XGS Energy and Baker Hughes Partner to Advance 150-MW Geothermal Project in New Mexico
XGS Energy, a developer of next-generation geothermal power systems, has announced a strategic collaboration with Baker Hughes to advance a planned 150-megawatt geothermal project in the U.S. state of New Mexico. As part of the agreement, Baker Hughes will provide engineering services during the early phases of development to support the design and technical planning of the geothermal facility.
The proposed project is expected to supply reliable, clean, round-the-clock electricity to the grid operated by Public Service Company of New Mexico (PNM). The power generated by the facility will help meet the growing electricity demand associated with data center operations in the region, including facilities operated by Meta Platforms. By combining advanced geothermal technology with established engineering expertise, the collaboration aims to accelerate the development of firm, low-carbon energy resources that can operate continuously.
The partnership brings together Baker Hughes’ broad geothermal capabilities with XGS Energy’s proprietary geothermal system. Baker Hughes has developed what it calls a “ground-to-grid” geothermal portfolio, which integrates subsurface engineering and well construction expertise with power generation technologies and infrastructure project delivery capabilities. This end-to-end approach allows developers to address the entire lifecycle of geothermal projects—from reservoir exploration and drilling to power generation and grid integration.
XGS Energy, meanwhile, is pioneering a geothermal system designed to operate independently of both water availability and specific geological conditions that traditionally constrain geothermal development. Conventional geothermal projects typically require naturally occurring hydrothermal reservoirs where hot water or steam can be extracted from underground formations. XGS’s approach, however, aims to expand geothermal development into regions that lack such natural resources by using advanced engineering solutions to harness subsurface heat.
Under the terms of the collaboration, the two companies will initially work together during the exploration and engineering phases of the New Mexico project. These early stages are critical for geothermal development, as they involve assessing subsurface conditions, validating reservoir characteristics, and designing the drilling and power generation systems that will ultimately support large-scale electricity production.
By combining their expertise at this stage, the companies aim to reduce technical risk and create a strong foundation for the project’s future development. The engineering work will focus on reservoir validation, drilling design, well construction strategies, and system integration. Together, these efforts are intended to ensure that the project can be deployed efficiently and deliver reliable electricity once operational.
The planned geothermal facility represents a significant step forward for geothermal energy development in New Mexico. If completed as envisioned, the project would dramatically increase the state’s geothermal power capacity. According to XGS Energy, the 150-MW project alone could expand the state’s currently operating geothermal capacity by roughly ten times.
Ghazal Izadi, Chief Operating Officer of XGS Energy, emphasized that the collaboration demonstrates the company’s commitment to pairing its technology with strong industry partners capable of delivering complex energy projects at scale. She noted that the New Mexico project highlights the company’s strategy of aligning innovative geothermal systems with experienced infrastructure developers to ensure successful execution.
Izadi explained that integrating XGS’s geothermal technology with Baker Hughes’ expertise in subsurface engineering, power systems, and project delivery will help accelerate the transition from concept to large-scale deployment. The collaboration also reflects the company’s broader strategy of building an ecosystem of industrial partners to support its expanding pipeline of geothermal developments across the western United States.
The partnership follows a successful commercial-scale demonstration of XGS Energy’s geothermal system in California in 2025. That demonstration project validated the technical viability of the company’s approach and provided operational data that will inform future developments, including the New Mexico project.
Building on that progress, XGS Energy is now focusing on scaling its technology to support utility-scale power generation. The company has outlined a multi-gigawatt development pipeline across several western U.S. states, reflecting growing interest in geothermal energy as a stable and reliable source of clean electricity.
From Baker Hughes’ perspective, the collaboration represents an opportunity to apply its extensive geothermal expertise to a new generation of energy projects. The company has been actively expanding its geothermal portfolio as part of a broader strategy to support the global transition toward lower-carbon energy systems.
Maria Claudia Borras, Chief Growth and Experience Officer and interim Executive Vice President of Industrial & Energy Technology at Baker Hughes, said geothermal energy plays a crucial role in delivering reliable and cleaner power at scale. She explained that working with XGS Energy at an early stage allows Baker Hughes to apply its integrated capabilities to help reduce technical uncertainties and accelerate project development.
According to Borras, the collaboration will focus on validating the geothermal reservoir, optimizing well design, and engineering an integrated system capable of delivering first power as efficiently as possible. By addressing these challenges during the early phases of development, the companies aim to ensure the project can move forward smoothly and deliver dependable electricity to the grid.
Industry observers increasingly view geothermal energy as a key component of the clean energy transition, particularly because of its ability to provide constant, baseload electricity. Unlike solar or wind power, geothermal facilities can operate continuously, making them valuable for maintaining grid reliability while reducing greenhouse gas emissions.
The involvement of large technology companies such as Meta has also increased interest in geothermal power. Data centers require significant and consistent electricity supply, and many technology companies are seeking carbon-free energy sources to support their sustainability commitments. Geothermal projects can help meet those needs by providing firm, emissions-free power that operates around the clock.
Martin Craighead, a board director at XGS Energy, highlighted the importance of strong execution in bringing advanced energy technologies to market. He noted that transforming innovative ideas into reliable infrastructure requires partners with deep experience in designing and delivering complex energy systems.
Craighead explained that collaborations like the one between XGS Energy and Baker Hughes combine technological innovation with decades of operational expertise. This includes improving drilling efficiency, reducing the cost of well construction, and delivering integrated power solutions that can connect seamlessly to the grid.
Such partnerships, he said, are essential for scaling next-generation geothermal technologies and transforming them from promising concepts into gigawatts of dependable, clean power.
As the New Mexico project progresses through its exploration and engineering phases, the companies expect their collaboration to establish a model for future geothermal developments. If successful, the project could demonstrate how advanced geothermal technologies and strong industrial partnerships can accelerate the deployment of reliable, carbon-free energy infrastructure across the United States.
Source Link: https://www.businesswire.com/
