This Geothermal Stock Is Soaring Today After a Major Google Deal
Fervo Energy (FRVO) and Alphabet (GOOGL) have just inked a massive 396-megawatt power purchase agreement, which is the biggest enhanced geothermal power purchase deal ever. Google is signing up for carbon-free electricity to potentially power a data center in Utah. The deal was announced today and it has sent Fervo's stock soaring.
The agreement underlines that Enhanced Geothermal Systems (EGS) is ready to power the next-gen computing infrastructure. Google's Head of Advanced Energy Michael Terrell said the project will bring significant economic benefits to the local community and help make enhanced geothermal more affordable and accessible.
Fervo, a Houston-based geothermal energy developer, aims to convert geothermal resources into clean energy for AI hyperscalers and utilities. The company raised $2.2 billion in its May IPO, but its stock has seen a decline of 26% since its debut. Despite this, analysts rate Fervo a Strong Buy with a potential upside of 115%. The company expects to develop 1.1 gigawatts of power by 2030, up from its current forecast of 1 GW.
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