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Fervo’s contracted revenue reaches $11.9bn as demand for geothermal power grows
Fervo Energy said its contracted revenue rose to $11.9 billion in the third quarter, up from $7.2 billion the previous quarter, as demand grows for electricity to power data centres. The geothermal company’s progress at its Utah site and its ability to bring capacity online in stages could help it supply large technology companies while their projects are still being built.
Fervo connected its first 100-megawatt plant to the grid earlier this year and plans to complete a 396-megawatt plant for Google by the end of 2028. Its Cape Station site may support 8.4 gigawatts, double earlier expert estimates; newer GeoBlocks have reached 50 megawatts. Fervo reported a $43.7 million operating loss, with $1.9 billion in cash and cash equivalents, and says project costs fell from $7,000 to $5,500 per kilowatt; its long-term target is $3,000.
In short
- Fervo reports $11.9 billion in contracted revenue.
- Its Google geothermal plant is planned at 396 megawatts.
- Fervo aims to lower construction costs to $3,000 per kilowatt.
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The strongest fair case each way — we don't pick a winner.
The case for
Fervo’s growing contracted revenue and staged capacity could help meet data centres’ rising electricity needs with geothermal power that can supply steady output. Its first grid-connected plant, improving project costs and substantial cash reserves offer grounds for confidence that it can expand and deliver on major commitments.
The case against
Contracted revenue is not the same as completed, profitable projects: Fervo still reports an operating loss, and its largest plant is not due until 2028. Its capacity and cost claims depend on scaling newer technology and construction, while the long-term cost target remains unmet, so rapid growth in commitments may carry significant delivery and financial risks.
Explained simply
Geothermal power uses heat from deep underground to generate electricity. Fervo Energy is developing plants in Utah, where it says newer designs can be built in stages, allowing some power to reach the grid before a whole site is complete.
Technology companies are among the potential customers because data centres need large, steady supplies of electricity. Google has agreed to buy power from a planned Fervo plant, which is due to be completed by the end of 2028.
Geothermal plants can provide power regardless of weather, but drilling and construction are costly. Fervo’s ability to reduce costs and build capacity at a useful pace will affect whether it can expand this kind of power supply.
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Originally published by TechCrunch as “Fervo now has $12B in orders for its geothermal power tech”.