XGS Energy, CC Power Forge 115 MW Geothermal Deal

XGS Energy is set to advance a significant 115-megawatt (MW) geothermal development in California through a new agreement with California Community Power (CC Power). This collaboration, formalized via a Geothermal Exploration, Offtake, and Development Engagement (GEODE) Agreement, targets the deployment of next-generation geothermal technology designed to provide consistent, clean energy, bolstering grid stability and supporting the Golden State's ambitious decarbonization objectives.

The partnership addresses California's substantial need for reliable, baseload renewable power. Despite possessing an estimated 35 gigawatts (GW) of untapped geothermal potential, the state currently harnesses only 2.7 GW of this resource. XGS Energy's innovative water-independent system aims to unlock this vast, dry, hot rock potential, offering a dispatchable energy source that can effectively complement intermittent renewables like solar and wind. This initiative aligns with the state's broader strategy to diversify its clean energy portfolio.

Alexander Morris, General Manager of CC Power, highlighted the strategic importance of this alliance. "Geothermal energy provides a renewable resource capable of delivering invaluable round-the-clock reliability, a critical component missing from California’s current energy mix," Morris stated. "This GEODE Agreement with XGS Energy enables CC Power to cultivate relationships with forward-thinking geothermal developers like XGS, who are instrumental in unlocking additional geothermal capacity within California. This development supports local grid resilience, creates employment opportunities, and stimulates economic investment."

This agreement signifies XGS Energy's capability to execute large-scale projects tailored to the needs of CC Power's member agencies. These agencies collectively serve over 2.7 million customers across nine Community Choice Aggregators (CCAs) in California. XGS recently demonstrated its operational prowess with a commercial-scale project in Inyo County, showcasing its efficient development and operational model within the state. The company's proprietary system avoids hydraulic stimulation and fracking, and crucially, requires no consumptive water use, addressing key environmental and sustainability concerns.

The collaboration with CC Power further strengthens XGS Energy's multi-gigawatt development pipeline across the Western United States. The company is actively pursuing multiple project sites within California and recently announced partnerships with industry leaders Vallourec and Baker Hughes for a 150 MW grid-connected project in New Mexico. XGS intends to replicate this success by assembling a robust ecosystem of trusted, scale-ready partners in California to expedite project deployment.

Dr. Lucy Darago, Chief Commercial Officer at XGS Energy, emphasized the market's clear demand. "California has explicitly signaled its requirement for clean, firm power delivered at scale and within near-term timelines," said Dr. Darago. "Our partnership with CC Power sends a powerful demand signal for next-generation geothermal solutions. XGS is prepared to meet this demand, leveraging our water-independent system to tap into California's extensive hot rock resources and deliver reliable electricity to communities statewide." XGS Energy's investor base includes prominent firms such as Aligned Climate Capital, Anzu Partners, BlueScopeX, B Current Impact Investment, ClearSky, ClimateIC, Constellation Technology Ventures, H&P, MIH Capital, Thin Line Capital, Valo Ventures, VoLo Earth Ventures, and WovenEarth Ventures.