US-based Baker Hughes has come on board in developing one of the world’s largest geothermal project in California. The company is collaborating with lithium miner and renewable energy company Controlled Thermal Resources in the project. Its scope entail a 500 MW geothermal power in California, making it one of the world’s largest single geothermal power projects. Moreover, its completion entails the plan to eventually market the electricity to data centers as noted by the companies. Controlled Thermal has been working on the development of geothermal power and critical minerals project for more than a decade. Dubbed it’s “Hell’s Kitchen” the company has worked on the project for 13 years in California’s Salton Sea region. The firm noted that Baker Hughes will partner in the project’s second phase, which involves producing 500 MW. The amount will be enough to power approximately 375,000 homes with the possibility of expansion.
Project Factsheet
Significance:
Largest single geothermal power project in the world at 500 MW capacity.
To supply clean energy to around 375,000 Californian homes.
Supports U.S. renewable energy development in response to increasing demand from data centers and the spread of AI.
Infrastructure:
Located in California’s Salton Sea region, which is home to geothermal and lithium resources.
Utilizes high-temperature drilling technologies adapted from oil and gas production.
Equipped with sophisticated power systems to reduce costs and enhance operations.
Developer:
Jointly developed by Controlled Thermal Resources (CTR) and Baker Hughes.
CTR has been developing the “Hell’s Kitchen” project for 13 years, specifically aiming at geothermal and strategic minerals.
Baker Hughes joined the project in its second phase, with a main focus on delivering 500 MW capacity.
Funding:
Anticipated multi-billion-dollar investment under staged long-term development.
Financed by private sector capital and prospective power purchase agreements.
Commercial focus on supplying electricity to giant data centers and technology companies.
Challenges:
Geothermal electricity today supplies less than 0.5% of U.S. electricity.
High upfront capital costs present financing hurdles for large-scale production.
Requires trade-offs between supplying energy and mining necessary minerals like lithium.
The Scope of Implementation the Baker Hughes Geothermal Project
The implementation on the Baker Hughes geothermal project will entail aspects such as using high-temperature drilling technologies. Moreover, it will include power systems and services historically used for oil and gas field production. Through these measures, the project will be streamlined and reduce costs while helping raise capital for the project. Geothermal energy comprises less than 0.5% of the electricity supply in the United States. One of the reasons for this is partially due to high upfront costs. However, geothermal producers have been starting to find new customers in Big Tech that need vast amounts of electricity. The boom of AI expansion and data centers has played a major role in this energy surge, as tech companies embrace artificial intelligence. Meta said earlier this year that it had signed power purchase agreements for geothermal in New Mexico. On the other hand, Google reached a deal last year for geothermal power in Nevada. These companies have turned to renewable energy sources to power centers, with Google even signing a $3 billion hydropower deal, the largest clean energy agreement of its kind.
