The geothermal company Fervo Energy has secured $206 million in financing to move forward with the development of Cape Station, an ambitious complex located in Beaver County, Utah, that promises to become the largest enhanced geothermal system (EGS) project on the planet.
Fervo Energy and its commitment to renewable energy
With this capital injection, Fervo accelerates construction of its Cape Station plant Cape Station plant. This will consist of two phases: the first, already underway, will provide 100 MW of clean energy starting in 2026. The second phase, scheduled for 2028, will add another 400 MW. Permits already approved allow for a future expansion to 2 GW.
Financing includes:
- 100 million contributed by Breakthrough Energy Catalyst, an initiative that promotes next-generation sustainable technologies.
- A 60 million increase in the credit line of Mercuria, a global energy and commodities group.
- An additional bridge loan of $45.6 million from XRA (a subsidiary of X-Caliber Rural Capital), which specializes in projects in micro-rural areas.
David Ulrey, Fervo’s CFO, noted that this combination of non-dilutive financing and specialized capital unlocks the full potential of the Cape Station project. The funds not only ensure the technical execution of the infrastructure, but also solidify Fervo as a key player in the U.S. energy transition.
Scalable geothermal energy: a realistic bet
Cape Station represents a replicable model for producing emission-free energy on a consistent and cost-competitive basis. With advanced drilling and subsurface modeling technology, Fervo provides a robust alternative to the intermittency of other renewable sources.
The project also has relevant social implications. X-Caliber’s participation in the financing allows for the generation of employment and local development in rural Utah. Jordan Blanchard, co-founder of the entity, highlighted the transformational value of this type of investment.
With financing secured and permits in hand, Fervo plans to begin commercial operations in 2026. Cape Station is emerging as the most tangible example of how to scale next-generation geothermal energy in the context of a more secure, sustainable and diversified energy matrix.
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Source: Fervo Energy
