Geothermal Innovator XGS Energy Completes Oversubscribed $20M Capital Raise

VoLo Earth Ventures and Valo Ventures join Constellation Technology Ventures, Anzu Partners, and a group of blue-chip international industrials to accelerate commercialization of XGS’ transformative water-independent geothermal technology

XGS Energy, an innovator in next-generation geothermal energy technology, today announced that it has completed $20 million in additional Series A financing. 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 new financing builds on the $9.7 million round led by Constellation Technology Ventures earlier this year, and the $14M Series A investment led by Anzu Partners.

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 over $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.”

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.”

“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.”

“The scale and breadth of interest in this round reflects the unique ability of XGS technology to unlock geothermal scale and more importantly, financeability,” continued Prueher. “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.”

To learn more about XGS Energy, please visit https://www.xgsenergy.com.

About XGS Energy

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. Learn more and explore our open roles at https://www.xgsenergy.com.

About Valo Ventures

Valo Ventures is a thesis-driven venture capital firm investing in climate solutions in North America and Europe. We accomplish our mission—investing for a brighter future—by focusing on three domains: digitization, decarbonization, and adaptation. Valo champions entrepreneurs applying innovative technologies to create long-term economic and environmental value. Learn more at www.valoventures.org.

About VoLo Earth Ventures

VoLo Earth Ventures is an early-stage climate tech venture capital firm investing in the energy transition. VoLo Earth addresses our planet’s climate crisis at its roots by providing first-in funding and hands-on leadership to early-stage climate tech companies. We strive to grow, propagate, and capitalize on climate solutions with an intent to deliver superior investment returns and quantifiable carbon benefit. Learn more at https://www.voloearth.com/.

About B Current Impact Investment

B Current Impact Investment, Taiwan’s premier impact VC fund, is a collaborative effort of 43 prominent leaders hailing from various backgrounds and professions in Taiwan and Silicon Valley. B Current fosters social innovation by connecting impact entrepreneurs with socially conscious capital. Our worldwide network enables us to help social enterprises enhance investability, scalability and sustainability. Together, we are building an inclusive and impactful ecosystem that will feed a vibrant river of change. Learn more at https://bcurrent.asia/en/.

About MIH Capital

MIH Capital Management is venture capital firm that focuses on global early stage climate and sustainability technology investments. With partners coming from a variety of manufacturing and technology sectors, the firm seeks to support world changing innovation through investment and Asian market and supply chain support in the climate tech sector. Learn more at www.mih.capital.

About Thin Line Capital

Thin Line Capital is a seed-stage energy/sustainability venture capital firm started by Aaron Fyke, serial entrepreneur and cofounder of two clean energy unicorns. With explosive growth of renewable energy, electric vehicles, and technologies to help society manage the effects of climate change, Thin Line Capital is deploying their second fund to invest in, and actively support, the early-stage companies that will lead this unprecedented transformation. https://www.thinlinecapital.com/

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