Fervo Energy has announced the signing of two power purchase agreements(PPAs) totaling 320 MW with Southern California Edison(SCE), one of the nation’s leading utilities.
Fervo Energy’s power purchase agreement
SCE will purchase power from Fervo Energy’s 400 MW capacity Cape Station project under construction in southwestern Utah. The first phase of the project, with 70 MW, is scheduled to start operations in 2026, and the second phase will be operational in 2028.
[post_relacionado]“Enhanced geothermal systems are essential, and complement wind and solar resources, providing critical base load, especially when they are limited. This is critical to ensure reliability as California moves toward phasing out fossil fuels.”
David Hochschild, Chairman of the California Energy Commission.
In 2021, the California Public Utilities Commission issued a medium-term reliability mandate (MTR) requiring utilities to procure 1,000 MW of emission-free, battery-free, non-weather-dependent power. This decision has increased demand for geothermal energywhich offers constant, carbon-free energy, filling the gaps in climate-dependent renewables such as solar and wind.
Fervo’s technology
Fervo’s drilling technology enables geothermal to meet this growing demand for renewable energy. renewable energy firm. In addition, using techniques derived from the oil and gas industry, Fervo has been able to reduce risks and costs in geothermal development in a scalable manner.
Initial drilling results, released in February 2024, show faster drilling times and overall cost reductions at Cape Station, Fervo’s 400 MW project in Beaver County, Utah. Such results support continued commercialization and preparation for large-scale deals, this being the largest geothermal PPA in the world. To date, Fervo has contracted 373 MW of renewable energy from Cape Station.
In 2022, Fervo contracted 53 MW of Cape Station power with California community choice aggregators. In 2021, Fervo and Google signed the world’s first corporate agreement to develop next-generation geothermal energy. Fervo’s commercial pilot project in Nevada began operating in November 2023 and is already sending carbon-free electricity to the local grid that powers Google’s data centers.
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Source and photo: Fervo Energy