making moves

California geothermal co. grows C-suite, grows presence in Houston

XGS has leased 10,000 square feet of office space in Houston. Photo via Getty Images

A geothermal company with its headquarters in Palo Alto, California, has named new members of its C-suite and, at the same time, has expanded its operational footprint in Houston.

XGS Energy promoted Axel-Pierre Bois to CTO and Lucy Darago to chief commercial officer. Darago is based in Austin, and Bois, from France, lists his role as based in Houston on LinkedIn. Both have worked at XGS since February of last year.

“Axel and Lucy’s proven operational excellence and technical knowledge has helped propel XGS forward as we enter our next phase of growth,” Josh Prueher, CEO of XGS Energy, says in a news release. “I’m thrilled to have them both join XGS’ C-suite and have their support as we continue to grow our team, further advance our next-generation geothermal technology, and invest in our multi-gigawatt project pipeline.”

The news coincides with XGS's recent lease of over 10,000 square feet of office space in Memorial City. The company reports it plans to continue growth in the Houston region, "leveraging the region’s leading engineering and operational workforce and intensifying energy transition activity," reads the statement.

Bois was promoted from senior vice president of technology and has over 30 years of experience in geomechanics, wellbore integrity, completions design, and cement and rock testing. He previously founded and served as CEO of CURISTEC, a technical advisory firm providing services in oil and gas, geothermal, and geologic storage industries.

“We have developed a unique and proprietary approach to boosting the heat-harvesting potential of geothermal wells that is ready for commercial deployment in a range of environments today. I am excited to continue to grow our incredible team of scientists and engineers working on this important technology,” Bois says in the release. “We’re at the beginning of what this technology can unlock when it comes to supplying reliable, clean, and affordable geothermal energy globally.”

In her previous role as vice president of strategy, Darago led XGS’s financing strategy, which included a $20 million Series A expansion announced earlier this year. As CCO, she will oversee XGS’ global project development and will maintain a leading role in corporate affairs.

“It’s an exciting time to bring XGS’ technology to market. Demand for carbon-free baseload energy is at a record high, and the XGS system’s ability to unlock geothermal in more places, in a predictable and bankable way, is tailor-made for this moment,” Darago adds. “I am honored by our team and Board’s trust and look forward to helping drive the next stage of growth for XGS.”

XGS Energy promoted Axel-Pierre Bois to CTO and Lucy Darago to chief commercial officer. Image courtesy of XGS

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A View From HETI

Fervo Energy has closed financing to support the remaining construction costs for the first phase of Cape Station. Photo via fervoenergy.com

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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