Hexagon, Weyerhaeuser Ink Geothermal Development Deal for Pacific Northwest

An independent energy development company and a long-time manufacturer of wood products have signed an agreement to develop geothermal projects in Washington and Oregon.Hexagon Energy and Weyerhaeuser Co. on September 10 said they have closed a deal covering that could provide an estimated 3 GW of geothermal power generation capacity in the Pacific Northwest. The land is part of Weyerhaeuser's portfolio of holdings. The company is one of the largest private owners of timberland in North America."Geothermal energy represents an emerging opportunity to provide clean and reliable, around-the-clock power, and our ownership presents a unique platform to evaluate that potential in the Pacific Northwest," said Kendall Fountain, vice president of Energy and Natural Resources for Weyerhaeuser. "This agreement supports the continued growth of our Climate Solutions business while aligning with our commitment to responsible land stewardship, sustainability and long-term value creation."

Hexagon Energy under the agreement will develop geothermal projects on Weyerhaeuser's landholdings in the two states. Hexagon said it has leased geothermal rights on about 145,000 acres across Washington and Oregon."We are excited to partner with Weyerhaeuser to develop this significant geothermal resource and bring abundant, clean, baseload energy to the Pacific Northwest." said Matthew Hantzmon, CEO of Hexagon Energy. "Our team is grateful that Weyerhaeuser entrusted us to unlock this valuable asset for them."

The companies on Thursday noted that their collaboration is concurrent with a rise in demand for geothermal energy, as part of an industry-wide push for more baseload, carbon-free power during a period of an increased need for electricity. Demand from artificial intelligence and data centers, among other power users, has driven a rise in projects utilizing both renewable and thermal energy.Hexagon Energy, headquartered in Charlottesville, Virginia, develops utility-scale wind, solar, standalone storage, and geothermal energy project across the U.S. The company has said its work covers the full spectrum of development and finance, including market analysis, environmental diligence, site control, transmission analysis, community engagement, state and local permitting, engineering, and financial modeling. Hexagon has developed and financed more than 3 GW of power generation capacity for U.S. electric utilities, representing more than $4.5 billion in investment. The company's current pipeline includes more than 10 GW of power under active development.Weyerhaeuser Co., based in Seattle, Washington, is among the world's largest private owners of timberlands. The company began operations in 1900 and today owns or controls more than 10 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. — Darrell Proctor is a senior editor for POWER.