Eavor Demobilizes Rigs from Geretsried: What It Really Means for Closed-Loop Geothermal For three years, two drilling rigs on a farm estate near Geretsried, a Bavarian town about 40 km south of Munich, stood as the symbol of the world's most ambitious closed-loop geothermal experiment. Now in October 2026, Eavor Technologies, the Calgary-based developer of the Eavor-Loop, has told the town and its heating utility that both rigs would leave the site . The company said keeping idle rigs and specialist services on site was costly, and that releasing them would help put the project in the strongest position to continue with Loop 2 once its commercial structure is reworked . On the surface, this is a logistics decision. Underneath, it is one of the clearest signals yet about where first-of-a-kind geothermal technology stands, and how hard it is to turn a technical proof into a bankable business. This article explains exactly what happened, what the move means and what it does not mean...
XGS Energy and Baker Hughes Forge Strategic Alliance to Unlock Next-Generation Geothermal Power in New Mexico
By: Robert Buluma
Announced on March 25, 2026, this strategic partnership is not just another energy deal—it is a bold step toward redefining how geothermal energy is developed, deployed, and scaled. At the heart of this collaboration lies a planned 150-megawatt geothermal project in , a project that promises to reshape the region’s clean energy landscape while delivering round-the-clock power to support the growing demands of modern infrastructure.
A Strategic Collaboration with Industrial Muscle
The partnership between XGS Energy and Baker Hughes brings together two complementary forces: breakthrough geothermal innovation and world-class industrial execution.
XGS Energy, a pioneer in next-generation geothermal systems, has developed a proprietary solid-state technology that fundamentally changes the rules of geothermal energy production. On the other hand, Baker Hughes contributes decades of expertise in subsurface engineering, well construction, and integrated energy solutions—capabilities that are essential for transforming bold ideas into operational assets.
This collaboration will initially focus on exploration and engineering—two of the most critical and risk-intensive phases of any geothermal project. By combining their strengths early in the project lifecycle, the companies aim to reduce uncertainty, accelerate reservoir validation, and establish a robust technical foundation for large-scale deployment.
This is not just about building a power plant. It’s about engineering certainty in an industry historically defined by geological risk.
Powering the Digital Age: Meta’s Data Center Demand
One of the most compelling aspects of this project is its end-use. The electricity generated will be delivered to the grid operated by , supporting the energy-intensive operations of data centers in the region.
As global demand for data processing, artificial intelligence, and cloud computing continues to surge, so does the need for reliable, 24/7 clean energy. Unlike solar and wind, geothermal power offers baseload generation—continuous, weather-independent electricity.
This makes geothermal uniquely positioned to power hyperscale data centers, where even a second of downtime can have massive operational and financial consequences.
In this context, the XGS-Baker Hughes collaboration is not just an energy project—it is critical infrastructure for the digital economy.
A Tenfold Leap in Geothermal Capacity
The scale of this development is staggering. According to XGS leadership, this single project could increase ’s geothermal capacity by tenfold.
Such a leap is not incremental—it is exponential.
It signals a shift from pilot projects and niche deployments to utility-scale geothermal power capable of competing with traditional energy sources. More importantly, it demonstrates that geothermal is no longer confined to geographically favorable regions with abundant water and natural permeability.
The future of geothermal is engineered—and XGS is leading that transformation.
Breaking the Geological Barrier: XGS Technology Explained
Traditional geothermal systems rely heavily on three key factors:
- Naturally occurring underground water
- High permeability reservoirs
- Favorable geological conditions
These constraints have historically limited geothermal development to specific regions, leaving vast amounts of Earth’s heat untapped.
XGS Energy’s solid-state geothermal system changes everything.
By using thermally conductive materials, the technology enables heat extraction from hot rock without relying on water or natural permeability. This decoupling from geological limitations unlocks several critical advantages:
- Geographic Flexibility: Projects can be developed in regions previously considered unsuitable for geothermal.
- Reduced Risk: Eliminates uncertainties associated with reservoir permeability and water availability.
- Faster Deployment: Simplifies permitting and development timelines.
- Scalability: Enables replication across multiple sites with consistent performance.
In essence, XGS is turning geothermal into a predictable, manufacturable energy solution—something the industry has long struggled to achieve.
Baker Hughes: From Oilfields to Geothermal Frontiers
For Baker Hughes, this collaboration represents a natural evolution.
With over a century of experience in energy technology and operations in more than 120 countries, the company has built a reputation for delivering complex energy infrastructure at scale. Its “ground-to-grid” geothermal portfolio integrates:
- Subsurface engineering
- Well construction
- Power generation systems
- Infrastructure execution
This end-to-end capability is critical for geothermal projects, which require seamless coordination between underground and surface operations.
By applying its oil and gas expertise to geothermal, Baker Hughes is helping bridge the gap between legacy energy systems and the clean energy future.
From Demonstration to Deployment: Building Momentum
This project builds on XGS Energy’s successful commercial-scale demonstration in California in 2025—a milestone that validated the company’s technology under real-world conditions.
But demonstration is only the beginning.
The real challenge lies in scaling—from megawatts to gigawatts.
To achieve this, XGS is assembling what can only be described as an industrial ecosystem—bringing together investors, engineering partners, and execution specialists capable of delivering large-scale projects reliably and efficiently.
The New Mexico project is a critical step in this journey, serving as a blueprint for future deployments across the western United States and beyond.
The Economics of Execution
One of the most important insights from this collaboration is the emphasis on execution.
As Martin Craighead, Board Director at XGS Energy, aptly noted, the difference between a great idea and a great asset lies in execution quality.
This includes:
- Reducing drilling costs per foot
- Improving well construction efficiency
- Optimizing power plant integration
- Delivering grid-ready assets on time and within budget
In geothermal development, these factors can make or break a project.
By partnering with Baker Hughes, XGS is addressing these challenges head-on—ensuring that its innovative technology is supported by proven operational expertise.
Why This Matters: A Global Perspective
The implications of this collaboration extend far beyond .
Globally, geothermal energy remains underutilized despite its immense potential. According to industry estimates, the Earth contains enough heat to power human civilization for millions of years.
Yet, barriers such as high upfront costs, geological uncertainty, and long development timelines have slowed adoption.
The XGS-Baker Hughes partnership tackles these challenges directly by:
- Reducing technical risk
- Accelerating project timelines
- Enabling development in new regions
- Lowering overall costs
If successful, this model could be replicated worldwide—from Africa’s Rift Valley to Southeast Asia and beyond.
For regions like Kenya, where geothermal already plays a significant role in the energy mix, such innovations could unlock even greater potential—expanding capacity, reducing costs, and enabling new applications such as lithium extraction and direct-use industries.
The Rise of Baseload Clean Energy
As the global energy transition accelerates, one critical question remains: how do we ensure reliability?
Solar and wind are essential, but they are inherently intermittent. Energy storage solutions are improving, but they add complexity and cost.
Geothermal offers a different value proposition:
- Continuous power generation
- Minimal land footprint
- Low emissions
- High capacity factors
In a world increasingly dependent on digital infrastructure, electric vehicles, and industrial electrification, baseload clean energy is not optional—it is essential.
The XGS project in is a powerful demonstration of how geothermal can fill this role.
Investor Confidence and the Road Ahead
XGS Energy’s approach has attracted a strong roster of global investors, including climate-focused funds and strategic partners.
This backing is crucial for scaling geothermal projects, which require significant upfront capital but offer long-term stable returns.
The company’s multi-gigawatt pipeline across the western United States signals confidence not just in its technology, but in the broader geothermal market.
With the support of partners like Baker Hughes, XGS is positioning itself as a leader in the next wave of geothermal development.
Conclusion: Turning Heat into Power, Vision into Reality
The collaboration between and is more than a partnership—it is a statement.
A statement that geothermal energy is ready to scale.
A statement that innovation must be matched with execution.
A statement that the future of clean energy is not just intermittent—it is constant, reliable, and engineered.
As the 150-megawatt project in moves forward, it will serve as a critical test case for next-generation geothermal systems.
If successful, it could mark the beginning of a new era—where geothermal energy is no longer limited by nature, but unleashed by technology.
And in that future, the Earth’s heat will not just be a resource.
It will be the backbone of a cleaner, more resilient global energy system.
Source: XGS Energy
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