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Talking to Google Geo’s vice president of sustainability, Yael Maguire.

While browsing Google Flights for an escape from the winter doldrums, I recently encountered a notification I hadn’t seen before. One particular return flight from Phoenix to New York was highlighted in light green as avoiding “as much CO2 as 1,400 trees absorb a day.”
I’d seen Google Flights’ emissions estimates before, of course — they’ve been around since 2021 — but this was the first time I’d seen it translate a number like “265 kg CO2e” into something I could actually understand. Suddenly, not picking the flight felt like it would have made me, well, kind of bad.
Yael Maguire, the vice president and general manager of the sustainability team at Google Geo — which includes Maps, Earth, and Project Sunroof, the company’s solar calculator — stressed that Google isn’t trying to take people’s agency away with these kinds of light-green guilt trips. “We want to make the sustainable choice the easy choice,” he told me, in reference to a slew of new tools the company has been rolling out, from fuel-efficient routing in Maps (which Google estimates has eliminated the emissions equivalent of 500,000 internal combustion cars from the road since 2021), to suggesting train routes to flight-shoppers, to nudging Europeans to ditch their cars when public transportation could get them to their destinations in a comparable amount of time.
Last week, I spoke to Maguire about the sustainability projects at Google Geo, including the team’s Solar API, which provides solar-planning data for millions of buildings worldwide. Our conversation has been lightly condensed for clarity and brevity.
Do you see your job at Google Geo as passively presenting sustainability information to users, or do you see it as actively nudging people toward making better choices for the planet?
We’re not trying to take agency away from anybody. We want to make sure — whether you’re a consumer choosing an eco-friendly route, or you’re a developer who’s thinking about trying to build more sustainably, or you’re a solar developer who wants to help with that — we want the choices to be in their hands. But we want to make it the easiest choice possible because, while it’s ultimately their decision, it will lead to carbon reductions over time.
That’s the idea behind fuel efficiency suggestions in Google Maps, where a route is prominently displayed with the little leaf, right?
Exactly. We launched a capability in Google Earth last year to help real estate developers do high-level planning and building development to make the sustainable choice the easy choice. As they’re saying, “We’re trying to get this many units with these kinds of amenities, etc., etc.,” we give them the tools to optimize for all the things they want to optimize for. But we can also say, “Hey, if you also care about sustainability, you can use different materials, we can get more sunlight in the area, and you have this much potential for solar.” And that just comes bundled with the tool itself.
We always try to find the co-benefits. I know for me personally, I always try to make the sustainable choice as much as I can. But I know that other people may not be as motivated by that, and having those co-benefits — like, it saves money, or it saves time, or it saves fuel, whatever it might be. We want to try to bring those together as much as possible.
When I was in Tbilisi, Georgia, a few months ago, I was using the ride-share app Bolt, and at the time it had a feature where if you tried to book a car to a location less than a 15-minute walk away, it would suggest you walk instead. I saw in a video from Google’s sustainability summit last fall that you’re rolling out something similar in some locations in Europe — France was one. Do you find these sorts of rollouts in the U.S. are stymied at all by how un-walkable most American cities are?
We are trying to make the most of cities as they are. They’re hard to change. But one of the things I find really encouraging is there’s definitely a long timeframe for this. Mayors and the folks in their departments of transportation recognize that they have to make more options available for people to commute and move around. They’re not necessarily going to be able to change things overnight. But there are major changes that are happening — for example, in the city of London, we were able to announce hundreds of miles of new bike lanes. So a lot of changes are happening over a relatively short amount of time, too.
Sometimes it’s hard to know what is going to be the impact of those decisions, though. And so, again, with these tools, city planners have the opportunity to scenario plan and say, “Okay, we’re thinking of trying to put bike lanes in this corridor in the city, what is going to be the impact on carbon?”
I wanted to ask a similar question in the context of a new feature that suggests train routes to Europeans looking for short-haul flights. How is Google thinking about promoting low-emissions transportation options like trains to Americans, eventually, when our infrastructure often isn’t there yet? Is this a challenge you talk about internally?
It is definitely something that is top of mind. But I do think even in the U.S., there are times when taking a train is actually faster. There are actually a lot of instances where walking, cycling, and public transportation are the most effective ways to get somewhere — and that’s not even considering the cost side of it, which is also something people might want to consider. I’m actually fairly optimistic — when I worked in San Francisco, I took public transportation, and I tried to walk as much as I can in all the cities that I’ve lived in, so I feel like I have lived experience in what the reality [in the U.S.] is. And some of these alternative options can be very effective. There’s more work to do, though, to make sure that we’re doing this globally.
Arguably, Google Maps could have a significant role to play in the success of the larger EV transition in terms of making charging stations and trip planning easy and handy for drivers. I’ve been working on planning my first EV road trip this summer and have been pretty intimidated, to be honest. Can you tell me what is in Google’s pipeline to help make this process easier for drivers?
I can’t talk about things that haven’t been announced yet, but I will say that, just as an overarching goal, we want to make that as easy as possible. I’m an EV owner, I have been for a number of years, and I know sometimes it can be a cognitive task to think about, “How am I going to charge and what is that experience going to be like?” So I would just say that we are really aware and trying to deeply understand the problem as much as possible, and our goal is to really address it.
Even when someone is thinking about purchasing a car, oftentimes people go to Google Search to look for vehicles, and we can help people understand what the potential is of a particular vehicle they’re considering. What typically concerns people is a long-distance trip. So we’ve made a tool where you can plug in a familiar destination — like for me, I live in San Francisco, it might be going to Tahoe— and for a given car you can see how many charges would you have to do on the way. Being able to make that info a little bit easier for people to see before they even buy the car is a thing that we’ve tried to do.
We’re also trying to make charging experiences as positive as possible. The first thing is, honestly, just getting as many chargers on the map as possible. There are a number of different providers who have charging infrastructure and sometimes all the data isn’t widely available so we’ve tried really, really hard to work with those partners. We have information on, I believe, 360,000 chargers worldwide and we’re constantly trying to grow that. On top of that — and I hope you don’t experience this — but not all the chargers work. You’ve probably seen on Google Maps, there are reviews, right? So there’s all kinds of work happening there.
My EV doesn’t have Google Maps integrated, unfortunately, but I’m really looking forward to one day having this feature where I can search for a charger along the route. We’d like to get to that point where you don’t actually have to do all this planning in advance and you can just get in your car and plan along the way like you would if it was another type of vehicle.
It’s one thing to have a tool like the Google Tree Canopy available for cities and organizers, and it’s another thing for people to actually use that tool and act on the information. How are you measuring your success?
We measure our success ultimately by what people do with our tools. So it’s not just about putting the tool out there. We actually try to understand what people are doing. In the case of what we did with eco-friendly routing, we worked with the National Renewable Energy Laboratory in the U.S., for example, to help validate our carbon emissions model. We’re going through that process for everything we do, whether it’s Project Sunroof or the Solar API, or other things like that.
You preempted my next question, but maybe you can talk about it in a more macro sense — Google has the goal of “collectively reducing 1 gigaton of carbon equivalent emissions annually by 2030” with tools like Solar API. Can you give me any sort of progress update?
This is a project that’s been going on for some time. We’ve been working with solar developers for a while, but we’ve been pleasantly surprised not only by the solar developer community engagement, but there’s actually other industries that have shown interest. So MyHEAT — they’re not a typical solar installer, but they’re finding this data really useful to go to cities and help them with the plans that they have.
So the gigaton goal itself, there is nothing to share now other than the progress on eco-friendly routing, but it is something that we hope we’ll be able to share progress on over time. But so far, we’re quite happy.
At a time when there’s a lot of nervousness around AI — and often for good reason — you’ve been pretty vocal in your excitement about how such tools can be used for the positive purposes of sustainability. Tell me why you’re an optimist.
Here’s why I’m an optimist: Because it’s where I put all of Google’s public goals in context. We talked about the gigaton goal, we talked about the Solar API — but I think this is also a question about energy usage and carbon intensity. We will continue to invest in the infrastructure that we need — and we need that infrastructure to be able to actually help solve some of these problems, by providing information to people — but at the same time, the company has been really focused on trying to minimize the carbon intensity of the energy we produce. So, since 2017, we’ve been operating off of 100% renewable energy; this is on an annualized basis. We also have an initiative to use carbon-free energy — so the source of the energy that ultimately goes where electrons are going to our data centers, we’re actively measuring what percentage of that is carbon-free on a 24/7 basis.
With our net-zero commitments, to be on a net basis by 2030, that includes all of our AI infrastructure. That’s where I would try to separate the energy use that’s required to operate AI from the carbon intensity, which I think is very different. Our data centers, we estimate, are one-and-a-half times more efficient than your average data center. And with AI workloads themselves, in some instances, we’ve been able to get the energy usage down by 100x, and the corresponding amount of carbon intensity down by 1,000x.
But to your point, at the same time, it is very much on our minds that the carbon intensity to run all of these AI workloads — how does that compare to the benefits that they’re able to provide? I think that’s where I am. I do have a lot of optimism about the efficiency work, about the trajectory of carbon-free energy and net zero. The upsides in terms of what it does for solar, what it does for transportation — yeah, I am a big believer.
The big reason why I’m so excited about this opportunity in the Maps and Geo space is I just think there’s so much opportunity for all kinds of organizations, including individual citizens, to make these choices and changes to their environment. And I think the role that AI has is enormous — obviously not the whole thing, because it doesn’t build cycling lanes. People have to go do that. People have to change policies around how buildings are going to have less carbon intensity when they’re built. There’s tons and tons of other work that is required to actually build the future that we want, that is lower carbon intensity — ideally zero. But I do think that AI plays an enormous role as decision support for all those choices that are needed in the future.
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Cities across the state are adopting building codes that heavily incentivize homeowners to make the switch.
A quiet revolution in California’s building codes could turn many of the state’s summer-only air conditioners into all-season heat pumps.
Over the past few months, 12 California cities have adopted rules that strongly incentivize homeowners who are installing central air conditioning or replacing broken AC systems to get energy-efficient heat pumps that provide both heating and cooling. Households with separate natural gas or propane furnaces will be allowed to retain and use them, but the rules require that the heat pump becomes the primary heating system, with the furnace providing backup heat only on especially cold days, reducing fossil fuel use.
These “AC2HP” rules, as proponents call them, were included in a routine update of California building codes in 2024. Rather than make it mandatory, regulators put the heat pump rule in a package of “stretch codes” that cities could adopt as they saw fit. Moreno Valley, a city in Riverside County, east of Los Angeles, was the first to pass an ordinance adopting the AC2HP code back in August. A steady stream of cities have followed, with Los Gatos and Portola Valley joining the party just last week. Dylan Plummer, a campaign advisor for Sierra Club's Building Electrification Campaign, expects more will follow in the months to come — “conversations are moving” in Los Angeles and Sacramento, as well, he told me.
“This is a consumer protection and climate policy in one,” he said. As California gets hotter, more households in the state are getting air conditioners for the first time. “Every time a household installs a one-way AC unit, it’s a missed opportunity to install a heat pump and seamlessly equip homes with zero-emission heating.”
This policy domino effect is not unlike what happened in California after the city of Berkeley passed an ordinance in 2019 that would have prohibited new buildings from installing natural gas. The Sierra Club and other environmental groups helped lead more than 70 cities to follow in Berkeley’s footsteps. Ultimately, a federal court overturned Berkeley’s ordinance, finding that it violated a law giving the federal government authority over appliance energy usage. Many of the other cities have since suspended their gas bans.
Since then, however, California has adopted state-wide energy codes that strongly encourage new buildings to be all-electric anyway. In 2023, more than 70% of requests for service lines from developers to Pacific Gas & Electric, the biggest utility in the state, were for new all-electric buildings. The AC2HP codes tackle the other half of the equation — decarbonizing existing buildings.
A coalition of environmental groups including the Sierra Club, Earthjustice, and the Building Decarbonization Coalition are working to seed AC2HP rules throughout the state, although it may not be easy as cost-of-living concerns grow more politically charged.
Even in some of the cities that have adopted the code, members of the public worried about the expense. In Moreno Valley, for instance, a comparatively low-income community, six out of the seven locals who spoke on the measure at a meeting in August urged elected officials to reject it, and not just because of cost — some were also skeptical of the technology.
In Glendale, a suburb of Los Angeles which has more socioeconomic diversity, all four commenters who spoke also urged the council to reject the measure. In addition to cost concerns, they questioned why the city would rush to do something like this when the state didn’t make it mandatory, arguing that the council should have held a full public hearing on the change.
In Menlo Park, on the other hand, which is a wealthy Silicon Valley suburb, all five speakers were in support of the measure, although each of them was affiliated with an environmental group.
Heat pumps are more expensive than air conditioners by a couple of thousands of dollars, depending on the model. With state and local incentives, the upfront cost can often be comparable. When you take into account the fact that you’re moving from using two appliances for heating and cooling to one, the equipment tends to be cheaper in the long run.
The impacts of heat pumps on energy bills are more complicated. Heat pumps are almost always cheaper to operate in the winter than furnaces that use propane or electric resistance. Compared to natural gas heating, though, it mostly depends on the relative cost of gas versus electricity. Low-income customers in California have access to lower electricity rates that make heat pumps more likely to pencil out. The state also recently implemented a new electricity rate scheme that will see utilities charge customers higher fixed fees and lower rates per kilowatt-hour of electricity used, which may also help heat pump economics.
Matthew Vespa, an senior attorney at Earthjustice described the AC2HP policy as a way to help customers “hedge against gas rates going up,” noting that gas prices are likely to rise as the U.S. exports more of the fuel as liquified natural gas, and also as gas companies lose customers. “It’s really a small incremental cost to getting an AC replaced with a lot of potential benefits.”
The AC2HP idea dates back to a 2021 Twitter thread by Nate Adams, a heat pump installer who goes by the handle “Nate the House Whisperer.” Adams proposed that the federal government should pay manufacturers to stop producing air conditioners and only produce heat pumps. Central heat pumps are exactly the same as air conditioners, except they provide heating in addition to cooling thanks to “a few valves or ~$100-300 in parts,” Adam said at the time.
The problem is, most homeowners and installers are either unfamiliar with the technology or skeptical of it. While heat pumps have been around for decades and are widespread in other parts of the world, especially in Asia, they have been slower to take off in the United States. One reason is the common misconception that they don’t work as well as furnaces for heating. Part of the issue is also that furnaces themselves are less expensive, so heat pumps are a tougher sell in the moment when someone’s furnace has broken down. Adams’ policy pitch would have given people no choice but to start installing heat pumps — even if they didn’t use them for heating — getting a key decarbonization technology into homes faster than any rebate or consumer incentive could, and getting the market better acquainted with the tech.
The idea gained traction quickly. An energy efficiency research and advocacy organization called CLASP published a series of reports looking at the potential cost and benefits, and a manufacturer-focused heat pump tax credit even made its way into a bill proposal from Senator Amy Klobuchar in the runup to the 2022 Inflation Reduction Act. While rules that target California homeowners obviously won’t have the nation-wide effect that Adams’ would have, they still have the potential to send a strong market signal, considering California is the fifth largest economy in the world.
The AC2HP codes, which start going into effect next year, will help smooth the road to another set of building electrification rules that will apply in some parts of the state beginning in 2029. At that point, households in the Bay Area will be subject to new air quality standards that require all newly installed heating equipment to be zero-emissions — in other words, if a family’s furnace breaks down, they’ll have to replace it with a heat pump. State regulators are developing similar standards that would apply statewide starting in 2035. The AC2HP rule ensures that if that same family’s air conditioner breaks between now and then, they won’t end up with a new air conditioner, which would eventually become redundant.
The rule is just one of a bunch of new tools cities are using to decarbonize existing buildings. San Francisco, for example, adopted an even stricter building code in September that requires full, whole-home electrification when a building is undergoing a major renovation that includes upgrades to its mechanical systems. Many cities are also adopting an “electrical readiness” code that requires building owners to upgrade their electrical panels and add wiring for electric vehicle charging and induction stoves when they make additions or alterations to an existing building.
To be clear, homeowners in cities with AC2HP laws will not be forced to buy heat pumps. The code permits the installation of an air conditioner, but requires that it be supplemented with efficiency upgrades such as insulating air ducts and attics — which may ultimately be more costly than the heat pump route.
“I don’t think most people understand that these units exist, and they’re kind of plug and play with the AC,” said Vespa.
Current conditions: The Pacific Northwest’s second atmospheric river in a row is set to pour up to 8 inches of rain on Washington and Oregon • A snow storm is dumping up to 6 inches of snow from North Dakota to northern New York • Warm air is blowing northeastward into Central Asia, raising temperatures to nearly 80 degrees Fahrenheit at elevations nearly 2,000 feet above sea level.
Heatmap’s Jael Holzman had a big scoop last night: The three leading Senate Democrats on energy and permitting reform issues are a nay on passing the SPEED Act. In a joint statement shared exclusively with Jael, Senate Energy and Natural Resources ranking member Martin Heinrich, Environment and Public Works ranking member Sheldon Whitehouse, and Hawaii senator Brian Schatz pledged to vote against the bill to overhaul the National Environmental Policy Act unless the legislation is updated to include measures to boost renewable energy and transmission development. “We are committed to streamlining the permitting process — but only if it ensures we can build out transmission and cheap, clean energy. While the SPEED Act does not meet that standard, we will continue working to pass comprehensive permitting reform that takes real steps to bring down electricity costs,” the statement read. To get up to speed on the legislation, read this breakdown from Heatmap’s Emily Pontecorvo.

In June, Heatmap’s Matthew Zeitlin explained how New York State was attempting to overcome the biggest challenge to building a new nuclear plant — its deregulated electricity market — by tasking its state-owned utility with overseeing the project. It’s already begun staffing up for the nuclear project, as I reported in this newsletter. But it’s worth remembering that the New York Power Authority, the second-largest government-controlled utility in the U.S. after the federal Tennessee Valley Authority, gained a new mandate to invest in power plants directly again when the 2023 state budget passed with measures calling for public ownership of renewables. On Tuesday, NYPA’s board of trustees unanimously approved a list of projects in which the utility will take 51% ownership stakes in a bid to hasten construction of large-scale solar, wind, and battery facilities. The combined maximum output of all the projects comes to 5.5 gigawatts, nearly double the original target of 3 gigawatts set in January.
But that’s still about 25% below the 7 gigawatts NYPA outlined in its draft proposal in July. What changed? At a hearing Tuesday morning, NYPA officials described headwinds blowing from three directions: Trump’s phaseout of renewable tax credits, a new transmission study that identified which projects would cost too much to patch onto the grid, and a lack of power purchase agreements from offtakers. One or more of those variables ultimately led private developers to pull out at least 16 projects that NYPA would have co-owned.
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During World War II, the Lionel toy train company started making components for warships, the Ford Motor Company produced bomber planes, and the Mattatuck Manufacturing Company known for its upholstery nails switched to churning out cartridge clips for Springfield rifles. In a sign of how severe the shortfall of equipment to generate gas-powered electricity has become, would-be supersonic jet startups are making turbines. While pushing to legalize flights of the supersonic jets his company wants to build, Blake Scholl, the chief executive of Boom Supersonic, said he “kept hearing about how AI companies couldn’t get enough electricity,” and how companies such as ChatGPT-maker OpenAI “were building their own power plants with large arrays of converted jet engines.” In a thread on X, he said that, “under real world conditions, four of our Superpower turbines could do the job of seven legacy units. Without the cooling water required by legacy turbines!”
The gas turbine crisis, as Matthew wrote in September, may be moving into a new phase as industrial giants race to meet the surging demand. In general, investors have rewarded the effort. “But,” as Matthew posed, “what happens when the pressure to build doesn’t come from customers but from competitors?” We may soon find out.
It is, quite literally, the stuff of science fiction, the kind of space-based solar power plant that Isaac Asimov imagined back in 1940. But as Heatmap’s Katie Brigham reported in an exclusive this morning, the space solar company Overview Energy has emerged from stealth, announcing its intention to make satellites that will transmit energy via lasers directly onto Earth’s power grids. The company has raised $20 million in a seed round led by Lowercarbon Capital, Prime Movers Lab, and Engine Ventures, and is now working toward raising a Series A. The way the technology would work is by beaming the solar power to existing utility-scale solar projects. As Katie explained: “The core thesis behind Overview is to allow solar farms to generate power when the sun isn’t shining, turning solar into a firm, 24/7 renewable resource. What’s more, the satellites could direct their energy anywhere in the world, depending on demand. California solar farms, for example, could receive energy in the early morning hours. Then, as the sun rises over the West Coast and sets in Europe, ‘we switch the beam over to Western Europe, Morocco, things in that area, power them through the evening peak,’” Marc Berte, the founder and CEO of Overview Energy, told her. He added: “It hits 10 p.m., 11 p.m., most people are starting to go to bed if it’s a weekday. Demand is going down. But it’s now 3 p.m. in California, so you switch the beam back.”
In bigger fundraising news with more immediate implications for our energy system, next-generation geothermal darling Fervo Energy has raised another $462 million in a Series E round to help push its first power plants over the finish line, as Matthew wrote about this morning.
When Sanae Takaichi became the first Japanese woman to serve as prime minister in October, I told you at the time how she wanted to put surging energy needs ahead of lingering fears from Fukushima by turning the country’s nuclear plants back on and building more reactors. Her focus isn’t just on fission. Japan is “repositioning fusion energy from a distant research objective to an industrial priority,” according to The Fusion Report. And Helical Fusion has emerged as its national champion. The Tokyo-based company has signed the first power purchase agreement in Japan for fusion, a deal with the regional supermarket chain Aoki Super Co. to power some of its 50 stores. The Takaichi administration has signaled plans to increase funding for fusion as the new government looks to hasten its development. While “Japan still trails the U.S. and China in total fusion investment,” the trade newsletter reported, “the policy architecture now exists to close that gap rapidly.”
Another day, another emerging energy or climate technology gets Google’s backing. This morning, the carbon removal startup Ebb inked a deal with Google to suck 3,500 tons of CO2 out of the atmosphere. Ebb’s technology converts carbon dioxide from the air into “safe, durable” bicarbonate in seawater and converting “what has historically been a waste stream into a climate solution,” Ben Tarbell, chief executive of Ebb, said in a statement. “The natural systems in the ocean represent the most powerful and rapidly scalable path to meaningful carbon removal … Our ability to remove CO2 at scale becomes the natural outcome of smart business decisions — a powerful financial incentive that will drive expansion of our technology.”
The Series E round will fund the enhanced geothermal company’s flagship Cape Station project.
The enhanced geothermal company Fervo is raising another $462 million, bringing on new investors in its Series E equity round.
The lead investor is a new one to the company’s books: venture capital firm B Capital, started by Facebook co-founder Eduardo Saverin. Fervo did not disclose a valuation, but Axios reported in March that it had been discussing an IPO in the next year or two at a $2 billion to $4 billion valuation.
Much of the capital will be devoted to further investments in its Cape Station facility in Utah, which is due to start generating 100 megawatts of grid power by the end of 2026. A smaller project in Nevada came online in 2023.
Fervo’s last equity round was early last year, when it raised $255 million led by oil and gas company Devon. It also raised another $206 million this past summer in debt and equity to finance the Cape Station project, specifically, and reported faster, deeper drilling numbers.
“I think putting pedal to the metal is a good way to put it. We are continuing to make progress at Cape station, which is our flagship project in Southwest Utah, and some of the funding will also be used for early stage development at other projects and locations to expand Fervo’s reach across the Western U.S.,” Sarah Jewett, Fervo’s senior vice president of strategy, told me
“Enhanced geothermal” refers to injecting fluid into hot, underground rocks using techniques borrowed from hydraulic fracturing for oil and gas. Along with the geothermal industry as a whole, Fervo has found itself in the sweet spot of energy politics. It can provide power for technology companies with sustainability mandates and states with decarbonization goals because it produces carbon-free electricity. And it can host Republican politicians at its facilities because the power is 24/7 and employs labor and equipment familiar to the oil and gas industry. While the Trump administration has been on a warpath against solar and (especially) wind, geothermal got a shoutout in the White House’s AI Action Report as an electricity source that should be nurtured.
“Being clean and operating around the clock is just a really strong value proposition to the market,” Jewett said. “Utilizing an oil and gas workforce is obviously a big part of that story; developing in rural America to serve grids across the West; producing clean, emissions-free energy. It's just a really nice, well-rounded value proposition that has managed to maintain really strong support across the aisle in Washington despite the administration shift.”
But bipartisan support on its own can’t lead to gigawatts of new, enhanced geothermal powering the American west. For that Fervo, like any venture-backed or startup energy developer, needs project finance, money raised for an individual energy project (like a solar farm or a power plant) that must be matched by predictable, steady cashflows. “That is, obviously the ultimate goal, is to bring the cost of capital down for these projects to what we call the ‘solar standard,’’’ Jewett said, referring to a minimum return to investors of below 10%, which solar projects can finance themselves at.
While solar power at this point is a mature technology using mass-manufactured, standardized parts having very good foreknowledge of where it will be most effective for generating electricity (it’s where the sun shines), enhanced geothermal is riskier, both in finding places to drill and in terms of drilling costs. Project finance investors tend to like what they can easily predict.
“We are well on our way to do it,” Jewett said of bringing down the perceived risk of enhanced geothermal. “This corporate equity helps us build the track record that we need to attract” project finance investors.
Whether enhanced geothermal is price competitive isn’t quite clear: Its levelized cost of energy is estimated to be around twice utility scale solar's, although that metric doesn’t give it credit for geothermal’s greater reliability and lack of dependence on the weather.
While Cape Station itself is currently covered in snow, Jewett said, construction is heating up. The facility has three power plants installed, a substation and transmission and distribution lines starting to be put up, putting the facility in line to start generating power next year, Jewett said.By the time it starts generating power for customers, Fervo hopes to have reduced costs even more.
“Cost reductions happen through learning by doing — doing it over and over and over again. We have now drilled over 30 wells at the Cape Station field and we’re learning over time what works best,” Jewett said.