Fervo Energy (Fervo) has released its Q3 2026 earnings report, highlighting the progress of the next GeoBlocks of Cape Stations Phase 1, as well as the work being done in relation to the recently signed 396-MW power purchase agreement with Google.

Following the start of commercial operations of Cape Station Phase 1 GeoBlock 1, Fervo now reports that GeoBlock 2 has achieved grid synchronization and is in its early operations phase. GeoBlock 3 has now been mechanically completed and is in cold commissioning. The company reports that both units are on schedule to achieve commercial operation by 1 January 2027, thus completing Phase 1 of Cape Station.

The next phase, GeoBlocks 4 through 11, is now referred to collectively as Cape Google 400 to serve the Fervo-Google PPA starting 2028. The first set of 50-MW turbines for this phase has passed factory acceptance testing, and some major equipment (including recuperators and air-cooled condensers) has been delivered to the site.

On the subsurface, drilling of the wells for the Cape Google 400 phase is now approximately 18% complete. These wells incorporate Fervo’s 3.0 well design with longer laterals, larger-diameter casing, and a deeper target depth than Cape Phase 1.

As drilling and construction progresses, Fervo expects project costs to continue to decrease. The expected total costs for GeoBlocks 1 to 3 is approximately USD 7000 per kW. The target for Cape Google 400 is to reduce this to USD 5,500 per kW, on the path to its long-term target for USD 3000 per kW. If the company managed to develop at this cost, it would make EGS closely competitive with natural gas.