Fervo closes $421M of non-recourse project debt for Cape Station Phase I

Fervo Energy/Cape Station

Fervo closed $421 million of non-recourse project financing for Cape Station's first phase, led by six banks including Barclays, HSBC and MUFG. Lenders rarely do this for first-of-a-kind plants; the phase is to reach about 100 MW by early 2027.

• Non-recourse debt ($309M construction-to-term, $61M tax-credit bridge, $51M letter of credit) is repaid from project cash flow only, not company assets.
• Six lead arrangers (Barclays, BBVA, HSBC, MUFG, RBC, Société Générale) plus JPMorgan and Bank of America participated—rare for first-of-a-kind geothermal.
• Cape Phase I targets ~100 MW by early 2027, fully contracted through power purchase agreements; the financing validates commercial geothermal plant economics.