The investigative report from Morpheus Research claims Fervo has struggled with significant thermal decline, excessive water loss, and equipment damage tied to induced seismicity. These allegations directly challenge the company’s narrative surrounding its Enhanced Geothermal Systems (EGS) technology. Specifically, researchers point to a 30% water loss rate at the Project Red site, a figure starkly at odds with the sub-1% loss rate necessary for commercial viability and the company's public assurances of 99% recapture efficiency.

Furthermore, the report highlights a surge in seismic activity at the Cape Station site in Utah. According to the findings, the project recorded at least 58 yellow-level seismic events, with frequency and intensity escalating during deep-well fracking operations in April 2026. This data has prompted the law firm Hagens Berman to expand its investigation into whether Fervo provided sufficient transparency regarding these risks in its IPO documents. Reed Kathrein, a partner at Hagens Berman, stated the firm is now evaluating the validity of the report’s conclusions and the company’s ability to fulfill its Geothermal Framework Agreements with partners like Google.