Fervo grows its geothermal energy order backlog to $11.9 billion

Orders grew by $4.7 billion in a quarter

Geothermal company Fervo reported a sharp increase in its order backlog: according to its third-quarter report, contracted revenue reached $11.9 billion, up from $7.2 billion in the previous quarter. The growth coincided with the company beginning to deliver its first facilities on schedule: the first 100 MW power plant was connected to the grid earlier this year, and its construction took 23 months, as TechCrunch reported.

The Google project and a resource re-estimation

The key active project is a 396 MW plant for Google at the Cape Station site in Utah, which Fervo expects to complete by the end of 2028. The project, now called Cape Google 400, will be grid-connected: according to co-founder and CEO Tim Latimer, Google will be able to resell electricity to other buyers if needed, without waiting for its own data center to launch. Notably, the estimate of the site's potential has changed: experts previously said Cape Station could deliver about 4 GW, now the figure being discussed is 8.4 GW.

Economics and risks

Fervo remains an early-stage company: its operating loss for the quarter was $43.7 million, with $1.9 billion in cash and debt of $301.6 million. Construction costs are falling: the first phase of Cape Station cost $7,000 per kilowatt, while the Google project came in at $5,500 per kilowatt. With subsidies, this is roughly on par with a new gas plant with fuel at $6 per million BTU — about twice the current gas prices. The company's long-term target is $3,000 per kilowatt, at which geothermal generation could become noticeably cheaper than gas. As TechCrunch notes, much depends on cost reductions: hyperscalers' demand for electricity for AI data centers is high today, but their willingness to pay any price may be temporary.