Fervo signs 320-MW geothermal PPA with California utility

Fervo Energy has announced the execution of two power purchase agreements (PPAs) totaling 320 MW over 15 years with Southern California Edison (SCE), one of the largest utility companies in the USA. Power will be purchased from Fervo Energy’s Cape Station project, which is expected to be operational by 2026.

Fervo Energy is currently in the process of developing the 400-MW Cape Station geothermal project in Beaver County, Utah following the success of Project Red in Nevada. By using techniques adapted from the oil and gas industry, Fervo has de-risked a scalable approach to geothermal development. Drilling results in Cape Station announced earlier this year indicate improved drilling performance and overall reductions in costs.

The first 70 MW phase of the project is expected to be operational by 2026 and the second phase will be operational by 2028. Fervo had previously selected Turboden S.p.A. to provide the engineering and procurement of power plant equipment for the first phase of the project.

The PPA will supply the equivalent of the power demand of 350,000 homes across  Southern California and support SCE’s vision to help California transition to a cleaner energy future. In 2021, the California Public Utilities Commission issued a mid-term reliability (MTR) mandate requiring utilities to procure 1,000 MW of non-weather-dependent, non-battery, zero-emission energy to increase the reliability of the state’s electric grid. This decision catalyzed demand for geothermal, which provides firm, carbon-free power, filling gaps left by weather-dependent renewables like solar and wind.

“This announcement is another milestone in California’s commitment to clean, zero-carbon electricity,” said California Energy Commission Chair David Hochschild. “Enhanced geothermal systems complement our abundant wind and solar resources by providing critical base load when those sources are limited. This is key to ensuring reliability as we continue to transition away from fossil fuels.”

“Geothermal stands as the dependable and adaptable solution essential for California’s journey towards a fully decarbonized grid,” said Dawn Owens, VP, Head of Development & Commercial Markets for Fervo Energy. “As electrification increases and climate change burdens already fragile infrastructure, geothermal will only play a bigger role in U.S. power markets. Fervo looks forward to continuing to meet these needs, providing firm, clean power to help balance California’s energy portfolio.”

Source: Fervo Energy via BusinessWire