This story was first published by the Texas Tribune and is the second part of a three-part series on emerging energy sources and Texas’ role in developing them. In 2009, Shell drilled a well on shrub-covered cattle land 45 miles northwest of McAllen in search of gas, but it turned out to be a dry hole. In 2021, a Houston-based energy company founded by former Shell employees began using the site for experimenting with geothermal energy technology. Sage Geosystems leased the site and installed a wellhead and a diesel-powered pump to create cracks in the rock deep below the surface, similar to fracking for oil and gas.
The crew pumped 20,000 barrels of water into the 2-mile-deep well in March. The pressurized water gushed back up, spinning small turbines to generate electricity. Geothermal power is seen as a key replacement for coal- and gas-fired power plants due to its continuous, emissions-free energy production. Texas has become a hub for geothermal energy exploration, with several companies based in Houston and many former oil industry workers transitioning their skills to this new energy source.
Geothermal power, which uses Earth’s underground heat, has the potential for significant growth in the U.S. With advancements in technology, it could provide a substantial portion of the country’s electricity. However, like oil drilling, geothermal exploration also poses challenges, such as the risk of triggering earthquakes.
Companies are working on developing the technology and techniques needed to harness geothermal energy efficiently. They must also demonstrate cost-competitiveness with other power sources, with support from the federal government in the form of tax credits. The Department of Energy estimates that $20-25 billion needs to be invested by 2030 to move towards widespread use of geothermal energy.
Sage Geosystems CEO Cindy Taff, a former Shell executive, joined the company in 2020 to help drive the industry forward. Her daughter, who shares her concerns about climate change, also joined the company. Taff believes that geothermal energy has the potential to make a significant impact on the energy industry and is excited to be at the forefront of this emerging technology.
