In global first, a next-gen geothermal plant goes live at utility scale

A company called Fervo Energy has started selling power to the grid from a new kind of geothermal plant in Utah, called Cape Station. This is the first time this next-generation approach has worked at utility scale anywhere in the world. Unlike older geothermal plants, which tap naturally occurring hot water or steam, Fervo drills into hot, dry rock deep underground and creates its own reservoir there, using techniques borrowed from oil and gas drilling. That means geothermal power can now be built in places, like southern Utah, that never had the right natural conditions before.

The first unit, producing 33 megawatts, went live last week, with commercial operation starting this week. Two more units of the same size are expected online by January 2027, and the project's full 500-megawatt build-out, backed partly by a deal with Google, should be finished by 2028. The power is going to Shell Energy, a retailer in California, not directly to homes in Utah.

For homeowners, this isn't something that changes your utility bill tomorrow. Geothermal still makes up a tiny share of U.S. electricity, and this technology remains expensive to build compared with natural gas plants. But it points to a future with more steady, carbon-free power on the grid, which could eventually mean cleaner electricity feeding your home, especially in western states, as more of these projects get built and drilling costs come down.