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Major Corporations Invest in Utah's Geothermal Energy Initiative

Fervo's Cape Station project in Utah attracts major investments, including from Google.

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A significant geothermal project in southern Utah is attracting attention and investment from major companies, including Google. Fervo's Cape Station project, located in Beaver County, has been under construction since 2023 and aims to become the largest enhanced geothermal system globally. The first phase is set to go online in 2026, supported by a recent $462 million private investment that will help maintain the timeline. Currently, infrastructure for approximately 500 megawatts of energy is being developed. Fervo's permit from the Bureau of Land Management allows for the potential production of up to two gigawatts. Sarah Jewett, Fervo's senior vice president of strategy, noted the company's commitment to Utah as a key location for geothermal energy development. Contracts have already been secured with California customers for the anticipated 500 megawatts, following a mandate from the California Public Utilities Commission for utilities to secure geothermal energy and long-duration storage. In 2024, Fervo established two 15-year agreements with Southern California Edison for 320 megawatts, enough to power approximately 350,000 homes. Additional agreements include 31 megawatts with Shell and 18 megawatts with Clean Power Alliance. While Google is not publicly listed as a customer, the company has shown interest in the project due to its potential for reliable carbon-free energy. Previously, in 2021, Google announced a partnership with Fervo to assist in launching a commercial pilot in Nevada. Utah Governor Spencer Cox has expressed strong support for geothermal energy, aligning with his initiative, Operation Gigawatt, which aims to double the state’s energy production over the next decade. Jewett mentioned the project's alignment with the goal of exporting energy from Utah. The project is expected to positively impact the local economy by creating jobs and localizing the supply chain. The Utah Office of Energy Development is optimistic about the prospects of geothermal energy in the state, highlighting Utah's unique geographical advantages for geothermal resource development. Recent legislative sessions have seen discussions about geothermal research funding and regulations concerning geothermal rights in Utah.