AI-rewritten: This is a summary of an article from IEEE Spectrum, rewritten by AI (Qwen, running locally) to make it easier to read. The facts come from the original article – read it for the full story.

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Fervo Energy has activated a 33-megawatt unit of its Cape Station geothermal plant in Utah, marking the first time a utility-scale facility using next-generation technology has achieved commercial operation worldwide. The startup synchronized with the grid on September 24 and began selling carbon-free electricity to Shell Energy six days later. Unlike traditional plants that rely on naturally occurring hot water, Fervo engineers its own resource deep underground by drilling into hot, dry rocks to generate steam.

This $2 billion project aims for a total capacity of 500 megawatts. While the initial unit is operational, Fervo plans to commission two additional blocks by January 1, 2027. The remaining 400 megawatts are currently under construction with support from Google and are expected to come online in 2028. Dawn Owens, Fervo’s senior vice president, noted that traditional geothermal methods would not have been feasible in southern Utah.

Currently, geothermal accounts for only 0.4 percent of U.S. electricity generation. Experts say expanding this sector requires overcoming high upfront drilling costs and regulatory barriers while minimizing environmental impacts. Mitchell Smith of the Mountain West Geothermal Consortium stated that Fervo’s success demonstrates the size of the opportunity for future projects. The company previously disclosed that Phase 1 power is priced at $7,000 per kilowatt, compared to an average natural gas plant cost of $2,157 per kilowatt in 2025.