Fervo Energy Secures $206 Million Financing From Breakthrough Energy Catalyst And Mercuria For Geothermal Plant
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Asset Type
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Closing
Jun 12, 2025
AI
Fervo Energy has secured $206 million in new financing to advance the construction of its Cape Station power plant in Utah, enabling it to become the world's largest enhanced geothermal facility. The funding consists of $100 million from Breakthrough Energy Catalyst, $60 million from Mercuria, and $45.6 million in bridge debt from an X-Caliber Rural Capital affiliate. The initial 100-megawatt phase is planned to commence operations in 2026, followed by a 400-megawatt expansion expected by 2028.
Summary of transaction details:
- Deal Type: Financing
- Transaction Amount: $206,000,000
- Company: Fervo Energy
- CEO: Tim Latimer
- Notable Investors: Breakthrough Energy Catalyst, Mercuria, X-Caliber Rural Capital
- Previous Raises: $244 million in February 2024, $255 million in December 2023
Fervo Energy is a leading enhanced geothermal startup founded by CEO Tim Latimer. The company recently established a record-setting deep well at 15,765 feet, demonstrating its technical capabilities in geothermal energy. The financing signals increasing investor confidence in geothermal energy as a sustainable power source for energy-intensive sectors, including AI.
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Purchase Price
Annual NOI
Loan Amount
Interest Rate (%)
Loan Term (yrs)
Down Payment (%)
Cap Rate
5.80%
Cash-on-Cash
-1.66%
Monthly Payment
$14,164
Annual Debt Svc
$169,964
Annual Cash Flow
$-11,334
DSCR
0.93