under contract

Houston geothermal company secures major power purchase agreement with Shell

Shell has entered a 15-year agreement to be the first offtaker to receive electrons from Fervo Energy's flagship geothermal development in Beaver County, Utah, known as Cape Station. Photo via fervoenergy.com

Beginning in 2026, Shell will be able to apply 31 megawatts of 24/7 carbon-free geothermal power to its customers thanks to a new 15-year power purchase agreement with Houston next-gen geothermal development company Fervo Energy.

“This agreement demonstrates that Fervo is stepping up to meet the moment,” Dawn Owens, VP, Head of Development & Commercial Markets at Fervo, said in a news release.

Shell will become the first offtaker to receive electrons from Fervo's flagship geothermal development in Beaver County, Utah’s Phase I of Cape Station. Cape Station is currently one of the world’s largest enhanced geothermal systems (EGS) developments, and the station will begin to deliver electricity to the grid in 2026.

Cape Station will increase from 400 MW to 500 MW, which is considered by the company a major accomplishment due to recent breakthroughs in Fervo’s field development strategy and well design. Fervo is now able to generate more megawatts per well by optimizing well spacing using fiber optic sensing, increasing casing diameter and implementing staggered bench development. This can allow for a 100 MW capacity increase without the need for additional drilling, according to the company.

With the addition of the new Shell deal, all 500 MW of capacity from Fervo’s Cape Station are now fully contracted. The deal also includes existing agreements, like Fervo’s PPAs with Southern California Edison and an expanded deal with Clean Power Alliance that adds 18 MW of carbon-free geothermal energy to the company’s existing PPA with Fervo.

“As customers seek out 24/7 carbon-free energy, geothermal is clearly an essential part of the solution,” Owens said in the release.

Trending News

A View From HETI

Houston City College will train 261 employees for Tesla Inc. Photo courtesy Tesla

Gov. Greg Abbott announced $1.73 million in workforce training grants for the Houston and Rio Grande Valley regions late last month, with the bulk of the funding heading toward Houston.

The funding comes through the Skills Development Fund (SDF) grant program from the Texas Workforce Commission. The grants will help train 689 current and new workers in technology, manufacturing, technology, logistics and other fields in high demand.

Three grants totaling $1.56 million will go to Houston City College to develop training programs for 602 Houston-area workers.

The largest grant, totaling $782,998, will go toward training 261 employees for Tesla Inc. as welders, maintenance technicians, process technicians and other jobs. In addition to Tesla’s $200 million megafactory in Brookshire, Texas, the electric vehicle company is also considering building a $10.1 billion solar cell manufacturing facility in Fort Bend County called Project Sun City. The company recently expanded its self-driving Robotaxi service throughout 610 Loop and northwest Houston.

A second grant of $690,044 will go toward training 300 workers at Texas Tissue LLC and Karsten Management LLC as frontline supervisors, production line operators, design specialists and maintenance technicians. An allocation of $83,963 will go toward training 41 workers at Watchfire Signs LLC as production supervisors, operations specialists, industrial maintenance technicians, and more.

According to HCC, its Corporate Training and Development will coordinate the program in partnership with the college’s Advanced Manufacturing Center of Excellence Southwest and the Material Science Center of Excellence Welding Department.

“These grants demonstrate how state agencies, employers and Houston City College can work together to meet evolving workforce needs, strengthen Texas businesses and create meaningful opportunities for workers,” HCC Chancellor Margaret Ford Fisher said in a news release.

TWC granted an additional $169,087 to Workforce Solutions Lower Rio Grande Valley to train 87 workers at Denso Ten America Limited, Alps Logistics (USA) Inc., Index Fresh Inc. and Emerson Electric Co.

“When we align local training directly with the needs of expanding industries, we strengthen the regional economy,” TWC Chairman Joe Esparza said in the news release. “These Skills Development Fund grants empower Houston City College and Workforce Solutions Lower Rio Grande Valley to provide the specialized, high-demand training that employers need to succeed right here in Texas.”

Trending News