Sept 1 (Reuters) - Geothermal developer Fervo Energy said on Tuesday it had signed a deal to supply 396 megawatts of geothermal power to Alphabet's Google from its Cape Station project in Utah, sending its shares up nearly 14% in premarket trading.
The deal highlights growing interest from large power consumers in securing around-the-clock clean energy supplies, as rising electricity demand from data centers drives investment in new generation capacity across the U.S.
Here are more details:
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The agreement gives Google an option to increase its power purchases by about 600 MW, bringing total potential capacity under the arrangement to nearly 1 gigawatt by June 2030, Fervo said.
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In 2024, Fervo signed a 115-MW power purchase agreement with Google and NV Energy, helping bring additional geothermal power onto Nevada's grid.
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The companies began working together through Fervo's Project Red geothermal pilot project in Nevada, which came online in 2023.
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Cape Station, an enhanced geothermal project in Utah expected to come online in 2028, is intended to support Google's potential data center development in the state.
Reporting by Varun Sahay in Bengaluru; Editing by Shreya Biswas
Source: Reuters