Fervo Energy, a Houston, TX-based geothermal energy company, has raised $421 million in a non-recourse debt financing series led by RBC Capital Markets, which served as Fervo’s financial advisor and was a coordinating lead arranger alongside Barclays, BBVA, HSBC, MUFG, and Société Générale.
The round also saw participation from lenders, including J.P. Morgan, Bank of America, and Sumitomo Mitsui Trust Bank, Limited, New York Branch.
The $421 million financing package included a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter-of-credit facility.
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The company will use this funding to cover the remaining construction costs for the first phase of Cape Station and to meet the project’s credit support requirements.
Fervo Energy is a leader in next-generation geothermal power. As electricity demand from data centers, manufacturing, and electrification grows, energy markets need clean, affordable, and reliable power. Cape Station is designed to help meet that demand. Located in Beaver County, Utah, the project will start delivering power to the grid in 2026, reach about 100 MW by early 2027, and plans to expand to 500 MW. It already has power purchase agreements with Southern California Edison, Shell Energy and community choice aggregators, demonstrating Fervo’s ability to deliver reliable power at scale.
“Non-recourse financing has usually been seen as too difficult for first-of-a-kind projects,” said David Ulrey, Chief Financial Officer at Fervo Energy. “Cape Station changes that view. By combining proven oil and gas technology with AI-supported drilling and exploration, strong customer agreements, reliable operations and a strong focus on health and safety, we have shown that enhanced geothermal systems can be a financeable and attractive asset class.”
“As demand for reliable, clean, and affordable power grows, enhanced geothermal systems are expected to become an important energy asset for infrastructure lenders,” said Sean Pollock, Managing Director, Project Finance at RBC Capital Markets. “Fervo is leading this change with Cape Station, an important project for American energy security that RBC is proud to support.”
About Fervo Energy
Founded in 2017 by Tim Latimer and Jack Norbeck, Fervo Energy delivers 24/7 carbon-free power through next-generation geothermal energy projects. The company’s mission is to harness geoscience innovation to accelerate the transition to sustainable energy. With advances in horizontal drilling, fiber-optic sensing, and reservoir engineering, Fervo is helping make geothermal energy scalable, cost-competitive, and able to meet rising global demand.
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