Geothermal & Firm Renewables

Fervo Energy said Thursday that it began selling electricity from its Cape Station power plant to the grid on September 30, one day ahead of schedule, making it the first enhanced geothermal company to reach a key commercial milestone. The plant synchronized with the grid about a week ago, bringing online the first third of what will soon become a 100-megawatt power plant, while the entire site could eventually generate as much as 4 gigawatts. The first block at Cape Station took 23 months from groundbreaking to commercial operations, and Fervo aims to complete future blocks in as little as 18 months. Google, Southern California Edison, and others have committed to buying power from the project. Fervo went public in May in an upsized IPO that raised $1.9 billion, and as a startup it raised more than $1.3 billion from investors including Breakthrough Energy Ventures, Congruent Ventures, and Capricorn Investment Group.

Controlled Thermal Resources Holdings Inc. and Plum Acquisition Corp. IV announced agreements with strategic investors that are expected to convert approximately $245 million of CTR's outstanding convertible notes into equity and a new planned PIPE structure at the close of their proposed business combination. Under the agreements, roughly $205 million of that convertible debt is expected to convert to equity, while approximately $40 million is expected to convert into the new planned PIPE. The combined company is expected to trade on the Nasdaq under the ticker symbol CTRH, with the transaction targeted to close in the fourth quarter of 2026, subject to shareholder and regulatory approvals. CTR said the simplified capital structure is intended to support project financing for Stage 1 of its Hell's Kitchen development, a planned 50 MW geothermal facility expected to reach commercial operation in 2028, followed by Stage 1 Lithium with planned annual battery grade capacity of 25,000 metric tons targeted for 2030. CTR has invested approximately $310 million in development to date and plans to develop approximately 650 MW of renewable baseload geothermal generation across an approximately 4,000-acre site in southern California's Salton Sea region.

Fervo Energy has reached First Power at its Cape Station project in Utah, with the site now delivering electricity into the grid. The milestone comes alongside fresh U.S. Department of Energy funding and the stock's addition to multiple Russell indices, though shares have fallen 48.6% over 90 days and 54.3% year to date even as they gained 2.2% in one day and 8.2% over 30 days. Fervo trades at $16.71 against an average analyst target of US$40.31, and the most followed narrative pegs fair value at $40.75, or 59% undervalued. That view rests on power purchase agreements totaling 658 megawatts and US$7.2b in contracted revenue, plus a 3 gigawatt framework agreement with Google, set against planned capex of about US$1.2b and ongoing operating losses. A separate check on its P/B ratio of 1.8x, slightly above the 1.6x peer average, suggests a narrower margin of safety.

Fervo Energy announced that its Cape Station geothermal development in Beaver County, Utah, has achieved First Power, the first time a utility-scale enhanced geothermal development has reached that milestone anywhere in the world. The first of three 33-megawatt GeoBlocks in Cape Station Phase I, an approximately 100 MW installation, is now synchronized to the grid and exporting electricity, and is expected to reach its contractual commercial operations date by October 1, 2026, with the remaining two GeoBlocks expected to reach contractual COD by January 1, 2027. The next phase, an additional 400 MW, is already under construction with an expected COD in 2028, and fully contracted offtake at Cape Station sits at approximately 900 MW, enough to power the equivalent of nearly 1 million U.S. homes annually. The milestone comes just over four months after Fervo's May 2026 initial public offering and follows the deployment of its EGS technology at Project Red, which has supplied electricity to the grid since 2023. CEO and Co-Founder Tim Latimer called the achievement a gamechanger for the geothermal industry, while Chief Technology Officer and Co-Founder Jack Norbeck said First Power is proof the science works.

Energy Minister Eknat Prompan has unveiled a major energy restructuring plan, under which the government will reserve 10,000 megawatts of rooftop solar generating capacity specifically for the public, set at roughly 5 kilowatts per household, to spread the right across households nationwide. Under the new approach, the state will buy back surplus power and apply it as a discount on the same billing cycle's electricity bill. A 5-kilowatt system can generate about 600 to 700 units per month, worth roughly 2,000 baht or more, and the state will provide a subsidy of 50,000 baht, with the income from the generated power used to pay it off. The equipment is expected to be fully paid off in about 7 to 10 years. On cutting permitting steps, coordination will be handled solely through the distribution utilities, with a target of about 1 week for inspection and acceptance in self-consumption installations, and no more than 1 month in cases of selling power back. For the new Power Development Plan, or PDP, three goals are set: cleanest, most stable, and fairest. It targets raising the share of clean energy from the current level of just over 20% to close to 50% within 10 years, and no less than 65% in the long term, while reducing reliance on spot-market LNG in favor of long-term contracts, and opening the door to future technologies including hydrogen, geothermal, solid oxide fuel cells, and small modular nuclear reactors, or SMRs. Meanwhile, the public electricity cost that has been embedded in the power tariff structure for 30 to 40 years amounts to a burden of about 18 billion baht per year. The government has removed this burden from the structure and has already implemented a measure capping the first 200 units of household electricity at 3 baht per unit.

Fervo Energy signed a 396-megawatt power purchase agreement with Google on Sept. 1, the largest enhanced geothermal PPA to date, with power to be supplied from Fervo's Cape Station development in Utah and delivered by 2028. Google also holds an agreement to expand its offtake by 600 MW, bringing the deal's total potential capacity to roughly 1 GW by June 2030. The contract builds on the two companies' earlier collaboration, which began with the Project Red pilot in 2021 and continued with a 115 MW power purchase agreement with Google and NV Energy in June 2024, after which Fervo committed to developing 3 gigawatts of geothermal projects. The agreement brings Fervo's total contracted power sales to about 1.1 GW and validates its Enhanced Geothermal Systems technology for the 24/7 baseload demands of AI data centers. Fervo, which went public on May 12 and raised about $2.2 billion, projects $850 million to $900 million in capital expenditures over the next 12 months and net losses for several years, with Phase I targeting around 100 MW of commercial operations later this year or early 2027 and Phase II adding another 400 MW in 2028.

Hexagon Energy and Weyerhaeuser Co. said on September 10 they have closed an agreement to develop geothermal projects on Weyerhaeuser timberlands in Washington and Oregon, a deal that could provide an estimated 3 GW of geothermal power generation capacity in the Pacific Northwest. Under the agreement, Hexagon Energy has leased geothermal rights on about 145,000 acres across the two states, part of Weyerhaeuser's holdings as one of the largest private owners of timberland in North America. Kendall Fountain, vice president of Energy and Natural Resources for Weyerhaeuser, said the company's ownership presents a unique platform to evaluate geothermal potential in the region while supporting growth of its Climate Solutions business. Matthew Hantzmon, CEO of Hexagon Energy, said the partnership aims to bring abundant, clean, baseload energy to the Pacific Northwest. The companies noted the collaboration comes amid rising demand for geothermal energy, driven in part by electricity needs from artificial intelligence and data centers. Hexagon Energy, headquartered in Charlottesville, Virginia, has developed and financed more than 3 GW of power generation capacity for U.S. electric utilities, representing more than $4.5 billion in investment, and its current pipeline includes more than 10 GW of power under active development.

Energy Absolute Public Company Limited (EA) has announced its growth plan for 2026-2029, focusing on expanding its comprehensive clean energy ecosystem. The company is preparing to begin mass production of electric buses in September 2026 to fulfill its contract with the Bangkok Mass Transit Authority (BMTA). Revenue from this project is expected to be recognized mostly in the second quarter of 2027. This year, the company is set to achieve COD for its waste-to-energy plant on Koh Larn, and in 2027, the Phuket waste-to-energy plant with a capacity of 8 megawatts is targeted for COD in the second quarter. Additionally, EA will start delivering 1,520 E-Buses to the BMTA in the second quarter. The Maha Sarakham and Khon Kaen wind power projects are targeted for COD in 2028 and 2029, respectively, to replace existing capacity that will gradually expire. Meanwhile, the company has shifted its biodiesel business to an OEM (original equipment manufacturer) model to reduce exposure to raw material price volatility, and is focusing on the Energy Storage System (ESS) market for its battery business. EA expects a boost from the EV business in the second half of the year, with revenue from new projects becoming significant from 2027 onwards.

Fervo Energy has signed its largest-ever geothermal power agreement with Google, under which it will supply nearly 400 megawatts of electricity from its Cape Station project in southwestern Utah starting in 2028. The project is expected to become the world's largest enhanced geothermal facility, with Fervo investing more than $2 billion in its development. Google also has an option to purchase an additional 600 megawatts, potentially bringing the total arrangement close to 1 gigawatt by 2030. The agreement gives Fervo a major technology customer at a time when AI data centers are creating strong demand for reliable, around-the-clock electricity. Fervo already has roughly 1 gigawatt of power under contract, including agreements with Google, Shell, and Southern California Edison.

Fervo Energy (NASDAQ:FRVO) soared 28.41 percent on Tuesday to close at $19.75 after signing a new power purchase agreement with Google to support its data center in Utah. Under the deal, Fervo will deliver 396 megawatts from its Cape Station project, with an option for Google to expand by another 600 megawatts, bringing total contracted capacity to around 1 gigawatt by 2030. The first phase of the project is nearing commercial operations, and eight GeoBlocks are expected online in 2028. This follows their earlier 115-megawatt geothermal agreement in Nevada. Fervo reported $113 million in second-quarter revenue, up from zero a year earlier, though net losses widened 390 percent to $55.9 million. Hedge fund interest is rising, with 53 funds holding $691 million in the stock as of the second quarter.

Alphabet, Google's parent company, saw its shares drop to $333.535 on Tuesday, but the selloff did not stop Google from securing more power for its AI operations. Fervo Energy will supply 396 megawatts of round-the-clock geothermal electricity from its Cape Station project in Utah, with an option to expand by an additional 600 megawatts, potentially bringing the total to 996 megawatts, just four megawatts short of one gigawatt. Cape Station is expected to come online in 2028, and Google has until June 2030 to exercise the expansion option. Financial terms were not disclosed. Alphabet invested $44.9 billion in capital projects during the second quarter, with about 40% of technical-infrastructure spending directed at data centers and networking. The stock's current price is 32.52% above its GF Value of $251.68, indicating a demanding valuation.

GoPro Inc stock surged 72.3% to $1.51 after Markiplier disclosed an 8.5% stake worth $9 million, driving 87,000 options contracts, 11.9 times the usual volume, with calls at 74%. Novartis AG rose 6.5% to $162.01 on positive late-stage trial results for its multiple sclerosis pill, with 13,000 options traded, 2.9 times the norm, and puts at 83%. Comstock Resources Inc gained 6% to $15.30 after announcing a $1.65 billion strategic partnership with SOCAR and a $450 million drilling joint venture with the Jones family, with options volume at 2.8 times the usual and calls at 96%. Howmet Aerospace Inc climbed 3.9% to $254.50, rebounding from a selloff triggered by Elon Musk's SpaceX turbine announcement, with 12,000 options traded, 2.5 times the norm, and puts at 93%. Fervo Energy Co jumped 23.7% to $19.03 after securing its largest-ever power agreement with Google for nearly 400 megawatts from its Utah project, with 8,779 options, 2.7 times the usual volume, and calls at 95%.

Fervo Energy has signed its largest-ever geothermal power deal, agreeing to sell nearly 400 megawatts of electricity to Google from its Cape Station project in Utah, with an option to expand to about 600 megawatts by June 2030. The power purchase agreement, reported by the Wall Street Journal, will begin supplying Google in 2028 and supports the development of what Fervo plans to make the world's largest enhanced geothermal facility. Google intends to use the power for a data center in Utah, though the location is not yet determined and requires regulatory approvals. Fervo, which went public in May and raised over $2 billion, now has about 1,000 megawatts contracted, and its shares rose 15.4% in pre-market trading following the announcement.

Prime Minister Anutin Charnvirakul told the House of Representatives about the necessity of the emergency decree authorizing the Ministry of Finance to borrow no more than 400 billion baht to tackle the energy crisis and reduce the cost of living. He noted that the conflict in the Middle East, especially the Strait of Hormuz, has driven global energy prices higher, while Thailand imports nearly 50 percent of its oil from that region. The borrowing is divided into 200 billion baht to assist the public, farmers, and entrepreneurs, and another 200 billion baht to promote renewable energy and develop energy skills. The Prime Minister confirmed that this borrowing is a last resort, as the 99 billion baht central budget for fiscal year 2026 has already been used, and there is still a shortfall of about 140 billion baht. Meanwhile, the fiscal year 2027 budget of 3.788 trillion baht will not be available until October 2026, which is too late for the situation. It is expected that public debt to GDP will not exceed 70 percent, and the use of funds will be under the 5T principle to ensure transparency and targeted spending.

Ormat Technologies is launching two enhanced geothermal systems pilot projects in Nevada as it pivots toward powering AI data centers. The company is partnering with geothermal startup Sage Geosystems and oilfield services giant SLB, while also working with Google and data center developer Switch. CEO Doron Blachar says the pilots could be online by late 2027 and that each EGS project with a hyperscaler could easily reach 500 megawatts. Ormat posted revenues of $662.7 million for the first half of 2026, up 43% from last year, on a net profit of $71.2 million, up 4% year-on-year.

Sermsang Power Corporation, or SSP, reported net profit attributable to shareholders for the first half of 2026 of 325.1 million baht, up 44.8% from the same period last year. Revenue from electricity sales was 1.5721 billion baht, growing 5.9%, driven by full-quarter revenue recognition from the LEO 2 solar power project in Japan and efficiency improvements at the SPN solar farm in Thailand. Chief Executive Officer Varut Thammavaranukup said that in the second half the company plans to begin commercial operation of two community waste-to-energy power plants with combined capacity of 19.8 megawatts, which can run around the clock. Electricity sales are expected in the fourth quarter of 2026, and over the next three years about 300 megawatts of additional projects will come online, more than doubling power generation volume by 2028, with investment expanding into the Philippines and Taiwan.

Baron Capital's Baron Opportunity Fund initiated a new position in Fervo Energy Company during the second quarter of 2026, according to its investor letter. The fund highlighted Fervo as a pioneer in enhanced geothermal systems, noting the company is on the cusp of bringing its first commercial plant online later this year. Fervo already has 658 megawatts under power purchase agreements with utilities and hyperscalers, and believes it has access to at least 42 gigawatts of available resource across land leases. The fund sees a clear path for Fervo to drive costs per well down to $3,000 per kilowatt over time, which would put its levelized cost of electricity production at or below competing alternatives. Fervo Energy closed at $20.16 per share on August 12, 2026, reflecting a market capitalization of $5.94 billion.

Fervo Energy advanced 400 megawatts of capacity into advanced development during the second quarter and raised its 2030 installed-capacity target to 1.1 gigawatts from 1 gigawatt. The enhanced geothermal systems developer now has 658 megawatts covered by binding power purchase agreements representing $7.2 billion in contracted revenue backlog. Cape Station remains on schedule for initial generation in the fourth quarter of 2026, with GeoBlocks 1 and 2 at mechanical completion and GeoBlock 3 expected to follow in the coming months. Fervo reported a $55.9 million second-quarter net loss and $226.5 million in capital expenditures, with second-half spending expected at $850 million to $900 million. The company ended the quarter with $2.1 billion in cash and expects 2027 revenue of $60 million to $80 million, though it emphasized that this was not formal guidance.

Ormat Technologies raised its full-year 2026 revenue and adjusted EBITDA guidance after reporting second-quarter revenue of $258.8 million, a 10.6% increase from a year earlier. The company now expects total revenue of $1.15 billion to $1.2 billion and adjusted EBITDA of $630 million to $650 million. Energy storage revenue nearly tripled to $42.8 million, driven by strong PJM merchant pricing and newly commissioned facilities, while electricity segment revenue rose 5.8% to $169.3 million. Adjusted net income increased 6.5% to $31 million, or $0.50 per diluted share, and the board declared a quarterly dividend of $0.12 per share.

London Climate Action Week 2026, held under the banner of Climate Cooperation in a Fractured World, saw a marked shift from pledges to blueprints as a record-breaking heatwave gripped the UK. The launch of the Electrify Now initiative aims to lift electricity's share of final energy demand from roughly 20% today to 35% by 2035, with speakers emphasizing that speeding up permitting and resolving supply-chain constraints will decide whether the target is met. Nature featured on the agenda for the first time, with figures cited showing global investment flows that harm nature at around US$7.5 trillion a year against roughly $250 billion flowing into activities that help it, and speakers calling for nature to be treated with the same discipline as carbon or financial risk. A sharp warning was issued that if sustainability data is not embedded into AI systems now, AI will optimize around it, potentially in the wrong direction. The week closed with the message that the growth case, the nature case, and the technology case for climate action are converging in the language of returns, resilience, and competitive advantage.

AI data centers are projected to consume 20% of U.S. electricity by 2035, up from 5.9% today, according to a Bloomberg report, threatening a structural energy crisis that could outlast oil-price shocks. Utilities are already requesting rate increases to fund new generation and transmission, with some households seeing electric bills double or triple as costs are passed on. Microsoft, Amazon, Google, Oracle, and Meta are investing billions in nuclear, geothermal, and other alternative energy sources to secure reliable power without overwhelming local grids. The surge in demand is sparking community opposition to new data center developments over concerns about utility costs, water use, and grid reliability. While oil prices may retreat as geopolitical tensions ease, electricity demand from AI is expected to keep rising, potentially making power infrastructure the defining energy story of the next decade.

China has announced a target to increase renewable energy use by 53% over the next five years, while accelerating efforts to enhance the stability of electricity generation from wind and solar power. The National Development and Reform Commission unveiled a five-year renewable energy development plan, which states that renewable energy consumption should rise to 1.8 billion tonnes of coal equivalent by 2030, up from 1.18 billion tonnes in 2025. The plan also mandates that wind and solar power, supported by energy storage systems, must be capable of supplying 20% of peak electricity demand during summer and winter, up from the current level of around 10%. Meanwhile, China aims to increase renewable energy generation capacity to meet peak demand periods to 300 gigawatts by 2030, and to boost total renewable electricity output to 6 trillion kilowatt-hours, from 4 trillion kilowatt-hours in 2025. Wind and solar power generation will rise to 4 trillion kilowatt-hours from 2.3 trillion kilowatt-hours, bringing their combined share to 30% of total electricity production. In terms of new renewable energy technologies, China targets increasing concentrated solar power capacity to 15 gigawatts, from 1.82 gigawatts at the end of 2025, and expanding marine energy capacity to 400 megawatts.

Kaishan Group announced that it has signed a Strategic Cooperation Memorandum with Halliburton Energy Services, Inc. The two parties will jointly explore high-efficiency, low-cost EGS drilling and power generation solutions, and intend to seek cooperation opportunities in specific low-carbon and renewable energy projects, including but not limited to geothermal energy development and related emerging energy fields.

JPMorgan said a recent selloff in clean energy and power infrastructure stocks has created attractive entry points ahead of second-quarter earnings, arguing that demand trends tied to data centers, industrial electrification and U.S. manufacturing remain intact despite recent market volatility. The bank named GE Vernova, Innio, SOLV Energy and Nextpower as its top picks into earnings, and said baseload power technologies remain the strongest investment theme as surging electricity demand from artificial intelligence data centers drives long-term growth in power infrastructure. JPMorgan expects generally positive quarterly updates across gas turbines, reciprocating engines, fuel cells, battery energy storage systems, geothermal and utility-scale solar, and noted that while the sector has outperformed the broader market year-to-date, it has fallen 14% over the past two months, which the bank believes offers an opportunity to add exposure given continued order momentum and growing project pipelines. The bank added that recent reports of data center project delays appear largely project-specific and do not alter the long-term demand outlook, although political debate ahead of the U.S. midterm elections could create near-term volatility, and that utility-scale solar and storage remain its preferred renewable energy segments, while the recovery in the U.S. residential solar market is likely to be gradual rather than sharp. JPMorgan also expects consolidation across the renewable energy sector as larger, well-capitalized developers and engineering firms gain market share on increasingly complex projects, but cautioned that uncertainty surrounding U.S. polysilicon tariffs, foreign entity of concern rules and permitting requirements continues to weigh on parts of the solar industry, though greater policy clarity later this year could improve financing conditions and support new investment.

Fervo Energy shares rose 5.1% on Monday after Jefferies upgraded the geothermal company to Buy from Hold with a $34 price target, citing an attractive risk-reward profile following a roughly 40% pullback from its May IPO highs. Analyst Julien Dumoulin-Smith argued that investors have unfairly grouped Fervo with high-beta nuclear peers such as XE, OKLO, and SMR, even though Fervo's next major catalyst is months away, not years, and the company has already demonstrated repeatable success at its pilot site. Fervo has secured 15-year power purchase agreements across 658 megawatts, representing approximately $7.2 billion of backlog, and while commercial operations have yet to begin, the analyst sees first-time execution as the primary risk, offset by substantial upside and rich trading multiples that support the growth narrative.

Bank of America upgraded Fervo Energy to Buy from Neutral with a $36 price target, calling the stock's current valuation a particularly attractive buying opportunity. The firm cited 658 megawatts of binding power purchase agreements, a $7.2 billion backlog, a 3-gigawatt Google framework, and the Cape Station under construction. Analysts led by Ross Fowler said the recent Sawtooth 7 drilling result strengthens confidence in Fervo's learning-curve thesis, as the company completed a longer, deeper, hotter, and larger-diameter Phase II well in 21 days, matching its prior Cape Phase 1 record. The result supports Fervo's ability to scale more complex wells while maintaining drilling speed, a key step toward lower installed cost, with Cape Phase 2 currently tracking toward $5,500 per kilowatt and management retaining a long-term $3,000 per kilowatt target.

Fervo Energy, NVIDIA, and the Pacific Northwest National Laboratory announced a partnership to develop EGS-Twin, a digital twin platform for Enhanced Geothermal Systems. The initiative will integrate high-resolution field data with physics-based modeling and AI to improve subsurface management, optimize power generation, and increase the scalability of geothermal infrastructure. PNNL will use Fervo's proprietary field data from its Nevada and Utah sites to train AI models on NVIDIA infrastructure, aiming to identify subsurface changes and enhance system reliability. The platform is scheduled for implementation by 2029.

Fervo Energy shares rose 14.1% on Thursday after the company reported a 143% improvement in drilling rates at its Cape Station geothermal development. The Sawtooth 7 well reached a measured depth of 19,448 feet with a 7,500-foot lateral in just 21 days, a 70% reduction in drilling time compared to its first commercial horizontal well. The well uses Fervo's more complex Generation 3.0 design, reaching hotter 460°F rock with longer laterals and larger casing while matching the 21-day timeline of the simpler Phase I design. Shorter drilling times can lower capital intensity and help Fervo move closer to its target of reducing installed costs from an expected $5,500 per kilowatt at Cape Phase II toward $3,000 per kilowatt over time. CEO Tim Latimer said the momentum from initial Phase II drilling supports expectations that the 3.0 well design will produce substantially more megawatts per well and significantly improve the unit economics of future GeoBlocks.