Google is turning to next-generation geothermal power as it expands its artificial intelligence infrastructure. The tech giant and geothermal developer Fervo Energy have signed a 396-megawatt (MW) power purchase agreement (PPA) for Fervo’s Cape Station project in Utah. The deal has a 15-year term and marks the largest enhanced geothermal power purchase agreement to date, according to Fervo.

Power delivery will start in the third quarter of 2028 through four 99 MW blocks. Google also has an option for about 600 MW of additional capacity, which could bring total contracted capacity to roughly 950 MW by June 2030.

The deal comes as AI data centers drive electricity demand higher. It also shows why companies are looking for clean power that can operate around the clock, rather than relying only on variable sources such as solar and wind. Lucia Tian, at Google, remarked:

“The next chapter of advanced power generation technology is being written in Utah. This project will drive meaningful economic benefit to the local community and help catalyze long-term energy cost reductions by making enhanced geothermal more affordable and accessible.”

Google Locks In 396 MW of Next-Gen Geothermal

The agreement covers 396 MW from Fervo’s Cape Station enhanced geothermal system in Beaver County, Utah. Fervo will provide power through four 99-MW blocks, with deliveries starting in Q3 2028. The agreement will run for 15 years.

CEO and Co-Founder of Fervo, Tim Latimer, noted:

“As demand for reliable electricity grows, customers like Google need energy resources that can be deployed at scale, operate around the clock, and deliver where power is needed. This new PPA is part of our repeatable commercial model that enables us to meet customer needs and directly deliver clean, firm power to large electricity users.”

Google has not finalized the location of the Utah data center that could use the power. The company says the geothermal supply would support a potential Utah data center presence, subject to engineering, regulatory, and commercial approvals.

The deal therefore secures power before Google has announced a final data center site.

The tech giant can also choose to buy about 600 MW of additional Cape Station capacity. If it exercises the option and the companies reach final terms, total contracted capacity could reach about 950 MW, with the added capacity guaranteed to operate by June 2030.

The financial terms were not disclosed.

AI Is Creating Demand for Firm Clean Power

The deal comes as data centers become a much larger source of electricity demand. The International Energy Agency expects global data center electricity use to rise from about 415 TWh in 2024 to around 945 TWh by 2030. AI is the main driver of the increase.

Google is already moving quickly to secure more clean energy. The company says it signed contracts for more than 12 GW of new clean energy in 2025, its largest annual total. It also aims to run its data centers and offices on 24/7 carbon-free energy by 2030.

That goal is harder than simply matching yearly electricity use with renewable energy purchases. A data center needs power at night and during periods when solar or wind output is low.

Geothermal can help fill that gap because it can generate electricity continuously.

Fervo’s Enhanced Geothermal Could Unlock New Resources

Traditional geothermal power depends on natural underground conditions. That limits where developers can build projects. Fervo uses enhanced geothermal systems (EGS) to reach heat in hot rock that lacks the natural conditions needed for conventional geothermal plants.

The company uses drilling techniques adapted from the oil and gas industry to create engineered geothermal reservoirs. The approach could allow geothermal development in more places.

The U.S. Energy Information Administration says geothermal plants generated about 16 billion kWh of electricity in 2025, equal to roughly 0.4% of U.S. utility-scale generation. That small share shows how much room geothermal has to grow. If EGS can lower costs and work in more locations, it could become a larger source of firm clean power.

For AI companies, that could be especially valuable because data centers need reliable electricity around the clock.

Cape Station Is Built to Scale

The Google deal helps move Cape Station from an early project into a much larger commercial development. Fervo’s first phase is about 100 MW.

The company expects its first GeoBlock to begin producing test power in Q4 2026, with full production expected by the end of the year. Its second phase represents about 400 MW and is expected to come online in 2028.

Fervo expects Phase II to reach an installed cost of about $5,500 per kilowatt. Its long-term goal is to reduce that cost to $3,000 per kilowatt.

Lower costs will be critical if enhanced geothermal is to compete with other large-scale clean energy technologies. Fervo says it is using a repeatable GeoBlock design to make future projects easier and cheaper to build.

The company also reported a commercial development pipeline of more than 50 GW at the end of June 2026. It went public last May 2026 on Nasdaq under the FRVO stock ticker. 

• SEE MORE: Fervo Energy’s $1.3 Billion IPO Signals a Geothermal Breakthrough

Google and Fervo Take Their Partnership to the Next Level

The new agreement builds on a partnership that started in 2021. Google and Fervo developed an enhanced geothermal project in Nevada known as Project Red. Fervo began producing power from the pilot in 2023, supplying electricity to the local grid, including the system serving Google’s Nevada data centers.

In June 2024, Google, Fervo and NV Energy signed a separate 115 MW agreement in Nevada. That deal supported NV Energy’s Clean Transition Tariff, which lets Google help fund new geothermal power while limiting the cost impact on other utility customers.

The Utah agreement now moves the relationship to a much larger commercial scale. It also shows how large technology companies can help emerging clean-energy technologies reach the market by committing to long-term power purchases.

Geothermal Could Fill the Gaps Left by Solar and Wind

The value of geothermal goes beyond supplying one data center. Unlike solar and wind, geothermal plants can operate regardless of weather and time of day. That makes them useful as a steady power source alongside variable renewables.

Google’s clean energy strategy includes solar, wind, hydro, nuclear and geothermal. The company says a mix of clean energy technologies can help supply power when variable renewable sources are not producing enough electricity.

Fervo’s systems could therefore complement growing solar and wind capacity rather than replace it. This could become increasingly important as electricity demand rises from AI, electric vehicles and industrial electrification.

More firm clean power can also reduce the need for fossil-fuel generation during periods of high demand. For carbon markets, the benefit is indirect. The geothermal deal is not a carbon credit purchase. Still, replacing fossil-based electricity with new clean generation can lower the emissions intensity of the power system.

Fervo (FRVO) Stock Jumps on Google Deal

Investors reacted strongly to the announcement. Fervo shares jumped 28.41% to $19.75 on September 1, according to market data, with trading volume reaching about 35.1 million shares. The company went public on Nasdaq in May 2026. 

The rise came after Fervo announced the 396 MW Google agreement.

The market reaction shows how important long-term customer contracts are for an emerging power company. A major buyer such as Google can provide more visibility into future demand and help support financing for large projects.

However, FRVO stock remains highly volatile. Fervo’s projects still face construction, financing, permitting, and operating risks.

AI Could Give Enhanced Geothermal Its Breakthrough Moment

The Google-Fervo agreement is a power purchase deal, not a carbon offset transaction. Google is paying for electricity from a new geothermal project. The company is not using the deal as a substitute for direct emissions cuts.

That distinction matters as companies face growing pressure to show that climate claims reflect real changes in energy use, especially AI.

The tech giant says it is working toward 24/7 carbon-free energy by 2030 and continues to invest in new clean generation. Fervo’s deal could help support that goal by adding firm power that can operate when solar and wind output is low.

The geothermal developer also has a major opportunity ahead. Its pipeline exceeds 50 GW, while its long-term cost target is $3,000 per kW.

The next challenge is execution. The company must build projects at scale, control costs, and show that enhanced geothermal can provide reliable power at competitive prices. The Google agreement gives it a major customer and a clearer path to growth.

The bigger story is that AI is creating demand not only for more electricity, but for new forms of reliable, low-carbon power. If Fervo can scale enhanced geothermal as planned, the technology could become an important part of the clean-energy system supporting the next generation of AI infrastructure.

• READ MORE: Google Taps Earth’s Heat in 150MW Geothermal Deal with Ormat Technologies to Power Data Centers

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CF Industries, JERA and Mitsui are moving ahead with one of the world’s largest low-carbon ammonia projects, as demand grows for cleaner fertilizer and lower-emission energy products. The three companies have broken ground on the Blue Point One ammonia plant in Modeste, Louisiana. The project represents a $3.7 billion investment and is expected to produce 1.4 million metric tons of ammonia annually when it begins operations in 2029.

The scale is significant. Blue Point One is expected to become the world’s largest ammonia plant once operational, while creating more than 100 permanent manufacturing jobs and an estimated 3,900 construction jobs over four years.

U.S. Secretary of Agriculture Brooke Rollins joined federal, state and local officials at the groundbreaking, highlighting the project’s importance to both domestic agriculture and America’s industrial base. For investors, however, the bigger story is the project’s position at the intersection of fertilizer security, carbon capture and the emerging global market for low-carbon ammonia.

A Major Bet on U.S. Ammonia Production

CF Industries owns 40% of Blue Point One, while Japan’s JERA owns 35% and Mitsui holds the remaining 25%.

The companies are targeting 2029 for the start of production. The plant will use autothermal reforming, or ATR, to produce hydrogen, which is then combined with nitrogen to make ammonia.

• The key difference is what happens to the carbon dioxide generated during production.

Blue Point One Targets 98% CO₂ Capture

Blue Point One is designed to capture and permanently store about 98% of the CO₂ produced by the facility. A joint venture between Occidental subsidiary 1PointFive and Enbridge will handle the transportation and permanent sequestration of the captured carbon.

That could give the project one of the lowest carbon footprints among large-scale ammonia facilities.

The project is also designed to serve two markets. Traditional customers will use the ammonia for fertilizer, while emerging applications could include low-carbon fuels and energy-related uses.

That flexibility matters because ammonia is moving beyond its traditional role in agriculture.

Around 70% of global ammonia production is currently used for fertilizer, but the molecule is increasingly being considered as an energy carrier and fuel for sectors that are difficult to electrify.

CF Industries and Linde Create Expansion Potential

CF Industries is making another $550 million investment at the Blue Point Complex over the next four years. The spending will support shared infrastructure that can accommodate future ammonia production and fertilizer upgrades.

This creates an important option for expansion. Rather than building every piece of infrastructure from scratch for future projects, the companies can use the shared facilities already being developed around Blue Point One.

Linde is also investing more than $400 million in an on-site air separation unit. The facility will supply the oxygen and nitrogen needed for ammonia production.

Together, these investments create a broader industrial platform rather than a standalone ammonia plant. This could become increasingly valuable if demand for low-carbon ammonia accelerates through the end of the decade.

CF Industries President and Chief Executive Officer Chris Bohn said,

“We are proud to break ground on the Blue Point One joint venture, a transformative project that brings together American energy resources, world-class engineering and partnerships, and trusted global allies. Most importantly, this facility will serve people, growing access to the reliable, domestic nitrogen supply American farmers need to feed the world, expanding our nation’s export capacity through shipping American-made energy to global markets and creating jobs in Louisiana.”

Global Low-Carbon Ammonia Demand Is Growing, but Supply Is Still Limited

The timing of Blue Point One reflects a broader shift in the ammonia industry.

Global ammonia production is highly emissions-intensive. The International Energy Agency estimates that direct emissions from ammonia production are around 450 million metric tons of CO₂ annually. More than 70% of production currently relies on natural-gas-based steam reforming, with much of the remainder produced using coal.

At the same time, demand for ammonia is not disappearing. Population growth and rising food demand are expected to support continued fertilizer consumption, while new markets could emerge in shipping, power generation and other energy applications.

The supply side, however, remains at an early stage.

• The IEA says announced and existing near-zero-emission ammonia projects have been expanding, but low-emission production remains a small share of the global market.
• A 2025 assessment found that low-emissions ammonia projects for fertilizer accounted for about 19 million tonnes of production capacity, including operational projects that had reached final investment decision or completed feasibility studies.

The project pipeline is much larger than current operating capacity. The Ammonia Energy Association identified 500 announced low-emission and transitional ammonia projects as of February 2026, representing 404 million tonnes of potential capacity. However, only about 43 million tonnes of that capacity could be operational by 2030 based on projects classified as operational, firm, or mature.

This gap between announced capacity and projects that actually reach construction remains one of the biggest risks for the sector.

• READ MORE: Reliance and Samsung C&T $3B Green Ammonia Deal Powers India’s Hydrogen Exports

JERA Connects Blue Point One to Global Markets

JERA’s involvement also gives Blue Point One an international dimension. It is Japan’s largest power generation company and a major player in the global energy market. Founded in 2015, it supplies about one-third of Japan’s electricity and ranks among the world’s largest buyers of liquefied natural gas (LNG).

The company operates across the energy supply chain, from gas exploration and LNG projects to fuel procurement, transportation and power generation. JERA is also expanding its focus on lower-carbon energy as part of its transition strategy. It aims to reach net-zero CO₂ emissions across its domestic and international operations by 2050.

JERA Global Energy Solutions Chief Executive Officer, JERA Senior Managing Executive Officer, Chief Operating Officer of Low Carbon Fuels Business Irtiza Sayyed:

“Today’s groundbreaking marks an important milestone for Blue Point One and brings us one step closer to establishing a reliable low-carbon ammonia value chain. At JERA, we believe that energy transition must be supported by practical projects and strong partnerships across the value chain. Blue Point One reflects this belief, bringing together partners with a shared commitment to build the foundation needed to scale lower-carbon ammonia for the future.”

Japan is one of the countries exploring ammonia as part of its strategy to reduce emissions from power generation and diversify energy supplies. Ammonia can be transported using established shipping infrastructure, making it easier to move between production hubs and overseas markets than hydrogen in some applications.

The IEA expects long-term bilateral contracts to play an important role in emerging hydrogen and ammonia trade, particularly because buyers need confidence that low-carbon fuel supplies will actually be delivered.

That creates an opportunity for U.S. producers with access to natural gas, carbon-storage infrastructure and export terminals.

Blue Point One brings those elements together.

Cost Remains the Critical Question

Low-carbon ammonia still has to compete with conventional production on price.

The IEA estimates that natural gas-based ammonia with carbon capture could reach production costs of roughly $230 to $440 per tonne by 2030 in regions with low-cost gas and suitable CO₂ storage. Electrolysis-based production could cost roughly $400 to $620 per tonne in regions with excellent renewable resources.

That makes carbon capture an important route for scaling lower-carbon ammonia, particularly in regions such as the U.S. Gulf Coast where natural gas, industrial infrastructure and potential CO₂ storage resources are available.

The economics could improve further as carbon prices, clean-fuel standards and corporate demand create premiums for lower-emission ammonia.

Blue Point Could Become a Platform for Future Growth

The biggest investment takeaway may not be the 1.4 million tonnes of annual production alone.

The additional infrastructure spending gives CF Industries and its partners room to expand the site as demand develops. That optionality could become valuable if fertilizer customers increasingly seek lower-carbon products or if shipping and power markets begin adopting ammonia at a larger scale.

All in all, the project therefore sits at the center of several major investment themes: U.S. manufacturing, fertilizer security, carbon capture, energy exports and the development of low-carbon fuels. The real test will come after groundbreaking. Blue Point One must move from construction to reliable production while proving that large-scale ammonia can be made with significantly lower emissions at a competitive cost.

If it succeeds, Louisiana could become an important hub in the next generation of global ammonia supply.

• ALSO CHECK: New York-based Amogy Accelerates Ammonia-to-Power Solutions with $23M Funding Boost 

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