Fervo Energy has begun selling power from its Cape Station project in Utah, the first utility-scale enhanced geothermal plant to reach the grid. The initial 33 MW unit has been ramping up since late last week and will officially enter commercial operations on Thursday, supplying carbon-free electricity to Shell Energy, a retail power provider in California.
Unlike conventional geothermal plants that tap naturally occurring hot water and steam, Cape Station uses drilling techniques from the oil and gas industry to engineer reservoirs in hot, dry rock. Fervo already operates a 3.5 MW pilot in Nevada, but the Utah project demonstrates that the approach can work at utility scale. The $2 billion project is planned to reach 500 MW, with two more 33 MW blocks targeted by Jan. 1, 2027, and the remaining 400 MW backed by a Google agreement expected in 2028.
The milestone comes as next-generation geothermal seeks a larger role in a U.S. electricity mix where geothermal currently provides only 0.4 percent of generation. Fervo has not disclosed terms for about 1,000 MW of planned power purchase agreements, but previously said Phase 1 would deliver power at $7,000 per kilowatt and Phase 2 at $5,500 per kilowatt, compared with $2,157 per kilowatt for a new natural gas plant in 2025. Developers see enhanced geothermal as a clean, always-on option for data center demand and for balancing intermittent solar and wind, though experts say cutting drilling costs and addressing regulatory and community impacts remain key challenges.