Palo Alto-based geothermal startup XGS Energy has acquired Santa Rosa-based Capuano Engineering Company, a leader in providing geothermal resources and services worldwide. The acquisition, completed at the beginning of last month, aims to bolster XGS Energy’s expansion into larger geothermal projects, leveraging Capuano Engineering's extensive experience in the field.

Capuano Engineering, founded by Louis Capuano Jr., has a history of drilling in 15 countries and has been a key player in the geothermal industry since the 1970s. Louis Capuano Jr., a former petroleum engineer, stated that this acquisition will enable both companies to continue growing in the geothermal market. “I have consistently been impressed by the potential of their technology to drive the next wave of geothermal scale globally,” Capuano said.

Although now a subsidiary of XGS Energy, Capuano Engineering will maintain its independence, continuing to work with its own clients, including its ongoing work as a drilling consultant for the Calpine Corporation at The Geysers power plants.

XGS Energy CEO Josh Prueher emphasized that this acquisition is crucial for building a world-class operations team capable of delivering clean, reliable geothermal energy. “Lou Capuano is the most technically and operationally experienced geothermal drilling engineer in the world,” Prueher said.

This acquisition comes as XGS Energy recently secured $20 million to initiate a large geothermal energy demonstration project, marking a significant step toward advancing geothermal technology and clean energy production.