Latest funding round, led by power industry visionary Constellation Technology Ventures, with BlueScopeX and Thin Line Capital, will advance XGS Energy’s prototype and first commercial geothermal energy projects

January 23, 2024 09:00 AM Eastern Standard Time

PALO ALTO, Calif.–(BUSINESS WIRE)–XGS Energy, an innovator in next-generation geothermal energy technology, today announced that it has raised an additional $9.7 million. The round was led by Constellation Technology Ventures, with BlueScopeX and Thin Line Capital, as well as individual inside investors. This new financing will accelerate XGS’ North American prototype demonstrating its proprietary Thermal Reach Enhancement™ (TRE) geothermal technology at full commercial scale.

“XGS has brought together the right team with the right technology to unleash the potential of geothermal energy.”

XGS’ upcoming prototype will demonstrate the commercial readiness and scalability of its 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.

“We are honored to have won the confidence of Constellation, the United States’ largest producer of clean, carbon-free energy, as well this impressive group of global financial and strategic investors,” said Josh Prueher, CEO of XGS Energy. “Their interest in XGS reflects the strength of our technology, intellectual property protections, world-class team, and unique potential to scale globally.”

XGS’ proprietary TRE system leverages materials 50 times more conductive than native rock to deliver high-efficiency thermal energy without dependence on water or geology. XGS’ technology can be deployed anywhere in the world, unlike traditional geothermal solutions that require access to hot water reservoirs and specific geological formations.

“We look forward to collaborating with XGS to help them accelerate the commercialization of an emerging technology that could play a key role in the clean energy transition,” said Jorge Acevedo, Senior Vice President, Commercialization & Development at Constellation. “Similar to nuclear, geothermal energy offers a potential source of 24/7, zero-carbon power, and XGS is positioned to help address the need for exactly that as our grid moves away from reliance on fossil generation.”

“We are pleased to welcome an impressive and diverse group of investors to rapidly advance XGS technology deployment,” said Craig Barrett, Chairman of the Board at XGS Energy and former CEO of Intel. “XGS has brought together the right team with the right technology to unleash the potential of geothermal energy.”

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

About XGS Energy
XGS Energy is a geothermal energy company founded and headquartered in Palo Alto, California. The company’s proprietary heat-harvesting technology and closed-loop well architecture enable global deployment of terawatt-scale geothermal heat and power. Learn more at https://www.xgsenergy.com.

About Constellation Technology Ventures
Constellation Technology Ventures (CTV) is the venture investing organization within Constellation, the United States’ largest producer of clean, carbon-free energy and a leading supplier of energy products and services to businesses, homes, community aggregations and public sector customers. The mission of CTV is to drive innovation by investing in venture-stage energy technology companies that can provide new solutions to Constellation and its customers. CTV invests in companies exploring innovative energy technologies and business models, building a portfolio that represents a broad range of development stages and technology types.

About BlueScopeX
BlueScopeX™ is the corporate venture arm of BlueScope (ASX: BSL). Its mission is to identify breakthrough ideas and support extraordinary teams to turn those ideas into reality. Our customers and communities are relying on us to drive sustainability of the steel industry and the built environment – this is not a challenge we can solve alone.

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.

Contacts

Brandon Reid for XGS Energy
breid@xgsenergy.com

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