ERM supports Fervo Energy in securing financing for Enhanced Geothermal Systems project

ERM supports Fervo Energy in securing financing for Enhanced Geothermal Systems project

13 April 2026

ERM, the world's largest sustainability consultancy, has acted as an Environmental & Social (E&S) Due Diligence adviser supporting Fervo Energy in securing $421 million in non-recourse project financing for the first phase of Cape Station, an Enhanced Geothermal Systems (EGS) development in Utah in the US. Fervo Energy announced the close of financing on March 19, 2026.

Cape Station is designed to deliver clean, affordable and reliable power to meet growing US energy demand driven by data centers, domestic manufacturing, and nationwide electrification. Its financing demonstrates the bankability of EGS as a utility-scale infrastructure asset and underscores the commercial maturity of the project.

A major step forward for next generation geothermal deployment

As a first-of-its-kind EGS project, Cape Station will begin delivering power to the grid in 2026 and is expected to reach approximately 100 MW of operating capacity by early 2027, with plans to scale to 500 MW.

The development is fully contracted through power purchase agreements with Southern California Edison, Shell Energy, and community choice aggregators, demonstrating strong commercial offtake and market confidence in the reliability of EGS-enabled geothermal energy.

ERM's role as Environmental & Social Due Diligence adviser

ERM provided an independent assessment of Cape Station's environmental and social performance aligned with international best practice and lender expectations. ERM's review supported lenders' understanding of the project's long-term sustainability, regulatory compliance, land and water considerations, community engagement, and health and safety systems.

James Blake, Head of Capital Markets at Fervo Energy, said: "Securing non-recourse financing for a first-of-a-kind EGS project is a pivotal milestone for the industry. It reflects the strength of our technical and commercial approach, and our commitment to high environmental and social standards. We appreciate ERM's leadership in supporting the project's long-term sustainability and bankability."

Rayna Stern, Partner at ERM, said: "Cape Station represents a milestone moment for geothermal energy in the US. ERM is proud to have supported Fervo with this landmark transaction that will help to pave the way forward for clean, affordable and reliable power that can scale to meet growing energy demands."

About ERM

Sustainability is our business.

As the world's largest sustainability consultancy, ERM partners with clients to operationalize sustainability at pace and scale, deploying a unique combination of strategic transformation and technical delivery capabilities. This approach helps clients accelerate the integration of sustainability at every level of their business.

With more than 50 years of experience, ERM's diverse team of 8,000+ experts in 40 countries and territories helps clients create innovative solutions to their sustainability challenges, unlocking commercial opportunities that meet the needs of today while preserving opportunity for future generations. Learn more here.

About Fervo Energy

Fervo Energy provides 24/7 carbon-free energy through the development of next-generation geothermal power. Fervo's mission is to leverage innovation in geoscience to accelerate the world's transition to sustainable energy. With breakthroughs in horizontal drilling, fiber-optic sensing, and advanced reservoir engineering, Fervo is making geothermal scalable, competitive, and ready to meet growing global demand. For more information, visit https://www.fervoenergy.com.