Fervo signs 31 MW geothermal PPA with Shell Energy
Cape Station in Beaver County, Utah, the location of Fervo Energy's planned 400-MW geothermal project (source: Business Wire)
Alexander Richter
15 Apr 2025
Fervo Energy and Shell Energy ink a 31 MW geothermal PPA in California, highlighting growing demand for 24/7 clean energy, expanding U.S. geothermal capacity.
Geothermal developer Fervo Energy has announced a new 31 MW Power Purchase Agreement (PPA) with Shell Energy North America. The deal marks another significant step forward for geothermal energy in the U.S., reinforcing its role as a scalable, dispatchable clean energy source.
This is a milestone deal for geothermal in California. Under the agreement, Shell Energy will purchase 31 megawatts of firm geothermal power from Fervo’s Cape Station project in Beaver County, Utah. The electricity will be delivered to California’s grid, supporting Shell Energy’s power delivery obligations to large energy customers and retail providers across the state.
The PPA supports California’s clean energy goals by supplying round-the-clock, zero-emissions electricity that aligns with long-term reliability needs—especially as the state phases out fossil fuels and scales intermittent renewables like solar and wind.
Part of a growing trend in geothermal procurement
This deal adds to a growing list of corporate and utility geothermal PPAs signed in recent years. Fervo previously secured a 115 MW geothermal PPA with Google, with power also sourced from its Cape Station development.
“Shell Energy is proud to collaborate with Fervo to bring more 24/7 clean electricity to the grid,” said Glenn Wright, President of Shell Energy North America. “This agreement supports our goal of helping customers decarbonize with firm renewable power.”
Advanced technology unlocking new potential
Fervo’s Cape Station project uses enhanced geothermal systems (EGS) and advanced drilling techniques adapted from the oil and gas industry. This approach enables geothermal development in areas previously inaccessible, dramatically expanding potential resources.
According to Fervo, the Cape Station site is expected to come online in 2026 and, once completed, will be the largest next-generation geothermal project in the U.S.
This latest PPA with Shell Energy further cements geothermal’s growing value as a firm, clean energy solution that complements intermittent sources. As more corporations and utilities seek 24/7 carbon-free electricity, geothermal is becoming a cornerstone in clean energy portfolios.
With this agreement, Fervo continues to demonstrate how innovative geothermal development can support grid reliability, emissions reduction, and scalable decarbonization—key priorities in both California and global energy markets.
