Anzu’s March Newsletter features XGS Energy, sharing how they raised an oversubscribed financing round to accelerate geothermal deployment—plus key milestones from our portfolio companies!
This is Henk Both, a principal focused on power & utilities investments at Anzu Partners. Today, I’m looking forward to sharing additional context to exciting updates on our portfolio company XGS Energy, which recently announced an oversubscribed $13M bridge financing round, with $10M+ provided by new institutional investors, including Aligned Climate Capital, ClearSky, WovenEarth (a growth-stage venture fund affiliated with Toyota), ClimateIC, and others. News of the round generated stories in Axios, Heatmap News, CleanTechnica and more.
XGS aims to develop, own, and operate geothermal power projects, selling electricity to commercial and industrial customers. XGS’ technology greatly expands the geographies in which geothermal heat can be a viable source of energy for electricity generation – providing affordable, reliable, emissions-free electricity. Their differentiated technology was also featured in a piece in The Atlanticon what’s next in geothermal energy.
When we invested into XGS in 2022 as the first institutional investors into the company, our original thesis was that commercial and industrial customers—especially AI datacenters, semiconductor fabs, manufacturing plants, and chemical facilities—would accelerate the need for reliable, affordable, emissions-free baseload power. Intermittent renewable energy and traditional geothermal technologies simply can’t meet these demands.
XGS’ thermal reach enhancement technology, on the other hand, enables a step change in cost and reliability for geothermal power generation. Since our initial investment, the dramatic rise of AI datacenters has put a fine point on the need for affordable baseload power and has been a distinct tailwind.
In the intervening three years, we have been joined by follow-on investments from multiple venture firms and, critically, nuclear power providers. This industry validation has included:
An investment in early 2024by Constellation Energy’s venture arm. Constellation Energy is the nation’s largest operator of nuclear power plants, with over 20 GW of nuclear power plants. After conducting an industry landscape, Constellation chose to invest only in XGS and not in any competing geothermal companies.
This recent investment by Mano Nazar, the former President of the nuclear business unit at NextEra, who has also joined the Board of Directors at XGS as a result of this recent financing.
What’s next for XGS? Earlier this year, XGS reached an important technical milestone: the company started producing heat from its pilot commercial-scale geothermal well, located in an active geothermal field next to a power generation facility. On the heels of some impressive technical results, the company has raised this $13M bridge round to help accelerate commercial activities, including taking site control at strategic locations.
We expect significant technical and commercial momentum in the coming months—stay tuned!
Sincerely,
Henk Both, Ph.D., Principal, Anzu Partners
PORTFOLIO COMPANY UPDATES
Niron Magnetics and South 8 Technologies Participated in the 2025 ARPA-E Energy Innovation Summit
Anzu portfolio companies Niron Magnetics and South 8 Technologies both participated in the 2025 ARPA-E Energy Innovation Summit in Washington, D.C., where over 2,800 energy scientists, technologists, entrepreneurs, engineers, and industry visionaries gathered to discuss the future of energy innovation.
Niron Magnetics CTO Dr. Frank Johnson was the featured speaker at the ARPA-E Commercialization Roundtable and also participated in a panel discussion to discuss Niron in front of an audience of investors and innovators. Later in the Summit, Niron’s Senior Director of Business Development Tom Grainger pitched to growth-stage investors, sharing details about Niron's upcoming funding round.
Fellow Anzu portfolio company South 8 Technologies was also present at the Summit, featuring its extreme-weather batteries in a product demo at their booth in the exhibition hall.
6K Inc. and Niron Magnetics Named to TIME’s List of America's Top GreenTech Companies of 2025
For the second year in a row, both 6K Inc. and Niron Magnetics were named to TIME Magazine’s list of 250 companies reducing environmental impact.
TIME partners with Statista to rank the 250 top sustainability focused companies in the U.S. The analysis considered the positive impact, financial strength, and innovation of organizations that are developing products, services, or technologies to stop or reverse the impact of human activities on the planet.
Niron Magnetics featured in Bloomberg Originals Segment on Next-Generation Magnet Technology
In a recent segment focused on magnet technology for the future, Bloomberg Originals recently highlighted Anzu portfolio company, Niron Magnetics’ breakthrough approach to magnet production, which eliminates supply chain dependencies on rare-earth materials while maintaining exceptional performance for applications in electric vehicles, consumer electronics, and industrial systems.
The Bloomberg team visited Niron's facility in Minneapolis and spoke with Professor Jian-Ping Wang, Ph.D., co-founder and former CSO at Niron, Jonathan Rowntree, CEO, Frank Johnson, Ph.D., CTO, Carlijn Mulder, PhD, VP, Magnet Technology and others to learn more about the technology.
6K Additive Titanium Metal Powder Qualified for Use in TRUMPF Additive Manufacturing Systems
German technology company TRUMPF, announced that it has qualified 6K Additive’s titanium metal powder for use in the TruPrint additive manufacturing systems. Both organizations have a strong customer base in aerospace as well as initiatives toward sustainability. This new qualification helps strengthen the opportunity for customers to leverage the premium titanium powder for their applications with the assurance that printed parts will meet their most stringent requirements and will have the lowest environmental impact.
AM Batteries and TDK Corporation Partnered to Advance Energy-Efficient Battery Manufacturing
AM Batteries (AMB) entered a joint development agreement with TDK Corporation, a global electronics leader, to pave a path toward energy-efficient battery manufacturing. The partnership aims to enhance sustainability, improve battery manufacturing scalability, and accelerate the development of solid-state batteries.
The partnership underscores both companies’ commitment to sustainability and innovation in battery technology. By integrating AM Batteries’ dry battery electrode technology with TDK’s expertise in advanced materials and manufacturing, the companies seek to set new industry benchmarks in efficiency and performance.
Nirrin Technologies Granted Patent for Cutting-Edge Flow-Cell Technology
Nirrin Technologies announced the issuance of a new patent (US 12,222,279 B2) for its advanced flow-cell technology, reinforcing the company’s commitment to driving innovation in bioprocess analytics. This milestone expands Nirrin’s capabilities in real-time process monitoring, offering greater precision, flexibility, and efficiency to bioprocessing workflows.
Defense Related Investor and Tech Conference – early May – Palm Springs, CA
Please reach out to info@anzupartners.comif you’re interested in meeting with us at any of these events.
ADDITIONAL PC MEDIA COVERAGE
Niron Magnetics was featured in an MIT Tech Review article recapping the 2025 ARPA-E Energy Innovation Summit.
EnCharge AI’s recent funding round was included in an AlleyWatch recap of the largest funding rounds in February 2025. EnCharge was also featured in a Mobility Engineering Tech piece on startups developing AI for defense applications.
Xendee CTO Michael Stadler appeared on an episode of Bloomberg Businessweekto explain how microgrids can make way for an electrified transportation system. He also contributed a piece to Data Center Frontieron how to meet modern energy dilemmas.
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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/.
The information contained in this newsletter is being provided by Anzu Partners for informational purposes only. The information was obtained from various sources, but Anzu Partners cannot assure its accuracy. This is neither an offer to sell nor a solicitation for an offer to buy an interest in any fund managed by Anzu Partners. Any such offer or solicitation will only be made to qualified potential investors pursuant to a private placement memorandum. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
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