Meta-backed enhanced geothermal firm XGS has signed a supply chain partnership with energy infrastructure provider Vallourec.

The deal will see XGS secure a supply of tubulars, a major component of XGS’s water-independent systems. According to the company, the deal will support the construction of its first 150MW project with Meta in New Mexico. Construction on the project is expected to commence this year, and when completed, will supply power to the Public Service Company of New Mexico’s (PNM) grid to support Meta’s data center operations. XGS inked the deal with Meta last year.

“Our near-term projects in New Mexico and California alone will make XGS one of the largest consumers of tubular goods in the world in 2027 and 2028,” said Josh Prueher, CEO of XGS Energy. “Securing long-term supply of best-in-class equipment and technical support from our partners at Vallourec is absolutely critical to meeting our data center customers’ demand, on time and on budget.”

As part of the partnership, Vallourec will provide XGS with engineering expertise, manufacturing capabilities, and a proven track record in high-temperature tubular solutions. For Vallourec, the deal will support the expansion of its New Energies portfolio and support the development of its tubular solutions. According to the company, the tubing plays a crucial role in supporting enhanced geothermal systems by minimizing thermal losses, improving heat transfer performance, and enhancing long-term system reliability.

“Our collaboration with XGS Energy exemplifies Vallourec’s commitment to the energy transformation and the strategic importance of geothermal within our New Energies portfolio. By combining our tubular expertise with XGS’s innovative technology, we are enabling meaningful progress toward decarbonizing the energy sector,” said Philippe Guillemot, CEO of Vallourec.

XGS was founded in 2008 and is headquartered in Palo Alto, California. Its enhanced geothermal technology utilizes a sealed pipe within a pipe, which it claims prevents fluids from touching the rock or escaping into the earth. Through this, the company says its system can be deployed more widely as it doesn't rely on groundwater to function.

As a result, XGS contends that it is able to decouple geothermal energy production from historical location-based constraints such as water availability or permeable or porous rock, which in turn opens up new frontiers for geothermal development.

Meta’s deal with XGS was its second with an enhanced geothermal firm, having signed a deal with Sage Geosystems for 150MW of power in August 2024.