California Community Power (CC Power) and XGS Energy have entered into an agreement to develop 115MW of geothermal energy in California, US.
The Geothermal Exploration, Offtake and Development Engagement Agreement aims to increase the state’s clean energy supply and bolster grid reliability to meet long-term energy requirements.
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It responds to rising demand for continuous, low-emission power in California.
Currently, geothermal facilities account for only 2.7GW of the state’s more than 89GW of installed electric generation capacity.
According to a Clean Air Task Force 2025 report, California possesses more than 35GW of unexploited geothermal resources.
The partnership will utilise XGS Energy’s technology, which operates independently of water and enables energy production from dry, hot rock areas.
This technology is designed to increase the range of California’s renewable energy sources.
CC Power’s member agencies, representing more than 2.7 million customers through nine Community Choice Aggregators, stand to benefit from the agreement.
XGS Energy previously carried out a commercial-scale demonstration in Inyo County, California, indicating its technical capabilities and readiness for larger undertakings.
The company’s geothermal system does not use hydraulic stimulation or fracking and operates without consuming water, aligning with environmental requirements.
The deal forms part of XGS Energy’s broader expansion in the US, which currently includes a 150MW grid-connected project in New Mexico involving other industry partners.
XGS intends to establish a similar partner network in California to accelerate project delivery and is working on multiple sites in the state.
XGS Energy chief commercial officer Lucy Darago said: “Our partnership with CC Power sends a strong demand signal for next‑generation geothermal, and XGS is ready to deliver – using a water‑independent system designed to unlock California’s vast hot rock resources and provide reliable power for communities across the state.”
In June 2025, Meta Platforms entered into an agreement with XGS Energy to facilitate the development of a 150MW geothermal energy project in New Mexico.
