Austin Energy, the primary electricity provider in Austin, Texas, has announced a strategic partnership with Exceed Energy Inc. to develop a 5 MW geothermal energy pilot project. The project will be located near the Nacogdoches biomass facility and is scheduled to begin electricity production by 2025.
This project marks a significant step forward in diversifying renewable energy sources in Texas, a region historically dominated by wind and solar power. Austin Energy stated that this initiative aligns with its Resource, Generation, and Climate Protection Plan to 2035, which seeks to balance priorities of reliability, affordability, and environmental sustainability.
A driver for energy innovation
According to Mike Enger, Austin Energy’s Vice President for Energy Markets and Resource Planning, the pilot project will help identify and resolve technical and economic challenges related to large-scale geothermal energy use. This technology could ultimately play a key role in diversifying the city’s renewable energy portfolio, enhancing both grid stability and reducing carbon emissions.
Tim Tarver, CEO of Exceed Energy, praised Austin Energy’s commitment to innovation, calling this collaboration a catalyst for transformative energy solutions.
Contribution to a sustainable grid
This project goes beyond electricity generation. It also aims to contribute to a more resilient and reliable power grid. At the same time, the City of Austin is pursuing other innovative geothermal initiatives, such as the recent geothermal heating and cooling project at Penn Field, a mixed-use commercial and office campus.
City representatives, including Natasha Harper-Madison, a member of the city council, emphasize the importance of such initiatives in addressing pressing energy needs while embracing greener solutions.
This pilot project could serve as a model for other communities in Texas and beyond, offering growth prospects for geothermal technology and reinforcing Austin’s commitment to a sustainable energy future.
