BBVA has played a key role as Coordinator Lead Arranger and Hedging Coordinator in the financing of Cape Phase I, developed by Fervo Energy, a pioneering project that marks a milestone in the commercial-scale deployment of next-generation geothermal energy in the United States. The transaction highlights BBVA’s capabilities in the energy sector and reinforces its strong and growing presence as one of the leading project finance institutions in the U.S. market.
As part of this transaction, BBVA participates as one of the main financial partners and coordinating banks in the financing of the first large-scale commercial development of Enhanced Geothermal Systems (EGS), a technology designed to deliver firm, continuous renewable energy. Through this financing, in which the bank also acts as Hedging Coordinator, BBVA contributes to the construction of approximately 100 MW of next-generation geothermal capacity, reinforcing its commitment to industrial decarbonization and the advancement of the global energy transition.
The project, known as Cape Phase I, is located in the state of Utah and is being developed by Fervo Energy. It represents the first large-scale commercial deployment of EGS technology, which uses advanced drilling and stimulation techniques to reliably access geothermal heat in non-conventional formations. Thanks to its modular and scalable design, the project is expected to enable the continuous generation of carbon free electricity, providing a key energy solution to meet the growing needs of the U.S. power system.
Cape Phase I highlights the potential of next-generation geothermal energy to expand beyond traditional geothermal resources by offering a clean, dispatchable and stable source of power. Building on the success of the Project Red pilot, this new phase represents a decisive step forward in the commercial maturity of EGS technology and strengthens its position as a scalable solution capable of making a meaningful contribution to the decarbonization of the global energy system.
BBVA participates as one of the main financial partners and coordinating banks in the financing of the first large-scale commercial development of EGS
“Next-generation geothermal technologies are demonstrating remarkable transformative potential. Their ability to scale commercially will be critical to strengthening the renewable energy mix by providing firm and reliable generation that complements intermittent sources such as solar and wind,” said Miguel Peña, responsible for Project Finance at BBVA in the United States and Canada. “Our commitment as a financial institution is to help innovative cleantech projects be structured and developed with a long-term perspective, facilitating their access to the market.”
BBVA’s participation in the Cape Phase I financing further consolidates its role as a strategic financial partner to the cleantech ecosystem and reinforces its position as one of the leading institutions in the financing of innovative energy projects in the United States. In this context, the bank continues to promote the development of next-generation infrastructure that accelerates the transition toward a low-carbon economy.