Fervo Energy shares surged over 14% in pre-market trading. The company signed its largest-ever power purchase agreement with Google.
Fervo will supply Google with nearly 400 megawatts of electricity. Power will originate from the Cape Station project in southwestern Utah. Deliveries are scheduled to begin in 2028.
The deal provides commercial validation for Fervo’s enhanced geothermal technology. The Cape Station project represents a $2 billion investment. The Wall Street Journal reported the agreement as a significant step for clean energy. This news addresses recent investor concerns regarding potential revenue constraints.