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.
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.