Fervo Energy touts enhanced geothermal potential as Montana lawmakers press for permitting clarity

Jack Connes, senior policy and regulatory affairs associate at Fervoe Energy, told the Energy and Technology Interim Committee on March 26 that enhanced geothermal systems (EGS) can deliver zero‑emission, firm power with low land and water use and rapidly falling capital costs. “We’ve already raised over $1 billion and have more than 658 MW of PPAs and roughly a 40 GW resource potential,” Connes said in his presentation, noting Fervoe’s pilot (Project Red) and Cape Station, a 500‑MW project under construction in Utah.

Fervoe described EGS as engineered fractures in deep hot rock that turn impermeable formations into heat‑producing reservoirs; Connes said Cape wells are drilled to roughly 10,000–16,000 feet and that innovations in drill‑bit technology and horizontal drilling are cutting drilling time and cost. He said closed‑loop designs limit freshwater consumption and that operations use brackish, non‑potable water reinjected without surface discharge.

Legislators pressed for specifics. Representative Carter asked about project lifetimes and cost‑competitiveness; Connes replied that PPAs typically span 20–25 years, resources are expected to last decades with periodic redrilling, and that delivered generation economics can already be competitive in many markets. Senator Pope asked how long a Montana project would take from identification to online operation; Connes said much depends on permitting and urged states to streamline permitting, consolidate regulatory primacy for underground injection control where appropriate, and update IRP modeling assumptions so EGS costs are not excluded by outdated data.

DEQ’s Dan Walsh briefed the committee on Montana’s current regulatory framework for geothermal, noting the state does not yet have a straightforward path beyond exploration: geothermal over 50 MW triggers the Major Facility Siting Act and MEPA review, and geothermal wells are treated as Class V wells under current federal primacy (EPA). Walsh’s memo to the committee teed up questions about whether geothermal should be treated as a surface or mineral resource and which state agency should be the primary contact for developers.

Why it matters: EGS promises clean, dispatchable power that could strengthen resource adequacy and grid reliability while expanding Montana’s energy mix. Committee members emphasized fast follow‑up: Vice Chair Edwards and Representative Perry said they are close to drafting legislation to clarify Montana’s permitting and surface‑vs‑mineral questions and to align state agencies ahead of developer interest. The committee asked DEQ, DNRC and legislative staff to work through concrete statutory options and to report back at the next interim meeting.