US Stock Movement | Fervo Energy (FRVO.US) surged over 20% in pre-market trading, reportedly reached a 400-megawatt geothermal power supply agreement with Google

According to Jinse Finance APP, prior to Tuesday’s U.S. stock market opening, geothermal energy developer Fervo Energy (FRVO.US) surged more than 20%. Previously, news emerged that the company had signed a major agreement to supply electricity to Google (GOOG.US, GOOGL.US) from its $2 billion Cape Station project in Utah. The company plans to transform Cape Station into the world’s largest enhanced geothermal facility.

Reports indicate that the electricity deal size is close to 400 megawatts and could expand to about 600 megawatts before June 2030. This is Fervo’s largest electricity transaction to date, with expectations to begin supplying power to Google in 2028.

Google plans to purchase electricity for a data center in Utah, though the specific location has not yet been determined. The plan still requires coordination and cooperation with the local community, as well as approvals from state and local regulatory agencies, before proceeding.

When Fervo went public in May this year, it raised over $2 billion. Last year, it secured $462 million in private financing from investors including Google and Breakthrough Energy Ventures, which is backed by Bill Gates. The company currently has a contracted installed capacity of about 1,000 megawatts.

As of press time, Fervo was up 12.74% pre-market, trading at $17.34, but still well below the issue price of $27 per share.