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electronicsSeptember 29, 2026

Water-Free Geothermal Power: A Game-Changer for ASEAN Factories

A new geothermal project in New Mexico could revolutionize energy use in ASEAN factories, offering a sustainable and water-free solution.

Unlocking the Potential of Water-Free Geothermal Energy in ASEAN Factories \\[10pt] The U.S. Department of Energy has recently selected XGS Energy, a Houston-based geothermal energy developer, to receive federal funding as part of a $99 million program. This initiative aims to support 21 geothermal projects across the country, including a deep drilling project in New Mexico. The project's primary goal is to gather critical underground data needed to develop commercial-scale geothermal power that does not consume water. For ASEAN factories, this innovation could be a game-changer, especially in regions where water scarcity is a significant concern. \\[10pt] XGS Energy, in collaboration with Baker Hughes, New Mexico Tech, and Sandia National Laboratories, will drill a deep vertical well to collect downhole temperature measurements, logging information, core samples, and continuous drilling data. These findings will help XGS better understand the underground heat resources and design future geothermal wells in the region. The closed-loop system being developed by XGS circulates a working fluid through sealed wells, transferring heat from surrounding rock into the system without extracting hot groundwater. This approach is particularly relevant for ASEAN countries like Thailand, Vietnam, Indonesia, and Malaysia, where geothermal resources are abundant but water is scarce. \\[10pt] In Thailand, for example, the industrial sector is a major consumer of both energy and water. Factories in the eastern seaboard, such as those in Rayong and Chonburi, often face water shortages, which can disrupt operations and increase costs. By adopting water-free geothermal energy, these factories could significantly reduce their water consumption while ensuring a reliable and sustainable energy supply. Similarly, in Vietnam, the rapid industrialization in the Mekong Delta and central coastal regions has put a strain on local water resources. Implementing water-free geothermal systems could alleviate this pressure and provide a stable energy source for the growing number of factories. \\[10pt] In Indonesia, the potential for geothermal energy is vast, with over 40% of the world's geothermal reserves. However, many of these sites are located in areas with limited water availability. The XGS technology could unlock these resources, providing a viable alternative to conventional geothermal plants that rely on natural water. In Malaysia, the government has set ambitious targets for renewable energy, and water-free geothermal power could play a crucial role in meeting these goals. The technology's ability to operate in areas with limited water resources makes it an attractive option for the country's industrial zones, particularly in the Klang Valley and Penang. \\[10pt] The success of the New Mexico project will have far-reaching implications for the global geothermal industry. If XGS Energy can demonstrate the feasibility and efficiency of their closed-loop system, it could pave the way for widespread adoption in ASEAN and beyond. For factory buyers, this means a more sustainable and cost-effective energy solution that can be implemented in a variety of settings, regardless of water availability. As the world continues to grapple with the challenges of climate change and resource scarcity, innovations like water-free geothermal power offer a promising path forward for the industrial sector.

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Editorial rewrite by ASEAN Machine team, based on public reporting from Interesting Engineering, with added ASEAN manufacturing context.

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