Mentioned:
Google is taking a bet on something new: enhanced geothermal energy.
What’s happening:
- Fervo Energy (NASDAQ: FRVO) has entered into a new power purchase agreement with Google (NASDAQ: GOOG) to provide them with 396 megawatts of power from their Cape Station EGS GeoCluster located in Utah
Why it matters:
- This is the single largest power purchase agreement ever for enhanced geothermal energy
Going deeper:
- Google and Fervo Energy have both publicly stated that they plan to use the geothermal energy to provide electricity to a potential data centre being developed in Utah by Google
- Bill Gates’ Breakthrough Energy Ventures, Facebook co-founder Eduardo Saverin’s venture capital fund B Capital, and Mitsubishi Heavy Industries are all notable early stage investors in Fervo Energy
The intrigue:
- Fervo Energy just recently made waves on Wall Street when they increased the size of their IPO financing round to to accelerate the development of more geothermal power plants based in North America for carbon-free electricity
The fine print:
- Specific financial terms of the power purchase agreement between Google and Fervo Energy have not yet been publicly disclosed
