Fervo Energy closed a $421 million non-recourse debt financing for the first phase of its flagship Cape Station enhanced geothermal systems (EGS) development in Beaver County, Utah. EGS are engineered reservoirs that create clean, baseload electricity by injecting fluid into hot, impermeable underground rock, creating fractures for water circulation.

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 $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.

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.

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