Fervo signs 20-MW PPA with South California electricity providers
Santa Barbara, California (source: Karlis Dambrans / flickr, Creative Commons)
Carlo Cariaga
10 Nov 2022
Fervo Energy has signed a 15-year PPA to supply geothermal energy to nine Community Choice Aggregators in Southern California.
Fervo Energy has announced the execution of a 20 MW power purchase agreement (PPA) to provide 24/7 carbon-free geothermal power to a group of nine California-based community choice aggregators (CCAs). The 15-year contract will provide clean energy to households across Southern California.
The offtakers include Desert Community Energy (DCE), Clean Energy Alliance (CEA), and California Choice Energy Authority (CalChoice) on behalf of the Town of Apple Valley, the City of Lancaster, the City of Pomona, the City of Pico Rivera, the City of Rancho Mirage, the City of Santa Barbara, and the City of San Jacinto.
The PPA with Fervo Energy will help all nine entities meet firm, clean power requirements under the 2021 State of California mandate requiring load serving entities to procure 1,000 MW of non-weather-dependent, zero-emissions energy. The project will dispatch 20 MW of 24/7 carbon-free geothermal power from Fervo’s Beaver County, Utah position with expected operation in Q2 of 2026.
“This is a great example of local government leading the way in providing residents and businesses with 100% green, carbon-free energy,” said DCE Chair Geoff Kors. “Of our 33,000 customers in Palm Springs, 24,000 of them are on DCE’s Carbon Free plan, and altogether they will save nearly $2 million from this partnership with Fervo Energy.”
Fervo Energy applies proven technologies including horizontal drilling and distributed fiber optic sensing to geothermal power development 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.
“We are seeing unprecedented demand for 24/7 carbon-free energy. This partnership pushes Southern California one step closer to having a fully decarbonized, reliable grid and achieving their clean energy goals,” said Dawn Owens, Head of Development at Fervo Energy.
“CalChoice is excited to partner with Fervo Energy,” said CalChoice Executive Director Jason Caudle. “Fervo Energy is making meaningful progress toward expanding geothermal accessibility, furthering climate action goals, all while providing carbon-free geothermal power to households throughout Southern California.”
Fervo Energy had earlier signed a 15-year, 33-MW PPA with the Clean Power Alliance (CPA), another Southern California-based electricity provider, and another 40-MW PPA with East Bay Community Energy (EBCE), a California-based Community Choice Energy Program.
Source: Business Wire
