FRVO Stock Jumps on Record-Breaking Google Deal

Fervo Energy's stock, FRVO, surged on Tuesday after announcing its largest power purchase agreement to date with Google. The deal covers 396 megawatts of carbon-free electricity from Fervo's Cape Station project in Utah.

The contract builds on an earlier 115-megawatt deal between Fervo and Google, along with NV Energy. RBC Capital analyst Christopher Dendrinos noted that this agreement demonstrates Fervo's ability to secure large-scale contracts.

RBC said Fervo now has contracted demand and development visibility for about 1.1 gigawatts through 2030, leaving room for further growth. The firm maintained an Outperform rating and a $46 price target, indicating around 200% upside from Monday's close.

The Google contract will help fund the next stage of Fervo's build-out at Cape Station. First power from the early phase is expected later this year, with about 100 megawatts online by early 2027.