Google and geothermal startup Fervo Energy have launched the United States’ first enhanced geothermal plant, Project Red, producing 100% carbon-free electricity. This 3.5-megawatt facility, although small compared to nuclear plants, stands out as the most powerful among over 40 global enhanced geothermal plants. It provides enough electricity for about 2,600 homes and directly supplies power to NV Energy in Las Vegas.
Google began supporting Fervo’s project in 2021, aiming to power its data centers entirely with carbon-free energy by 2030. The partnership focused on technical and operational innovations, leading to a geothermal plant that operates continuously with less land use compared to other clean energy sources.
Fervo, which has amassed over $180 million in funding since 2017, is part of a global effort to develop cost-effective geothermal power. Geothermal energy is derived from the earth’s crust and is widely available, reliable, and cleaner than fossil fuels. With a high capacity factor, geothermal energy significantly reduces carbon dioxide and sulfur emissions compared to fossil fuel plants.
Despite its advantages, geothermal energy remains underused. In 2019, the U.S. generated only 0.4% of its power from geothermal sources, and Europe had a mere 1.5GW of its electricity capacity from geothermal. High drilling and production costs contribute to this low adoption rate, with the Levelized Cost of Energy (LCOE) for geothermal in the U.S. being substantially higher than that for solar and wind.
Enhanced Geothermal Systems (EGS) offer a solution by creating a subsurface fracture system to increase rock permeability. This method allows for more cost-effective electricity generation compared to conventional geothermal plants. The U.S. Department of Energy has invested $165 million in EGS research, aiming to reduce costs to $45 per MWh by 2035, making it comparable to onshore wind systems.
The private sector is also showing interest in geothermal energy. Chevron New Energies and Sweden’s Baseload Capital are developing geothermal projects in the U.S., while Chevron and BP Inc. invested in Canadian geothermal company Eavor Technologies.
Experts like Stanford University’s Professor Roland Horne compare the potential trajectory of geothermal energy to solar, predicting significant cost reductions and scalability in the coming years, moving geothermal into a more cost-effective range.