XGS Energy and CC Power Advance 115 MW Next-Generation Geothermal Project in California
XGS Energy, Inc. (XGS) and California Community Power (CC Power) have announced a major step forward in California’s clean energy transition with the signing of a Geothermal Exploration, Offtake, and Development Engagement (GEODE) Agreement. The agreement will support the development of 115 megawatts (MW) of next-generation geothermal power, reinforcing efforts to deliver reliable, carbon-free electricity while strengthening grid resilience across the state.
The partnership highlights a shared commitment to advancing firm renewable energy resources that can operate continuously, unlike intermittent sources such as solar and wind. As California accelerates its transition toward a carbon-neutral power system, the need for dependable, around-the-clock clean energy has become increasingly urgent. The collaboration between XGS and CC Power is designed to address this need by unlocking geothermal resources that have long remained underutilized.
California is widely recognized as one of the most promising regions in the United States for geothermal energy development. According to a 2025 report by the Clean Air Task Force, the state sits atop more than 35 gigawatts (GW) of untapped geothermal potential. Despite this vast resource base, geothermal energy currently accounts for only about 2.7 GW of the state’s total installed electricity generation capacity, which exceeds 89 GW. This disparity underscores both the challenge and the opportunity facing developers and policymakers seeking to expand clean energy infrastructure.
XGS Energy aims to bridge this gap through its innovative, water-independent geothermal system. Unlike conventional geothermal technologies that rely heavily on water and specific geological conditions, XGS’s approach enables the extraction of heat from dry, hot rock formations. This advancement significantly broadens the range of viable project sites and reduces environmental constraints, making geothermal development more scalable and sustainable.
A key advantage of XGS’s system is its ability to operate without hydraulic stimulation or fracking processes, which have historically raised environmental concerns. Additionally, the technology eliminates the need for consumptive water use during operations—an important consideration in a state like California, where water scarcity is an ongoing issue. By addressing these challenges, XGS’s next-generation geothermal solution positions itself as a practical and environmentally responsible option for large-scale energy deployment.
Alexander Morris, General Manager of CC Power, emphasized the importance of geothermal energy in achieving California’s long-term energy objectives. He noted that geothermal provides a renewable resource capable of delivering consistent, round-the-clock power—something that cannot be fully achieved with the state’s current energy mix. Morris also highlighted that the GEODE Agreement enables CC Power to build strategic relationships with innovative developers like XGS Energy, helping to unlock additional geothermal capacity within California.
CC Power represents a coalition of nine Community Choice Aggregators (CCAs), collectively serving more than 2.7 million customers across the state. These agencies play a critical role in procuring clean energy on behalf of their communities, often prioritizing sustainability, affordability, and local economic development. Through this agreement, CC Power aims to secure reliable geothermal energy that supports grid stability while also fostering job creation and regional investment.
The GEODE Agreement also reflects XGS Energy’s readiness to scale its operations and deliver commercial projects in California. The company recently demonstrated its capabilities through a commercial-scale project in Inyo County, where it successfully developed and operated its geothermal system under real-world conditions. This milestone has provided valuable insights and confidence in the technology’s performance, paving the way for broader deployment across the state.
Beyond California, XGS Energy is actively expanding its development pipeline across the western United States. The company is currently advancing a multi-gigawatt portfolio of projects, including a 150 MW grid-connected geothermal initiative in New Mexico. That project involves collaborations with major industry players such as Vallourec and Baker Hughes, demonstrating XGS’s ability to build strong partnerships with established energy and infrastructure firms.
In California, XGS plans to replicate this collaborative model by working with trusted, scale-ready partners to accelerate project development and deployment. By leveraging industrial expertise and proven supply chains, the company aims to streamline construction timelines and ensure the successful delivery of geothermal projects that meet both technical and regulatory requirements.
Dr. Lucy Darago, Chief Commercial Officer of XGS Energy, underscored the significance of the partnership with CC Power. She noted that California has clearly articulated its need for clean, firm power that can be deployed at scale within a relatively short timeframe. According to Darago, the agreement sends a strong market signal that there is growing demand for next-generation geothermal solutions, and XGS is well-positioned to meet that demand.
Darago also highlighted the broader implications of the company’s technology, emphasizing its potential to unlock California’s vast hot rock resources. By tapping into these previously inaccessible energy reserves, XGS aims to provide reliable electricity to communities while supporting the state’s ambitious climate goals.
As California continues to transition toward a cleaner energy future, the role of geothermal power is expected to expand significantly. Unlike solar and wind energy, which depend on weather conditions, geothermal energy offers a stable and predictable source of electricity that can operate continuously. This makes it an essential component of a balanced energy portfolio, particularly as the state seeks to reduce its reliance on fossil fuels.
The GEODE Agreement between XGS Energy and CC Power represents a meaningful step in this direction. By combining innovative technology with strong institutional partnerships, the initiative has the potential to accelerate geothermal development and contribute to a more resilient and sustainable energy system.
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