As the U.S. energy sector pivots from fossil fuels to renewables, the Inflation Reduction Act (IRA) stands as a cornerstone policy driving this transformation. Geo2Watts, an innovative energy company, is turning legislative vision into practical application by repurposing idle oil and gas wells for clean energy production.
The company’s groundbreaking Borehole Battery™ technology, backed by the IRA’s robust tax incentives, exemplifies how renewable energy growth can deliver environmental and economic benefits.
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The IRA has already generated significant momentum, sparking thousands of clean energy projects across the country and fueling investments in renewable infrastructure. Yet, as Congress revisits the future of the IRA, Geo2Watts co-founder Phil Cruver believes there is room for evolution.
Reimagining the IRA
In a commentary on the IRA’s future, Cruver highlighted a vision for a refined version of the law—a “Responsible Clean Energy Act”—that builds on the IRA’s successes while appealing to a broader coalition.
“This rebranded legislation could advance a responsible, focused solution that champions American energy independence, job creation, and economic growth,” Cruver said.
He emphasized the potential to streamline the act by focusing exclusively on clean energy goals, while cutting unrelated provisions such as healthcare subsidies and deficit reduction funding. “This compromise would show a commitment to both economic responsibility and environmental progress,” Cruver added.
Such a reimagined act could preserve critical incentives for renewable energy generation, electrification, and Long Duration Energy Storage (LDES) technologies while enhancing U.S. energy independence by reducing reliance on foreign supply chains.
“The IRA has already revitalized domestic manufacturing in sectors like solar panels, wind turbines, and battery technologies,” Cruver said. “A focused version could strengthen these areas even further while demonstrating that sustainable progress and fiscal responsibility can coexist.”
Cruver reached out to “numerous lobbyists and the energy policy staff of the 18 GOP Congressmen” who wrote to House Speaker Mike Johnson. Their consensus was “the majority vote is too slim for repeal and the only vulnerable targets are wind energy and EV tax credit that will be decided during the reconciliation process,” Cruver told The American Bazaar.
How Geo2Watts innovates with IRA support
Geo2Watts is already taking advantage of the IRA’s landmark Investment Tax Credits (ITCs), which provide up to 50% capital recovery for projects repurposing fossil fuel infrastructure into renewable energy. By converting idleabandoned oil and gas wells into Borehole Batteries™, the company addresses two critical challenges: meeting mandatory decommissioning requirements for wells and contributing to the clean energy transition.
“We turn a costly liability into an asset,” said co-founder Bill Bartling, an energy policy expert and former Chief Deputy at CalGEM, California’s oil and gas regulatory agency. “This technology enables companies to meet mandatory abandonment requirements at a fraction of the cost while producing clean, zero-emission electricity.”
Cruver describes how the technology works: “Once an idle oil well is permanently plugged meeting mandated regulatory protocols, a closed-loop heat exchanger is installed with a proprietary combination of thermal conducting and insulating materials, effectively converted the well into a Thermal Energy Storage (TES) system. Solar thermal collectors are used as the source of renewable heat combined with a Reversible High Temperature Heat Pump (RHTHP) for heating pressurized water up to 200°C, which is then circulated throughout the TES. During electricity production, pressurized water flows through the heat exchanger within the TES and then transferred to the RHTHP for producing clean dispatchable electricity. The optimized design of the TES and its heat exchanger surrounded by proprietary thermal materials, combined with the RHTHP and solar collector field, form the critical components of this novel system trademarked as the Borehole Battery™.”
IRA provides a 30% ITC for clean energy projects, with additional 10% credits for using domestic materials and locating operations in oil-producing “energy communities.”
In Texas alone, more than 1,500 clean energy projects are in development, representing nearly $500 billion in investments. Geo2Watts plans to build its first prototype next year and is exploring locations in California, Texas, Louisiana, New Mexico, and Oklahoma. The Permian Basin, with over 100,000 idle wells, offers a particularly promising market.
“The new generation of wells in Texas and New Mexico are ideal for daisy-chaining into larger power plants,” Bartling said. “This opens exciting opportunities for scalable, renewable power production in oil-rich regions.”
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A decade-long window for change
Cruver stressed that the IRA’s decade-long timeline for renewable energy incentives provides a critical window for fostering bipartisan support for the energy transition.
“For the first time, the ITC has the permanence needed to attract serious investment,” Cruver said. “And with the credits now transferable, developers can sell them on the open market, bringing in funding more efficiently.”
Geo2Watts recently developed its High-Integrity Carbon Credits for Mitigating Methane Emissions initiative, which when combined with the IRA’s 50% ITC, enhances the economics for the Borehole Battery™ for commercial scaling.
In addition to mitigating greenhouse gases, the Borehole Battery™ offers economic and health benefits, such as job creation, improved air quality, and financial incentives for well plugging, Cruver told The American Bazaar.
The approach positions Geo2Watts to deliver scientifically validated carbon credits at premium pricing, making a compelling case for wider deployment and systemic change across nearly 900,000 producing wells in the U.S.
With its innovative approach and reliance on IRA incentives, Geo2Watts demonstrates how renewable energy projects can harmonize economic opportunity with environmental progress. At a time when U.S. energy policy is under review, Geo2Watts’ work is a model for using legislation as a lever for meaningful change.
“The IRA has shown that economic growth and environmental stewardship can go hand in hand,” Cruver said. “A Responsible Clean Energy Act could preserve and expand on this foundation, ensuring America leads in the global transition to clean energy.”
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As Geo2Watts scales its operations and Congress considers adjustments to the IRA, the company’s efforts offer a powerful case for pragmatic, forward-looking energy policy.