Geothermal power company Fervo says its contracted revenue has jumped to $11.9 billion. In its third-quarter report on Monday, November 9, the company said the figure is up from $7.2 billion last quarter, according to TechCrunch, Crypto Briefing and MLQ. TechCrunch’s headline rounds it to $12 billion.
What the figure is. Coverage describes the figure as orders, but other reports say it is a backlog of signed power purchase agreements, which are contracts to sell power at agreed terms. It is contracted revenue and not cash received. Binding contracted capacity rose from 658 megawatts to 1,054 megawatts over the quarter, according to the same coverage.
The Google deal. Most of the increase came from a 15-year contract with Google for 396 megawatts, according to other reports, which describe it as take-or-pay, meaning Google pays whether or not it uses the power. TechCrunch says Fervo is on track to complete the plant for Google by the end of 2028, while another report says first power is expected in mid-2028, so the timing is described differently. Google can resell power if it is not ready to use it, according to TechCrunch.
The first plant. A first 100-megawatt plant at Cape Station in Utah was connected to the grid earlier this year, according to TechCrunch. The first completed GeoBlock, a unit of the plant, produced 33 megawatts, and recent ones reached 50 megawatts. Newer wells can produce 15 megawatts gross each. The company says the site could generate 8.4 gigawatts, compared with an earlier view from experts that it could produce about 4 gigawatts.
What the CEO said. Co-founder and chief executive Tim Latimer said on Monday’s earnings call that the company built Cape Station on its own schedule, according to TechCrunch.
The finances. Fervo reported an operating loss of $43.7 million for the quarter, cash and equivalents of $1.9 billion and long-term debt of $301.6 million, according to TechCrunch. The article does not give net loss or total revenue. The report is that of a company still early in its growth.
The cost question. According to TechCrunch, the first phase of Cape Station cost $7,000 per kilowatt, the Google project is expected to cost $5,500 per kilowatt, and the long-term target is $3,000. With subsidies, the Google project’s cost is about equivalent to a new natural gas plant running on fuel at $6 per million BTUs, which the article calls about twice today’s gas price. That comparison is the article’s own and is not sourced.
Why it matters. Data centers need steady power around the clock, and geothermal can supply it without burning fuel. A large contract from Google shows tech companies are paying for new sources. For readers in the US and UK, it is one of the clearest signs of how AI demand is shaping energy deals, though construction schedules and costs still have to be proven.
Sources: TechCrunch, Crypto Briefing and MLQ. Figures are as reported and are contracted revenue, not cash received.
Geothermal power plant in the United States (representative image), Wikimedia Commons, public domain
