Clean energy company XGS Energy announced that it has raised $13 million in a new financing round, with proceeds aimed at expanding its geothermal energy technology, financing new projects, and growing its team.

Founded in 2008, California-based XGS Energy provides heat-harvesting technology to enable access to affordable and carbon-free geothermal energy. The company’s solution drills a single directional well to access rock with temperatures of 250 °C or higher, and pulls heat into the well through a network of thermally conductive material. The heat can be used directly, or converted to electricity. Water is reused in a coaxial closed-loop system, which makes the system more environmentally beneficial and deployable even where water is scarce.

According to XGS Energy, the benefits of the solution include a significantly lower dependence on water, operational cost savings due to minimal well maintenance and water requirements, and a longer operating lifetime compared to other geothermal assets.
The company said that the new capital will support its execution of a multi-gigawatt project pipeline that has materialized as demand for baseload power skyrockets. XGS completed a shallow field test of its technology in 2024 and is now operating its first commercial-scale well in California.

XGS CEO Josh Prueher said:

“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.”

The over-subscribed round included new investors Aligned Climate Capital, ClearSky, ClimateIC, and WovenEarth Ventures, in addition to inside investors. The financing builds on a $20 million round led by Constellation Technology Ventures, VoLo Earth Ventures, and Valo Ventures in 2024.

Mano Nazar, ClearSky Senior Advisor and the former Chief Nuclear Officer of NextEra Energy, will join the XGS Energy Board of Directors. Nazar said:

“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.”