X-Caliber Rural Capital Affiliate Closes $100MM Loan for World’s Largest Next Generation Geothermal Energy Project
IRVINGTON, N.Y. (September 10, 2024) – X-Caliber Rural Capital (“XRC”) today announced that its affiliate, XRL-ALC, LLC, (“XRA”), has closed a $100MM bridge loan to support Phase I development of Fervo Energy’s Cape StaOon project in Beaver County, Utah. The Cape StaOon project is the world’s largest next-generaOon geothermal project.
X-Caliber Rural Capital owns XRL-ALC, LLC, (“XRA”), an affiliate that offers convenOonal construcOon financing for commercial real estate and infrastructure projects located in “micro- rural areas.” Cape StaOon is located about 7.5 miles northeast of Milford.
XRA provided $65MM to fund development costs associated with the sub-surface development (geothermal wells, pads, roads, and associated infrastructure), as well as $35MM to fund development costs associated with surface development (power plants and associated energy collecOon and distribuOon infrastructure).
Cape StaOon Phase I will generate 90 MW of renewable energy capacity and is expected to be completed by June 2026. Phase I is part of a mulO-phased development that will create 400 MW of carbon-free, firm capacity to supply around-the-clock power to the grid by 2028.
“We are extremely pleased to provide financing for a project that will deliver much-needed energy while supporOng the local economy and job creaOon,” said Jordan Blanchard, Co- Founder of X-Caliber Rural Capital. “Helping this significant project advance and grow in rural America is a true testament to how invesOng in communiOes and businesses not only has local influence, but can have a global, long-lasOng impact by promoOng sustainability and sOmulaOng rural economies.”
X-Caliber Rural Capital is an affiliate of X-Caliber Capital Holdings LLC (“X-Caliber”), a direct commercial real estate finance company whose pladorms provide direct mortgage lending and other real-estate lending and invesOng services.
“This is a milestone transacOon for X-Caliber, and we are thrilled to support this ground- breaking technology that is shaping the future of energy,” said Chris Callahan, President, and CEO of X-Caliber. “Our team provided innovaOve, short-term financing for two criOcal porOons of the project’s development, leveraging our unique experOse in an effort to help harness innovaOon and expand the energy ecosystem.”
The project is already contracted to deliver up to 400 MW of renewable energy to uOliOes in California that will supply hundreds of thousands of local homes with power. In addiOon, mulOple phases of development at Cape StaOon are expected to produce 6,600 construcOon jobs and 160 full-Ome posiOons.
Fervo Energy conOnues to have a major macroeconomic impact on every sector of the economy. With the increase in arOficial intelligence data centers, the Electric Power Research InsOtute says electricity consumpOon could double by 2030. With demand increasing and pugng addiOonal strain on the country’s aging power grid, the development of next-generaOon geothermal power is criOcal for the naOon’s energy supply and the environment.
“Fervo’s rapid drilling advancements, 15-year fully contracted oiake from investment grade buyers, firm transmission rights, approval of nearly all required permits, and procurement of all major electrical equipment demonstrates why Fervo is an ideal candidate for project-level debt financing,” says Tim LaOmer, CEO and co-founder of Fervo Energy. “This financing confirms that commercial scale EGS is a today resource, with conOnued and significant growth potenOal in the coming years.”
Fervo’s Cape StaOon project was recently one of three enhanced geothermal systems (EGS) projects selected for funding from the Department of Energy’s EGS Pilot DemonstraOons program. The $25 million grant is the largest single award ever given out by the DOE Geothermal Technologies Office.
Cape StaOon is poised to invest $1.1 billion into supply chains and local businesses, driving criOcal growth in the county. As the world’s largest next-generaOon geothermal project, Cape StaOon will become a major asset to the Milford Valley, revitalizing the local economy and providing employment opportuniOes for its diligent residents.
The Cape StaOon Project will be the first uOlity-scale, greenfield geothermal energy project for Fervo.
About X-Caliber Holdings LLC
X-Caliber Holdings LLC is a naOonally recognized commercial real estate finance franchise whose affiliate companies provide direct mortgage lending, servicing, advisory, and investment opportuniOes leveraging expansive and innovaOve lending pladorms that offer FHA, bridge, USDA, and C-PACE financing. X-Caliber and its affiliates have team members located in 20 states across the country.
About XRL-ALC, LLC
XRL-ALC, LLC (XRA), is an affiliate of X-Caliber Rural that offers convenOonal construcOon financing for commercial real estate and infrastructure projects located in “micro-rural areas.” XRA loans can be part of a larger capital stack including USDA OneRD financing, CPACE, New Markets Tax Credits, and senior secured debt. Micro-rural areas are generally described as an area with a populaOon of less than 20,000 and not part of a Metropolitan StaOsOcal Area. The Company is dedicated to creaOng aoracOve soluOons for its borrowers that meet the needs of micro-rural communiOes throughout the country.
About Fervo Energy
Fervo Energy provides 24/7 carbon-free energy through the development of next-generaOon geothermal power. Fervo’s mission is to leverage innovaOon in geoscience to accelerate the world’s transiOon to sustainable energy. Geothermal has a major role to play in the future electric grid, and Fervo’s key advancements in drilling and subsurface analyOcs bring a full suite of modern technology to make geothermal cost compeOOve and globally scalable. For more informaOon, please visit www.fervoenergy.com.
X-Caliber Media Contact:
Bonnie Habyan
914.815.980
bhabyan@x-caliber.com
Fervo Energy Media Contact:
Ally Copple
713-201-8800
ally@innovantpr.com
