Fervo Energy has announced a 15-year power purchase agreement (PPA) with Shell Energy North America for 31MW of geothermal power from Fervo’s Cape Station geothermal project in Beaver County in the US state of Utah.
Shell Energy has become the first offtaker from phase one of the Cape Station project – the world’s largest enhanced geothermal systems development, set to commence operations in 2026.
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Shell Energy’s renewable portfolio already includes wind, solar and battery storage. The addition of firm, zero-emission geothermal energy will serve its retail load customers.
The agreement enables Cape Station’s capacity to be increased from 400MW to 500MW.
This expansion is due to Fervo’s advancements in well design and field development, including increased casing diameter and optimised well spacing using fibre optic sensing, allowing for a 100MW capacity boost without additional drilling.
Fervo vice-president and head of development and commercial markets Dawn Owens stated: “We’re thrilled to work with Shell Energy. This agreement demonstrates that Fervo is stepping up to meet the moment. As customers seek out 24/7 carbon-free energy, geothermal is clearly an essential part of the solution.”
Fervo’s Cape Station capacity of 500MW is fully contracted, reflecting strong demand for clean, firm power from utilities and power purchasers.
This includes existing agreements with Southern California Edison and Clean Power Alliance, showcasing the growing geothermal interest.
Fervo’s geothermal power aligns with the California Public Utilities Commission’s mandate for 1GW of non-weather-dependent, zero-emission energy.
The US Department of the Interior announced plans to expand geothermal energy on public lands in 2024, supporting the Biden-Harris administration’s goal of a carbon pollution-free power sector by 2035.
The Bureau of Land Management approved Fervo’s Cape geothermal project as part of this initiative.
