With an extensive oil and gas background, Sage Geosystems seeks to accelerate geothermal deployment in more sites with their Pressure Geothermal technology.
The oil and gas industry has plenty to offer the geothermal industry – established technologies, supply chains, subsurface knowledge, and a large and highly experienced workforce. But how can this pivot be done while also introducing a new concept for geothermal utilization?
Houston-based geothermal technology company Sage Geosystems (Sage) is doing exactly this with a new approach to harnessing the Earth’s heat and pressure for power generation and energy storage. Founded by a team with extensive backgrounds in oil and gas drilling, the company applies proven subsurface engineering methods to expand geothermal’s reach beyond traditional volcanic and hydrothermal areas.
For this article, we talked to Jason Peart, General Manager of Strategy and Development at Sage, to examine their technology, the progress of their current projects in Texas, their collaboration with Ormat Technologies, and the company’s role in bridging oil and gas expertise into geothermal, and the broader policy environment shaping the future of next-generation geothermal energy.
The Pressure Geothermal technology
The centerpiece of Sage Geosystems’ unique approach to geothermal is its proprietary Pressure Geothermal technology. This is a next-generation system that simultaneously captures heat and pressure from the Earth’s subsurface. As explained by Jason Peart, the technology “transforms the Earth’s natural heat and pressure into scalable, affordable, and dependable energy and long-duration energy storage at grid scale.”
The system operates using a two-well design that acts like an underground lung that expands and contracts with the Earth’s natural elasticity to cycle hot water to the surface. Unlike traditional geothermal systems that rely on natural hydrothermal resources near the surface, Sage’s technology targets low-permeability, hot, dry rock formations at depths between 2.5 and 6 kilometers. These conditions are found across much of the world’s subsurface, making the technology deployable in a far wider range of geologies.
By pumping clean water into fractures in these rocks, the system not only extracts heat but also harnesses subsurface pressure to generate electricity. This dual harvesting process can increase net power output by 25% to 50% compared to conventional systems. Because the reservoirs are engineered rather than naturally occurring, the exploration risk is lower, and the need for rare surface thermal features is eliminated.
Sage estimates that its approach can unlock over 130 times more geothermal potential in the U.S. alone, vastly expanding the resource base. Furthermore, the system doubles as a long-duration energy storage mechanism, capable of absorbing excess renewable generation and releasing it when demand peaks. By combining engineered subsurface systems with advanced power-plant designs, including supercritical CO2 cycles, Sage aims to deliver competitive cost per kilowatt-hour while maintaining low environmental impact and broad geographic applicability.
Updates on project status
Sage Geosystems has transitioned swiftly from proof-of-concept testing to commercial deployment. The company’s first major project is located in Christine, Texas, where it is developing a commercial-scale energy storage facility designed to operate at the MW scale. The facility follows the successful completion of Sage’s earlier test well, which operated at the kilowatt scale.
According to Jason Peart, the Christine facility “has been built, pressure tested, and function tested, with core data already being obtained and analyzed.” The system is now being prepared for grid connection, where it will provide continuous operational data to help refine and optimize the technology. This project represents a significant step forward, demonstrating the scalability of the Pressure Geothermal system from pilot to commercial application.
The company has maintained an active project pipeline, thanks in no small part to multiple contracts signed with the US Department of Defense. A geothermal demonstration is expected to be completed soon at the Ellington Field Joint Reserve Base in Starr County, while feasibility studies are ongoing at the Fort Bliss Army installation and at the Naval Air Station Corpus Christi. Moreover, Sage has signed a power purchase agreement with Meta to supply its data centers from a 150-MW facility to be built East of the Rockies.
Accelerating development timelines
Sage Geosystems’ partnership with Ormat Technologies marks a key step in accelerating the deployment of its Pressure Geothermal technology.
Under this collaboration, Sage will drill deeper beneath Ormat’s existing geothermal fields to access hot, dry rock resources that conventional systems cannot reach. The heat extracted from these deeper wells will be directed into Ormat’s existing power plant infrastructure, which already has turbines, grid connections, and offtake agreements in place.
This approach allows Sage to focus on its core drilling and subsurface technology while avoiding the lengthy permitting, construction, and interconnection processes that typically delay new geothermal projects. By leveraging Ormat’s established facilities, Sage can bring its technology to commercial operation roughly one and a half to two years faster than through a greenfield development.
The collaboration also reduces project risk by utilizing proven surface assets and a grid-connected site, providing an early opportunity to demonstrate the compatibility of Pressure Geothermal with existing geothermal operations. This model creates a “brownfield” growth pathway for the industry, enabling operators like Ormat to expand capacity on current sites without major new infrastructure investments, while allowing Sage to accelerate field validation and scaling of its technology.
Geothermal as a pivot from oil and gas
Sage Geosystems represents a clear bridge between the oil and gas sector and the renewable energy future. The company’s founders and technical team collectively bring over 200 years of experience in drilling and subsurface engineering, a background that forms the cornerstone of its geothermal strategy.
As Jason Peart explained, “Much of Sage’s team comes from an oil & gas background. We have 200 years of combined experience in energy and drilling.” This experience translates into operational efficiency, precision, and an ability to scale well-based technologies rapidly. The similarities between drilling a geothermal well and an oil well are substantial, and Sage is capitalizing on that overlap to minimize technical and financial risk.
Peart describes next-generation geothermal as a “shale revolution 2.0,” predicting that the industry will soon require many more wells and skilled professionals who know how to drill. By reframing geothermal as a natural extension of oilfield expertise, Sage is also helping to create a pathway for oil and gas workers to transition into clean energy careers without abandoning their skill sets.
Historically, geothermal drilling has been a tiny fraction of oil and gas activity, at just 5 to 10 wells per year compared with 25,000 to 30,000 oil and gas wells. However, this ratio could change dramatically as enhanced and engineered geothermal systems expand. The company’s strategy could catalyze a large-scale redeployment of industry expertise toward sustainable energy production, marking a pivotal shift for both geothermal and the broader energy sector.
Positive outlook on policy
As Peart noted, the progress of geothermal has been driven largely by increasing demand and advancing technologies that leverage on existing oil and gas infrastructure. However, he also notes that supportive policy can significantly help accelerate geothermal deployment.
The company sees the recent bipartisan support for geothermal energy in the U.S. as a positive sign, with efforts underway to streamline the permitting process which could cut development timelines from as long as seven years down to a few months. Simplifying the NEPA environmental review process is another critical improvement that would benefit projects like Sage’s, enabling faster scaling and investor confidence.
With leadership from figures like U.S. Energy Secretary Chris Wright, who also comes with a geothermal background, there is growing recognition that next-generation geothermal could be a cornerstone of U.S. energy resilience.
Peart highlighted that the economics of Pressure Geothermal “speak for themselves,” but that building projects at scale is key to achieving supply chain efficiencies and reducing costs. To reach that point, consistent investment and government engagement are essential. Sage also benefits from policies that facilitate collaboration with oil and gas industries, allowing for shared infrastructure and expertise.
