MILESTONE FOR UTAH GEOTHERMAL ENERGY
John Rogers
Fervo Energy’s 400-megawatt Cape Station power project, currently under construction near Milford in Beaver County, has reached a critical milestone on its way to becoming the largest geothermal generating station in the United States. Houston-based Fervo has announced the execution of two power purchase agreements (PPAs) totaling 320 megawatts with Southern California Edison (SCE), one of the nation’s largest utilities.
When Fervo announced the project and began drilling test holes in 2023, the company said the project would begin delivering around-the-clock, clean power to the grid in 2026 and reach full-scale production in 2028, while providing a significant boost to Beaver County’s economy. Fervo said that during its construction, Cape Station would provide around 6,600 jobs and 160 full-time jobs during its operation, generating over $437 million in earned wages in its first 10 years.
“Utah is no stranger to energy leadership. For decades, oil and gas workers in the Uinta Basin have produced energy vital to the growth of not just our state but our nation,” Gov. Spencer Cox said when ground was broken for Cape Station. “Geothermal innovations like those pioneered by Fervo will play a critical role in extending Utah’s energy leadership for generations to come.”
Combined with a previous PPA, Fervo has now contracted 373 megawatts of its 400-megawatt capacity for Cape Station. In 2022, Fervo contracted 53 megawatts of power to a California community power aggregator. Fervo’s commercial geothermal pilot project in Nevada came online in November and is sending electricity to the local grid that powers Google data centers.
The two PPAs with SCE call for the utility to buy up to 80 percent of the output of the Cape Station plant for 15 years, virtually assuring the project’s success. SCE said the purchase will provide electricity for the equivalent of 350,000 homes across Southern California and will “support SCE’s vision to help California transition to a cleaner energy future.”
Fervo is in the process of drilling up to 125 wells designed to tap the Earth’s natural heat in an “enhanced geothermal system.” Unlike existing geothermal projects, the enhanced process doesn’t require the presence of hot springs or geysers to deliver heat and pressure for generating power. The system consists of a man-made reservoir, created where there is hot rock but insufficient fluid saturation. Water is then injected into the subsurface under carefully controlled conditions, which cause pre-existing fractures to reopen, creating permeability and power-generating steam.
“Geothermal stands as the dependable and adaptable solution essential for California’s journey toward a fully decarbonized grid,” said Dawn Owens, vice president and head of development and commercial markets for Fervo Energy, in a release. “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.”
“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.”