| Geothermal power
Oil and gas drilling expertise dramatically improves performance
By using techniques adapted from the oil and gas industry, including precision directional/horizontal drilling and deployment of fibre optics downhole to generate data for subsurface analytics, Fervo is de-risking geothermal development
Houston based Fervo Energy, which describes itself as “the leader in next-generation geothermal energy”– aka EGS (enhanced geothermal systems) – has announced the execution of two power purchase agreements (PPAs) totalling 320 MW with Southern California Edison (SCE). The 15-year agreements for 24/7 carbon-free geothermal energy envisage reliable, clean, and affordable power across Southern California and support SCE’s vision of helping California transition to a cleaner energy future. SCE will purchase the power from Fervo Energy’s 400 MW Cape Station project currently under construction in south west Utah. The first 70 MW phase of the project is expected to be operational by 2026 and the second phase by 2028. “This announcement is another milestone in California’s commitment to clean, zero-carbon electricity,” said California Energy Commission Chair David Hochschild. “Enhanced geothermal systems complement our abundant wind and solar resources by providing critical base load when those sources are limited. This is key to ensuring reliability as we continue to transition away from fossil fuels.”
In 2021, the California Public Utilities Commission issued a mid-term reliability (MTR) mandate requiring utilities to procure 1000 MW of non-weather-dependent, non-battery, zero-emission energy to increase the reliability of the state’s electric grid. This decision catalysed demand for geothermal, which provides firm, carbon-free power, filling gaps left by weather- dependent renewables like solar and wind. Fervo’s “breakthrough” drilling technology enables geothermal to address this growing demand for renewable firm power. By using techniques adapted from the oil and gas industry, Fervo has de-risked a scalable approach to geothermal development. Early drilling results, released in February 2024 (see panel), show faster drilling times and an overall reduction in costs at Cape Station. These positive results support continued commercialisation and a readiness for large-scale agreements like this, the world’s largest geothermal PPA. Fervo has now contracted a total of 373 MW of renewable power from Cape Station.
“Geothermal stands as the dependable and adaptable solution essential for California’s journey towards a fully decarbonised grid,” said Dawn Owens, VP, Head of Development & Commercial Markets for Fervo Energy.
“As electrification increases and climate change burdens already fragile infrastructure, geothermal will only play a bigger role in US power markets. Fervo looks forward to continuing to meet these needs, providing firm, clean power to help balance California’s energy portfolio.” In 2022, Fervo contracted 53 MW of power from Cape Station to California community choice aggregators.
In 2021, Fervo and Google signed the world’s first corporate agreement to develop next-generation geothermal power. Fervo’s commercial pilot in Nevada came online in November 2023 and is providing power to Google via the local grid.
Fervo says its advancements in drilling and subsurface analytics “bring a full suite of modern technology to make geothermal cost competitive and globally scalable,” leveraging over a decade of innovation in drilling and production from modern oil and gas development, leading to major improvements in system performance and well design.
The company employs precision directional drilling technology to drill horizontally in geothermal reservoirs. This enables it to drill multiple wells from a single location, dramatically lowering its surface footprint and reducing drilling risks. Horizontal drilling also facilitates greater access to geologies that were previously challenging to reach, increasing the total resource potential for geothermal energy, Fervo asserts. Also, by installing fibre optic cables downhole in its geothermal wells, Fervo gathers and
analyses real-time data on flow, temperature, and performance of the resource, providing unique insights into subsurface behaviour “at a resolution never before possible,” the company says. It has developed advanced data analytics algorithms that enable precise identification of where the best resources exist and optimisation of flow distribution through the reservoir to maximise heat mining efficiency. Taken together, Fervo says its “innovative approach to geothermal well design, reservoir engineering management, and advanced data analytics” allows it to “access a massive resource base that other operators are unable to exploit.” Drawing on its expertise in Organic Rankine Cycle technology, Turboden of Italy (owned by Mitsubishi Heavy Industries), will provide engineering and procurement for power plant equipment for the initial phase of the Cape Station project. This includes the installation of three generators with six ORC turbines. In February 2024, Fervo announced it had raised $244 million in new funding, led by Devon Energy, a pioneer in shale oil and gas. Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria, and Mitsubishi Heavy Industries also joined the round alongside existing investors Capricorn’s Technology Impact Fund, Congruent Ventures, DCVC, Elemental Excelerator, Helmerich & Payne, and Impact Science Ventures. In August 2022, Fervo reported it had raised $138 million in funding from a round that included what were then
Cape station (photo: Fervo Energy)
www.modernpowersystems.com | September 2024 | 35
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45
