Fervo secures $421 million financing to support Cape Station geothermal development
Construction of Phase 1 of the Cape Station geothermal power project of Fervo Energy (source: Turboden)
Carlo Cariaga
19 Mar 2026
Fervo Energy has secured $421 million in non-recourse financing to fund remaining construction costs for the Cape Station geothermal project in Utah.
Fervo Energy has announced the successful close of $421 million in non-recourse debt
The oversubscribed financing marks Cape Station’s transition from early stage and bridge funding to a long-term, non-recourse project capital structure. 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
“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 new round of financing follows on previously announced financing and investment rounds, notably a $206 million blend of preferred equity and debt financing, and a $462 million Series E fundraising round that brought in Google as an equity investor.
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.
The company broke ground at the Cape Station site in 2023 with a goal of scaling up development to 500 MW. The development is fully contracted through power purchase agreements (PPAs), with a bulk of the electricity to be supplied to Southern California Edison. Smaller PPAs have also been signed with Shell Energy and California-based community choice aggregators.
“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.”
Source: Email correspondence
