ESG Today writes that California-based XGS Energy offers energy solutions that collects heat in order to offer access to sustainable and affordable geothermal power. Company experts drill a single directional well to access deposits with temperatures exceeding 250 degrees Celsius, where they send water to heat it. Afterwards, the hot water is being brought to the surface to be used as a heating source or to produce electricity.

XGS Energy officials say that this solution has multiple advantages, such as a lower dependance on water, as well as offering lower operational costs, due to minimal maintenance and a longer lifetime.

The recently-raised 20 million USD financing comes after two previous rounds, of 9.7 million and 14 million USD and the company says it will use the funding to support its first commercial-scale project in California, as well as developing other future sites.

XGS CEO Josh Prueher said that "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. When we listened to geothermal energy purchasers, financers, and communities, we heard meaningful concerns about the long-term performance, durability, and water consumption of geothermal energy projects."

VoLo Earth Ventures and MIH Capital were among the investors who participated in the recent funding round.