Houston geothermal company Fervo announces agreement to sell power to Shell Energy

Claire Hao | Source: Houston Chronicle | Posted 04/16/2025

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Fervo Energy has executed an agreement to sell power from its Utah geothermal project to Shell Energy North America, a retail energy subsidiary of the oil major Shell, the Houston-based geothermal startup announced Tuesday.

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Fervo Energy has announced a power purchase agreement with Shell Energy North America for its Cape Station geothermal project in Utah, which will be expanded from 400 megawatts to 500 megawatts. This agreement is part of a broader trend, with multiple companies securing the entire capacity of the project, which is capable of supplying electricity to approximately 375,000 California homes. Fervo's vice president, Sarah Jewett, noted that the decision to increase capacity was driven by high demand for clean, reliable energy, particularly from data centers and other customers in the American West.

Shell Energy plans to utilize 31 megawatts of the purchased electricity for its retail customers starting in 2026, contributing to its renewable energy portfolio that includes wind, solar, and battery storage. The Cape Station project is expected to begin operations in phases, with the first 100 megawatts set to come online in the summer of 2026 and the remaining capacity by the end of 2028. Fervo aims to leverage advanced geothermal technology to expand its reach beyond traditional geographic limitations, while also navigating challenges such as increased tariffs and political fluctuations.

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Houston geothermal company Fervo announces agreement to sell power to Shell Energy

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