Fervo expanded its development pipeline, advancing 400 megawatts into advanced development and growing its geothermal mineral-rights holdings to more than 650,000 acres. The company now has 658 megawatts covered by binding PPAs, representing $7.2 billion in contracted revenue backlog. Cape Station remains on schedule for initial generation in Q4 2026.
GeoBlocks 1 and 2 have reached mechanical completion, while GeoBlock 3 is expected to follow in the coming months; the company is targeting full power from GeoBlock 1 by year-end. Fervo reported a $55.9 million second-quarter net loss and $226.5 million in capital expenditures, with second-half spending expected at $850 million–$900 million. It ended the quarter with $2.1 billion in cash and raised its 2030 installed-capacity target to 1.1 gigawatts from 1 gigawatt. 3 Energy Stocks Racing to Fix AI's Power Problem Fervo Energy (NASDAQ:FRVO) said it advanced 400 megawatts of capacity into advanced development during the second quarter, expanded its geothermal mineral-rights position to more than 650,000 acres and reiterated plans to begin initial generation at its Cape Station project in the fourth quarter of 2026.
The enhanced geothermal systems developer said it now has 658 megawatts of signed, binding power purchase agreements representing $7.2 billion of contracted revenue backlog. Chief Executive Officer Tim Latimer said the company is seeing continued demand for 24/7 carbon-free power from utilities, hyperscale data-center customers and industrial users. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat "We're drilling faster, going deeper and hotter, and negotiating hundreds of megawatts of commercial agreements, all while continuing to execute at Cape Station," Latimer said. During the quarter, Fervo moved eight GeoBlocks representing 400 megawatts from early development to advanced development.
The company also moved 10.5 gigawatts across two geoclusters from land holdings into early development after DeGolyer and MacNaughton completed heat-in-place studies, according to Latimer. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be The eight advanced-development GeoBlocks have submitted interconnection queue applications, completed geological surveys and secured permits for appraisal-well drilling, the company said. Fervo plans to begin appraisal activity across its geocluster portfolio in the fourth quarter, initially focusing on prospects in Nevada and potentially other locations. Latimer said the company's project sequencing remains dynamic, with development priorities influenced by customer demand, pricing, permitting progress, interconnection timelines and behind-the-meter opportunities.
He said the larger-than-expected proceeds from Fervo's Nasdaq listing helped accelerate acreage acquisition, appraisal planning and pipeline development. → First Solar's Profit Engine Faces a New Policy Test in Washington Fervo said approximately 35% of its future capacity negotiations involve utilities, 50% involve hyperscalers and 15% involve non-hyperscaler industrial customers. The company is pursuing both grid-connected and behind-the-meter arrangements, though it said every geocluster is being developed with a long-term grid interconnection plan. Latimer said Fervo expects to announce a commercial agreement before year-end, but did not specify whether it would be a front-of-the-meter, behind-the-meter or hybrid contract.
At Cape Station, Fervo is building 500 megawatts at a geocluster with more than 4 gigawatts of estimated resource potential. Cape Phase I consists of three 33-megawatt GeoBlocks, totaling roughly 100 megawatts, and is fully contracted under two PPAs. The company has reached mechanical completion on GeoBlocks 1 and 2 and expects GeoBlock 3 to reach mechanical completion in the coming months.
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