Fervo Energy, a next-generation geothermal energy startup, signed a 15-year, 33 MW power purchase agreement (PPA) with Clean Power Alliance (CPA), a Southern California electricity provider. Under this agreement, Fervo will provide 24/7 carbon-free geothermal power to CPA’s 32 member communities across Los Angeles and Ventura counties, consisting of more than three million residential and commercial customers.

As such, 33 MW of geothermal energy will be dispatched from Beaver County, Utah to California's regional grid from Q2 2028 onwards. It is expected that this can power 13,559 Southern California homes annually and prevent the emission of 21,005 metric tons of greenhouse gas (GHG) each year. 

CPA looked to increase its provision of carbon-free energy due to a 2021 State of California mandate requiring load-serving entities to secure 1,000 MW of non-weather-dependent, zero-emission baseload energy.

Analyst QuickTake: Fervo Energy recently raised USD 138 million in a Series C funding round in August 2022 to build, own, and operate 24/7 carbon-free power plants. This included completing power plants in Nevada and Utah as well as evaluating new projects in California, Idaho, Oregon, Colorado, New Mexico, and internationally.