Reclaiming Oil Wells for Renewable Energy in Rural Colorado

A company is seeking to repurpose abandoned oil wells in Pierce, Colorado, to create a cost-effective geothermal energy system that could heat and cool local buildings, reduce emissions, and serve as a model for sustainable energy nationwide.

2 minute read

December 31, 2024, 7:00 AM PST

By Clement Lau


In Pierce, Colorado, a startup called Gradient Geothermal aims to repurpose abandoned oil wells for a geothermal energy system that could heat and cool local buildings, including homes, schools, and a meatpacking plant. By reusing wells instead of drilling new ones, the project dramatically reduces the cost of geothermal energy production, making it a viable clean energy solution for small towns. As reported by Adele Peters, Gradient’s approach taps into the wells’ existing infrastructure, where hot water produced alongside oil can be utilized to create a central heating network, potentially even warming sidewalks during snowy winters.

This innovative project aligns with Colorado's push for geothermal energy, supported by state grants to test new applications. Gradient’s feasibility study will determine the system’s cost, capacity, and environmental benefits, with promising results already seen in a similar Nevada project where reused oil wells helped power ongoing oil operations. If successful, the Pierce system could offer an alternative to natural gas and wood stoves, reduce greenhouse gas emissions, and create local jobs by leveraging the skills of former oil and gas workers. The town views the initiative as an opportunity for economic growth and sustainability.

Beyond Pierce, this model has the potential for replication across the U.S., where millions of abandoned oil wells could serve as cost-effective geothermal sources. With Chevron as a partner in this project, there is significant interest in expanding the approach to other sites, transforming old oil infrastructure into a pathway for renewable energy. By integrating geothermal solutions into local communities, projects like this could provide an innovative and sustainable future for towns historically reliant on fossil fuels.

Thursday, December 12, 2024 in Fast Company

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