Fervo Energy launches first geothermal plant and signs 15‑year Google power purchase agreement
Fervo Energy reported that its Cape Station GeoBlock 1 achieved commercial operation on September 30, ahead of schedule, marking the first greenfield enhanced‑geothermal system to deliver power. The company disclosed third‑quarter revenue of $116,000 and a net income of $11.66 million, driven by a $29.9 million tax credit. It also announced a 15‑year take‑or‑pay PPA with Google for 396 MW, with an option to expand by 600 MW, bringing total contracted capacity to 1,054 MW and a backlog valued at $11.9 billion. The firm said it holds $1.9 billion in cash and expects fourth‑quarter capital expenditures of $450 million‑$500 million.
Why it matters
The Google PPA provides a long‑term, fixed‑price revenue stream that underpins Fervo’s financing strategy, while the start‑up of Cape Station moves the company from a development to an operating phase, potentially improving cash flow in upcoming quarters. The company’s guidance of $450‑$500 million capex for Q4 signals continued heavy investment before revenue ramps up.
Key facts
- 1Shares rose about 16% (15.85%) ahead of the quarterly report. ibtimes.com.au
- 2Third‑quarter revenue was $116,000. ibtimes.com.au
- 3Third‑quarter net income was $11.66 million. ibtimes.com.au
- 4Third‑quarter capital expenditures were $256.7 million. ibtimes.com.au
- 5Fervo signed a 15‑year PPA with Google for 396 MW, with an option for an additional 600 MW. ibtimes.com.au
- 6Total contracted capacity reached 1,054 MW, valued at $11.9 billion. ibtimes.com.au
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.