XGS Energy, a Houston-based innovator in advanced geothermal power, has secured an additional $13 million in funding to fast-track its commercial-scale project pipeline across the Western U.S.—a move that signals growing confidence in geothermal’s role in the clean energy transition.

The oversubscribed financing round brings in several new backers including Aligned Climate Capital, ClearSky, ClimateIC, and WovenEarth Ventures, all of whom join a growing list of climate and infrastructure-focused investors. The latest investment builds on momentum from a previous round led by Constellation Technology Ventures, VoLo Earth Ventures, and Valo Ventures in 2024.

XGS Energy is betting big on its proprietary, water-independent geothermal system, which it says can overcome the traditional barriers—like site limitations and water requirements—that have historically stifled geothermal development. Unlike conventional geothermal plants, XGS’s system doesn’t rely on underground water or specific geologic formations, making it more scalable and financeable.

“This funding marks a pivotal moment,” said CEO Josh Prueher. “We’re thrilled to bring on new investors who not only understand infrastructure but also see the massive global potential of our technology.”

As part of the round, Mano Nazar, ClearSky Senior Advisor and former Chief Nuclear Officer at NextEra Energy, has joined the company’s Board of Directors. Nazar called XGS’s approach “uniquely positioned” to deliver baseload energy faster than any other technology at a time when demand is skyrocketing.

The company recently completed a successful field test of its Thermal Reach Enhancement (TRE) technology and is now operating its first commercial-scale geothermal well in California. The data from this pilot is expected to bolster investor confidence as the company prepares for a larger growth equity round later in the year.

“XGS is solving the long-standing financeability problem in geothermal by minimizing exploration risk and optimizing for long-term predictability,” said Peter Davidson, CEO of Aligned Climate Capital. “That opens the door to low-risk, large-scale deployment.”

With this latest injection of capital, XGS plans to expand its team, scale operations from its Houston headquarters, and continue developing what it describes as a multi-gigawatt project pipeline.

As the global energy sector confronts mounting pressure to deliver clean, reliable baseload power, XGS Energy is positioning itself as a geothermal player capable of scaling quickly and delivering where others have stalled.