XGS Energy, a developer of next-generation geothermal power projects utilizing a proprietary water-independent technology, announced that it has closed $13 million in new financing. And the over-subscribed round included new investors Aligned Climate Capital, ClearSky, ClimateIC, and WovenEarth Ventures, in addition to inside investors. This financing builds on a round led by Constellation Technology Ventures, VoLo Earth Ventures, and Valo Ventures last year.
XGS’ modular and water-independent geothermal system is designed to overcome the financeability and geographic scalability challenges that have constrained geothermal development globally. XGS completed a shallow field test of its Thermal Reach Enhancement (TRE) technology last year and is now operating its first commercial-scale well in California, validating its predictive performance models and accumulating operating history.
The funding supports the execution of XGS’ multi-gigawatt project pipeline that has materialized as demand for baseload power surges. And with the new funding, Mano Nazar, ClearSky Senior Advisor and the former Chief Nuclear Officer of NextEra Energy, will join the XGS Energy Board of Directors.
KEY QUOTES:
“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.”
- Josh Prueher, Chief Executive Officer at XGS
“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. We are excited to partner with XGS to deliver on their mission of sustainable, reliable, and scalable geothermal energy.”
- Mano Nazar, ClearSky Senior Advisor and the former Chief Nuclear Officer of NextEra Energy and new XGS Energy board member
“As both venture and infrastructure investors, we evaluate every investment first and foremost through the lens of financeability. 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.”
- Peter Davidson, CEO of Aligned Climate Capital
XGS plans to aggressively expand its team through year-end, building from its headquarters in Houston, Texas, and expects to continue fundraising to support further growth. “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.”
- Lucy Darago, Chief Commercial Officer at XGS
“We’re pleased to be partnering with XGS at this critical inflection point. 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.”
- Kevin Kimsa, Managing Partner at ClimateIC
