Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

2 minute read

March 31, 2025, 9:00 AM PDT

By Clement Lau


Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

John / Adobe Stock

As the world transitions from fossil fuels to renewable energy sources like wind and solar, one of the biggest challenges is finding efficient ways to store energy for times when the sun is not shining or the wind is not blowing. A team of Penn State researchers has proposed an innovative solution: using geothermal heat from abandoned oil and gas wells to improve compressed-air energy storage (CAES) systems. This approach not only enhances storage efficiency by 9.5 percent but also reduces the high startup costs typically associated with CAES projects by reusing existing infrastructure.

The new geothermal-assisted CAES system takes advantage of heat from deep underground rock formations accessed through depleted wells, potentially making the technology more attractive to investors and operators. Heated air holds more pressure, allowing for more energy to be stored and later released to generate electricity during periods of high demand. Numerical modeling confirmed that this setup significantly increases system efficiency. Additionally, this method avoids the need to drill new wells, which can be prohibitively expensive and environmentally disruptive.

Repurposing these wells offers broader benefits beyond energy storage. There are an estimated 3.9 million abandoned oil and gas wells in the U.S., many of which leak methane, a potent greenhouse gas. Using these wells for CAES can help seal and manage them, thereby reducing environmental risks and contributing to climate goals. This strategy could also preserve jobs in legacy fossil fuel communities by reusing infrastructure and involving local workers in the clean energy transition. The research was supported by the U.S. Department of Energy and conducted under Penn State's Repurposing Center for Energy Transition (ReCET).

Thursday, March 13, 2025 in Pennsylvania State University

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I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

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