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Wednesday
16 Apr 2025

Fervo Signs 31 MW Geothermal PPA With Shell Energy

16 Apr 2025  by thinkgeoenergy   
Fervo Energy announced a 31 MW Power Purchase Agreement (PPA) with Shell Energy North America, marking a significant step for geothermal energy in the U.S. as a reliable, clean power source. This deal reinforces geothermal’s role in supporting sustainable energy solutions.


Cape Station in Beaver County, Utah, the location of Fervo Energy's planned 400-MW geothermal project

Under the agreement, Shell Energy will procure 31 megawatts of consistent geothermal power from Fervo’s Cape Station project in Beaver County, Utah. The electricity will be delivered to California’s grid, helping Shell Energy fulfill its obligations to major energy clients and retail providers across the state. This PPA aligns with California’s clean energy goals by providing continuous, emissions-free electricity, enhancing grid reliability as the state shifts away from fossil fuels and expands variable renewable sources like solar and wind.

The agreement reflects a growing trend of geothermal energy procurement by corporations and utilities. Fervo previously secured a 115 MW PPA with Google, also sourcing power from the Cape Station project. Geothermal’s capacity to deliver steady, carbon-free energy positions it as a valuable complement to intermittent renewables.

Glenn Wright, President of Shell Energy North America, stated: “Shell Energy is proud to collaborate with Fervo to bring more 24/7 clean electricity to the grid.” He added: “This agreement supports our goal of helping customers decarbonize with firm renewable power.”

Fervo’s Cape Station project utilizes enhanced geothermal systems (EGS) and advanced drilling techniques adapted from the oil and gas industry. These innovations enable geothermal development in regions previously unsuitable, significantly expanding resource potential. The project is expected to come online in 2026 and, upon completion, will be the largest next-generation geothermal facility in the U.S.

This PPA with Shell Energy highlights geothermal’s increasing value as a dependable, clean energy source that supports grid stability and emissions reduction. As corporations and utilities seek round-the-clock carbon-free electricity, geothermal is becoming a key component of sustainable energy strategies. Fervo’s innovative approach demonstrates how geothermal technologies can contribute to reliable power, decarbonization, and scalable clean energy development, aligning with priorities in California and global energy markets.

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