XGS Energy

XGS Energy is a geothermal energy company based in Palo Alto, California. The company has developed a proprietary heat-harvesting technology and closed-loop well architecture that enables the global deployment of terawatt-scale geothermal heat and power. XGS Energy's system utilizes a single directional well to access hot rock at temperatures of 250°C or higher. It then establishes a network of proprietary thermally conductive material around the wellbore, which "pulls" heat to the well. This heat is collected by thermally conductive cement and well casing, and used to heat water running through a coaxial closed-loop system.

The hot water is returned to the surface, where the heat can be used directly or converted to electricity using off-shelf power production infrastructure. By eliminating the need for large volumes of water, XGS Energy's solution enables geothermal production in water-scarce regions. The company claims its system delivers operational savings due to minimal well maintenance and water requirements, and avoids challenges such as scaling and corrosion that traditional geothermal systems often encounter. XGS Energy's technology can provide access to affordable, reliable, and resilient baseload power that can scale as energy needs grow.

In May 2024, XGS Energy completed an oversubscribed USD 20 million Series A financing round led by Valo Ventures and VoLo Earth Ventures. This funding will support the company's first commercial-scale project in California later in 2024 and accelerate the deployment of its water-independent geothermal technology across its global project pipeline.

Key customers and partnerships

XGS Energy has secured partnerships and collaborations with various organizations to advance its geothermal technology. In January 2024, the company secured USD 9.7 million in financing led by Constellation Technology Ventures, with participation from BlueScope X and Thin Line Capital. This funding will accelerate XGS' North American prototype demonstrating its Thermal Reach Enhancement (TRE) technology at full commercial scale.

The prototype is a key milestone for XGS' first commercial projects in the Western US, Japan, and the Philippines. Additionally, in March 2023, XGS Energy received a USD 19 million investment, including a USD 14 million Series A led by Anzu Partners, to develop its heat-harvesting technology. The financing also facilitated the addition of industry leaders to the company's Board of Directors, including Martin Craighead, former Chairman and CEO of Baker Hughes, and Ray Mabus, former US Secretary of the Navy.