Fervo Energy begins power production at Utah geothermal plant

Fervo Energy has begun feeding electricity into the grid from the first of three 33-megawatt blocks at its Cape Station facility in Beaver County, Utah. This project represents the world’s first next-generation geothermal power plant operating at a commercial scale using Enhanced Geothermal Systems (EGS).

Unlike traditional geothermal plants that rely on naturally occurring steam or hot water, Fervo Energy utilizes horizontal drilling and hydraulic fracturing techniques—adapted from the oil and gas industry—to create artificial networks in dense, hot, dry rock. This allows for heat extraction in regions where conventional geothermal energy would not be viable.

The first block entered a testing phase on September 24, with commercial operations scheduled to begin on October 1. Under a supply contract, the electricity will be purchased by California-based Shell Energy. The project aims to reach a total capacity of approximately 100 megawatts once the remaining two blocks are completed, which is expected by January 1, 2027.

While the company’s stock (NASDAQ:FRVO) recently hit a 52-week low, analysts maintain a variety of outlooks, with a consensus rating of 'Moderate Buy' and an average price target of $40.87.