Geothermal energy project developer Fervo Energy announced today that it has secured $421 million in financing to fund the construction costs of the first phase of its large-scale geothermal project in Utah.

Founded in 2017, Houston, Texas-based Fervo Energy focuses on the development of enhanced geothermal systems (EGS) projects to deliver carbon-free energy. The company uses techniques such as horizontal drilling and distributed fiber optic sensing to transform reservoirs of hot rock beneath the earth’s surface into clean energy sources.

The company said that the new funding will support the first phase of its flagship Cape Station development in Beaver County, Utah. The project is expected to begin delivering first power to the grid in 2026, reaching approximately 100 MW of capacity by early 2027, with plans to scale to 500 MW.

The development is fully contracted through power purchase agreements with Southern California Edison, Shell Energy, and community choice aggregators.

The new capital follows a $200 million funding announcement by Fervo for the project in June 2025, and a $462 fundraising round in December.

David Ulrey, Chief Financial Officer at Fervo Energy, said:

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects. 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.”

Fervo said the funding package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility, with the proceeds funding the remaining construction costs for the first phase of Cape Station and supporting the project’s counterparty credit support requirements.

RBC Capital Markets acted as coordinating lead arranger alongside Barclays, BBVA, HSBC, MUFG, and Société Générale, with additional participation from J.P. Morgan, Bank of America, and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

Sean Pollock, Managing Director, Project Finance at RBC Capital Markets, said:

“As demand for firm, clean, affordable power accelerates, EGS is set to become a core energy asset class for infrastructure lenders. Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”