Hi Anzu Partners Community,

This is Henk Both, a Principal at Anzu Partners, where I lead our power and utilities investment focus area. Today I’m going to share more about our portfolio company XGS Energy, where the team is deploying solid-state geothermal systems.

XGS recently announced another defining milestone in its journey: Meta has selected XGS Energy to develop up to 150 MW of advanced geothermal power to support its data center operations in New Mexico. This represents one of the largest known corporate commitments to advanced geothermal in the U.S., and a major validation of XGS’s innovative next-generation geothermal technology. The announcement generated coverage in top tier publications such as Reuters, TechCrunch, The Verge, Latitude Media and more.

Why it matters: XGS’s platform can tap into deep geothermal heat without needing porous rock or underground water reservoirs, expanding the reach of affordable, clean, zero-carbon baseload power to places where traditional geothermal doesn't work. For power-hungry customers like data centers, this means cost-effective, stable, 24/7 clean power without the intermittency challenges of wind and solar.

The partnership with Meta is more than a power deal. It's a signpost for what’s next:

• Scale & Significance: 150 MW could power tens of thousands of homes or a large-scale data center campus, demonstrating that advanced geothermal is ready for grid-scale deployment.
• Speed to Impact: The project will leverage XGS’s rapid-deployment model to deliver power much faster than the 7–10-year timeline for conventional geothermal.
• Strategic Location: While New Mexico has vast geothermal potential, it is not typically considered for large-scale geothermal deployment precisely because its dry climate cannot support the generally high water demands of geothermal power. Many Western US states suffer from the same challenge, which limits interest from other geothermal companies. Fortunately, XGS’s approach requires almost no water, uniquely positioning XGS as a partner of choice for New Mexico and other Western states.

From left, Urvi Parekh, Meta’s head of energy, joins Josh Prueher from XGS Energy, New Mexico Economic Development Department Secretary Rob Black and Democratic Gov. Michelle Lujan Grisham to announce a $1 billion dollar geothermal energy generation site anticipated within the next three years. (Screengrab from live stream)

This milestone builds on rapid progress since our 2022 investment:

• A commercial-scale pilot has surpassed 1,500 operating hours, generating heat with virtually no water consumption.
• Constellation, the nation’s largest nuclear operator, and energy leader Mano Nazar (former President of NextEra's nuclear division) have backed the company as investors, further validating the opportunity.
• A recent bridge round led by Aligned Climate Capital, ClearSky, WovenEarth Ventures, and ClimateIC is fueling scale-up.

We’re proud to support XGS Energy as they move from pilot to full-scale deployment. Stay tuned for more exciting updates from XGS Energy.

Sincerely,

Henk Both, Ph.D., Principal, Anzu Partners

PORTFOLIO COMPANY UPDATES

AM Batteries Opened its State-of-the-Art Customer Success Center

AM Batteries, a pioneer in dry battery electrode (DBE) technology, opened its state-of-the-art Customer Success Center, enabling the development of next-generation batteries with advanced manufacturing technology. AM Batteries’ new facility will play a crucial role in ongoing efforts to secure the U.S. battery manufacturing supply chain. The ribbon-cutting ceremony was attended by U.S. Representative Lori Trahan (D-MA) and Massachusetts’ Interim Secretary of Economic Development Ashley Stolba.

The center was established in large part by the $2.3 million awarded to AM Batteries from the Massachusetts Manufacturing Innovation Initiative (M2I2), a program run by the Massachusetts Technology Collaborative’s Center for Advanced Manufacturing.

The news was covered by the Boston Globe*.

*Requires subscription to read

Liquid Instruments Introduced Moku:Delta to Bring Agentic AI to Test and Measurement

Liquid Instruments, a leader in software-defined instrumentation, announced the launch of Moku:Delta, its fourth generation hardware offering that accelerates product design and validation through mixed-signal analysis, offers 2 GHz instantaneous bandwidth, and an ultra-low-noise, high-resolution front end. Liquid Instruments co-founders, Daniel Shaddock and Danielle Wuchenich introduced and demonstrated Generative Instrumentation from the iconic stage of BMW Welt in Munich – watch the video here.

This represents a significant leap beyond traditional instrument design, vastly improving users’ productivity and ability to customize and optimize their test setup. Agentic AI opens up the capability to adapt to specialized applications, automate complex test scenarios, and respond to dynamically changing requirements.

Moku:Delta is available to order now. For more information, visit https://liquidinstruments.com/delta. 

The launch was covered in EE World, New Electronics, Australian Manufacturing, Electronic Products and more.

Niron Magnetics Earns Industry Recognition from Fast Company, National Association of Manufacturers and more

Niron Magnetics was recognized as one of Fast Company’s 2025 World Changing Ideas. Niron was recognized for developing the world’s only high-performance rare-earth-free Iron Nitride magnets, supporting secure and domestically sourced supply chains for critical technologies.

Niron also won the 2025 Manufacturing Leadership Award in Sustainability and Circular Economy from the National Association of Manufacturers (NAM), for developing high-performance magnets without supply chain risks. These annual awards recognize innovation and leadership in the manufacturing community.

Finally, Niron was recognized by Innovation Research Interchange (IRI) with a 2025 Excellence Award in Scientific Achievement. This award celebrates teams whose scientific contributions demonstrate outstanding leadership in advancing knowledge and driving innovation through collaboration. IRI is the division of NAM focused on helping companies develop cutting-edge technologies to keep manufacturing strong.

OTI Lumionics Released Breakthrough Algorithms for Quantum Chemistry Simulations

OTI Lumionics, a leader in advanced quantum simulations and solutions for next-generation materials discovery, announced the publication of its scientific paper, “Optimization of the Qubit Coupled Cluster Ansatz on classical computers,” in the Journal of Chemical Theory and Computation (JCTC). The results mark a major advancement in the quantum computing and OLED industry, demonstrating that large-scale quantum simulations of materials can be simulated today on classical hardware with high-accuracy results. Historically, current quantum computers have struggled to achieve this capability.

The paper and research were conducted by VP of Materials Discovery at OTI Lumionics, Scott Genin, and researchers at OTI Lumionics, Ilya G. Ryabinkin and Seyyed Mehdi Hosseini Jenab. The full paper is available at JCTC here and at arXiv.org here.

The news was covered in AZO Quantum.

ANZU PARTNERS UPDATES

Upcoming Events

Anzu representatives plan to attend the following events:

• DOE Office of Electricity Energy Storage Program Annual Meeting and Peer Review – August 5-7, 2025 – McLean, VA
• Texas Clean Energy Summit – August 26-28, 2025 – Austin, TX

Please reach out to info@anzupartners.com if you’re interested in meeting with us at any of these events.

ADDITIONAL PC MEDIA COVERAGE

• Niron Magnetics CEO Jonathan Rowntree was featured in Reuters and CNBC to discuss the rare earths bottleneck.
• BioSkryb Genomics was listed as a top five emerging startup harnessing single cell sequencing by Inside Precision Medicine.
• XGS Energy was featured in Hart Energy and Yale Environment 360 to highlight the differentiators of its system.
• EnCharge AI was featured in EE Times for the launch of its first product, the EN100 and was listed as one of the top 10 hottest semiconductor startups of 2025 by CRN.
• AM Batteries CEO Lie Shi explained the advantages of the dry battery electrode method of manufacturing batteries for electric vehicles in a video feature for Supply Chain Brain.
• CytoTronics co-founder and CTO Vince Wu, Ph.D., was the subject of an alumni feature by Harvard’s School of Engineering and Applied Sciences.
• OTI Lumionics was featured in Electronic Products & Technology and in Mechatronics Canada to discuss its latest technological developments.
• Xendee’s CTO Michael Stadler spoke with Data Center Dynamics to discuss infrastructure investment and rising electricity prices.
• MedCrypt was featured in Medical Device and Diagnostics Industry for the launch of its new security intelligence platform.

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ABOUT ANZU PARTNERS

Anzu Partners is an investment firm that focuses on industrial and life science technology companies with the potential to transform their industries. Anzu works with entrepreneurs to develop and commercialize technological innovations by providing capital alongside deep expertise in business development, market positioning, intellectual property, global connectivity, and operations. For more information, please visit https://anzupartners. com/.