US geothermal tech developer XGS raises USD 20m for pilot project

US geothermal technology company XGS Energy said on Tuesday it has closed a USD-20-million (EUR 18.4m) in additional Series A financing that will support its first commercial-scale project in California later this year.

The final close was led by venture capital firms Valo Ventures and VoLo Earth Ventures, and included funding from new investors B Current Impact Investment, MIH Capital and individual inside investors, along with additional funding from existing investor Thin Line Capital.

XGS’ prototype will demonstrate the commercial readiness and scalability of its Thermal Reach Enhancement (TRE) technology, which uses thermally conductive materials to deliver energy from hot rock, and accelerate its deployment across XGS’ projects in the Western US, Japan and the Philippines.

“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 Josh Prueher, chief executive of Palo Alto, California-based XGS, and added that the company’s system “is truly water-independent and delivers a highly predictable and consistent energy supply over a decades-long lifetime.”

“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,” commented Scott Tierney, managing partner at Valo Ventures.

The latest financing follows a USD-9.7-million round led by Constellation Technology Ventures earlier in 2024, and a USD-14-million Series A investment led by Anzu Partners.

(USD 1 = EUR 0.920)

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