Fervo Energy, a leader in next-generation geothermal development, has announced a 15-year power purchase agreement (PPA) with Shell Energy North America (US), L.P., for 31 MW of 24/7 carbon-free geothermal power
The agreement will provide Shell Energy with the geothermal power to serve its retail customers starting in 2026.
This agreement marks a significant milestone, as Shell Energy will be the first to receive power from Phase I of Cape Station, Fervo's flagship geothermal project in Beaver County, Utah. It also represents the official increase in the capacity of Cape Station from 400 MW to 500 MW, made possible by advancements in Fervo’s well design and field development strategy. Innovations such as expanding casing diameter, optimizing well spacing with fiber optic sensing, and staggered bench development have enabled the project to generate more megawatts per well. These enhancements significantly boost efficiency and economics, achieving a 100 MW capacity increase without the need for additional drilling.
“We’re thrilled to work with Shell Energy,” said Dawn Owens, Vice President and Head of Development & Commercial Markets at Fervo. “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.”
Cape Station, the world’s largest enhanced geothermal systems (EGS) development, is expected to begin delivering power to the grid in 2026. With this deal, Shell Energy expands its renewable energy portfolio, which already includes wind, solar, and battery storage, by incorporating reliable, zero-emission geothermal energy for its retail customers.
This agreement highlights the growing market demand for firm, zero-emission energy, a need that Fervo is uniquely equipped to address. The California Public Utilities Commission (CPUC) has mandated that load-serving entities in California procure 1,000 MW of non-weather-dependent, zero-emission energy to maintain grid reliability. Fervo’s firm, carbon-free geothermal energy meets this requirement and plays a crucial role in California’s evolving energy strategy.
With 500 MW of capacity at Cape Station now fully contracted, Fervo demonstrates the strong demand for clean, reliable geothermal power, underscored by major agreements like the PPAs with Southern California Edison and an expanded contract with Clean Power Alliance, adding 18 MW of carbon-free geothermal energy to their existing agreement with Fervo.