Fervo Energy lands $206M in financing to build massive geothermal power plant

Fervo Energy, a leading geothermal startup, has secured $206 million in financing to advance the development of Cape Station, poised to be the world’s largest enhanced geothermal power plant located in Utah. The project’s initial phase is expected to begin operations next year, generating 100 megawatts of electricity, with a planned expansion in 2028 adding an additional 400 megawatts. Enhanced geothermal technology, which accesses deeper and hotter underground heat than traditional methods, offers a promising, emissions-free, and continuous power source, particularly appealing for energy-intensive applications like AI data centers. The technology also benefits from expertise derived from the oil and gas industry, potentially aiding its regulatory and political support. The financing package includes $100 million in preferred equity from Breakthrough Energy Catalyst, Bill Gates’s investment arm, an additional $60 million loan from Mercuria, and $45.6 million in bridge debt from X-Caliber Rural Capital. This funding follows Fervo’s recent achievement of drilling its hottest and deepest