Menengai’s Broken Promise: How Kenya’s Geothermal Model Lost the Steam Thematic image of the Olkaria Geothermal Field Kenya’s Menengai geothermal project was sold as a model of modern public-private partnership. The state would carry the difficult and expensive burden of geothermal exploration and drilling. Private power producers would then build, own and operate power plants. Geothermal Development Company would supply the steam; the independent power producers would convert it into electricity; Kenya Power would buy the output. On paper, the arrangement was elegant. In practice, Menengai has exposed a far more uncomfortable reality: Kenya’s public steam-supply model is not delivering the certainty it promised. Menengai Phase I was designed to produce 105 megawatts from three 35 MW plants. GDC’s own project page says the three plants were awarded to Globeleq Menengai Geothermal, Sosian Menengai Geothermal Power and OrPower Twenty Two under a build-own-operate structure. Yet the ...
From Łódź to Utah: ABB’s Polish Plant Powers the Next Generation of American Geothermal Energy
By: Robert Buluma
In the race to build a reliable, carbon-free grid, a quiet but powerful partnership is taking shape—one that connects a high-tech factory in central Poland with a sprawling geothermal development in the Utah desert. ABB, the Swiss-Swedish engineering giant, has signed an agreement to supply advanced motor control solutions for Fervo Energy's flagship Cape Station project in Beaver County, Utah. The equipment, including more than 80 medium-voltage drives, will be manufactured at ABB's state-of-the-art facility in Aleksandrów Łódzki, Poland, underscoring how global supply chains are mobilizing to unlock next-generation geothermal energy at scale.
Fervo Energy: Redefining Geothermal with Horizontal Drilling and AI
Fervo Energy has emerged as a leading force in enhanced geothermal systems (EGS), a technology that adapts oil and gas techniques—horizontal drilling, multistage stimulation, and fiber-optic sensing—to engineer geothermal reservoirs where nature alone falls short. The company began demonstrating its approach at Project Red in Nevada, the world's longest-running EGS system, which has operated for more than 600 days and validated the reliability of 24/7 carbon-free power from engineered underground heat exchange.
Building on that success, Fervo broke ground on Cape Station in 2023 with the ambition of creating the world's largest next-generation geothermal project by installed capacity. Cape Station will deliver 500 MW of baseload power in two phases. Phase I is scheduled to bring approximately 100 MW online in late 2026, expanding to early 2027, while Phase II will add the remaining 400 MW by 2028. Once fully operational, the facility will generate enough clean electricity to power approximately 355,000 U.S. homes annually.
Technical innovations at Cape Station include:
· Horizontal well design: Multiple wells from a single pad reduce surface footprint, minimize drilling risks, and unlock geothermal resources previously considered too difficult or uneconomic to access.
· Record-breaking drilling: In June 2025, Fervo completed its Sugarloaf appraisal well to a true vertical depth of 15,765 feet with an estimated bottomhole temperature of 520°F, all in just 16 drilling days—a 79% reduction compared to DOE baselines.
· Thermal recovery breakthroughs: An independent reserves report from DeGolyer & MacNaughton found that Fervo's proprietary EGS design achieves thermal recovery factors of 50–60%, tripling the useful thermal energy reserves compared to conventional geothermal technology.
· AI-enabled exploration: The company uses artificial intelligence for drilling and reservoir engineering to optimize performance across its wellfield.
Fervo has secured its revenue stream through power purchase agreements with a diverse set of buyers. Southern California Edison is the largest offtaker with a 320 MW agreement, while Shell Energy and California community choice aggregators have signed smaller PPAs. Google, a long-time supporter of Fervo's technology, has also committed to purchasing capacity for its data centers.
The EGS Opportunity: Unlocking Gigawatts Across the U.S.
Conventional geothermal relies on naturally occurring underground hot water reservoirs, limiting deployment to specific volcanic or tectonic regions. EGS changes the equation. By creating engineered fracture networks deep within hot rock formations, EGS can unlock geothermal resources across far larger portions of the country. The U.S. Department of Energy estimates that aggressive technology advancements could unlock 300 GW of geothermal capacity nationwide, more than 60 times the country's current installed base. Fervo's subsurface analysis suggests that the Cape Station area alone could support over 5 GW of development at depths up to 13,000 feet.
ABB's Role: More Than 80 Drives, Motors, and Prefabricated eHouses
Under the agreement, ABB will deliver a comprehensive package of medium-voltage motor control equipment that forms the electrical backbone of Cape Station's pumping and circulation systems. The scope of supply includes:
· More than 80 medium-voltage drives to efficiently manage the significant horsepower requirements of critical pumping equipment.
· Medium-voltage motors and generators to support the primary electrical generation and fluid circulation processes.
· Low-voltage motor control centers and medium-voltage switchgear for safe and reliable power distribution.
· Prefabricated eHouses (modular electrical enclosures) designed to house well pad drive systems and associated infrastructure, minimizing on-site construction and accelerating deployment.
This is not ABB's first collaboration with Fervo. Tim Latimer, CEO of Fervo Energy, noted, "Their proven track record, and ability to advise, develop and execute at scale made ABB the clear choice again for Cape Station project". Brandon Spencer, President of ABB Motion, added, "Our strategic partnerships with innovative clean energy producers like Fervo Energy reinforce our commitment to expand the potential of reliable, renewable energy sources with our proven electrification technologies available today".
Why Variable Frequency Drives Are Critical for EGS Performance
The more than 80 medium-voltage drives ABB will supply are variable frequency drives (VFDs)—electronic devices that adjust the speed and torque of electric motors by controlling the frequency and voltage of the power supplied. For an EGS project like Cape Station, VFDs perform several essential functions:
1. Optimized pumping for fluid circulation. EGS operates by injecting cold water into deep injection wells, circulating it through an engineered fracture network to absorb heat, and producing hot water or steam back to the surface through production wells. VFDs enable precise control of pumping speeds, matching fluid flow rates to real-time subsurface conditions and electricity demand.
2. Massive energy savings. Replacing direct-on-line starting methods with VFDs can lower energy costs by up to 60 percent and reduce CO₂ emissions accordingly. For a 500 MW facility operating 24/7, these efficiency gains translate into tens of millions of dollars in operational savings over the project's lifetime.
3. Grid-friendly operations. VFDs provide soft-start capabilities that reduce inrush current when large motors are turned on, minimizing stress on the local grid and protecting equipment from electrical spikes.
4. Decarbonization enablers. ABB has positioned its drive technology as a core tool for industrial decarbonization, offering an affordable, scalable way to cut emissions and improve productivity without building costly new infrastructure.
Behind the Equipment: ABB's Polish Manufacturing Hub
The drives for Cape Station will be manufactured at ABB's Drives Factory in Aleksandrów Łódzki, a greenfield facility built from scratch in 2009 that has since become one of ABB's most important manufacturing centers globally. Approximately 90% of the factory's production is exported, supplying advanced power electronics and drive systems to clients in more than 50 countries. The plant is recognized as one of the most modern production facilities of its kind in Poland and Europe.
What makes this factory stand out is the strategic shift ABB has made in recent years. The company transferred production from facilities in Switzerland, Sweden, Canada, and China to Aleksandrów Łódzki—not primarily for lower labor costs, but for engineering competence and quality. The plant employs 569 people, including approximately 300 engineers, designers, and quality specialists who have evolved from executing predefined orders to independently developing new technologies. Polish engineers at the factory now serve as full partners in ABB's global R&D network, designing drive solutions that are deployed in critical industrial and infrastructure projects worldwide.
This reshoring trend carries significant implications for Europe's industrial base. Rather than offshoring production, ABB has consolidated advanced manufacturing in Poland, betting on high-skilled labor and engineering expertise as competitive advantages in precision power electronics. For the Cape Station project, it also ensures that Fervo receives drives built to rigorous European quality standards with shorter supply chain distances compared to sourcing from Asia.
Cape Station in the Broader Geothermal Market Context
Cape Station is arriving at a moment of surging interest in firm, clean power. Utilities and grid operators are scrambling to add capacity to support growing electricity demand from data centers, manufacturing reshoring, and the electrification of transport and heating. Unlike wind and solar, which generate power intermittently, geothermal provides a stable, dispatchable output with capacity factors often exceeding 90%.
The U.S. geothermal market is poised for rapid expansion. The global geothermal electricity market is projected to grow from approximately $8.2 billion in 2025 to $13.8 billion by 2030, representing a compound annual growth rate (CAGR) of around 10%. Some projections are even more bullish, with the broader geothermal power generation market expected to reach $21.2 billion by 2030 at a CAGR of nearly 11%. While the United States already leads the world in geothermal electricity generation with approximately 4 GW of installed capacity, DOE analysis suggests there is potential for at least 300 GW of reliable geothermal power on the U.S. grid by 2050. Realizing this potential will require massive deployment of next-generation EGS projects like Cape Station.
Policy Support and Financing Backing
Cape Station has received significant financial backing that signals growing confidence in EGS as a bankable asset class. In March 2026, Fervo secured $421 million in non-recourse financing to fund remaining construction costs for Phase I. The oversubscribed package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. David Ulrey, CFO of Fervo Energy, remarked, "Non-recourse financing has historically been considered out of reach for first-of-a-kind projects. Cape Station disrupts that narrative". RBC Capital Markets served as financial advisor and coordinating lead arranger alongside Barclays, BBVA, HSBC, MUFG, and Société Générale, with additional participation from J.P. Morgan and Bank of America.
This financing follows a $206 million preferred equity and debt round in June 2025 and a $462 million Series E fundraising round that brought Google in as an equity investor. The project's bankability has also been supported by independent third-party validation: DeGolyer & MacNaughton confirmed the resource potential and Google ability to deliver contracted volumes to offtakers including Shell Energy and Southern California Edison.
On the policy front, the U.S. Department of Energy announced in February 2026 a funding opportunity of $171.5 million to support next-generation geothermal field-scale tests and exploration drilling across the country. The DOE's Office of Geothermal has also set a strategic goal of supplying 60 GW of EGS and hydrothermal resource deployment by 2050, reinforcing that geothermal is increasingly seen as a pillar of the nation's carbon-free electricity mix.
The Geothermal Supply Chain Builds Out
Cape Station's development has catalyzed a broader ecosystem of suppliers. In October 2025, Turboden (a Mitsubishi Heavy Industries Group company) was selected to deliver three Gen 2 Organic Rankine Cycle (ORC) units that will generate approximately 300 MW of power at the site. In April 2026, Fervo and Turboden expanded their partnership with a three-year framework agreement to supply ORC turbines for up to 35 of Fervo's standardized 50 MW GeoBlocks, totaling up to 1.75 GW of generation capacity. Separately, Baker Hughes secured a contract to design and deliver equipment for five ORC power plants at Cape Station, further underscoring the project's scale and the industry's growing confidence in EGS as a commercially viable power source.
Conclusion: A Template for the Geothermal Future
The ABB–Fervo partnership, anchored by manufacturing in Łódź and deployment in Utah, illustrates two important trends. First, EGS has moved from pilot demonstrations to large-scale commercial deployment, backed by hundreds of millions in project finance and anchored by creditworthy offtakers. Second, the global supply chain for next-generation geothermal is taking shape, with ABB leveraging its Polish drives factory to deliver mission-critical electrification equipment across continents.
For anyone tracking the energy transition, Cape Station is more than a single project. It is a template. By combining horizontal drilling and AI with advanced motor control and ORC technology, Fervo is showing that geothermal can scale. ABB, in turn, is showing that European manufacturing remains central to building that scaled future. As the U.S. moves toward a carbon-free grid, the drives from Łódź will be helping to power it—reliably, efficiently, and around the clock.
Source: Renewables Now
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