Austin Energy explores potential game changer for geothermal energy in Texas

November 14, 2024

Continuing as a leader in clean energy innovation, Austin Energy is partnering with Exceed Energy Inc. to pilot a first-of-its-kind advanced geothermal project near its Nacogdoches biomass-generating facility. The pilot is expected to be online and producing carbon-free electricity in 2025 and could signal the next green energy innovation in Texas.

With new technology and exciting opportunities to scale up energy production, the geothermal effort has the potential to change the energy landscape in Texas and create a more reliable pathway to a cleaner, greener grid. While Austin Energy is already the most environmentally sustainable utility in Texas, far exceeding statewide and national averages for carbon-free energy, it always seeks new ways to provide clean, reliable energy to the grid.

“Geothermal technology for energy generation holds great promise and we are excited to advance innovation in this space," said Mike Enger, Austin Energy’s Vice President for Energy Markets and Resource Planning. “This pilot will allow us to learn about any unforeseen challenges and better understand if those challenges can be overcome safely and economically. Based on what we learn, in the future, we may be able to scale up geothermal to further diversify our clean, renewable supply portfolio.”

The new 5 MW geothermal project works by tapping into heat stored deep underground to produce electricity. This system runs cleanly and continuously, providing reliable, carbon-free energy without using fossil fuel. As part of its Resource, Generation and Climate Protection Plan to 2035, Austin Energy worked with stakeholders to understand how to reflect the community’s priorities of reliability, affordability and environmental sustainability. Geothermal energy production is a valuable tool in the utility’s efforts to strengthen the grid and keep costs down while continuing toward a greener future.

“Geothermal energy has been an interest of mine since I began as a Council Member and engaged in Austin Energy’s carbon-free energy generation planning and the reliability of the electric grid. I am also enthusiastic about the types of geothermal technology used for heating and cooling in the District 1 community at Whisper Valley,” said Austin City Council Member Natasha Harper-Madison (District 1). “Our electric utility focuses on innovative solutions to our pressing energy needs and it’s exciting to consider the possibilities geothermal energy will have for Austin and the state.”

Austin Energy’s Geothermal Partner
Exceed Energy Inc. is a geothermal company dedicated to generating renewable baseload electricity through the use of supercritical carbon-dioxide (sCO₂) technology. By utilizing the Earth’s natural heat sources, Exceed Energy is pioneering efficient and sustainable baseload power solutions to help build a low-carbon future.

"Austin Energy's commitment to innovation is truly commendable,” said Tim Tarver, Founder and CEO of Exceed Energy. “By moving forward with this groundbreaking technology, they’re not only embracing a cleaner future but also paving the way for transformative energy solutions. Their support has been instrumental in bringing this disruptive technology to market, and we’re excited to see the impact it will have on the community and the energy sector as a whole." For more information about Exceed Energy, visit exceedgeoenergy.com.

About Austin Energy
Customer Driven. Community Focused.
Austin Energy, the City of Austin’s electric utility, serves more than 575,000 customer accounts and more than one million residents in Greater Austin. The utility’s mission — to safely deliver clean, affordable, reliable energy and excellent customer service — has guided Austin Energy in powering the community and supporting the region’s growth since 1895. For more information about Austin Energy, visit austinenergy.com.