A startup energy company just scored a hot contract to supply energy to the state after Bill Gates identified enough potential to invest. And it’s not the expected wind or solar power either—it’s geothermal. The agreement is to supply enough electricity for 350,000 homes in Southern California and it’s a sign that geothermal power is becoming an increasingly bigger player in the renewable energy sector.

Fervo Energy is set to supply California with geothermal power from Utah

Southern California Edison (SCE), one of the largest power utilities in California, chose startup energy company Fervo Energy to add 320 MW of energy to the grid. Fervo is mining geothermal energy in Utah at its Cape Station, and Bill Gates had enough confidence in the future of the company that he invested funds to develop its capacity.

Fervo is based in Houston, Texas, which has been described as the “Silicon Valley of energy” in the United States. The company has now secured two 15-year power supply contracts with one of the country’s largest electricity utilities, which is a promising step forward for renewable energy in general and geothermal power in particular.

What is geothermal energy mining?

“Our Utah project is a 400-megawatt plant that we’re building, and the significance of the [power purchase agreement] is showing that this is commercially viable and that utilities are contracting out for this as a form of energy to put into their clean energy mix.”

The future of Fervo Energy’s geothermal endeavors

Supplying power to California isn’t the only contract Fervo has on the go. They’ve also signed an agreement with Google to supply 115 MW to Nevada to power a data center. The deal follows a 3.5 MW pilot project that was agreed upon in 2021.

Tech companies are keen to make use of alternative renewable electricity sources to power AI operations, which places Fervo Energy in an ideal position to develop its operations. Anderson continued:

“I don’t even think we know exactly how much the energy needs are going to be from the growing demand of data centers and artificial intelligence. That energy needs to come from somewhere and if we want it to be clean, renewable energy, then geothermal is ready to step in and fill that gap.”

Geothermal energy mining is becoming increasingly viable as an alternative to energy produced using fossil fuels. Another exciting project utilizing underground energy in a plant operating out of the Nevada Desert called Project Red.