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Texas seeks geothermal, small nuclear, and gas projects on state land to boost grid reliability

The next steps will depend on the feedback the agency receives.

Four cooling towers release steam against a cloudy sky with power lines in the foreground.

Photo Credit: iStock

Texas is considering a new round of energy development on state-owned land, with geothermal power, small modular nuclear reactors, and dirty gas plants under review as officials look for ways to strengthen grid reliability.

The effort could help determine how some of the state's vast public lands are used while also shaping how Texas responds to rising electricity demand.

Here's what to know

To measure interest, the Texas General Land Office has opened a Request for Information directed at companies, developers, energy producers, and technology providers that may want to build new power projects on state land, according to KPRC Click2Houston.

Under review are three types of projects: small modular reactors, or SMRs, compact nuclear units that generate nuclear power; geothermal energy, which taps underground heat to make electricity; and gas plants, which can step in when other sources fall short of demand.

As Texas adds more residents, businesses, and industrial operations, pressure on the electric grid continues to rise. In response, the land office says it is seeking power sources that are "dependable and dispatchable," a mix of steady, always-on power and gas plants that can ramp up quickly when demand spikes.

More background

The Texas General Land Office oversees more than 13 million acres of state land and mineral rights, giving it a significant role in how public resources are developed.

Revenue from that development goes to the Permanent School Fund for Texas public schools.

The initiative also aligns with the agency's push to expand the use of state-owned resources. Texas Land Commissioner Dawn Buckingham has made resource development a priority, and the office has also been involved in critical mineral efforts, including work tied to USA Rare Earth's Round Top Mountain project in Hudspeth County.

The project is slated to begin commercial production in 2028. These efforts fall under a strategy called Texas Engine: Fueled, Fed and Fortified, which examines how state lands can support the economy, energy security, and national security.

What's being done?

At this stage, the land office is using the Request for Information to gather details about which state-land sites might work for these projects, how development there could take shape, and which companies may want to pursue them.

The next steps will depend on the feedback the agency receives as it considers which state-land locations and development methods could make sense for the projects.

As Buckingham put it, "Texas built its economy by putting our natural resources to work, and we cannot afford to stop innovation now. Our state needs dependable energy to power homes, businesses, manufacturing, and the next generation of American industries."

Where can I learn more?

Texas has been leaning on an energy buildout for a while now, from grid batteries to major solar farms.

• In Texas, batteries and solar help ERCOT meet record demand while keeping prices low.

• Across Texas, massive amounts of solar are being installed as electricity demand keeps climbing.

• Under SB624, homeowners face new limits on rooftop solar and backyard wind systems.

• After Ørsted's Texas project, a half-billion-dollar solar farm also funded grassland protection nearby.

• In Florida, more solar panels than in any other state are now going up.

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