Google and Fervo Energy Ink Historic 396-MW Clean Energy Deal
Google and Fervo Energy have partnered to create one of the largest clean energy deals in history, with a 396-megawatt power purchase agreement that will provide reliable, geothermal power to Google's data centers. This deal is a significant milestone for both companies, as it validates Fervo's Enhanced Geothermal Systems technology and demonstrates its readiness to meet the baseload power demands of AI data centers.
The partnership between Google and Fervo began in 2021 with Project Red, which successfully demonstrated the efficacy of Fervo's EGS technology. The company has since entered into a 115 MW power purchase agreement (PPA) with Google and NV Energy, enabling Google to bring new geothermal capacity online while shielding ratepayers from costs.
Fervo's EGS technology uses horizontal drilling technology to generate geothermal energy wherever hot rock can be found. The company plans to deliver around 100 MW of power in Phase I, with commercial operations beginning later this year or early 2027. In Phase II, Fervo will deliver another 400 MW, using its GeoBlock architecture to build eight self-contained 50 MW generation blocks.
The agreement with Google is a significant step forward for Fervo, bringing the company's total contracted power sales to about 1.1 GW and providing visibility into future earnings from contracted revenue. However, the company still has a lot of work to do to deliver on its commitments and meet the terms of the agreement.