First Utility-Scale Enhanced Geothermal Plant Goes Live

<img src="https://spectrum.ieee.org/media-library/large-industrial-structure-in-the-desert-with-4-rows-of-16-large-fans.jpg?id=68403579&width=1245&height=700&coordinates=0%2C217%2C0%2C218"/><br/><br/><p><span><em>This article was originally published by </em><a href="https://www.canarymedia.com/subscribe-to-our-newsletters" target="_blank"><em>Canary Media</em></a>.</span></p><p><span>The geothermal startup </span><a href="https://fervoenergy.com/" target="_blank"><span><span>Fervo</span> Energy</span></a> is now selling power to the grid from its Cape Station project in Utah — marking the first time a utility-scale, next-generation geothermal facility has achieved such a feat worldwide. </p><p><span>The Houston-based firm </span><a href="https://fervoenergy.com/fervo-energy-achieves-first-power-at-cape-station-a-landmark-moment-for-the-future-of-enhanced-geothermal-systems/" target="_blank"><span><span>turned on</span></span></a> <span>an initial</span> 33-megawatt unit late last week and has been testing and ramping up output since then. On Thursday, <span>Fervo</span> will officially begin commercial operations, supplying carbon-free electricity to Shell Energy, a retail power provider in California. </p><p><span><span>Cape Station, a </span><span>$2 billion</span> project that will eventually be 500 MW, is unique among the world’s commercial geothermal plants. While other facilities draw on naturally occurring hot water and steam, </span><span>Fervo</span> has engineered its own geothermal resource deep <span>underground. The startup uses drilling techniques from the oil and gas industry to create reservoirs in hot, dry rocks that generate steam to produce electricity.</span> </p><p><span><span>“Traditional geothermal would have never been done in southern Utah,” sa</span><span>ys</span> </span><a href="https://www.linkedin.com/in/geodawn/" target="_blank"><span><span>Dawn Owens</span></span></a><span><span>, </span><span>Fervo’s</span> senior vice president and head of development and commercial markets.</span> </p><p><span><span>With the first unit online, </span><span>Fervo</span> sa</span><span>ys</span> it is working to commission two more 33-MW power blocks by <span>1 </span><span>Jan</span><span>uary</span><span>,</span> 2027. The project’s remaining 400 MW — which is supported by a <a href="https://www.canarymedia.com/articles/geothermal/fervo-google-deal-next-gen-geothermal" target="_blank"><span><span>new agreement with Google</span></span></a> — is under construction and slated to come online in 2028. </p><h2>Fervo’s Next-Generation Geothermal Journey</h2><p><span><span>Fervo</span> already </span><span>operates</span> a 3.5-MW commercial pilot plant in Nevada, which <a href="https://spectrum.ieee.org/geothermal-energy" target="_blank">went online</a><span> in late 2023. Owens sa</span><span>ys </span><span>the pilot, called Project Red, was important for </span><span>demonstrating</span> the technology itself. But firing up Cape Station proves that <span>Fervo’s</span> approach can achieve utility scale and export power to wider markets. </p><p><span><span>“This is massive for both </span><span>Fervo</span> and the geothermal industry at large,” she sa</span><span>ys</span><span>.</span> </p><p><span><span>Fervo</span><span>, which </span></span><a href="https://www.canarymedia.com/articles/geothermal/fervo-energy-ipo-milestone" target="_blank"><span><span>went public</span></span></a> in May, is leading the fast-growing movement to develop clean, always-on geothermal power to meet soaring demand from data centers and balance growing supplies of intermittent solar and wind energy. <a href="https://spectrum.ieee.org/advanced-geothermal-germany" target="_blank">Next-generation geothermal firms</a> have <a href="https://www.canarymedia.com/articles/geothermal/chart-global-investment-clean-energy" target="_blank"><span><span>raised billions</span></span></a> of dollars in private capital in recent years to develop and deploy technologies that can harness energy in harsh, deep environments. </p><p class="shortcode-media shortcode-media-rebelmouse-image"> <img alt="A tall, thin scaffold surrounded by tanks protrudes from the desert " class="rm-shortcode" data-rm-shortcode-id="0edb7641a89e3180a4325edd10c3144b" data-rm-shortcode-name="rebelmouse-image" id="dd69a" loading="lazy" src="https://spectrum.ieee.org/media-library/a-tall-thin-scaffold-surrounded-by-tanks-protrudes-from-the-desert.jpg?id=68403069&width=980"/> <small class="image-media media-caption" placeholder="Add Photo Caption...">Drilling continues at Fervo Energy’s Cape Station geothermal plant in Beaver County, Utah, where the company plans to ramp up production to 500 MW. </small><small class="image-media media-photo-credit" placeholder="Add Photo Credit...">Fervo Energy</small></p><p><span><span>Today, geothermal </span><span>represents</span> just 0.4</span> percent of total U.S. electricity generation every year. Expanding <span>geothermal’s</span> share of the mix will require not just building more projects like Cape Station but also tackling high upfront drilling costs and <a href="https://www.canarymedia.com/articles/geothermal/geothermal-big-potential-states" target="_blank"><span><span>other economic and regulatory barriers</span></span></a> — all while working to <a href="https://www.canarymedia.com/articles/geothermal/next-generation-geothermal-technology-revolution" target="_blank"><span><span>limit potential impacts</span></span></a> on communities and the environment, experts say. </p><p><span><span>“</span><span>Fervo’s</span> first power achievement shows investors the size and scale of the opportunity to fuel many more such milestones across developers and sites in the future,” sa</span><span>ys</span> <a href="https://www.linkedin.com/in/mitchellsmithb/" target="_blank"><span><span>Mitchell Smith</span></span></a><span>, who serves as grid lead for the Mountain West Geothermal Consortium. The </span><a href="https://www.canarymedia.com/articles/geothermal/geothermal-energy-boost-western-governors" target="_blank"><span><span>bipartisan initiative</span></span></a><span> is calling for increased public and private </span><span>financing “</span><span>to help bring more projects online responsibly and at the speed of demand,” he added.</span> </p><h2>Enhanced Geothermal Energy Gets Cheaper</h2><p><span><span>Fervo</span> has declined to </span><span>disclose</span> the terms of its power purchase agreements for in-progress and future development, which together represent about 1,000 MW, or enough to power <span>roughly 1</span> million U.S. homes every year. Phase 1 of Cape Station is set to deliver power at $7,000 per kilowatt, while Phase 2 should come at $5,500 per k<span>ilowatt</span><span>, the </span><span>company </span><a href="https://www.canarymedia.com/articles/geothermal/fervo-energy-ipo-milestone" target="_blank"><span><span>previously told</span></span></a> Canary Media. (By comparison, the average cost to build a natural gas–fired power plant was <a href="https://www.bloomberg.com/news/articles/2026-04-23/cost-to-build-natural-gas-fired-power-plant-surges-66-bnef-says" target="_blank"><span><span>$2,157 per k</span><span>ilowatt</span> </span></a><span>in 2025.)</span> </p><p><span><span>Along with slashing drilling costs, enhanced geothermal projects could improve their economics by delivering power when </span><span>it’s</span> most valuable to utilities, </span><a href="https://www.nature.com/articles/s41560-023-01437-y" target="_blank"><span><span>according to researchers</span></span></a><span><span>. While geothermal plants traditionally provide around-the-clock, baseload power, next-generation facilities might </span><span>operate</span> flexibly during certain periods — like in the evening, when solar output declines — to reduce overall grid costs. Geothermal plants could also </span><span>operate</span> “<span>behind the meter” to directly power data centers, so that the costs of adding new electricity capacity </span><span>aren’t</span> passed on to utility customers, Owens sa<span>ys</span><span>.</span> </p><p><span><span>“We’ve been saying all along that our technology makes geothermal more scalable and affordable in more places,” she sa</span><span>ys</span><span>. On Cape Station’s powering-up, she </span><span>add</span><span>s</span><span>, “</span><span>That’s just something no next-generation geothermal company has ever been able to do before.”</span></span></p>