Fervo Energy’s Cape Station project in Milford, Utah, is on pace to send electricity to the grid next month, potentially becoming the first enhanced geothermal system in the U.S. to reach commercial operation. Enhanced geothermal systems create underground reservoirs by drilling deep wells and fracturing hot rock, allowing projects to operate beyond the limited geological formations required by conventional geothermal plants. Fervo says its project could help unlock dozens of gigawatts of baseload, emissions-free electricity as demand rises, particularly from hyperscalers, utilities and other large customers. The company has secured a new power purchase agreement with Google, bringing its contracted power to about 1 GW, while Southern California Edison, Shell Energy and NV Energy are also buyers. Fervo must still demonstrate that its technology can compete economically at scale. Its drilling and plant costs have fallen as designs become standardized, but geothermal remains more expensive than other power sources. Fervo’s May IPO raised nearly $2 billion in an oversubscribed offering, although its shares are down about 57% since reaching a record high on May 15.