Fervo Energy has signed a 15-year power purchase agreement (PPA) with Shell Energy North America for 31 megawatts of around-the-clock geothermal power. According to the company announcement, the electricity will come from Phase I of Cape Station, Fervo’s flagship geothermal development in Beaver County, Utah, and will begin serving Shell Energy’s retail customers in 2026.
The agreement not only marks Shell Energy as the first offtaker from Cape Station, but it also catalyzes a major expansion of the project’s total capacity, from 400 MW to 500 MW. The press release says that recent innovations in drilling and well development enabled the upsizing. These include increasing casing diameter, optimizing well spacing with fiber optic sensing, and employing staggered bench development, all of which allow Fervo to generate more power per well without additional drilling.
“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”, said Dawn Owens, VP, Head of Development & Commercial Markets at Fervo. Cape Station is touted as the largest enhanced geothermal systems (EGS) development in the world and will deliver firm, zero-emission power to the grid starting in 2026.
The deal comes amid growing demand for non-weather-dependent, non-battery clean energy. In California, a 2021 mandate from the Public Utilities Commission requires procurement of 1,000 MW of such energy sources to support grid reliability. With this latest agreement, all 500 MW of Cape Station’s capacity are now fully contracted, including previously announced PPAs with Southern California Edison and Clean Power Alliance, solidifying Fervo’s role as a key provider of firm, carbon-free power in the evolving U.S. energy landscape.
