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Senate advances bill to allow conversion of idle wells to energy-storage or geothermal uses
Summary
House Bill 361 would permit conversion of orphaned or inactive oil and gas wells to energy-storage (gravity or thermal) or certain geothermal uses. Supporters said the technology could add dispatchable storage and offer new revenue for landowners; senators questioned costs, grid integration and permitting details.
House Bill 361 would authorize conversions of orphaned or inactive oil and gas wells for new uses including downhole energy storage (gravity-based or thermal) and certain geothermal applications. Sponsors described the concept as repurposing existing wellbores to store energy, using technologies that lower emissions and provide dispatchable capacity.
Industry representatives and entrepreneurs testified in support, describing demonstrations in other states and private pilots that retrofit wellbores with weights, winches, or thermal components to add short-duration storage capacity. Xcel Energy said it sees potential value for grid accreditation and dispatchable capacity in the eastern part of the state.
Committee questioning centered on capital costs, grid connection feasibility, the presence or absence of existing electrical service at well sites, environmental implications and who would assume plugging/abandonment liability. Witnesses described a range of per-well storage sizes (testimony cited roughly 30–50 kWh per converted well) and estimated conversion costs in the tens of thousands per site, but senators warned field verification and utility interconnection costs could be much higher.
The committee briefly considered tabling the bill; that motion failed. A subsequent motion for due pass was approved by recorded vote following debate.
Outcome: Committee recorded a due-pass recommendation on House Bill 361.
