US Stock Market Move | Fervo Energy (FRVO.US) rose over 20% in pre-market trading after reportedly reaching a 400-megawatt geothermal power supply agreement with Alphabet Inc. Class C.

On Tuesday before the U.S. stock market opened, geothermal energy developer Fervo Energy (FRVO.US) saw its shares rise by more than 20% after news broke that the company had signed a significant agreement to supply power from its $2 billion Cape Station project in Utah to Alphabet Inc. Class C (GOOG.US, GOOGL.US). The company plans to transform Cape Station into the world's largest enhanced geothermal facility. Reports indicate that the power transaction is nearly 400 megawatts, which could expand to about 600 megawatts by June 2030, marking Fervo's largest power deal to date, with electricity expected to start flowing to Alphabet Inc. Class C in 2028. Alphabet Inc. Class C plans to purchase power for a data center in Utah, but a specific location has yet to be determined. The company still needs to coordinate with local communities and obtain approvals from state and local regulatory agencies to advance the project. Fervo raised over $2 billion when it went public in May of this year, and last year secured $462 million through private financing from investors including Alphabet Inc. Class C and Breakthrough Energy Ventures, which is backed by Bill Gates. The company currently has contracted capacity of approximately 1,000 megawatts. As of the time of publication, Fervo shares were up 12.74% in pre-market trading, priced at $17.34, but still well below the initial offering price of $27 per share.