XGS Energy, a U.S.-based developer of next-generation geothermal power projects, has raised US$13mn in new financing to advance its proprietary water-independent geothermal technology.
The oversubscribed funding included new investors Aligned Climate Capital, ClearSky, ClimateIC, and WovenEarth Ventures, alongside existing backers. This follows a previous 2024 investment round led by Constellation Technology Ventures, VoLo Earth Ventures, and Valo Ventures.
“We are excited to welcome new investors who appreciate the requirements of power infrastructure and understand how our unique technology unlocks a massive global development opportunity,” said Josh Prueher, CEO at XGS.
With this funding, Mano Nazar, ClearSky Senior Advisor and former Chief Nuclear Officer at NextEra Energy, will join the XGS Energy Board of Directors. "XGS’ 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,” said Nazar. “We are excited to partner with XGS to deliver on their mission of sustainable, reliable, and scalable geothermal energy.”
XGS has developed a modular, water-independent geothermal system designed to overcome the financial and geographical limitations that have traditionally restricted geothermal expansion. The company successfully conducted a shallow field test of its Thermal Reach Enhancement (TRE) technology in 2024 and is now operating its first commercial-scale well in California. This project has helped validate predictive performance models and accumulate critical operational data. The latest funding will help drive the development of XGS’ multi-gigawatt project pipeline, aligning with the growing need for baseload power solutions.
“As both venture and infrastructure investors, we evaluate every investment first and foremost through the lens of financeability,” said Peter Davidson, CEO of Aligned Climate Capital. “With its focus on minimizing exploration risk and optimizing for long-term predictability, XGS is systematically overcoming the barriers that have historically prevented geothermal from securing large-scale, low-risk project financing, unlocking a new era of geothermal scale.”
XGS plans to expand its workforce through the end of the year, growing from its headquarters in Houston, Texas, and will continue raising funds to support its growth strategy. “We are ramping commercial operations ahead of our planned growth equity round later this year, which will highlight the results of our first commercial-scale system plus our growing project pipeline,” said Lucy Darago, Chief Commercial Officer at XGS.
“We’re pleased to be partnering with XGS at this critical inflection point,” said Kevin Kimsa, Managing Partner at ClimateIC. “We are facing global energy supply challenges of unprecedented scale and urgency. 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.”