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XGS Energy
XGS Energy is a Palo Alto-based geothermal developer using closed-loop, water-independent technology to deliver baseload power from hot rock anywhere.
XGS Energy
XGS Energy was founded by Josh Prueher, a U.S. Navy veteran and former Goldman Sachs investment banker who previously founded FlexGen and co-founded Broad Reach Power, the latter acquired by ENGIE in 2023. The firm's leadership team draws heavily from oil and gas and geothermal backgrounds: COO Ghazal Izadi spent over a decade at Baker Hughes, and CTO Axel-Pierre Bois founded geomechanics advisory CURISTEC. The company does not publicly disclose its backers, though its board includes former Intel CEO Craig Barrett, former Baker Hughes CEO Martin Craighead, and representatives from Anzu Partners and VoLo Earth Ventures (per firm website). XGS deploys capital into geothermal project development and drilling, targeting long-term power purchase agreements with offtakers. Its technology uses a pipe-in-pipe closed-loop heat exchanger with thermally conductive materials to optimize heat extraction from any hot rock formation — eliminating the need for water aquifers or natural permeability. The firm has publicly announced two projects: a 150-MW geothermal plant in New Mexico with XGS partnering with Baker Hughes, linked to a Meta data center (per Data Center Dynamics, 2025), and a 115-MW development pact with CC Power in California (per Renewables Now, 2025). Geographic focus spans the western United States, with potential expansion into other hot-rock regions globally. XGS operates with a lean team of scientists, engineers, and finance professionals split between Palo Alto and Houston. In 2024, it acquired Capuano Engineering, a drilling services firm founded by veteran Lou Capuano Jr., to bring drilling capability in-house. Richard Chong joined as CFO in 2025, bringing experience from Calpine where he led a $2.25 billion geothermal financing deal (per firm website). The board includes former U.S. Secretary of the Navy Ray Mabus and Khalid Alsweilem, former head of investment at the Saudi Arabian Monetary Authority. XGS's structural differentiator lies in its closed-loop geothermal design that eliminates dependence on water and rock permeability — a materials science approach that could unlock geothermal in geologies previously considered marginal. The in-house drilling capability from its Capuano acquisition also sets it apart from pure-play project developers that outsource that work.
General information
Firm type
other
Year founded
—
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Palo Alto
Corporate office
2479 East Bayshore Road, Suite 210, Palo Alto, CA 94303, United States
Additional offices
820 Gessner Road, Suite 1145, Houston, TX 77024, United States
Principals
Josh Prueher
Chief Executive Officer
Ghazal Izadi, Ph.D.
Chief Operating Officer
Axel-Pierre Bois, Ph.D.
Chief Technology Officer
Lucy Darago, Ph.D.
Chief Commercial Officer
Richard Chong
Chief Financial Officer
Sector focus
Frequently asked questions
Who runs investment decisions at XGS Energy?
CEO Josh Prueher leads the company and its capital allocation, working with a multidisciplinary leadership team including CTO Axel-Pierre Bois and COO Ghazal Izadi. The board includes experienced energy and finance figures such as former Baker Hughes CEO Martin Craighead and former Intel CEO Craig Barrett, who provide strategic oversight. Investment decisions are shaped by project development milestones and offtake agreements rather than a fund-based allocation model.
How does XGS Energy source proprietary deal flow?
XGS develops its own geothermal projects from the ground up, using its proprietary closed-loop technology. The company identifies potential sites through geoscience analysis, then leases or permits land for drilling. In 2024, it acquired Capuano Engineering, a drilling firm with over 350 geothermal wells drilled globally, giving XGS integrated development and drilling capability.
Is XGS Energy structured as a single family office or does it operate more like a venture firm?
XGS Energy is an operating company developing geothermal power projects, not a family office or venture firm. It does not manage external LP capital in a fund structure. Its backers include institutional and strategic investors represented on its board, such as Anzu Partners and VoLo Earth Ventures, as well as individuals like former SAMA investment head Khalid Alsweilem.
What investment stages does XGS Energy typically target?
XGS focuses on early-stage project development, from resource assessment and permitting through drilling and construction to long-term power generation. It targets offtake agreements with corporate and utility buyers rather than selling projects at the development stage. The firm's projects are capital-intensive and require project financing, which CFO Richard Chong specializes in structuring.
Which sectors does XGS Energy explicitly avoid?
XGS Energy focuses exclusively on geothermal power generation. It does not invest in solar, wind, energy storage (as a standalone asset class), oil and gas, or other renewable technologies. The company's technology is designed for baseload electricity, not intermittent sources.
How is XGS Energy related to Capuano Engineering?
XGS Energy acquired Capuano Engineering in 2024. Capuano continues to operate under its own brand as a subsidiary, providing conventional and next-generation geothermal drilling services. Its founder, Lou Capuano Jr., serves as XGS's Vice President of Drilling and brings deep expertise from over 350 global geothermal wells drilled (per firm website).
Does XGS Energy maintain philanthropic structures, and how are they separated?
XGS Energy does not publicly disclose any philanthropic or charitable foundations separate from its operating business. Its board includes figures with public service backgrounds — such as former U.S. Secretary of the Navy Ray Mabus — but the firm itself is purely a commercial geothermal developer.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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