Skip to main content

Texas' Hidden Energy Treasure: Geothermal Power Potential,Lone Star State

Unlocking Texas' Hidden Energy Treasure: Geothermal Power Potential in the Lone Star State
Image:Texas' Hidden Energy Treasure: Geothermal Power Potential,Lone Star State

Texas, the energy powerhouse of America, is renowned for its vast oil and gas reserves. But beneath the surface lies another untapped resource: geothermal energy. As the world shifts toward sustainable power sources, Texas' geological formations offer promising opportunities for clean, baseload electricity. This article delves into the geothermal potential in key formations—Austin Chalk, Eagle Ford, and Wilcox—focusing on well configurations, power cycle options, and techno-economic assessments. Drawing from extensive research, we'll explore how Texas could harness this heat from the Earth to power its future.

The Geothermal Landscape in Texas

Geothermal energy harnesses heat from the Earth's interior, converting it into electricity or direct heat. Unlike solar or wind, it's reliable 24/7, making it ideal for Texas' growing energy demands. The state's sedimentary basins, shaped by millions of years of deposition, faulting, and pressure, create hot reservoirs perfect for extraction. The Gulf Coast region, in particular, stands out due to its geopressured zones,areas where fluids are trapped under high pressure, elevating temperatures.

Texas' geothermal resources are vast. Estimates suggest the heat in the upper 10 km of the subsurface equals about one million exajoules, enough to meet the state's electricity needs for thousands of years. Key areas include the Permian Basin, Gulf Coast, and East Texas, where temperatures exceed 250°F at depths of 9,000–15,000 feet. Formations like the Wilcox (Paleocene-Eocene), Eagle Ford (Late Cretaceous), and Austin Chalk (Upper Cretaceous) are prime targets due to their depth, porosity, and proximity to existing infrastructure.

The Wilcox Formation, a sandstone-shale wedge, features high geothermal gradients (38-57°C/km) and temperatures up to 205°C. It's geopressured in southern Texas, with overpressures >0.7 psi/ft and thick sandstones (450–4,000 ft), ideal for energy production. The Eagle Ford, a hydrocarbon-rich shale, has gradients around 3.75°F/100 ft and temperatures over 300°F in deeper sections. The Austin Chalk, overlying the Eagle Ford, reaches >250°F at ~9,000 ft, with fractured carbonates enhancing fluid flow.

Repurposing oil and gas wells is a game-changer. Texas has hundreds of thousands of boreholes, many in these formations, that can be converted for geothermal use, reducing drilling costs. Projects like Pleasant Bayou in the 1980s demonstrated feasibility, generating 1 MW from geopressured brine. Recent pilots, such as Austin Energy's 5 MW project near Nacogdoches, tap into deep heat for clean power.

Geological Formations: A Closer Look

Wilcox Formation
The Wilcox, part of the Gulf Coast's Tertiary sequence, is a deltaic-fluvial system with sandstones dipping gulfward. In South Texas, it's buried deep enough for geothermal viability, with porosities 5-25% and permeabilities 0.01-100 mD. Geothermal fairways here include Zapata, Duval, and De Witt, where temperatures >300°F and high porosity make it prime for production. Salt diapirs nearby enhance heat flow due to high thermal conductivity.

Eagle Ford Formation
This shale play, stretching across 26 counties, is hydrocarbon-mature but geothermal-promising. Depths of 4,000–11,000 ft yield temperatures 250–300°F, with overpressures aiding fluid movement. Recent tests by Renascent Energy repurposed a depleted well, flowing hot water and steam without refracturing. The formation's fractures and proximity to faults make it suitable for enhanced geothermal systems (EGS).

Austin Chalk Formation
Overlying the Eagle Ford, the Austin Chalk is a fractured limestone-marl unit with temperatures >250°F at moderate depths. In South Texas, it's influenced by the San Marcos Arch and salt structures, boosting heat anomalies. USGS estimates billions of barrels of oil equivalent, but its geothermal potential lies in repurposing wells for heat extraction.

These formations overlap in South Texas, creating synergistic opportunities. High heat flow (60-90 mW/m²) from radiogenic basement and salt diapirs amplifies potential.

Analyzing Four Well Configurations

To harness geothermal energy, well design is crucial. We analyze four common configurations adapted for these formations: vertical doublet, horizontal closed-loop, U-shaped hybrid, and repurposed oil/gas wells. Each balances depth, flow, and cost.

1. Vertical Doublet Configuration
This classic setup uses two vertical wells: one for injection of cooled fluid and one for production of hot fluid. In the Wilcox, with its thick sandstones, doublets exploit geopressure for natural flow, reducing pumping needs. A study in the Carrizo-Wilcox aquifer simulated eight scenarios over 30 years, showing high thermal output with injection rates >10 kg/s. In Eagle Ford, vertical doublets leverage overpressure (0.43–0.65 psi/ft), achieving 1-2 MWth per pair. Advantages: Simple, low cost (~$5-10 million/pair); drawbacks: Limited reservoir contact in fractured Austin Chalk.

2. Horizontal Closed-Loop Configuration
Horizontal wells, borrowed from shale drilling, maximize contact with hot rock. Fluid circulates in a sealed loop, avoiding fluid loss. In Eagle Ford's hot shale (300°F+), horizontals like those tested by Sage Geosystems tap heat without fracking. For Wilcox, this config suits low-permeability zones, with lengths up to 10,000 ft yielding 1.27 MWth. In Austin Chalk, horizontals navigate fractures for better efficiency. Pros: High recovery (up to 70%); cons: Higher drilling costs ($10-15 million).

3. U-Shaped Hybrid Configuration
This innovative design connects injection and production via a U-bend at depth, forming a single-well loop. A techno-economic study of Hybrid U-Shaped Closed-Loop Systems (HCLGS) in sedimentary basins like Wilcox shows enhanced extraction, with thermal power up to 5 MW. In Eagle Ford, it minimizes surface footprint, ideal for repurposed sites. For Austin Chalk, hybrids integrate with salt diapirs for heat boosts. Benefits: Reduced seismicity risk, efficiency >80%; challenges: Complex bending tech.

 4. Repurposed Oil/Gas Well Configuration
Texas' 400,000+ wells offer low-cost entry. Plugging upper sections and deepening targets hot zones in Wilcox or Eagle Ford. Haynesville analogs (similar to Eagle Ford) show 1.27 MWth from repurposed wells. In Austin Chalk plays like Giddings, coproduction yields MW-scale power. Pros: Cost savings (50-70% less than new drills); cons: Well integrity issues.

Comparisons favor horizontals and hybrids for high-output in Eagle Ford/Wilcox, while verticals suit Austin Chalk's fractures. Optimal placement, per Texas A&M studies, emphasizes spacing (200-500 m) and resting periods for sustainability.

Comparing Power Cycle Options

Converting geothermal heat to electricity requires efficient cycles. We compare four: dry steam, flash, binary, and hybrid.

Dry Steam Cycle
Used for high-temperature (>360°F) vapors, like in Wilcox deep zones. Steam drives turbines directly. Efficient (10-15%) but rare in Texas due to low vapor dominance.

Flash Steam Cycle
For fluids >360°F, pressure drop flashes liquid to steam. Double-flash boosts efficiency to 15%. Suitable for geopressured Wilcox, where overpressure aids flashing. Eagle Ford tests show viability.

Binary Cycle
Most viable for Texas' moderate temperatures (250-300°F). Heat transfers to a secondary fluid (e.g., isobutane) for vaporization. Efficiency 5-10%, but scalable. Pleasant Bayou used binary for 0.5 MW from 293°F brine. Ideal for all three formations.

Hybrid Cycle
Combines binary with gas coproduction or solar. In Austin Chalk, hybrids yield 1-2 MW net. Air-cooled variants reduce water use.

Binary emerges as most viable for Texas, with hybrids for enhanced economics in geopressured areas.

Techno-Economic Assessments: Guiding Investments


Techno-economic analyses evaluate viability. In Presidio County (Wilcox-like), assessments show economic potential for power and direct use, with LCOE ~$0.05-0.10/kWh. For Eagle Ford, repurposing cuts capex by 50%, with ROI in 5-10 years at $100/MWh.

Key factors: Drilling costs ($5-20 million/well), temperatures (higher reduces LCOE), and incentives (Texas HB 4433 tax exemptions). Risks include induced seismicity and salinity, mitigated by closed-loops. Studies in Carrizo-Wilcox show 30-year operations yield >100 GWh, with sensitivity to rates and spacing.

Overall, South Texas (Eagle Ford/Wilcox) has high viability, with 70-170 MW potential from geopressure alone. Investments could scale to gigawatts, supported by RRC regulations for shallow wells.

 Challenges and Future Outlook

Barriers include high upfront costs, regulatory hurdles, and tech risks. However, oil/gas expertise accelerates adoption. Future: Pilots like Exceed Energy's could prove scalability.

Texas stands poised to lead in geothermal, blending its energy heritage with green innovation. With formations like Austin Chalk, Eagle Ford, and Wilcox, the state could generate clean power for generations.



Comments

Hot Topics 🔥

Inside the Geothermal Startup Mind: The Strategy, Funding & Sacrifices Behind Teverra’s Growth

Inside a Geothermal Startup’s Mind: Strategy, Funding, Ethics, and the Brutal Race to Commercialize This interview was done by Robert Buluma on behalf of Alphaxioms  Image:  The Interviewee, Dr.  Hamed Soroush is the Founder and President at Teverra  There’s a certain kind of silence that exists inside fast-growing startups. Not the quiet of peace, but the quiet of pressure . It’s the silence of teams racing to commercialize before competitors arrive. The silence of founders balancing mission and survival. The silence of a clean energy industry that desperately needs success stories… but is still learning how to measure them. In this one-on-one interview, we explore what it really takes to build a geothermal-driven clean energy company in today’s market, from strategic decisions and funding discipline to leadership, ethics, and the painful sacrifices behind growth. 1)  Vision & Strategy: “Speed Is Everything” Q:   Teverra  has grown rapidly, but co...

Geothermal Power Play: Well Engineering Partners Takes Over Operations as Sproule ERCE Sharpens Advisory Focus

The geothermal energy sector is heating up literally and figuratively and a recent strategic move is set to accelerate progress in sustainable energy production. By: Robert Buluma Effective January 1, 2026, Well Engineering Partners (WEP) acquired the operational and production-focused geothermal activities from Sproule ERC (formerly associated with Veegeo). This acquisition marks a smart realignment of strengths in the booming geothermal market, where clean, reliable baseload energy is increasingly vital for the global energy transition. Imagine harnessing the Earth's natural heat to power homes, industries, and cities without the intermittency of solar or wind. Geothermal energy does exactly that, providing constant output from deep underground reservoirs. But turning that potential into reality requires specialized expertise from initial resource assessment to long-term well maintenance. That's where this deal shines: it allows each company to double down on what they do b...

Europe's Geothermal Transition: Why Repurposing Oil Wells Isn't as Simple as It Sounds

Repurposing Hydrocarbon Wells for Geothermal Applications Insights from Our Interview with Christi on EGS, Storage, and Europe’s Energy Transition Christi is a Geothermal Resource Engineer and PhD Researcher, specializing in deep geothermal systems, closed-loop systems, well repurposing (especially converting old oil/gas wells for geothermal use), Enhanced Geothermal Systems (EGS), and Deep Borehole Heat Exchangers (DBHE). What if the thousands of oil and gas wells scattered across Europe could become the backbone of the geothermal transition? In our recent interview with Christi, a leading researcher involved in the TRANSGEO project, we explored the technical, economic, and regulatory realities of repurposing hydrocarbon wells for geothermal applications , particularly for Enhanced Geothermal Systems (EGS), thermal storage, and district heating integration. From case studies like Groß Schönebeck to regional analysis in Lausitz, Christi offered a grounded and technical perspective o...

CTR Launches American Data Power: 600 MW Geothermal Complex to Fuel America’s AI & Hyperscale Data Boom at Salton Sea

The recent announcement from  Controlled Thermal Resources Holdings Inc. (CTR) marks a significant step in addressing one of the most pressing challenges in the U.S. energy landscape:  providing reliable, clean, baseload power for the explosive growth of hyperscale data centers and AI infrastructure. On January 29, 2026, CTR launched American Data Power, a new subsidiary dedicated to delivering a utility-scale 600 MW energy complex in California's Salton Sea Geothermal Field. This initiative advances the next phase of CTR's flagship Hell’s Kitchen development, positioning it as one of the largest baseload renewable energy projects in the country. Geothermal energy stands out in the renewable mix because it delivers continuous, 24/7 power unlike solar or wind, which depend on weather conditions. The proposed complex targets a capacity factor exceeding 95%, ensuring high operational reliability. This makes it ideal for the constant, high-load demands of hyperscale data centers...

KenGen Launches International Tender for Essential Geothermal Wellhead

KenGen Launches International Tender for Essential Geothermal Wellhead Equipment Amid Kenya's Green Energy Push In a significant move to bolster its geothermal energy infrastructure, Kenya Electricity Generating Company PLC (KenGen) has issued an open international tender for the supply of specialized geothermal wellhead equipment. The tender, referenced as KGN-GDD-025-2026, focuses on expanding gate valves and adaptor flanges—critical components used in geothermal wellheads to manage high-pressure steam and ensure safe, efficient energy extraction. Released in January 2026, this procurement opportunity underscores KenGen's ongoing commitment to expanding Kenya's renewable energy capacity, particularly in the geothermal sector, which already accounts for a substantial portion of the country's power generation. Tender Details and Requirements The tender invites sealed bids from eligible candidates worldwide, emphasizing an open competitive process to attract qualified ...

Vallourec-XGS Alliance Unlocks 3-GW Geothermal Buildout in Western US

Vallourec + XGS Energy : The Tubular Alliance That Could Turn Next-Gen Geothermal Into a 3-GW Reality Across the Western U.S. By: Robert Buluma Image:Vallourec-XGS Alliance Unlocks 3-GW Geothermal Buildout in Western US There are moments in the energy transition when a “press release” quietly reveals something far bigger than a partnership. It reveals a  supply chain war being won before the market even realizes the battle has begun. On January 28, 2026, Vallourec one of the world’s most dominant names in premium tubular solutions—announced a strategic supply chain partnership with XGS Energy, the next-generation geothermal developer building what may become one of the most aggressive geothermal project pipelines in North America: a 3-gigawatt commercial pipeline across the western United States. And this isn’t a distant dream. This is happening now—because XGS is preparing to begin construction this year on its headline project: a 150 MW geothermal facility in New Mexico backed ...

The Billion-Dollar Gamble Beneath Our Feet: Why Geothermal Exploration Is the Industry’s Greatest Risk

Exploration Risk: The Billion-Dollar Gamble Beneath Our Feet By:  Robert Buluma Image credit: Kane Watikson on LinkedIn  Geothermal energy is often described as the sleeping giant of the clean energy transition  constant, weather-independent, capable of delivering 24/7 baseload power without the intermittency that defines solar and wind. Yet despite this extraordinary promise, geothermal remains underdeveloped in most parts of the world. The reason is not lack of heat. It is not lack of demand. It is not even lack of technology and not even  FINANCE ,  Whilst many will throw that policy card, but Alphaxioms is already future proofing that .  The real barrier lies several kilometers beneath our feet  in uncertainty. Exploration risk is the defining challenge of geothermal energy. Unlike wind turbines that can measure wind speeds before construction, or solar farms that can predict output from sunlight data, geothermal developers must make multimillion-d...

How to Start a Geothermal Energy Company: Entrepreneur’s Guide

How to Start a Geothermal Energy Company: Entrepreneur’s Guide By:  Robert Buluma Geothermal energy is emerging as one of the most reliable and sustainable renewable energy sources in the world. Unlike solar or wind, geothermal provides a stable, 24/7 energy supply, making it a highly attractive sector for entrepreneurs looking to enter the renewable energy market. If you’ve ever wondered how to start a geothermal energy company, this comprehensive guide walks you through everything—from understanding the technology to securing permits, funding, and scaling operations. Why Start a Geothermal Energy Company? The demand for renewable energy is skyrocketing, driven by climate change concerns, government incentives, and rising electricity costs. Geothermal energy is uniquely positioned because it is: Reliable and Consistent:  Provides baseload power 24/7. Environmentally Friendly:  Minimal greenhouse gas emissions and a small land footprint. Profitable:  With proper plan...

ORC and Next-Gen: Advantages and Opportunities in Design and Execution

ORC and Next-Gen: Advantages and Opportunities in Design and Execution By:  Robert Buluma In the rapidly evolving landscape of renewable energy, the Organic Rankine Cycle (ORC) stands out as a versatile and efficient technology for harnessing low-grade heat sources, particularly in geothermal applications. Unlike traditional steam-based Rankine cycles, ORC uses organic fluids with lower boiling points, enabling power generation from temperatures as low as 80-150°C. This makes it ideal for geothermal energy, waste heat recovery, and even solar thermal systems. As we push toward a net-zero future in late 2025, next-generation enhancements to ORC systems are unlocking new advantages in design and execution. These innovations address key challenges like fluctuating energy demands, resource variability, and scalability, paving the way for more reliable and cost-effective clean energy solutions. This article explores the advantages and opportunities in ORC and next-gen technologies. We'l...

7,000 Feet Deep, 338°F: The Game-Changing Sensor Revolutionizing Enhanced Geothermal Systems

Breakthrough in Geothermal Monitoring: Berkeley Lab's High-Temperature Seismometer Powers the Future of Enhanced Geothermal Systems By: Robert Buluma Image: Cape Station, Fervo Owned Geothermal Station  Geothermal energy has long been valued as a reliable, clean, and renewable source of power. It draws heat from deep within the Earth to generate electricity with virtually no greenhouse gas emissions during operation. Traditional geothermal plants rely on naturally occurring hot water or steam reservoirs, which restricts development to specific volcanic or tectonically active regions. Enhanced Geothermal Systems (EGS), however, represent a game-changing evolution. EGS engineers artificial reservoirs in hot, otherwise impermeable rock formations found almost anywhere with sufficient subsurface heat. By injecting fluid under pressure to create and propagate fractures, EGS dramatically expands the geographic reach and scalability of geothermal power, offering the potential for 24/7, c...