FERVO ENERGY SECURES FINANCING FOR BEAVER COUNTY GEOTHERMAL PLANT

Fervo Energy, a geothermal energy developer based in Houston, has closed on financing for construction of the Cape Station project near Milford in Beaver County. XRL-ALC LLC, an affiliate of Irvington, New York-based X-Caliber Rural Capital, has provided a $100 million bridge loan to support Phase 1 development of the project, billed as the world’s largest next-generation geothermal project.

XRL-ALC LLC offers conventional construction financing for commercial real estate and infrastructure projects located in “micro-rural areas.” Cape Station qualifies because of its remote location in Southern Utah.

The loan consists of $65 million to fund development costs associated with the sub-surface and site development (geothermal wells, pads, roads and associated infrastructure), as well as $35 million to fund development costs associated with surface development, including power plants and associated energy collection and distribution infrastructure.

When completed in June of 2026, Cape Station Phase I will generate 90 megawatts of renewable energy. Phase I is part of a multi-phased development that will supply 400 megawatts of carbon-free power to the grid by 2028. The planned capacity is already contracted to utilities in California.

The multiple phases of development at Cape Station are expected to produce 6,600 construction jobs and 160 full-time positions.

“We are extremely pleased to provide financing for a project that will deliver much-needed energy while supporting the local economy and job creation,” said Jordan Blanchard, co-founder of X-Caliber Rural Capital. “Helping this significant project advance and grow in rural America is a true testament to how investing in communities and businesses not only has local influence, but can have a global, long-lasting impact by promoting sustainability and stimulating rural economies.”

“Fervo’s rapid drilling advancements, 15-year fully contracted offtake from investment-grade buyers, firm transmission rights, approval of nearly all required permits and procurement of all major electrical equipment demonstrates why Fervo is an ideal candidate for project-level debt financing,” said Tim Latimer, CEO and co-founder of Fervo Energy. “This financing confirms that commercial-scale EGS is a today resource, with continued and significant growth potential in the coming years.”

Fervo’s Cape Station project was recently one of three enhanced geothermal systems (EGS) projects selected for funding from the Department of Energy’s EGS Pilot Demonstrations program. The $25 million grant is the largest single award ever given out by the DOE Geothermal Technologies Office.