Fervo Energy Stock Is Down 58% Since Debut. The Bill Gates-Backed Company Scores a Google Boost.

Fervo Energy is a geothermal company backed by Bill Gates. Shares have dropped more than 50% since their trading debut. (Courtesy Fervo Energy/Business Wire)

Key Points

• Fervo Energy shares surge after the geothermal energy company signs a power agreement with Google.
• Fervo Energy will provide about 400 megawatts of power to Google from its Utah project, with Google holding an option to expand the deal.
• Google plans to use the geothermal energy to power a planned data center in Utah.

Shares of Fervo Energy surged Tuesday after the Bill Gates-backed geothermal energy company signed a power deal with Alphabet -owned Google.

Fervo Energy stock advanced 14% to $17.40 in premarket trading on Tuesday after ending Monday up 4.1%. The stock made its trading debut on May 13, and has declined 58% since then.

The energy agreement between Fervo and Google is for 396 megawatts and will see the geothermal energy company provide power to the tech giant from its Utah project. That project is expected to come online in 2028.

Google intends to use the energy for a possible data-center in Utah. Fervo said in a press release Tuesday that the final data-center plans “remain subject to a variety of factors including engineering feasibility, state and local approvals, and commercial conditions.”

As part of the deal, Google also will have the choice to expand the agreement by June 2030 by approximately 600 megawatts, for a total of about 1 gigawatt.

Fervo Energy CEO Tim Latimer said the purchase agreement demonstrates the company has a ”repeatable” commercial model.

“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,” Latimer said.

The Wall Street Journal first reported the deal.

Fervo and Google first began working together in 2023 and the two companies signed a 115-megawatt power purchase agreement in June 2024.

Write to Kit Norton at kit.norton@barrons.com

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