XGS Energy acquires geothermal drilling services company Capuano Engineering

The XGS Energy team (source: XGS Energy)

XGS Energy, an innovator in next-generation geothermal energy technology and project development, has announced its acquisition of Capuano Engineering Company, a global geothermal drilling and completion services provider.

With the additional expertise of Capuano Engineering Founder, President, and CEO Louis (Lou) Capuano, Jr. and team, XGS will advance its proprietary closed-loop heat-harvesting technology to the field and deliver next-generation geothermal projects across the globe.

XGS’ proprietary Thermal Reach Enhancement (TRE) system leverages materials 50 times more thermally conductive than rock to deliver high-efficiency closed-loop geothermal systems. XGS’ technology can be deployed anywhere in the world, unlike conventional geothermal solutions that require access to water reservoirs and specific geological conditions.

“Lou Capuano is the most technically and operationally experienced geothermal drilling engineer in the world. His expertise and capabilities are essential as we begin construction of large-scale geothermal power infrastructure projects around the world,” said Josh Prueher, CEO of XGS Energy. “This is another great leap forward in building the best-in-class technology and operational team to deliver clean, reliable, and resilient geothermal energy at scale.”

XGS Energy had just recently completed a $20 million Series A funding round to support their first commercial-scale project in California later this year. Prior that, the company had secured $19 million in financing back in 2023, and another $9.7 million in early 2024.

Capuano Engineering was founded by President and CEO Lou Capuano, Jr., who is one of the most experienced and respected geothermal drilling and completion experts in the world. In addition to his experience drilling hundreds of geothermal wells globally, Lou has twice served as the President of the Geothermal Resources Council (now known as Geothermal Rising), the premier global trade association for the geothermal energy industry. Along with Capuano Engineering Vice President Louis Capuano III, he has developed and led numerous geothermal drilling courses to train industry professionals and students around the world.

Through the acquisition, Capuano Engineering will become a subsidiary of XGS while retaining its well-known brand. “Capuano Engineering, an XGS Energy Company” will continue to offer services to traditional hydrothermal and next-generation geothermal developers and operators, while dedicating a portion of time to advancing XGS’ technology and projects.

“In my work with the XGS team, I have consistently been impressed by the potential of their technology to drive the next wave of geothermal scale globally,” said Lou Capuano, Jr. “By combining XGS’ disruptive technology with our extensive operational experience, I believe we have the opportunity to lead the next-generation geothermal market. I am excited to be a part of the future of geothermal.”

Source: XGS Energy via BusinessWire