Fervo Energy Stock Surges After Major Geothermal Power Deal With Google
Shares of Fervo Energy (NASDAQ: FRVO) surged by over 28% on Tuesday following a significant power purchase agreement with Alphabet's Google. The deal involves the supply of up to 396 megawatts from Fervo’s Cape Station geothermal project in Utah, which is expected to be operational by 2028 and will provide carbon-free energy for one of Google’s data centers. The partnership marks a major milestone as it aligns with growing demand for reliable renewable energy sources. Additionally, the agreement includes an option for Google to purchase up to 600 MW more in capacity by June 2030, subject to regulatory approvals and feasibility studies. Fervo CEO Tim Latimer emphasized that such partnerships are essential given increasing electricity demands from large-scale operations like data centers. This collaboration builds on a relationship initiated in 2023 when Google began receiving power from Fervo’s Nevada facilities. The deal is expected to expand significantly, with the potential for up to one gigawatt of energy supply.
