Fervo Stock Soars as Google Deal Sparks Geothermal Power Surge

Fervo Energy Co.'s stock skyrocketed by as much as 26% after inking a deal with Google to supply almost 400 megawatts of power for a prospective data center in Utah.

The company plans to begin providing electricity from its Cape Station project in southwestern Utah starting in 2028. Fervo has secured backing from Breakthrough Energy Ventures, led by Bill Gates, and Devon Energy Corp., which is helping the firm unlock more geothermal energy production using oil and gas fracking methods.

This deal marks another significant power agreement for Fervo, following earlier deals with Southern California Edison Co. and Shell Plc, as well as Alphabet. Google has an option to tap an additional 600 megawatts of capacity from the Cape Station project by 2030, which would bring its total order to almost 1 gigawatt.

RBC Capital Markets analyst Christopher Dendrinos commented on the deal, stating that it 'was anticipated, but comes sooner than we thought.' Fervo went public in May and saw its stock reach a high of nearly $40 before declining to under $20.