Texas Heat: From Oil Rigs to Steam

XGS Energy and Meta launched a new geothermal project of 150 MW in New Mexico aiming to power data centers, with both its initial and larger second phase planned to be operational by 2030. Despite having some of the most promising hot rock resources nationwide, currently, New Mexico only has one operational geothermal plant. 

In Texas, Quaise Energy unveiled its new drilling technique that allows the reach of resources 2 to 12 miles beneath the Earth’s surface, which marks a major milestone in harnessing previously inaccessible thermal energy. Remarkably, the company expects to drill a 12-mile hole in just 100 days; in comparison, the deepest man-made hole, the Kola Superdeep Borehole, took around 20 years to drill 7.62 miles. Traditional drilling methods struggle economically to reach the supercritical zone, where rock temperature is extremely high; Quaise addresses this challenge by using millimeter-wave electromagnetic energy, similar to high-powered microwaves- to melt and vaporize rocks in place. At deep enough depth, developers can reach a more abundant and constant heat supply, instead of just around hot springs and volcanoes, but virtually anywhere on land. 

Geothermal only accounts for 0.4% of U.S. utility-scale electricity generation, with California and Nevada being the leaders. However, Texas is emerging as a new geothermal giant thanks to accessible geothermal resources near major population centers at depths of around 6.5 kilometers, which are well within the drilling capabilities of the oil and gas industry. 

Geothermal and upstream oil and gas share key technical similarities- such as subsurface expertise, well drilling, and fluid management- making the oil and gas industry well-suited to drive innovation in geothermal development. Texas, with its rich history of energy innovation and large-scale drilling capacity, is especially positioned to lead this transition. Leveraging existing oil and gas knowledge could reduce geothermal costs by 20–43%. 

Photo credit: Geothermal Rising 

Though geothermal only accounts for 0.4% of U.S. utility-scale electricity generation, the U.S. is the world's largest producer of geothermal energy, with an installed capacity of 37,000 MW. Kenya has the highest percentage share of electricity generation from geothermal energy- at around 45%. The country started exploring geothermal as early as 1950, and with Rift Valley sitting on active tectonic boundaries- heat is accessible near the surface, which requires several kilometers of drilling to find an equivalent temperature. 

With rising investment and advancing technology, geothermal is poised to move from the margins to the mainstream, turning the heat beneath our feet into a major force above.