- XGS Energy has secured $13 million in additional financing to accelerate its advanced geothermal project development across the Western United States. - New investors include Aligned Climate Capital, ClearSky, ClimateIC, and WovenEarth Ventures. - The financing round attracted significant interest and builds on previous investments from Constellation Technology Ventures, VoLo Earth Ventures, and Valo Ventures in 2024. - Josh Prueher, CEO of XGS, expressed excitement about the new investors' understanding of power infrastructure requirements and the potential of their technology. - Mano Nazar, former Chief Nuclear Officer of NextEra Energy, will join the XGS Energy Board of Directors following this financing. - Nazar highlighted XGS's advanced geothermal technology as capable of delivering energy to the grid faster than other baseload technologies amid rising energy demand. - XGS's water-independent geothermal system aims to address financeability and geographic scalability challenges in geothermal development. - The company has completed a shallow field test of its Thermal Reach Enhancement technology and is operating its first commercial-scale well in California. - The new funding will support XGS's multi-gigawatt project pipeline as demand for baseload power increases. - Investors acknowledge XGS's approach to minimizing exploration risks and optimizing for long-term predictability as key to securing project financing. - XGS intends to expand its team through the year and continue its fundraising efforts for future growth. - The company is preparing for a growth equity round later this year, aiming to showcase results from its first commercial-scale system and its expanding project pipeline. - Kevin Kimsa from ClimateIC noted the urgency of global energy supply challenges and emphasized XGS's readiness to meet these demands with innovative technology and expertise.

XGS Energy Secures Additional $13 Million to Accelerate Advanced Geothermal Deployment

Aligned Climate Capital, ClearSky, ClimateIC, and WovenEarth Ventures join XGS Energy investors to accelerate development of XGS’s commercial project pipeline across the Western United States.

Mar 26, 2025 11:00 AM Eastern Daylight Time

HOUSTON--(BUSINESS WIRE)--XGS Energy, a developer of next-generation geothermal power projects leveraging a proprietary water-independent technology, today announced that it has closed $13 million in new financing. 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 in 2024.


“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, Chief Executive Officer at XGS.Share

“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, Chief Executive Officer at XGS.

With the new financing, Mano Nazar, ClearSky Senior Advisor and the former Chief Nuclear Officer of 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’ modular, 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 in 2024 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 skyrockets.

“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 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,” 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.”

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 Aligned Climate Capital
Aligned Climate Capital LLC is an asset manager investing exclusively in the companies and projects driving the clean energy transition. Founded in 2019, Aligned currently manages approximately $1.9 billion of assets (as of 12/31/23). The firm’s senior leadership team brings decades of climate and clean energy experience across finance, energy markets, and government. Aligned has two primary investment strategies: the Aligned Climate Fund, which provides capital to venture-stage companies deploying and scaling established clean energy solutions, and Aligned Solar Partners, which owns and operates distributed solar, energy storage, and other clean energy projects. For more information, visit AlignedClimateCapital.com.

About ClearSky
ClearSky is a venture capital and growth equity fund manager that invests in innovative, transformative companies. We specialize in investing in technology solutions that power the energy transition and disruptive technologies in cybersecurity. Over more than a decade, we’ve effectively managed approximately one billion dollars in capital commitments. Our investment funds enable exciting companies to bring disruptive technology to market while positively impacting our world and delivering value for our investment partners. Learn more at https://www.clear-sky.com/.

About Climate Innovation Capital (ClimateIC)
ClimateIC is a venture fund whose purpose is to deliver superior financial returns and decarbonize the economy. We identify and invest in cost-competitive, commercial climate tech innovations that solve pervasive, large-scale economic challenges and inefficiencies, and can be adopted and scaled rapidly. ClimateIC leverages our strong network and extensive experience as operators, climate advisors and investment professionals to source attractive opportunities and enhance the growth prospects of our portfolio companies. Learn more at https://climateic.com/.

About WovenEarth Ventures
WovenEarth Ventures is purpose-built to harness what we believe is an unstoppable wave of market forces and clean technologies reshaping how the world is powered, built, moved, and managed. We provide a fund of funds structure that seeks to deliver attractive, risk-adjusted returns by maintaining a laser focus on US-based venture funds specializing in the early-stage of clean technology investment while providing access and diversified exposure to what we believe are the strongest teams in the space.


Contacts

Kalyn Schieffer for XGS Energy
kos@anzupartners.com

Technica Communications for Aligned
Jamie Corter
aligned@technica.inc