Fervo Energy secured $421 million in financing to fund the construction costs for the first phase of its flagship Cape Station geothermal project in Beaver County, Utah. This funding supports the development of an Enhanced Geothermal Systems (EGS) project, which is expected to begin delivering first power to the grid in 2026. The initial phase will reach approximately 100 MW of capacity by early 2027, with plans to scale the overall project to 500 MW. The 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. RBC Capital Markets acted as coordinating lead arranger, with participation from Barclays, BBVA, HSBC, MUFG, Société Générale, J.P. Morgan, Bank of America, and Sumitomo Mitsui Trust Bank, Limited, New York Branch.
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Counterparts (10)
Lender
Barclays
company · 3 deals
Barclays is a diversified bank with a strategy to achieve net zero emissions by 2050. It focuses on financing clients' transition to sustainable practices and scaling climate technology.
Société Générale
company · 2 deals
Société Générale has acted as a lender in two verified deals, totaling £500 million and $1.5 billion, respectively. These financings support renewable energy projects, specifically one solar project in the UK and one energy storage project in the USA. This indicates a focus on providing debt financing for solar and energy storage projects across international markets.
RBC Capital Markets
company
RBC Capital Markets, the investment banking arm of Royal Bank of Canada, is a global financial institution with significant advisory and capital markets capabilities, particularly strong in North America. It consistently ranks among top global advisors for infrastructure, energy, and power M&A and financings, facilitating billions in annual deal volume.
J.P. Morgan
company
New York-based global financial institution with $3.5 trillion in assets under management. Active infrastructure investor and lender across energy transition, utilities, transport, and digital infrastructure in North America, Western Europe, and select Asia Pacific markets.
BBVA
company · 1 deals
BBVA is a global financial services group that supports companies in their development, offering accessible solutions and expert advice. They are involved in sustainable business and cleantech initiatives, aiming to promote a clean technologies ecosystem.
Bank of America
company
Bank of America is a global financial institution providing comprehensive financial services, including corporate and investment banking, capital markets, and wealth management. In the infrastructure sector, it acts as a leading lender, financial advisor, and underwriter for project finance, M&A, and capital markets transactions across a broad range of sub-sectors globally.
HSBC
company · 6 deals
HSBC is one of the world’s largest banking and financial services organisations. Their strategy supports their ambition to be the most trusted bank globally, putting customers at the heart of everything they do. They are focused on long-term, sustainable growth, focused on areas of their competitive strengths.
MUFG
company · 4 deals
Mitsubishi UFJ Financial Group (MUFG) is a global financial group. They provide financial services, including banking, trust banking, and securities, and are involved in sustainability initiatives, including financing for projects that contribute to a carbon-neutral society.
S
Sumitomo Mitsui Trust Bank, Limited, New York Branch
company
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Deal Analysis
Fervo Energy secured $421 million in financing to fund the first phase of its Cape Station geothermal project in Beaver County, Utah, a 100 MW Enhanced Geothermal Systems (EGS) facility. RBC Capital Markets acted as coordinating lead arranger, with participation from Barclays, BBVA, HSBC, MUFG, Société Générale, J.P. Morgan, Bank of America, and Sumitomo Mitsui Trust Bank, Limited, New York Branch. The financing includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. First power delivery to the grid is expected in 2026, with 100 MW capacity targeted by early 2027.
- $421 million total financing for 100 MW Cape Station geothermal project
- Financing includes $309 million construction-to-term loan, $61 million tax credit bridge loan, and $51 million letter of credit
- RBC Capital Markets served as coordinating lead arranger with eight other banks participating
- First power expected in 2026, with 100 MW operational by early 2027
- Project located in Beaver County, Utah, with potential to scale to 500 MW
Source Intelligence
KEY DETAILS
The 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. The project uses horizontal drilling and distributed fiber optic sensing to develop enhanced geothermal systems (EGS).
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Deal Size
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.
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Capacity
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.
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Location
The company said that the new funding will support the first phase of its flagship Cape Station development in Beaver County, Utah.
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PPA Details
The development is fully contracted through power purchase agreements with Southern California Edison, Shell Energy, and community choice aggregators.
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Financials
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.
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Announcement
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.
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COD
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.
PARTIES MENTIONED IN SOURCE
F
Fervo Energy
developer
"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."
R
RBC Capital Markets
lender
"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."
B
Barclays
lender
"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."
B
BBVA
lender
"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."
H
HSBC
lender
"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."
M
MUFG
lender
"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."
S
Société Générale
lender
"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."
J
J.P. Morgan
lender
"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."
B
Bank of America
lender
"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."
S
Sumitomo Mitsui Trust Bank, Limited, New York Branch
lender
"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."
S
Southern California Edison
buyer
"The development is fully contracted through power purchase agreements with Southern California Edison, Shell Energy, and community choice aggregators."
S
Shell Energy
buyer
"The development is fully contracted through power purchase agreements with Southern California Edison, Shell Energy, and community choice aggregators."
high quality
Enriched Mar 20, 2026
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