Fervo Energy has raised $206m to further the development of Cape Station, the largest enhanced geothermal systems (EGS) project globally.

Located in Beaver County, Utah, Cape Station includes two phases. Phase I aims to provide 100MW of baseload clean energy to the grid by 2026, while Phase II will add another 400MW by 2028. Permits are in place for potential expansion up to 2GW.

The funding was secured through three major transactions. Breakthrough Energy Catalyst contributed $100m in project-level preferred equity. The investment was preceded by a thorough technical, financial, and environmental review, supporting EGS as a viable zero-carbon energy source.

 Mercuria, an energy and commodity group, increased Fervo’s existing corporate term loan facility by $60m. Additionally, XRL-ALC, affiliated with X-Caliber Rural Capital, provided $45.6m in bridge debt financing, raising their total investment to $145.6m.

Fervo Energy chief financial officer David Ulrey said: “With this capital in place, Fervo’s ability to de-risk and finance multi-GW EGS project areas is becoming a reality. 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.”

X-Caliber Rural Capital co-founder Jordan Blanchard said: “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 funding secured, permits obtained, and construction underway, Cape Station Phase I is on schedule to begin operations in 2026. Fervo Energy’s ability to supply firm renewable power positions it as a significant player in the American energy sector.