Fervo Energy signs 15-year PPA with Southern California electricity provider

Fervo Energy signs 15-year PPA with Southern California electricity provider Fervo Energy logo (source: Fervo Energy)
Carlo Cariaga 12 Oct 2022

Fervo Energy has signed an agreement to supply 33 MW of baseload geothermal energy to Southern California electricity provider CPA for 15 years.

Fervo Energy and Clean Power Alliance (CPA) are pleased to announce the execution of a 33 MW power purchase agreement (PPA) that will provide 24/7 carbon-free geothermal power to CPA, a community-driven, locally operated Southern California electricity provider. The 15-year contract will provide non-weather dependent, clean renewable energy to CPA’s 32 member communities across both Los Angeles and Ventura counties, encompassing more than three million residential and commercial customers.

CPA selected Fervo Energy, a leading developer of next-generation geothermal energy, to increase its carbon-free energy deployment in response to a 2021 State of California mandate requiring load-serving entities to procure 1,000 MW of non-weather-dependent, zero-emission baseload energy.

The project will dispatch 33 megawatts of baseload carbon-free geothermal energy from Beaver County, Utah to California’s regional grid, with expected operation in the second quarter of 2028. The project will provide enough energy to power 13,559 Southern California homes per year while avoiding 21,005 metric tons of greenhouse gas (GHG) emissions each year. The project is estimated to create 723 new construction jobs and 27 permanent jobs.

“CPA is proud to contract with this new build geothermal resource, which uses cutting-edge technology to complement our existing renewable energy portfolio,” said Natasha Keefer, Clean Power Alliance’s Vice President of Power Supply. “Unlike solar and wind energy which are intermittent, geothermal energy delivers reliable renewable energy around-the-clock to our millions of Southern California customers.”

“Fervo is making geothermal energy economic and scalable. This once-niche solution is becoming an increasingly indispensable part of the clean energy transition. Fervo is thrilled to bring this solution to CPA’s millions of Southern California residential and business customers,” said Dawn Owens, Head of Development at Fervo Energy.

Fervo Energy brings a variety of innovative technologies to the geothermal power space including horizontal drilling and distributed fiber optic sensing that it uses to deliver more reliable and cost-effective projects. This approach makes geothermal power accessible in far more places than before and dramatically increases its potential as a widespread energy source.

Earlier this year, Fervo Energy also signed a 40-MW PPA with the East Bay Community Energy (EBCE), a Community Choice Energy Program in Alameda County, California.

Source: Business Wire