Fervo Energy Secures $206 Million in New Financing to Accelerate Cape Station Development

Fervo Energy (“Fervo”), the market leader in commercial enhanced geothermal systems (“EGS”) deployment, today announced it has successfully secured $206 million of additional capital required to continue the advancement of Cape Station, the world’s largest EGS development. This milestone underscores Fervo’s record-breaking progress in commercializing firm, carbon-free geothermal energy at scale.

The Cape Station development located in Beaver County, UT includes Cape Station Phase I, which will deliver 100 megawatts (MW) of baseload clean power to the grid beginning in 2026, and Cape Station Phase II, which will bring an additional 400 MW online by 2028. The full Cape Station development has received permitting approval to expand up to 2 GW.

Fervo completed the successful close of three significant transactions to facilitate this growth:

• $100 million in project-level preferred equity from Breakthrough Energy Catalyst, a program within the larger Breakthrough Energy network focused on accelerating next-generation technologies from proof-of-concept to finance-ready infrastructure.
• $60 million upsize to Fervo’s existing corporate term loan facility from Mercuria, one of the world’s largest independent energy and commodity groups.
• $45.6 million in additional non-dilutive bridge debt financing from XRL-ALC, LLC (“XRA”), an affiliate of X-Caliber Rural Capital (“XRC”) that offers conventional construction financing for commercial real estate and infrastructure projects located in “micro-rural areas,” bringing their total funding to $145.6 million.

“With this capital in place, Fervo’s ability to de-risk and finance multi-GW EGS project areas is becoming a reality,” said David Ulrey, Chief Financial Officer at Fervo Energy. “These investments demonstrate what we’ve known all along: Fervo’s combination of technical excellence, commercial readiness, and market opportunity makes us a natural partner for serious energy capital. The confidence our investors have in Fervo and in the Cape asset affirms that next-generation geothermal is ready to play a defining role in America’s energy future.”

Breakthrough Energy Catalyst’s $100 million investment follows an intensive technical, financial, and environmental diligence process, reinforcing the case for EGS as a credible, investable pathway for reliable, zero-carbon power.

“Fervo embodies exactly what we look for at Breakthrough Energy Catalyst: strong development capabilities, technical rigor, and a clear path to scale,” said Mario Fernandez, Head of Catalyst at Breakthrough Energy. “Cape Station marks a major step forward in unlocking the infrastructure capital and project financing needed to commercialize EGS. This project proves what’s possible when breakthrough innovation meets disciplined delivery. It sets the foundation for a model that can be repeated well beyond this site to provide affordable, reliable, and clean energy to the world.”

Fervo has also expanded its existing term loan facility with Mercuria from $40 million to $100 million, enhancing liquidity and reinforcing long-term alignment with one of the company’s earliest strategic investors.

Additionally, XRA upsized its original $100 million bridge loan to $145.6 million, reflecting continued conviction in Cape Station’s performance and development trajectory. The facility supports both subsurface and surface infrastructure development.

“We are very proud to help complete the funding of Fervo Energy’s Cape Station Phase I,” said Jordan Blanchard, Co-Founder of X-Caliber Rural Capital, one of the nation’s leading rural lenders. “This milestone is not just a win for the future of clean energy, but for rural America—demonstrating how innovative financing and investing can drive transformative projects that create jobs, support local economies, and deliver reliable, carbon-free power to communities nationwide. With the Phase I now fully funded and supported by visionary investors like Breakthrough Energy Catalyst, we are proving that rural investment can have a global impact on sustainability and energy security.”

With full funding in place, key permits secured, and construction well underway, Cape Station Phase I remains on track for its 2026 commercial operation date. Fervo’s ability to deliver fully contracted, firm renewable power positions it as the key generation player in the evolving American energy landscape.

About Fervo Energy

Fervo Energy provides 24/7 carbon-free energy through the development of next-generation geothermal power. Fervo’s mission is to leverage innovation in geoscience to accelerate the world’s transition to sustainable energy. The company’s key advancements in drilling and subsurface analytics make geothermal cost competitive and globally scalable. For more information, visit www.fervoenergy.com.

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