Geothermal Innovator XGS Energy Completes Oversubscribed $20 Million Capital Raise
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XGS Energy, an innovator in next-generation geothermal energy technology, has completed $20 million in additional series A financing. This new financing builds on the $9.7 million round led by Constellation Technology Ventures earlier this year, and the $14 million series A investment led by Anzu Partners.
The final close was led by Valo Ventures and VoLo Earth Ventures, and included financing from new investors B Current Impact Investment, MIH Capital, and individual inside investors, as well as additional funding from existing investor Thin Line Capital.
This financing will support XGS’ first commercial-scale project in California later this year and accelerate deployment of its proprietary water-independent geothermal technology across its global project pipeline. With more than $40 million in total funding to date, XGS’s growing investor and partner network reflects the commercial promise of its technology and its potential to contribute to a clean, reliable, and affordable electricity grid.
“We designed the XGS system to address the root causes preventing geothermal from achieving the same scale as solar, wind, and battery storage, that the market simply wasn’t addressing,” said XGS CEO Josh Prueher.
“When we listened to geothermal energy purchasers, financers, and communities, we heard meaningful concerns about the long-term performance, durability, and water consumption of geothermal energy projects. We’re proud to have designed a geothermal system that is truly water-independent and delivers a highly predictable and consistent energy supply over a decades-long lifetime,” added Prueher.
XGS’ upcoming North American prototype will demonstrate the commercial readiness and scalability of its thermal reach enhancement™ (TRE) technology and further validate its proprietary predictive performance models. The prototype builds on the successful completion of more than 24 months of lab testing and is a key milestone for XGS’ first commercial projects in the Western United States, Japan, and the Philippines.
“As the power grid seeks to meet dramatic new demand growth while continuing to reduce carbon emissions, XGS’ ability to unlock 24/7 carbon-free energy close to demand is invaluable,” said Scott Tierney, managing partner at Valo Ventures.
“We are impressed by the distinctive intellectual property XGS has developed and believe the company is uniquely positioned to scale globally,” added Tierney.
“The XGS team combines world-class power development experience and decades of oil and gas experience to unlock geothermal resources anywhere on the Earth,” said Joe Goodman, managing partner at VoLo Earth Ventures.
“We are excited to partner with XGS to accelerate its next-generation geothermal energy technology and drive a global terawatt-scale development opportunity,” added Goodman.
“The scale and breadth of interest in this round reflects the unique ability of XGS technology to unlock geothermal scale and more importantly, financeability. We are pleased to welcome these terrific new partners, whose support will allow us to further accelerate our learning curve and expand our global project pipeline,” said Prueher.
XGS Energy provides clean, round-the-clock energy everywhere, forever. XGS’s proprietary solid-state geothermal system uses thermally conductive materials to deliver affordable energy anywhere there is hot rock. The XGS system decouples geothermal energy production from its historical dependence on natural water resources and geological conditions, unlocking low-risk power project development, geographic flexibility, easier permitting, and faster deployment. XGS’s scalable, financeable geothermal energy approach is supported by leading investors globally including Anzu Partners, BlueScopeX, B Current Impact Investment, Constellation Technology Ventures, H&P, MIH Capital, Thin Line Capital, Valo Ventures, and VoLo Earth Ventures.
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