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Houston geothermal company picks up power purchase agreement in California

Under two 15-year deals, Southern California Edison has agreed to buy a total of 320 megawatts of geothermal power from Fervo Energy. Photo via Getty Images

Houston-based Fervo Energy, a provider of geothermal power, has signed up one of the country’s largest utilities as a new customer.

Under two 15-year deals, Southern California Edison has agreed to buy a total of 320 megawatts of geothermal power from Fervo. Financial terms weren’t disclosed. The power will be enough to deliver electricity to the equivalent of 350,000 homes.

Southern California Edison, based in Rosemead, California, serves about 15 million people throughout a 50,000-square-mile area in California.

The utility will purchase the power from Fervo’s 400-megawatt Cape Station plant, which is under construction in southwest Utah. The plant’s first phase, providing 70 megawatts of power, is expected to be online by 2026.

“This announcement is another milestone in California’s commitment to clean zero-carbon electricity,” David Hochschild, chair of the California Energy Commission, says in a news release.

“Enhanced geothermal systems complement our abundant wind and solar resources by providing critical base load when those sources are limited,” he adds. “This is key to ensuring reliability as we continue to transition away from fossil fuels.”

In June, Fervo announced it would supply 115 megawatts of geothermal power for Google’s two data centers in Nevada. Two years ago, Fervo signed a deal with energy aggregators in California to supply 53 megawatts of geothermal power from Cape Station.

“As electrification increases and climate change burdens already fragile infrastructure, geothermal will only play a bigger role in U.S. power markets,” says Dawn Owens, Fervo's head of development and commercial markets.

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This article originally ran on InnovationMap.

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A View From HETI

Houston-based Mati Carbon won the global XPRIZE Carbon Removal competition, funded by The Musk Foundation. Photo via LinkedIn.

Houston-based Mati Carbon has won the $50 million grand prize in the XPRIZE Carbon Removal competition, backed by Elon Musk’s charitable organization, The Musk Foundation.

Mati was selected in 2024 as one of 20 global finalists. The company removes carbon through its Enhanced Rock Weathering (ERW) program that works with agricultural farms in Africa and India.

The 3-year-old startup accelerates the natural process of rock weathering (ERW) by applying pulverized basalt to croplands of partnered smallholder farmers, free of charge. Mati says the farmers it partners with are some of the most vulnerable to the impacts of climate change.

“Winning this XPRIZE competition is an incredible honor and a definitive validation of our research and development, and building out the infrastructure needed to impact millions of farmers while delivering verifiable carbon dioxide removal at a gigaton scale,” Mati Carbon Founder and CEO Shantanu Agarwal, said in a news release. “I couldn’t be prouder, not just of the Mati team, but of our collaborators, research partners and the thousands of smallholder farmers who let us be part of their lives. This XPRIZE recognition will allow us to collaborate with local partners to accelerate the use of enhanced rock weathering across the Global South.”

Mati reports that it plans to use the award to “scale its efforts working with smallholder farmers worldwide.” Apart from the XPRIZE funding, Mati plans to grow its model through the sale of CDR credits. According to the company, it counts Shopify, Stripe, and H&M among its early carbon credit buyers.

“Mati Carbon’s deployments bolster farmers’ livelihoods through improved soil health, reduced agricultural inputs, and increased income at zero cost to them. Mati Carbon’s team has developed a scientifically rigorous approach to monitoring and verification, and excelled across each of XPRIZE’s prize evaluation criteria – operational, sustainability, and cost metrics – giving the XPRIZE judges the highest confidence in Mati Carbon’s solution’s long-term scalability,” the XPRIZE judges wrote.

Houston-based Vaulted Deep took home the second-runner-up prize in the competition and $8 million for its organic waste storage process. The company provides permanent carbon storage by injecting nonhazardous organic waste deep underground. It spun off with $8 million in seed funding from Advantek Waste Management Services in 2023.

"Our approach is grounded in geomechanical injection techniques that have been safely deployed globally for decades by our team and predecessors," Omar Abou-Sayed, co-founder and executive chairman of Vaulted, said in a separate release. "XPRIZE recognized that this is a proven approach—already in use, delivering impact, and built on the kind of reliability the industry needs to scale responsibly."

Launched in 2021, the four-year XPRIZE Carbon Removal competition challenged global innovators to deploy scalable solutions for removing carbon dioxide from the atmosphere and oceans. More than 1,300 teams from 88 countries competed. XPRIZE finalists were required to remove at least 1,000 tonnes of CO2 over a one-year demonstration period.

French company NetZero took home the first-runner-up prize of $15 million, and London-based UNDO came in as third-runner-up with a $5 million prize.

Since the announcement of the XPRIZE Carbon Removal competition, the Musk-led Department of Government Efficiency has cut climate funding for agencies, projects and research. While the Musk Foundation sponsored the XPRIZE event, it is not affiliated with the California-based organization, according to the Associated Press.

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