HOUSTON, September 2, 2026, 06:54 EDT — Fervo shares climbed 28% after striking a deal in which Google committed to purchasing an additional 396 megawatts of contracted power.
- Fervo ended Tuesday at $19.75, rising 28.41%, before trading at $19.56 at 06:52:43 EDT.
- The 396 MW agreement with Google represents 60% of Fervo’s binding-PPA capacity for June.
- Fervo reported cash holdings of $2.106 billion. Phase II will need approximately $2.2 billion by 2028.
Shares of Fervo Energy Company NASDAQ:FRVO jumped 28.41% on Tuesday, following the announcement of a 396-megawatt geothermal power agreement with Alphabet Inc.’s Google NASDAQ:GOOGL. The stock finished the session at $19.75, with a trading volume of 35.1 million shares. At 06:52:43 EDT Wednesday, Fervo Energy was trading at $19.56, marking a 0.96% decline from the previous close Yahoo Finance.
The deal represents a significant addition to Fervo’s portfolio. As of June 30, Fervo had 658 MW secured through binding power-purchase agreements. The amount Google is set to receive accounts for 60% of that total Fervo’s second-quarter results.
The magnitude helps clarify the stock’s reaction. It directly addresses Fervo’s principal financing hurdle. The company anticipates Cape Station Phase II will require approximately $2.2 billion until 2028, with a large portion of that amount to be secured in the form of project debt SEC quarterly filing.
Fervo’s contract-day repricing
FRVO price, U.S. dollars
The PPA applies to electricity generated by a 396 MW facility at Cape Station in Utah. The company anticipates that the project will become operational in 2028. Google has the opportunity to increase its purchase by approximately 600 MW, which could bring the total volume close to one gigawatt by June 2030. This option is still subject to conditions Fervo’s September 1 Form 8-K.
Chief Executive Tim Latimer stated in the company announcement, “This agreement reinforces that EGS is ready to power the next generation of computing infrastructure.”
Google adds a large block to Fervo’s contracted base
Megawatts under binding PPAs, plus the conditional Google option
The initial test comes sooner for Cape Station. Fervo projects its first unit will supply test power in the fourth quarter. The entire first phase of three blocks, totaling 100 MW, is anticipated to be fully operational in early 2027. The second phase, comprising eight 50 MW blocks, aims for completion in 2028.
Google and Fervo have previously worked together. Project Red started supplying power to Nevada’s grid in 2023. In 2024, Fervo reached a 115 MW deal with Google and NV Energy. The Utah agreement represents a significant increase in scale.
Investors are pricing in future production instead of focusing on present profits. Fervo posted second-quarter revenue of just $113,000 and recorded a net loss of $55.9 million. With 294.7 million shares outstanding, its equity valuation stands at $5.82 billion as of Tuesday’s close, matching the market capitalization quote data; share count.
The contract supports financing, but the build remains costly
Reported or expected capital amounts, U.S. dollars
As of June 30, Fervo reported holding $2.106 billion in unrestricted cash. The company projects capital expenditures between $850 million and $900 million in the second half of 2026. Phase II capital requirements will continue past that period. While Fervo states it has sufficient resources for its scheduled development, it continues to depend on outside financing.
Risks: Delivery could be hindered by transmission restrictions, permitting issues, drilling outcomes, or construction slowdowns. Fervo cited ongoing weaknesses in its financial controls. Failing to meet milestones may increase financing expenses or necessitate further corporate equity.
The upcoming operational demonstration is expected ahead of Google’s Utah delivery. Fervo plans to bring Cape Station online this quarter, aiming for about 100 MW by early 2027. Contract volumes have increased, but progress on execution needs to keep pace.
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