- Financing establishes the bankability of Enhanced Geothermal Systems (EGS) and underscores the commercial maturity of Cape Station
- Coordinating Lead Arrangers include Barclays, BBVA, HSBC, MUFG, RBC, and Société Générale, with participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch
Fervo Energy, the global pioneer of next-generation geothermal deployment, today announced the successful close of $421 million in non-recourse debt financing for the first phase of its flagship Cape Station development. This oversubscribed financing marks Cape Station’s transition from early stage and bridge funding to a long-term, non-recourse project capital structure, underscoring EGS’s bankability as a utility-scale infrastructure asset.
Amid surging power demand from data centers, a resurgence in domestic manufacturing, and accelerating electrification, energy markets are racing to secure clean, affordable, and reliable power – and Cape Station can meet that need. Located in Beaver County, Utah, Cape Station will begin delivering first power to the grid in 2026, reaching approximately 100 MW of operating capacity by early 2027, with plans to scale to 500 MW. The development is fully contracted through power purchase agreements (PPAs) with Southern California Edison, Shell Energy, and community choice aggregators, demonstrating Fervo’s ability to meet customers’ growing needs in delivering firm power at scale.
“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” said David Ulrey, Chief Financial Officer at Fervo Energy. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”
The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. Together, these facilities will fund the remaining construction costs for the first phase of Cape Station and support the project’s counterparty credit support requirements.
RBC Capital Markets served as Fervo’s financial advisor and was a coordinating lead arranger alongside Barclays, BBVA, HSBC, MUFG and Société Générale. Other participating lenders included J.P. Morgan, Bank of America, and Sumitomo Mitsui Trust Bank, Limited, New York Branch. White & Case LLP acted as sponsor counsel for Fervo, while Norton Rose Fulbright acted as counsel for the lender group.
“As demand for firm, clean, affordable power accelerates, EGS is set to become a core energy asset class for infrastructure lenders,” said Sean Pollock, Managing Director, Project Finance at RBC Capital Markets. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”
For more information on how Fervo is making geothermal energy a cornerstone of the 24/7 carbon-free power future, visit www.fervoenergy.com.
