What happens when thousands of abandoned oil wells dot the Colorado scenery, leaking methane and costing taxpayers millions? A Denver-based company called Gradient Geothermal thinks it has the answer. The company’s turning these environmental liabilities into sources of clean energy.
Gradient Geothermal has developed a system called the HXC Sled. It generates zero-emission power and cooling from existing wells. The technology reuses underground infrastructure that’s already in place. That means companies don’t need to spend millions on new drilling. CEO Benjamin Burke says the goal is simple: turn liabilities into community assets.
The company isn’t working alone. Colorado’s Energy and Carbon Management Commission is leading a technical study to evaluate orphaned wells across the state. The study looks at whether these wells can produce geothermal electricity or support carbon capture. The commission is partnering with the Colorado Energy Office and Gradient Geothermal. The project will produce a public dataset, a report, and recommendations for pilot programs. ECMC Director Julie Murphy says the findings will help shape policy for safe well repurposing. The study’s results are also expected to help inform regulatory pathways for future geothermal and carbon storage projects across the state.
One early example is already taking shape in Pierce, Colorado. A startup there is reportedly repurposing abandoned oil wells to create a geothermal heating network. Reports suggest hot water from the wells could heat homes, schools, and even a meatpacking plant. The project might also warm sidewalks during winter. State grants are funding a feasibility study on costs and benefits. Community feedback indicates strong local interest in seeing Pierce become a renewable energy demonstration site.
Colorado has strong geothermal potential. The state is ranked by some accounts among the highest in the nation for enhanced geothermal systems at certain depths. Oil and gas wells in the San Juan Basin show temperatures up to 150°C at 7,400 feet. Experts say the state could generate roughly 20 megawatts of geothermal power within a decade. Colorado’s renewable ambitions underscore the growing national momentum toward clean energy infrastructure.
Gradient Geothermal already proved the concept works. In 2022, it partnered with Grant Canyon Oil and Gas in Nevada to generate clean electricity at an oil field. That project also cut greenhouse gas emissions. A reported partnership with Chevron suggests the model can scale.
The effort aligns with Colorado’s net-zero goals. It also creates local jobs that use skills from the oil and gas industry. Millions of abandoned wells across the U.S. could follow the same path.
References
- https://longbridge.com/en/news/277665891
- https://www.planetizen.com/news/2024/12/133499-reclaiming-oil-wells-renewable-energy-rural-colorado
- https://www.modernpowersystems.com/news/colorado-explores-geothermal-and-ccs-potential-of-orphaned-wells/
- https://www.gradientgeothermal.com
- https://coloradogeologicalsurvey.org/energy/e-geothermal/
