Houston company secures $100M for 'world’s largest geothermal energy plant'
loan guaranteed
Houston-based geothermal energy company Fervo Energy has secured a $100 million bridge loan for the first phase of its ongoing project in Utah.
The loan came from an affiliate of Irvington, New York-based X-Caliber Rural Capital. Proceeds will support construction of Fervo’s Cape Station project, which is being touted as the world’s largest geothermal energy plant.
The first phase of Cape Station, which is on track to generate 90 megawatts of renewable energy, is expected to be completed in June 2026. Ultimately, the plant is supposed to supply 400 megawatts of clean energy by 2028 for customers in California.
“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,” Jordan Blanchard, co-founder of X-Caliber Rural Capital, says in a news release.
X-Caliber Rural Capital is an affiliate of commercial real estate financing company X-Caliber Capital Holdings.
Fervo says its drilling operations Utah’s Cape Station show a 70 percent reduction in drilling times, paving the way for advancement of its geothermal energy system.
Tim Latimer, co-founder and CEO of Fervo, says his company’s drilling advancements, purchase deals, transmission rights, permit approvals, and equipment acquisitions make Fervo “an ideal candidate” for debt financing. In May, Latimer joined the Houston Innovators Podcast to discuss the company's growth and latest project.
With a new office in downtown Houston, Fervo recently signed up one of the country’s largest utilities as a new customer and expanded its collaboration with Google.
To date, Fervo has raised $531 million in venture capital funding, per Crunchbase data.
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This article originally ran on EnergyCapital.
