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Fix discount rate documentation
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docs/Fervo_Project_Cape-4.md

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@@ -48,8 +48,8 @@ the [web interface](https://gtp.scientificwebservices.com/geophires/?geophires-e
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| Well Drilling Cost Correlation & Adjustment Factor | Vertical large baseline correlation + adjustment factor = 0.84 to align with Fervo claimed drilling costs of <$4M/well | Akindipe, D. and Witter. E. 2025. "2025 Geothermal Drilling Cost Curves Update". https://pangea.stanford.edu/ERE/db/GeoConf/papers/SGW/2025/Akindipe.pdf?t=1740084555; Latimer, T. (2025, February 12). Catching up with enhanced geothermal (D. Roberts, Interviewer). https://www.volts.wtf/p/catching-up-with-enhanced-geothermal. |
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| Reservoir Stimulation Capital Cost Adjustment Factor | 2 | Estimated cost of ~$1.5M per well falls within typical range of $0.5–2M |
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| Capital Cost for Power Plant for Electricity Generation | $1900/kW | https://betterbuildingssolutioncenter.energy.gov/sites/default/files/attachments/Waste_Heat_to_Power_Fact_Sheet.pdf |
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| Discount Rate | 12% | Intended to be approximately equivalent to the 8% inflated equity interest rate used in the 400 MWe BICYCLE case study ([Fervo_Project_Cape-3](https://gtp.scientificwebservices.com/geophires/?geophires-example-id=Fervo_Project_Cape-3)) |
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| Inflated Bond Interest Rate (debt annual interest rate) | 5.6% | Typical discount rates for high-risk projects may be 12–15% |
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| Discount Rate | 12% | Typical discount rates for high-risk projects may be 12–15% |
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| Inflated Bond Interest Rate (debt annual interest rate) | 5.6% | |
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| Fraction of Investment in Bonds (percent debt vs. equity) | 60% | Approximate remaining percentage of CAPEX with $1 billion sponsor equity per https://www.linkedin.com/pulse/fervo-energy-technology-day-2024-entering-geothermal-decade-matson-n4stc. Note that this source says that Fervo ultimately wants to target "15% sponsor equity, 15% bridge loan, and 70% construction to term loans", but this case study does not attempt to model that capital structure. |
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| Exploration Capital Cost | $30M | Estimate significantly higher exploration costs than default correlation in consideration of potential risks associated with second/third/fourth-of-a-kind EGS projects |
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| Investment Tax Credit Rate (ITC) | 30% | Same as 400 MWe case study (Fervo_Project_Cape-3) |

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