Fervo Energy signs 20 MW PPA to supply Geothermal to California cities

Nov. 14, 2022
Fervo Energy uses technologies, including horizontal drilling and distributed fiber optic sensing, for geothermal power development. The horizontal drilling opens up geothermal power in more places

Geothermal developer Fervo Energy has signed a 20-MW power purchase agreement (PPA) with a group of nine California community choice aggregators (CCAs) to provide carbon-free power.

The nine CCAs include Desert Community Energy (DCE), Clean Energy Alliance (CEA), and California Choice Energy Authority (CalChoice) on behalf of the Town of Apple Valley, the City of Lancaster, the City of Pomona, the City of Pico Rivera, the City of Rancho Mirage, the City of Santa Barbara, and the City of San Jacinto.

The power will be supplied from Fervo’s Beaver County, Utah position and operation is expected to start in the second quarter of 2026.

“This is a great example of local government leading the way in providing residents and businesses with 100% green, carbon-free energy,” said DCE Chair Geoff Kors. “Of our 33,000 customers in Palm Springs, 24,000 of them are on DCE’s Carbon Free plan, and altogether they will save nearly $2 million from this partnership with Fervo Energy.”

More EnergyTech stories on the rise of Geothermal in the Energy Transition

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Fervo Energy uses technologies, including horizontal drilling and distributed fiber optic sensing, for geothermal power development. The horizontal drilling opens up geothermal power in more places, the company says, while the fiber optic cables downhole help gather and analyze real-time data on flow, temperature and performance.

“We are seeing unprecedented demand for 24/7 carbon-free energy,” Dawn Owens, head of development at Fervo Energy, said in a statement.

In August, Fervo announced $138 million in Series C funding. The capital will help the company complete geothermal power plants in Nevada and Utah and develop new projects elsewhere, according to the report.

The pipeline moves geothermal energy toward project offtakers such as the CCAs and a data center in Nevada.

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About the Author

EnergyTech Staff

Rod Walton is senior editor for EnergyTech.com. He has spent 14 years covering the energy industry as a newspaper and trade journalist.

Walton formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

He can be reached at [email protected]

EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids.

Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.