Houston-based geothermal developer Fervo has reported financial and operational results for the third quarter ended September 30, 2026, with operational highlights including reaching first power and contractual commercial operation at Phase 1 Geoblock 1 Cape Station, its utility-scale Enhanced Geothermal System (EGS) development in Beaver County, Utah, and signing a geothermal power purchase agreement (PPA) with Google.
Operational results
The 33-megawatt GeoBlock 1 is operating in line with expectations for production and power delivered under its PPA, the company reports. This is the first of three 33-megawatt GeoBlocks that make up Cape Station Phase I’s approximately 100 megawatts of capacity.
GeoBlock 2 is in its early operations phase, delivering test energy to the grid, while GeoBlock 3 is mechanically complete and is in cold commissioning. GeoBlocks 2 and 3 remain on schedule and are expected to achieve commercial operation by January 1, 2027, which will complete Cape Station Phase I.
The 15-year, grid-connected, take-or-pay agreement with Google supplies 396 megawatts across eight GeoBlocks with first power expected mid-2028 and full capacity targeted by the end of that year. Fervo is also committed to offering Google an option to expand its offtake by approximately 600 megawatts, for a total of nearly 1 gigawatt, with fixed terms. In connection with this agreement, Fervo progressed construction across Cape Station GeoBlocks 4 through 11, now referred to as Cape Google 400. These GeoBlocks are expected to provide approximately 400 megawatts of power under Fervo’s PPA with Google beginning in 2028. With the signing of the Google agreement, Fervo now has 1,054 megawatts of capacity under binding power purchase agreements, representing approximately US$11.9bn in contracted revenue, compared to 658 megawatts and approximately US$7.2bn at the end of the second quarter of 2026.
Other positive developments include an updated heat-initially-in-place study supporting approximately 8.4 gigawatts of capacity potential at Cape Station, nearly double the prior estimate of 4.3 gigawatts.
Fervo’s development pipeline continued to advance during the third quarter. Capacity in operation reached 36 megawatts, up from 3 megawatts at the end of Q2, while capacity under construction now stands at 466 megawatts, encompassing GeoBlocks 2 through 11. Ready-to-build capacity remains at approximately 54.7 gigawatts, up from 48.6 gigawatts.
Financial results
Fervo reported Q3 2026 net income of US$11.7 million and net loss attributable to common stockholders of $20.8 million, or $(0.07) per share and Q3 2026 operating loss of US$43.7 million, reflecting increased expenses and headcount growth.
Q3 2026 capital expenditures stood at US$256.7mn compared to US$226.5mn in Q2 2026, mainly related to activities at Cape Station, with Q4 capital expenditures projected at around US$450-US$500mn.
The company continues to anticipate fourth quarter 2026 revenue in line with prior expectations, which will be the first full quarter of revenue from Cape Station. Revenue in 2027 remains unchanged from the company’s prior outlook.
Tim Latimer, CEO and co-founder of Fervo said, “With commercial operations underway and significant demand for our technology, we are focused on delivering the remaining Phase I GeoBlocks on schedule and building toward geothermal as a reliable, always-on, low-cost source of power.”