Fervo Energy (FRVO) remains on track to bring its initial 33 megawatt online at the Cape Station Phase 1 geothermal project in Utah in Q4, with the full 100 MW to be deployed by Q1 2027, RBC Capital Markets said Monday in a report.

RBC said the official power purchase agreement begins Oct. 1, though operations may start earlier, with the first power-generation module mechanically complete and now in commissioning.

For Cape Station Phase 2, Fervo has drilled four of its next-generation wells and is advancing construction of power-generation facilities, and the company is meeting or exceeding its internal drilling-cost metrics for the second phase, the report said.

A near-term catalyst is securing an incremental power purchase agreement for Cape Station Phase 3, which may deliver power directly to a customer without relying on the broader transmission grid, a behind-the-meter structure that could allow an accelerated timeline given current transmission capacity, the report said.

RBC maintained its outperform rating on Fervo stock with a $46 price target.

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