Texas

The next generation of geothermal is being built in Texas

Texas pioneered the modern oil and gas industry, and those same technologies are driving advancements in geothermal and is why Texas is home to many of the leading next-generation geothermal companies.

Texas

Why Texas matters for geothermal

Texas pairs a major geothermal resource base with the country’s most complete enacted ownership and regulatory framework for next-generation geothermal and the largest oil and gas workforce in the country. Building off The Future of Geothermal in Texas report prepared by Project InnerSpace and several Texas academic institutions, Texas has begun developing policies to scale geothermal. Project InnerSpace, TxGEA, and InnerSpace Action have all played a key role in advancing this work including: SB785 assigned the geothermal resource to the surface owner, SB786 consolidated closed-loop injection-well jurisdiction under the Railroad Commission, and SB1210 created a pathway to convert orphaned oil-and-gas wells for geothermal production. HB 4370 also allows specified local districts to develop geothermal water conveyance facilities and gives certain districts authority to issue bonds for those systems. Proof of concept is underway too: the Railroad Commission issued its first permit under the transferred authority to Sage Geosystems in February 2025, with the company crediting the agency’s drilling experience for moving in weeks rather than months or years.

Featured state report

The Future of Geothermal in Texas

The report was published in January 2023 by researchers at Texas universities — UT Austin, Southern Methodist University, Rice, Texas A&M, and the University of Houston — along with the University Lands Office and the International Energy Agency. The 15-chapter study found that oil and gas technology transfer could deliver 20–43% in cost savings for geothermal development.

Policy Timeline

Recent policy wins

2026

Sage geothermal project begins operating in Atascosa County

Sage Geosystems places its 3 MW facility in Christine into service after more than 120 days of operation. The project sold its first electricity to the ERCOT grid in the second quarter of 2026.

2026

RRC issues second deep geothermal permit

The Railroad Commission issues a deep geopressured geothermal permit to Quidnet Energy for an energy storage well in Galveston County, following its first deep geothermal permit to Sage Geosystems the previous year.

2026

RRC develops deep geothermal injection well regulations

Following finalization of shallow closed-loop geothermal rules, the Railroad Commission is working on regulations for deep Class V geothermal reinjection wells.

2025

Texas further updates its geothermal laws

The Legislature passes three geothermal-related bills. SB 879 removes drilling permit fees and certain reporting requirements for closed-loop geothermal wells. SB 1762 clarifies the treatment of geothermal energy conservation wells and rights associated with repurposing orphaned wells. HB 4370 authorizes certain districts to develop and finance geothermal water conveyance systems.

2025

PUC says geothermal is not excluded from the Texas Energy Fund

During a May Senate hearing, the Public Utility Commission’s executive counsel confirms that geothermal meets the requirements of the agency’s Texas Energy Fund.

2025

RRC issues first deep geo-pressured geothermal permit

The Railroad Commission issues its first permit for a deep geo-pressured geothermal well to Sage Geosystems in Atascosa County, marking the first such permit since regulatory authority transferred from TCEQ.

2024

Sage Geosystems announces EarthStore location

Sage enters a land use agreement with San Miguel Electric Cooperative for a 3 MW Geopressured Geothermal System energy storage facility in Christine, Texas — the first geothermal energy storage project on the ERCOT grid.

2023

Texas establishes its geothermal regulatory framework

SB 785 clarifies ownership of geothermal resources. SB 786 consolidates jurisdiction over closed-loop geothermal injection wells at the Railroad Commission. SB 1210 creates a pathway for geothermal developers to take over and repurpose qualifying orphaned oil and gas wells.

2023

The Future of Geothermal in Texas Published

Texas universities, the University Lands Office, and the IEA publish the landmark report that would become the model for Project InnerSpace’s entire state-by-state series.

News

Latest news and industry updates

August 14, 2026
What Texas still needs to scale geothermal: builders
March 20, 2026
Texas leads nation in oil, gas jobs
September 25, 2025
Texas Railroad Commission finalizes regulations on shallow geothermal injection wells
June 24, 2025
Underground power: how geothermal is quietly revolutionizing Texas communities
June 5, 2025
Geothermal energy efforts get a boost from Texas legislature bills
May 8, 2025
Geothermal expansion in Texas a potential ‘game changer’