Fervo Energy Company (NASDAQ: FRVO) said Thursday that its Cape Station geothermal project in Utah has begun supplying electricity to the grid. Following the announcement, the stock gained more than 4%.

Cape Station Hits First Power

The company said Cape Station is the first greenfield, utility-scale enhanced geothermal systems project to reach first power.

Phase I includes about 100 megawatts across three 33-MW GeoBlocks. The first unit is expected to reach commercial operations by Oct. 1, while the remaining two are targeted for Jan. 1, 2027.

Fervo is also building another 400 MW, with commercial operations expected in 2028. The project has about 900 MW of contracted offtake.

Geothermal Targets Rising Power Demand

Fervo uses horizontal drilling techniques adapted from the oil and gas industry to access underground heat.

Enhanced geothermal can generate electricity around the clock, giving it an advantage as data centers, AI infrastructure and manufacturing drive higher U.S. power demand.

The company said its development pipeline exceeds 4 gigawatts of capacity.

Fervo Energy Stock Analysis

Fervo stock rose more than 3% Thursday as the geothermal energy stock attempted to rebound from a steep yearlong decline.

The Nasdaq fell 0.28%, while the S&P 500 slipped 0.17%. The Utilities sector declined 0.4%. Meanwhile, Energy gained 0.96%.

The rebound comes after Fervo shares lost 53.59% over the past 12 months. As a result, traders are watching whether the stock can regain key technical levels and build momentum.

Fervo Energy shares are trading slightly above their 20-day simple moving average of $16.61. However, the stock remains 13.2% below its 50-day SMA of $19.54.

The 20-day SMA also remains below the 50-day average, signaling that the intermediate trend remains bearish.

The relative strength index stands at 47.86, indicating neutral momentum. The stock faces resistance near $20, while support sits around $14.50, close to its 52-week low of $14.60.

A sustained move toward the $19-$20 range could signal that selling pressure is easing.

Analyst Outlook

The stock carries a Buy consensus rating and an average price forecast of $41.

Johnson Rice initiated coverage Thursday with a Buy rating and $35 price forecast. Bernstein maintained an Outperform rating and $47 price forecast. Northland Capital Markets initiated coverage Sept. 10 with an Outperform rating and $27 price forecast.

FRVO Price Action

Fervo Energy shares were up 4.28% at $17.05 at the time of publication Thursday, according to market data.