Enhanced geothermal spent fifteen years as a research program. Fervo’s second-quarter numbers are the first set that read like a construction business.
The company reported $1,235,160 thousand of construction-in-process on its balance sheet as of June 30 — $1.235 billion — up from $789,571 thousand at the end of 2025. Second-quarter capital spending was $226.5 million against $108.0 million a year earlier, and Fervo guided to $850 to $900 million more in the second half, attributing it to continued construction at Cape Station.
Two of Three Power Blocks Are Mechanically Complete
Cape Station Phase I is about 100 MW across three 33-MW units Fervo calls GeoBlocks. GeoBlocks 1 and 2 have reached mechanical completion; the third is expected over the coming months. Commissioning is underway on the first block, with the initial set of wells connected to the plant and geothermal brine moving through heat exchangers into turbines.
First test power is targeted for the fourth quarter with full production by year-end. GeoBlocks 2 and 3 come online in early 2027. Phase II is 400 MW across eight 50-MW blocks, targeting 2028, using a longer-lateral, larger-casing well design the company calls Fervo 3.0.
The Drilling Curve Is the Cost Curve
The number that decides whether any of this scales is $5,500 per kilowatt, Fervo’s all-in target for Phase II, against a long-term goal of $3,000. Getting there is a drilling problem, and the Sawtooth 7 well is the evidence it’s being solved. Fervo’s ninth 3.0 well and most complex design to date reached nearly 19,500 feet measured depth in a 460-degree resource in 21 days spud to total depth.
Fervo has added a third Helmerich & Payne rig for the Phase II development plan. It raised its long-term development target to 1.1 GW by 2030, a 100 MW increase, and moved two new clusters totaling 10.5 GW into early development after heat-in-place studies by DeGolyer and MacNaughton. Land portfolio is now over 650,000 acres.
Watch the Behind-the-Meter Pivot
CEO Tim Latimer said demand for firm carbon-free power “has never been stronger” and that the company is “converting our extensive resource portfolio into shovel-ready capacity quarter after quarter.” The company is pursuing behind-the-meter delivery to data center customers as a way around interconnection queues.
That’s the part with the widest construction implications. Texas froze nearly 50 gigawatts of data center interconnections this month, and federal energy construction like the Y-12 Uranium Processing Facility is competing for the same craft pool, and if hyperscalers respond by buying dedicated on-site firm generation, every campus acquires a power plant scope that wasn’t in the original program. Southwest Utah is already absorbing the procurement and craft demand: three rigs, $850 million-plus of construction spend in six months, on a site that didn’t exist as a market three years ago.