XGS Energy plans to “aggressively expand” its team in Houston this year thanks to its latest round of investments. Photo via Getty Images
XGS Energy, a California-headquartered geothermal power company with a major presence in Houston, has closed $13 million in new financing that included new investors Aligned Climate Capital, ClearSky, ClimateIC and WovenEarth Ventures, in addition to inside investors.
The company plans to “aggressively expand” its team in Houston this year, according to a news release.
“We are facing global energy supply challenges of unprecedented scale and urgency,” Kevin Kimsa, Managing Partner at ClimateIC, said in the release. “The XGS team is uniquely primed to meet the moment, bringing together innovative technology and leading engineering talent with the deep experience in infrastructure development and financing critical to deploying large-scale energy systems at speed.”
As part of the financing deal, Mano Nazar, ClearSky Senior Advisor and the former Chief Nuclear Officer of NextEra Energy, will join the XGS Energy Board of Directors.
“XGS’s advanced geothermal technology is uniquely positioned to deliver abundant energy to the grid faster than any other baseload energy technology at a time of unprecedented demand for energy resources,” Nazar said in a news release. “We are excited to partner with XGS to deliver on their mission of sustainable, reliable, and scalable geothermal energy.”
XGS is known for its next-gen closed-loop geothermal well architecture. The company saw massive growth in the Houston market last year and recently completed a 100-meter field demonstration in central Texas. The new funding supports the XGS’s multi-gigawatt project pipeline.
The recent financing also builds on an oversubscribed Series A round led by Constellation Technology Ventures, VoLo Earth Ventures, and Valo Ventures that closed last year.
Challenges in the energy transition often center around two questions: Where will organizations find the resources? And how will projects be financed?
XGS Energy's next-gen closed-loop geothermal well architecture addresses both issues head-on. The California-based company saw massive growth in the Houston market last year and recently completed a 100-meter field demonstration in central Texas, marking a major milestone for its technology's commercialization and potential for scale.
In an interview with EnergyCapital, Axel-Pierre Bois, XGS's Chief Technology Officer, shares what drew him to the geothermal space, why XGS is expanding in Houston and what the company's plans are for the year ahead.
How does XGS Energy's technology address the biggest challenges in geothermal energy?
XGS Energy is developing a geothermal system that decouples geothermal energy from its traditional dependence on water and geology to deliver affordable, clean energy anywhere there is hot rock.
Historically, geothermal resources have been hard to locate, as conventional systems require the overlap of hot rock, porous and permeable geology, and abundant water to produce energy, limiting their potential to a few select hot spots worldwide. Instead of relying on an underground fracture network that drives the geology and water requirements, the base component of XGS’s system is a single well, in which fluid is pumped to a hot rock resource and then returned to the surface through a tube-in-shell design, creating a sealed, closed loop. This allows XGS to produce geothermal energy anywhere where there is hot rock, unlocking terawatt-scale potential in the U.S. alone.
Geothermal systems have also struggled to secure project financing, as many systems have historically faced high levels of unplanned cost risk due to factors including water loss and production uncertainty. XGS’s sealed, closed-loop system ensures that it can provide reliable, predictable electricity throughout its lifespan. XGS also boosts the cost-competitiveness of its system through our major innovation, a proprietary thermally conductive materials system that is installed downhole around each well, increasing the heat transferred to the closed-loop system by 30-50%.
What has drawn you to a career in the geothermal energy space?
I have been in the subsurface industry for over 30 years, developing technical solutions for companies in the fields of geosciences, underground storage, upstream oil and gas, and geothermal heat harvesting to help improve their overall economic, ethical and environmental footprints. In 2009, I founded Curistec, a technology company providing research, engineering and technical services for geomechanics, wellbore integrity, well abandonment, cement design and cement and rock testing. A few years back, Curistec assisted with the Iceland Deep Drilling Project, helping to develop cement formulations for superhot geothermal well applications to enable drilling in high-temperature environments. As I looked toward the future, it became clear that next-generation geothermal technologies would transform the geothermal energy industry and open new markets worldwide. Curistec had been working closely with the XGS Energy team as technology partners for several years, so joining the team directly to help shape the technology development was an exciting opportunity to help develop and deploy a new system to unlock the full terawatt-scale potential of geothermal energy.
Tell us about the 100-meter field demonstration in central Texas completed in 2024 — what all did you and your team learn from the test?
Our 100-meter field demonstration in central Texas marked a significant step in our progress toward deploying geothermal energy in a commercial setting. With this field operation, we successfully demonstrated our ability to mix, pump and place our thermally conductive materials system at a commercial scale, using off-shelf tools and technologies. This was a significant milestone, taking us from theoretical models and laboratory tests to field-scale operations, proving that our novel geothermal system is operationally viable in real-world well conditions.
The completion of the Texas field demonstration advanced XGS into the new wave of geothermal innovators that are putting real steel in the ground. In 2024, we kicked off construction at our commercial-scale demonstration in California and are excited to share updates in the year ahead.
Last year, XGS Energy leased over 10,000 square feet of office space in Memorial City. How has Houston's business community and opportunities benefitted the company?
Houston, the epicenter of the oil and gas industry, has become a hub of energy innovation, offering attractive incentives for growing companies like XGS. The region’s workforce, which is home to some of the best subsurface engineers and operational talent in the energy sector, was a key factor for XGS when we were planning our operational roadmap. This expertise, paired with proximity to our partners in the field services industries, like cementing and drilling, is both apracticaland tactical advantage for XGS.
We’ve built a strong technical and operational team here at XGS, with experience from the oil and gas industry, utilities and power project developers. XGS is planning for continued growth in the Houston area, leveraging the region’s leading engineering and operational workforce and its intensifying interest in supporting the energy transition.
What are XGS Energy's goals for 2025?
In 2024, the XGS Energy team made significant progress toward our goal of providing clean, round-the-clock energy with our solid-state geothermal system. In 2025, XGS Energy will be focused on deploying its geothermal system at a commercial scale, starting with the completion of our full-scale prototype in California. XGS will also continue accelerating our commercial traction, expanding our already robust and highly differentiated geothermal resource evaluation toolkit, advancing our global project pipeline, and growing our team to strengthen our operational capability and capacity.
The Meta and Sage Geosystems project is reportedly the first next-generation geothermal project located to the east of the Rocky Mountains. Rendering by Sage Geosystems and Meta
A Houston company has signed a new agreement with Meta Platforms Inc. — Facebook's parent company — to power the tech giant's data center growth.
Houston-based Sage Geosystems agreed to deliver up to 150 megawatts of new geothermal baseload power to Meta. The companies made the announcement this week at the United States Department Energy’s Catalyzing Next Generation Geothermal Development Workshop.
The deal is significant because it's the first next-generation geothermal project located to the east of the Rocky Mountains, the companies report in a news release.
“This announcement is the perfect example of how the public and private sector can work together to make the clean energy transition a reality,” Cindy Taff, CEO of Sage Geosystems, says in the release. “We are thrilled to be at the forefront of the next generation of geothermal technology and applaud the DOE for supporting the commercialization of innovation solutions.
"As energy demand continues to grow, the need for reliable, resilient and sustainable power is paramount and our partnership with Meta underscores the critical need for innovative and sustainable energy solutions like ours,” she continues.
The project's first phase will aim to be operating in 2027. The plans reflect how geothermal is being recognized as a growing carbon-free energy source in the country, and how Meta is committed to clean energy initiatives.
“The U.S. has seen unprecedented growth in demand for energy as our economy grows, the manufacturing sector booms thanks to the Biden-Harris Administration’s Investing in America agenda, and new industries like AI expand,” U.S. Energy Deputy Secretary David Turk says. “The Administration views this increased demand as a huge opportunity to add more clean, firm power to the grid and geothermal energy is a game-changeras we work to grow our clean power supply.”
Sage's technology — called Geopressured Geothermal System — works deep in the earth to develop energy storage and geothermal baseload power.
“Meta thanks the Department of Energy’s leadership on promoting and supporting the exploration of new energy sources like geothermal," Urvi Parekh, head of renewable energy at Meta, says. "That leadership supports Meta’s goal to enable the addition of reliable, affordable, and carbon-free power to the grid with this geothermal energy deal. We are excited to partner with such an innovative company like Sage Geosystems that is a proven leader in geothermal development on this project and beyond.”
Sage recently teamed up with a utility provider for an energy storage facility in the San Antonio metro area to build its three-megawatt EarthStore facility.
The company is also working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas, which is the third U.S. Department of Defense geothermal initiative in the Lone Star State.
GA Drilling opened its Houston office in 2013 to tap into the region’s oil and gas industry. Photo via Getty Images
GA Drilling, a provider of geothermal drilling technology whose U.S. headquarters is in Houston, is teaming up with a European energy company to develop a geothermal power plant in Germany.
GA Drilling and ZeroGeo Energy, a Swiss company specializing in renewable energy, say the 12-megawatt Hot Dry Rock Geothermal Power Plant (Project THERMO) is the first of several geothermal power and geothermal energy storage projects they’re planning in Europe. GA Drilling will supply technology for Hot Dry Rock, and ZeroGEO will operate the plant.
“The need for clean baseload power is real, and geothermal has the highest potential to deliver that safely and securely. We’re excited to be collaborating with ZeroGeo to help address the power needs in Europe,” Dusan Kocis, co-founder and chief operating officer of Slovakia-based GA Drilling, says in a news release.
Last year, GA Drilling conducted the first public demonstration of its latest deep drilling tool, ANCHORBIT. GA Drilling says it developed the tool to cut the cost of deep geothermal drilling by doubling drilling speeds and extending the life of drill bits.
GA Drilling performed the ANCHORBIT test at Nabors Industries’ technology center in Houston. Nabors, a drilling contractor based in Houston, is using GA Drilling’s technology in its drilling operations.
“Given the expected sharp growth in global energy consumption over the next decades, the world will require an even sharper growth in sustainable energy supply. I am convinced that geothermal energy will be a key contributor to the necessary increase in clean energy generation,” Anthony Petrello, chairman, president, and CEO of Nabors, said in an announcement about the GA Drilling investment.
Fervo Energy scored a $244 million round of funding thanks to existing and new investors. Photo via Fervo Energy
An Oklahoma-based shale oil and gas leader has backed Fervo Energy's latest round of funding, supporting the startup's geothermal technology yet again.
Fervo announced its latest round of funding this week to the tune of $244 million. The round was led by Devon Energy, a company that's previously backed the startup.
“Demand for around-the-clock clean energy has never been higher, and next-generation geothermal is uniquely positioned to meet this demand,” Tim Latimer, Fervo CEO and co-founder, says in a news release. “Our technology is fully derisked, our pricing is already competitive, and our resource pipeline is vast. This investment enables Fervo to continue to position geothermal at the heart of 24/7 carbon-free energy production.”
Founded in 2017, Fervo provides carbon-free energy through development of next-generation geothermal power. The company has recently reported its success at its Cape Station project, a400 MW project in Beaver County, Utah, as well as at its full-scale commercial pilot, Project Red, in northern Nevada and made possible through a 2021 partnership with Google.
Galvanize Climate Solutions, John Arnold, Liberty Mutual Investments, Marunouchi Innovation Partners, Mercuria, and Mitsubishi Heavy Industries also contributed to the round with existing investors Capricorn’s Technology Impact Fund, Congruent Ventures, DCVC, Elemental Excelerator, Helmerich & Payne, and Impact Science Ventures.
“The energy trilemma is one of the defining global challenges of our time; how can we generate power that is affordable, reliable, and clean,” Houstonian John Arnold, founder of Centaurus Capital and co-chair of Arnold Ventures, says in the release. “Fervo has transformed geothermal into a scalable carbon-free resource ready to meet the moment.”
The fresh funding, according to the company, will go toward Fervo’s work in Cape Station, that is slated to begin delivering clean electricity to the grid in 2026.
“Fervo’s approach to geothermal development leverages leading-edge subsurface, drilling, and completions expertise and techniques Devon has been honing for decades,” David Harris, chief corporate development officer and executive vice president at Devon, says in the release. “We look forward to deepening our partnership with Fervo to capture the full value of Fervo’s first-mover advantage in geothermal and the adjacencies to Devon’s core business.”
In 2022, Fervo raised a $138 million series C round to support the completion of power plants in Nevada and Utah and evaluate new projects in California, Idaho, Oregon, Colorado, and New Mexico, as well as in other countries. This latest investment brings the company's total funds raised to $431 million since its inception in 2017, according to Crunchbase.
Fervo Energy's Project Red with Google is officially operational. Photo via blog.google
Google is on a mission to run all of its data centers and office campuses on constant carbon-free energy by 2030, and the tech giant is one step closer to that goal.
Last week, Google announced that its 24/7 carbon-free energy, or CFE, in Nevada to power its local data center in the state is officially operational. The facility is powered by Houston-based Fervo Energy's geothermal technology, a project — called Project Red — that began in 2021 and celebrated its successful pilot this summer.
"When we began our partnership with Fervo, we knew that a first-of-a-kind project like this would require a wide range of technical and operational innovations," Michael Terrell, senior director of energy and climate at Google, writes in a blog post about the partnership.
Fervo relies on tried and true drilling techniques from the oil and gas industry, accessing heat energy that previously has been elusive to traditional geothermal methods, Terrell continues. Fervo dug two horizontal wells at the Nevada plant, as well as installed fiber-optic cables to capture data that tracks performance and other key information.
"The result is a geothermal plant that can produce round-the-clock CFE using less land than other clean energy sources and drawing on skills, knowledge, and supply chains that exist in other industries," Terrell says. "From our early commitment to support the project’s development to its successful completion, we’ve worked closely with Fervo to overcome obstacles and prove that this technology can work."
Fervo is working on another nearby project, the company announced in September. The 400-milliwatt geothermal energy project in Cape Station, Utah, will start delivering carbon-free power to the grid in 2026, with full-scale production beginning in 2028.
The project, in southwest Utah, is about 240 miles southwest of Salt Lake City and about 240 miles northeast of Las Vegas. Cape Station is adjacent to the U.S. Department of Energy’s Frontier Observatory for Research in Geothermal Energy (FORGE) and near the Blundell geothermal power plant.
There’s a reason “carbon footprint” became a buzzword. It sounds like something we should know. Something we should measure. Something that should be printed next to the calorie count on a label.
But unlike calories, a carbon footprint isn’t universal, standardized, or easy to calculate. In fact, for most companies—especially in energy and heavy industry—it’s still a black box.
That’s the problem Planckton Data is solving.
On this episode of the Energy Tech Startups Podcast, Planckton Data co-founders Robin Goswami and Sandeep Roy sit down to explain how they’re turning complex, inconsistent, and often incomplete emissions data into usable insight. Not for PR. Not for green washing. For real operational and regulatory decisions.
And they’re doing it in a way that turns sustainability from a compliance burden into a competitive advantage.
From calories to carbon: The label analogy that actually works
If you’ve ever picked up two snack bars and compared their calorie counts, you’ve made a decision based on transparency. Robin and Sandeep want that same kind of clarity for industrial products.
Whether it’s a shampoo bottle, a plastic feedstock, or a specialty chemical—there’s now consumer and regulatory pressure to know exactly how sustainable a product is. And to report it.
But that’s where the simplicity ends.
Because unlike food labels, carbon labels can’t be standardized across a single factory. They depend on where and how a product was made, what inputs were used, how far it traveled, and what method was used to calculate the data.
Even two otherwise identical chemicals—one sourced from a refinery in Texas and the other in Europe—can carry very different carbon footprints, depending on logistics, local emission factors, and energy sources.
Planckton’s solution is built to handle exactly this level of complexity.
AI that doesn’t just analyze
For most companies, supply chain emissions data is scattered, outdated, and full of gaps.
That’s where Planckton’s use of AI becomes transformative.
It standardizes data from multiple suppliers, geographies, and formats.
It uses probabilistic models to fill in the blanks when suppliers don’t provide details.
It applies industry-specific product category rules (PCRs) and aligns them with evolving global frameworks like ISO standards and GHG Protocol.
It helps companies model decarbonization pathways, not just calculate baselines.
This isn’t generative AI for show. It’s applied machine learning with a purpose: helping large industrial players move from reporting to real action.
And it’s not a side tool. For many of Planckton’s clients, it’s becoming the foundation of their sustainability strategy.
From boardrooms to smokestacks: Where the pressure is coming from
Planckton isn’t just chasing early adopters. They’re helping midstream and upstream industrial suppliers respond to pressure coming from two directions:
Downstream consumer brands—especially in cosmetics, retail, and CPG—are demanding footprint data from every input supplier.
Upstream regulations—especially in Europe—are introducing reporting requirements, carbon taxes, and supply chain disclosure laws.
The team gave a real-world example: a shampoo brand wants to differentiate based on lower emissions. That pressure flows up the value chain to the chemical suppliers. Who, in turn, must track data back to their own suppliers.
It’s a game of carbon traceability—and Planckton helps make it possible.
Why Planckton focused on chemicals first
With backgrounds at Infosys and McKinsey, Robin and Sandeep know how to navigate large-scale digital transformations. They also know that industry specificity matters—especially in sustainability.
So they chose to focus first on the chemicals sector—a space where:
Supply chains are complex and often opaque.
Product formulations are sensitive.
And pressure from cosmetics, packaging, and consumer brands is pushing for measurable, auditable impact data.
It’s a wedge into other verticals like energy, plastics, fertilizers, and industrial manufacturing—but one that’s already showing results.
Carbon accounting needs a financial system
What makes this conversation unique isn’t just the product. It’s the co-founders’ view of the ecosystem.
They see a world where sustainability reporting becomes as robust as financial reporting. Where every company knows its Scope 1, 2, and 3 emissions the way it knows revenue, gross margin, and EBITDA.
But that world doesn’t exist yet. The data infrastructure isn’t there. The standards are still in flux. And the tooling—until recently—was clunky, manual, and impossible to scale.
Planckton is building that infrastructure—starting with the industries that need it most.
Houston as a launchpad (not just a legacy hub)
Though Planckton has global ambitions, its roots in Houston matter.
The city’s legacy in energy and chemicals gives it a unique edge in understanding real-world industrial challenges. And the growing ecosystem around energy transition—investors, incubators, and founders—is helping companies like Planckton move fast.
“We thought we’d have to move to San Francisco,” Robin shares. “But the resources we needed were already here—just waiting to be activated.”
The future of sustainability is measurable—and monetizable
The takeaway from this episode is clear: measuring your carbon footprint isn’t just good PR—it’s increasingly tied to market access, regulatory approval, and bottom-line efficiency.
And the companies that embrace this shift now—using platforms like Planckton—won’t just stay compliant. They’ll gain a competitive edge.
Listen to the full conversation with Planckton Data on the Energy Tech Startups Podcast:
Hosted by Jason Ethier and Nada Ahmed, the Digital Wildcatters’ podcast, Energy Tech Startups, delves into Houston's pivotal role in the energy transition, spotlighting entrepreneurs and industry leaders shaping a low-carbon future.
Houston climatech company Gold H2 completed its first field trial that demonstrates subsurface bio-stimulated hydrogen production, which leverages microbiology and existing infrastructure to produce clean hydrogen.
“When we compare our tech to the rest of the stack, I think we blow the competition out of the water," Prabhdeep Singh Sekhon, CEO of Gold H2 Sekhon previously told Energy Capital.
The project represented the first-of-its-kind application of Gold H2’s proprietary biotechnology, which generates hydrogen from depleted oil reservoirs, eliminating the need for new drilling, electrolysis or energy-intensive surface facilities. The Woodlands-based ChampionX LLC served as the oilfield services provider, and the trial was conducted in an oilfield in California’s San Joaquin Basin.
According to the company, Gold H2’s technology could yield up to 250 billion kilograms of low-carbon hydrogen, which is estimated to provide enough clean power to Los Angeles for over 50 years and avoid roughly 1 billion metric tons of CO2 equivalent.
“This field trial is tangible proof. We’ve taken a climate liability and turned it into a scalable, low-cost hydrogen solution,” Sekhon said in a news release. “It’s a new blueprint for decarbonization, built for speed, affordability, and global impact.”
Highlights of the trial include:
First-ever demonstration of biologically stimulated hydrogen generation at commercial field scale with unprecedented results of 40 percent H2 in the gas stream.
Demonstrated how end-of-life oilfield liabilities can be repurposed into hydrogen-producing assets.
The trial achieved 400,000 ppm of hydrogen in produced gases, which, according to the company,y is an “unprecedented concentration for a huff-and-puff style operation and a strong indicator of just how robust the process can perform under real-world conditions.”
The field trial marked readiness for commercial deployment with targeted hydrogen production costs below $0.50/kg.
“This breakthrough isn’t just a step forward, it’s a leap toward climate impact at scale,” Jillian Evanko, CEO and president at Chart Industries Inc., Gold H2 investor and advisor, added in the release. “By turning depleted oil fields into clean hydrogen generators, Gold H2 has provided a roadmap to produce low-cost, low-carbon energy using the very infrastructure that powered the last century. This changes the game for how the world can decarbonize heavy industry, power grids, and economies, faster and more affordably than we ever thought possible.”
HEXAspec, a spinout from Rice University's Liu Idea Lab for Innovation and Entrepreneurship, was recently awarded a $500,000 National Science Foundation Partnership for Innovation grant.
The team says it will use the funding to continue enhancing semiconductor chips’ thermal conductivity to boost computing power. According to a release from Rice, HEXAspec has developed breakthrough inorganic fillers that allow graphic processing units (GPUs) to use less water and electricity and generate less heat.
The technology has major implications for the future of computing with AI sustainably.
“With the huge scale of investment in new computing infrastructure, the problem of managing the heat produced by these GPUs and semiconductors has grown exponentially. We’re excited to use this award to further our material to meet the needs of existing and emerging industry partners and unlock a new era of computing,” HEXAspec co-founder Tianshu Zhai said in the release.
HEXAspec was founded by Zhai and Chen-Yang Lin, who both participated in the Rice Innovation Fellows program. A third co-founder, Jing Zhang, also worked as a postdoctoral researcher and a research scientist at Rice, according to HEXAspec's website.
"The grant from the NSF is a game-changer, accelerating the path to market for this transformative technology," Kyle Judah, executive director of Lilie, added in the release.
