Repurposing Legacy Wells: How India and Iceland Are Turning Fossil Assets into Geothermal Gold

Repurposing Oil and Gas Wells for Geothermal Energy: A Game-Changer in India's Sustainable Transition

Image: India's Union Minister for Petroleum and Natural Gas, Hardeep Singh during the meeting

Welcome back to Alphaxioms Geothermal News, your go-to source for the latest in geothermal innovations from Nairobi and beyond. As we kick off 2026, the spotlight is on a groundbreaking discussion at India Energy Week in Goa. India's Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, highlighted the potential of repurposing mature or abandoned oil and gas wells for geothermal energy recovery during the India-Iceland Roundtable. This isn't just talk—it's a strategic pivot toward sustainable energy that aligns economic growth with climate goals. With India's estimated geothermal potential exceeding 10 GW across over 350 sites, and Iceland's world-class expertise in the mix, this collaboration could redefine energy landscapes. Let's dive into how repurposing oil and gas infrastructure is paving the way for a geothermal revolution.

Geothermal energy harnesses the Earth's internal heat to generate power or provide direct heating. Unlike solar or wind, it's reliable 24/7, with minimal weather dependency. Repurposing oil and gas (O&G) wells involves converting these existing structures—often idle or depleted—into geothermal systems. Instead of plugging and abandoning them, which costs millions and poses environmental risks, wells can be retrofitted to extract hot water or steam from underground reservoirs. This can be done via open-loop systems, where fluids are pumped up and reinjected, or closed-loop setups that circulate a working fluid without direct contact with the reservoir. Techniques include insulating tubing for heat extraction or even integrating carbon capture and storage (CCUS), as noted in Minister Puri's remarks.

India's geothermal landscape is vast and untapped. The Geological Survey of India has identified around 381 hot springs and promising sites like Puga Valley in Ladakh, where temperatures reach 84°C and discharges up to 300 liters per minute. Other key areas include Tattapani in Chhattisgarh, Manikaran in Himachal Pradesh, Cambay Graben in Gujarat, and Chhumathang in Jammu & Kashmir. These span seven geothermal provinces: Himalayan, Sohana, West Coast, Cambay, Godavari, Mahanadi, and Son-Narmada-Tapi (SONATA). High-potential zones stand out in Gujarat, Bihar, Meghalaya, Assam, and the Son Narmada Fault Zone. With a theoretical potential of 10,600 MW, India could power millions of homes, support industries, and heat greenhouses or aquaculture farms. Pilot projects, like the 1 MW Puga Geothermal Project and explorations in Uttarakhand's Tapoban, are already underway.

The benefits of repurposing O&G wells are multifaceted. Economically, it slashes costs by avoiding new drilling—up to 50% of a geothermal project's expense. In regions with large numbers of abandoned wells, retrofitting boosts efficiency and turns legacy infrastructure into valuable assets. Environmentally, it reduces methane leaks from orphaned wells, cuts land disturbance by reusing brownfields, and lowers carbon emissions. Repurposed wells can generate clean power while providing jobs in energy-dependent regions, fostering a just transition. For India, with its aging oilfields, this means revitalizing infrastructure in places like the Cambay Basin, integrating with CCUS for net-zero goals. Studies show repurposed systems can yield 200–857 kW per well, with net profits in the millions over a decade.

Iceland, a geothermal powerhouse, brings invaluable expertise. Nearly 100% of its electricity and heating comes from renewables, with geothermal supplying 30% of power. Companies there have mastered deep drilling and sustainable extraction, exporting knowledge globally. The India-Iceland partnership, formalized through MOUs on renewable energy since 2007, focuses on technology transfer, capacity building, and joint R&D. Recent collaborations include technical support for Puga drilling and agreements for exploration in Uttarakhand. At the Goa roundtable, Puri emphasized adapting Iceland's models to India's context, despite differences in geography—India's sedimentary basins versus Iceland's volcanic ones. This ties into India's National Policy on Geothermal Energy (2025), which promotes international ties with Iceland, Australia, Saudi Arabia, and the US.

Image: India's Union Minister for Petroleum and Natural Gas, Hardeep Singh shaking hands with his Iceland’s Counterpart

Real-world case studies illustrate the promise. In the United States, companies have repurposed wells that once produced mostly hot water to deliver zero-emission electricity to small towns. In Oklahoma, evaluations of nearby oil and gas wells have shown viability for direct-use heating in greenhouses and community systems. North Dakota has converted wells for district heating in rural communities, addressing energy poverty. In Europe, studies in Italy have optimized extraction from decommissioned wells, predicting strong outputs for urban heating networks. Closer to home, research institutions in India are piloting studies on abandoned oil wells, aligning with the policy's focus on retrofits. These examples underscore that with proper modeling—considering depth, temperature, and flow rates—repurposing can be scalable and economically attractive.

Challenges remain: technical hurdles like maintaining well integrity, preventing scaling from mineral deposits, and establishing clear regulatory frameworks for ownership transfer. In India, seismic risks in Himalayan sites and high upfront retrofitting costs (despite long-term savings) need careful management. However, opportunities abound. The new geothermal policy offers incentives for pilot projects, and Iceland's input could accelerate technology adoption. Integrating with CCUS, as Puri highlighted, could store CO₂ while extracting heat, creating dual-purpose infrastructure that supports both energy production and emissions reduction.

Looking ahead, this Indo-Icelandic synergy could unlock India's 10 GW geothermal potential, creating thousands of jobs, reducing fossil fuel imports, and advancing the country's net-zero target by 2070. As Minister Puri aptly put it, it's about practical, inclusive energy transitions that leave no one behind. For geothermal enthusiasts across Kenya and Africa—where similar oil and gas infrastructure exists and could be repurposed for heating or power—this development is highly inspirational. India's proactive steps show that legacy fossil assets can become cornerstones of the renewable future.

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Stay tuned to Alphaxioms Geothermal News for more updates on global geothermal progress. Let's geothermalize the future—together!

Source: Indian Union Minister of Petroleum and Energy