Baker Hughes and Mantle Reach Power, a dedicated geothermal development company backed by EnCap Energy Transition Fund III, announced a new commercial agreement to facilitate the economically viable, financially sustainable large-scale deployment of geothermal energy in North America. The collaboration targets the installation of up to 500 megawatts of power in the next five years, aiming to remove historical hurdles to scaling geothermal energy and meet the rising demand for clean, reliable baseload power driven by electrification and the growth of artificial intelligence and hyperscale computing.

Under the agreement, Baker Hughes will act as an integrated subsurface solution provider, utilizing its portfolio of subsurface technologies, surface power generation, and digital solutions. Mantle Reach Power will lead project development, ownership, and financing, leveraging the expertise of EnCap Investments, which has raised approximately $47 billion across 25 institutional funds. The partnership aims to optimize risk allocation and enhance pre-construction bankability, addressing a significant barrier to scaling geothermal energy.

The phased structure of the agreement integrates advanced technologies applicable to geothermal development, construction, and operation. By combining Baker Hughes’ subsurface and surface technologies with Mantle Reach Power’s development capabilities, the parties intend to dramatically accelerate project execution and deliver secure, renewable energy capacity at an industrial scale.

Strategic Objectives

The collaboration focuses on creating a repeatable, financeable model to deploy geothermal energy at speed and scale. Key objectives include:

• De-risking project development through integrated subsurface and surface technologies.
• Enhancing pre-construction bankability to attract private capital.
• Delivering up to 500MW of installed capacity on competitive terms.

Key Stakeholder Perspectives

Lorenzo Simonelli, Chairman and CEO of Baker Hughes, emphasized the importance of geothermal as a clean power solution that enhances U.S. energy security and supports digital infrastructure. He highlighted the agreement as a commercial architecture that provides a repeatable model to meet global energy demands.

Tim Rebhorn, Managing Partner at EnCap Energy Transition, noted that the collaboration aligns development capital, project finance expertise, and world-class technology to address fundamental challenges preventing private capital participation in geothermal deployment.

Nick Karambelas, CEO of Mantle Reach Power, stated that integrating Baker Hughes’ expertise with Mantle Reach Power’s capabilities positions the company to commercialize geothermal assets at scale, providing the construction and operating certainty necessary to access conventional project financing.

Baker Hughes has been awarded a long-term service agreement by ANOH Gas Processing Company (AGPC) to provide comprehensive lifecycle services for the ANOH Gas Processing Plant in Nigeria. The agreement covers parts, repair services, engineering advisory, and iCenter digital services for turbomachinery equipment at the greenfield facility, which is a critical onshore gas project for the nation. This deal reinforces Baker Hughes' role as a lifecycle solutions provider and supports West Africa’s energy infrastructure and domestic supply.

The service agreement builds on Baker Hughes' existing relationship with ANOH Gas Processing Company, which dates back to 2019 when Baker Hughes supplied an integrated power island solution for the facility. This included two NovaLT16 gas turbines—the first supplied in Sub-Saharan Africa—along with compressors and gears. The new agreement focuses on essential maintenance and repairs for the plant’s critical equipment, including the two NovaLT16 gas turbines.

Baker Hughes will provide local engineering support and deploy iCenter digital services, powered by Cordant, for remote monitoring and diagnostics. These services aim to enhance equipment reliability, availability, and optimized operations. The work will be delivered through the Baker Hughes Service Center in Port Harcourt, Nigeria, which employs local talent and offers comprehensive lifecycle services.

James Makinde, Managing Director at ANOH Gas Processing Company, emphasized the importance of the collaboration, stating that reliable performance of critical turbomachinery equipment is essential to the successful operation of the ANOH Plant and Nigeria’s domestic energy supply goals. Maria Claudia Borras, Chief Growth & Experience Officer and interim Executive Vice President of Industrial & Energy Technology at Baker Hughes, highlighted the agreement as a testament to their successful collaboration and trust in their lifecycle service capabilities.

The ANOH Gas Processing Plant is a key component of Nigeria’s strategy to develop its natural gas resources for power generation and industrial use, while accelerating the transition from traditional oil to cleaner-burning hydrocarbons. Baker Hughes' regional expertise and advanced digital technologies will support the delivery of reliable, efficient, and affordable power solutions, aligning with Nigeria’s goal to move to lower-carbon fuel sources.