Fervo Energy develops and operates geothermal energy projects to provide 24/7 carbon-free power. It combines proven oil-and-gas technologies with geothermal science, notably horizontal drilling and distributed fiber-optic sensing, to unlock geothermal resources that were previously uneconomical. The company’s main product is a steady, carbon-free geothermal energy supply that can be sold to electricity providers seeking decarbonization. Its approach differs from competitors by applying oil-and-gas drilling methods and advanced sensing to unlock higher resource potential and deliver reliable, cost-effective energy. Fervo’s flagship Cape Station Project demonstrates this approach in action. The company’s goal is to accelerate the clean energy transition by delivering reliable, scalable geothermal energy and expanding geoscience-enabled solutions for decarbonizing the electricity sector.
Company Size
201-500
Company Stage
IPO
Headquarters
Houston, Texas
Founded
2017
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Fervo Energy has become the world's first enhanced geothermal company to deliver commercial electricity to the grid. The company announced that its Cape Station power plant began selling power on 30 September, one day ahead of schedule. The first block of the facility was completed in 23 months from groundbreaking to commercial operations. Once fully operational, Cape Station will generate 100 megawatts, with potential expansion to 4 gigawatts. Fervo aims to complete future blocks in 18 months. Google, Southern California Edison, and other companies have committed to purchasing power from the project. Unlike traditional geothermal plants, enhanced geothermal systems drill deeper to access hotter rock, enabling development in more locations. Fervo went public in May, raising $1.9 billion.
Fervo Energy's stock has hit its lowest valuation since trading began, currently at 74.38 times forward price-to-sales. The geothermal energy company maintains a substantial development pipeline of 48.6 gigawatts in early development and over 650,000 acres of land, with independently reviewed capacity potential exceeding 50 gigawatts. Despite having 1,054 megawatts of binding agreements worth approximately $11.9 billion in contracted revenue, Fervo generated only $174,000 in revenue during the first half of 2026. The company ended June 2026 with $2.1 billion cash following its IPO. Second-quarter capital expenditures reached $226.5 million, with another $850-900 million expected in the second half of 2026. Cape Station Phase II alone requires about $2.2 billion through 2028. Fervo currently carries a Zacks Rank of 4 (Sell), with analysts suggesting patience whilst the company proves its development scale can translate into durable revenues.
Fervo Energy has reached first power at Cape Station in Beaver County, Utah, marking a major milestone for enhanced geothermal systems (EGS). The utility-scale project's Phase I comprises three 33-megawatt GeoBlocks totalling approximately 100 megawatts, with the first unit expected to achieve commercial operations by 1 October 2026. The company is constructing an additional 400-megawatt phase expected online in 2028. Overall contracted capacity at Cape Station stands at approximately 900 megawatts. Fervo applies horizontal drilling techniques from the oil and gas industry to access underground heat resources. Unlike intermittent renewables, EGS generates electricity continuously by tapping subterranean heat. The facility aims to serve growing demand from data centres, artificial intelligence infrastructure, and manufacturing requiring reliable, carbon-free power. Cape Station builds on Fervo's Project Red, which has supplied grid electricity since 2023.
Google-backed Fervo Energy has brought the first 33 MW of its Cape Station geothermal power plant online in Beaver County, Utah. The enhanced geothermal systems facility is expected to reach 100 MW capacity by January and scale to 500 MW by 2028, with ultimate potential exceeding 4 GW. The plant uses drilling technology borrowed from oil and gas to create parallel wells 2,438 metres deep, heating water to 190 degrees Celsius through fractured rock. Google has been a proponent of geothermal since 2008 and has secured power deals with both Fervo and competitor Ormat Technologies. Fervo currently has 900 MW of contracted capacity. However, geothermal may cost datacentres a 20% premium over conventional energy, according to think tank Rhodium.
Fervo Energy has activated its Cape Station power plant in Utah, marking the first utility-scale, next-generation geothermal facility to supply power to the grid. The Houston-based startup announced the milestone on Thursday, with Southern California Edison as the primary customer. Cape Station's first phase consists of 100 megawatts, enough to power approximately 70,000 homes. The project comprises three 33-megawatt "GeoBlocks", with the first now operational. Fervo plans to complete the first phase by year's end and add 400 megawatts by 2028, with a potential third phase expanding capacity to 900 megawatts. The Bill Gates-backed company combines traditional geothermal science with modern drilling and fracking techniques. Fervo went public in May with the largest clean-energy IPO ever, initially achieving a market capitalisation exceeding $10 billion before declining to around $5 billion.