California’s Energy Deal: A Game-Changer for Geothermal Power Industry

By Oliver Townsend Jun 30, 2024
California Energy Deal Marks Big Step for Geothermal Power.jpegOrginal image from:

Geothermal power, derived from the Earth’s natural heat, has been a quietly advancing method of electricity generation for many years. However, a recent development in California marks a significant milestone in the field. Southern California Edison has announced an agreement to purchase electricity from Fervo Energy, a company based in Houston, Texas. Fervo Energy specializes in utilizing geothermal energy to produce electricity and plans to drill up to 125 geothermal wells in Utah to generate 400 megawatts of power, enough to supply 400,000 homes.

The Potential Impact of Geothermal Energy

Geothermal technology has the potential to be massively impactful for global decarbonization efforts, according to energy systems researcher Wilson Ricks from Princeton University. By harnessing the Earth’s heat to create electricity without producing carbon emissions, geothermal energy can play a crucial role in reducing the reliance on fossil fuels. The development of new drilling technologies borrowed from the oil and gas industries has allowed geothermal companies like Fervo to tap into geothermal reservoirs and produce clean, renewable energy.

The Role of Geothermal Energy in the U.S.

Although the United States is a leader in geothermal energy, it currently accounts for less than half a percent of the nation’s electricity generation, according to the U.S. Energy Information Administration. Fervo Energy is among the pioneering companies drilling in geothermal reservoirs to expand the use of this renewable energy source. The company’s previous agreement with Google to drill wells in Nevada successfully supplied power to the state’s grid, showcasing the potential of geothermal energy.

California’s Commitment to Clean Energy

California Energy Commission Chair David Hochschild emphasized the importance of supporting carbon-free electricity production in the state. Geothermal power complements solar farms by providing consistent power even when solar energy is unavailable due to weather conditions. This reliability is crucial as California transitions away from oil, gas, and coal to meet its clean energy goals. Sarah Jewett, Vice President of Fervo Energy, described the deal with Southern California Edison as exciting and emphasized the widespread applicability of geothermal energy beyond niche uses.


The recent energy deal in California represents a significant step forward for geothermal power, highlighting its potential to contribute to global decarbonization efforts. By leveraging drilling technologies and geothermal reservoirs, companies like Fervo Energy are paving the way for a cleaner, more sustainable energy future. As the world seeks alternative sources of electricity generation to combat climate change, geothermal energy emerges as a promising solution with the capacity to power thousands of homes while reducing carbon emissions.

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