Next-gen geothermal systems developer XGS Energy has been selected by the US Department of Energy for federal funding to support the drilling of a deep vertical appraisal well in New Mexico.
Along with Baker Hughes, New Mexico Tech, and Sandia National Laboratories, XGS will use the project to generate critical subsurface data, reduce development uncertainty, and accelerate its plans to deliver reliable, around-the-clock geothermal power to New Mexico’s grid.
Lucy Darago, Chief Commercial Officer of XGS Energy, said, “New Mexico sits in a substantial and exciting geothermal resource, and we’re grateful to the Department of Energy for investing in the subsurface data needed to transform our nation’s abundant geothermal resources into affordable, reliable American energy.
“This selection positions XGS to advance our understanding of these resources, and we are glad to deliver this project alongside public- and private-sector partners who have spent decades advancing New Mexico’s innovation and industry ecosystem.”
DOE announced the selection as part of more than US$99mn in funding to accelerate geothermal energy development across the US, reflecting the country’s desire to support reliable power to meet rising electricity demand. With this funding, XGS will advance a system that generates geothermal power without consuming water.
XGS will drill a deep vertical well to acquire downhole temperature, logging, core and continuous drilling data that will inform the next phase of commercial geothermal development in New Mexico. The data will help XGS refine its understanding of the subsurface, optimise future well and project designs, and reduce uncertainty earlier in the development lifecycle.
Ahmed Eldemerdash, Vice President, Climate Technology Solutions at Baker Hughes, commented, “Scaling next-generation geothermal starts with a clear understanding of the resource and the confidence to turn that insight into a deliverable project. This selection gives XGS Energy and Baker Hughes an opportunity to build on our existing collaboration in New Mexico, leveraging subsurface, surface, and industrial expertise to generate the data needed for the next stage of development. Together, we’re working to bring reliable, always-on geothermal energy to market faster, with greater certainty, at scale.”