, each with capacity of 99 megawatts, with targeted commercial operation dates beginning in the third quarter of 2028. The project and proposed expansion are intended to support a potential data center in Utah. But execution remains subject to development, engineering and regulatory requirements, and the agreement filing also cited risks related to interconnection and power transmission availability. Supply is therefore targeted in tranches, rather than starting at full capacity on a single date. These phases define the delivery framework set out in the filing, while project requirements remain part of the execution process.
Fervo offered Google an option to increase capacity by about 600 megawatts, which could lift the total project to nearly a gigawatt if Google accepts the offer. The option falls under a development framework signed in March 2026, which allows for the development of up to 3 gigawatts of geothermal power through 2033. The quarterly filing said the proposed expansion amounts to at least 604 megawatts, and that total capacity could reach about 1,000 megawatts. However, this additional capacity is not part of the current binding agreement; it is contingent on Google’s acceptance and negotiations over a final agreement. The expansion is also subject to development, engineering and regulatory requirements, while the agreement filing cited risks related to interconnection and transmission availability.
On operations, Fervo announced that the first unit, “GeoBlock 1,” at Cape Station began commercial operation on September 30, one day ahead of its contractual deadline. The unit has a capacity of 33 megawatts, and the company said it is performing in line with expectations for production and power delivered under the power purchase agreement. The second unit was in early commissioning and exporting test power to the grid, while the third was in cold commissioning. The company expects both units to reach commercial operation by January 1, 2027. Once all three units are complete, Phase 1 is targeting capacity of about 100 megawatts.
Fervo’s capacity listed under binding power purchase agreements rose to 1,054 megawatts, with contracted revenue of about $11.9 billion after the Google agreement. The company had reported 658 megawatts and about $7.2 billion in contracted revenue at the end of the second quarter of 2026. It also raised its estimate of potential capacity at Cape Station to about 8.4 gigawatts, from a previous estimate of 4.3 gigawatts. The company attributed the increase in part to deeper well designs and the acquisition of additional land. This potential capacity remains a project estimate, separate from the capacity specified in the Google agreement and binding contracts.
Capital expenditure in the third quarter totaled $256.7 million, up from $226.5 million in the second quarter, and was primarily tied to Cape Station activities. At the same time, the company lowered its capital expenditure forecast for the second half of 2026 to a range of $700.0 million to $750.0 million, from a previous forecast of $850.0 million to $900.0 million. It attributed the revision to construction and commissioning efficiencies that delayed some spending on the Cape Google 400 project. The company said the spending delay does not change commercial operation dates or expected total investment. The lower forecast for the rest of the year thus followed a rise in quarterly spending from the previous quarter.
Third-quarter results showed net income of $11.7 million, alongside a net loss attributable to common shareholders of $20.8 million, or $0.07 per share. The company said net income included interest income and nonrecurring gains and tax benefits. In trading, Fervo shares closed at $11.38 on November 9, while Alphabet shares closed at $288.15 on the same day. The company set November 19 for an investor tour of Cape Station. It said the tour would not include new disclosures.