Modular Geothermal Power: Gradient’s Scalable Solution for Oil and Gas Sites

As the world transitions toward renewable energy sources, geothermal power has emerged as one of the most promising, yet underutilized, options in the clean energy portfolio. Unlike solar and wind, geothermal offers consistent baseload power generation capacity without intermittency challenges, making it an increasingly attractive component in the renewable energy mix.

The geothermal sector has shown increasing potential in recent years, with technological innovations expanding its possible applications beyond traditional volcanic regions. These advances are creating opportunities to tap into moderate-temperature resources that were previously considered uneconomical, potentially unlocking gigawatts of clean, renewable power across the globe.

It’s within this expanding landscape that companies like Gradient Geothermal are pioneering new approaches. As a guest on The POWER Podcast, Ben Burke, CEO of Gradient Geothermal, outlined his company’s innovative approach to geothermal energy extraction that could transform how we think about energy recovery from oil and gas operations.

Modular and Mobile Geothermal Solutions

Gradient Geothermal differentiates itself in the geothermal marketplace through its focus on modular, portable equipment designed specifically for oil field operations, geothermal operators, and potentially data centers. Unlike traditional geothermal installations that require permanent infrastructure, Gradient’s equipment can be moved every six to 18 months as needed, allowing clients to adjust their thermal capacity by adding or removing units as requirements change.

“The advantage of mobility and modularity is really important to oil and gas operators,” Burke said. The company’s solution consists of two main components: an off-the-shelf organic Rankine cycle (ORC) unit and a primary heat exchanger loop. This system can handle various ratios of oil, gas, and water—even “dirty” water containing sand, brines, and minerals—and convert that heat into usable power.

Rapid Deployment and Flexibility

One of the most compelling aspects of Gradient’s technology is its ease of installation. “Installation takes one day,” Burke explained. “It’s two pipes and three wires, and it’s able to sit on a gravel pad or sit on trailers.” This quick setup contrasts sharply with traditional geothermal plants that can take years to construct.

The units come in three sizes: 75 kW, 150 kW, and 300 kW. The modular nature allows for flexible configurations, with units able to be connected in series or parallel to handle varying water volumes and temperatures.

Applications and Current Projects

Gradient Geothermal initially focused on oil and gas operations, where their equipment serves two primary deployment scenarios, which are:

• New Oil Pads. Where a surge of water returns in the first six to 18 months after drilling, allowing temporary heat recovery before moving to the next pad.
• Mature Oil Fields. Where flow and temperature remain stable over time, enabling what could effectively become permanent installations while maintaining the flexibility of the modular system.

The company has successfully deployed its technology in several locations with more on the way. Examples include:

• A pilot project at a mature oil field in Nevada.
• A commercial project with Chord Energy in North Dakota’s Williston Basin (Figure 1).
• An upcoming gas cooling project in the Haynesville region of northeastern Texas and western Louisiana.

Environmental Benefits and Sustainable Operations

Burke highlighted how Gradient’s technology works hand-in-hand with environmental remediation efforts. The company collaborates with Zefiro Methane Corp., a sibling company in lead investor X Machina Capital Strategies’ portfolio, to offer carbon credit generation through orphaned and abandoned well plugging.

An important consideration in geothermal operations is the concept of “heat mining,” which Burke described as “the idea of cooling off the area around a well.” To ensure sustainability, Gradient works with clients to optimize water injection so that cold water is reinjected sometimes a mile or more from where hot water is extracted, allowing the earth to naturally reheat the water. “In some cases, we can modulate the flow such that it’s a truly renewable resource, and the well never runs out of heat,” Burke noted.

Future Growth and Market Potential

The market potential for Gradient’s technology is substantial. Burke estimates approximately 500,000 wells in the U.S. currently fit the required temperature profile to utilize the company’s technology, representing a potential 13 GW of power generation capacity. If Gradient succeeds in lowering its temperature threshold by 20F—a current focus of the company’s innovation efforts—that number could increase to about 800,000 wells.

While currently focused on oil and gas operations, Gradient is exploring opportunities with dedicated geothermal companies and data centers. Although Gradient’s solution is not really suitable for large data centers that can consume 1 GW or more of power, it is an option for edge computing or switching centers requiring just a few MW.

Grid Resilience Benefits

A sometimes-overlooked benefit of Gradient’s technology is its contribution to grid resilience. By providing power generation capability at remote oil and gas sites—typically located at the end of power distribution lines—the technology reduces the load on regional utilities, helping them “achieve greater resiliency within the grid,” Burke explained.

Manufacturing and Regulatory Landscape

Gradient doesn’t manufacture all components in-house but instead purchases ORC units off the shelf, then ruggedizes and encloses them for operation in extreme conditions. The second component—the heat exchanger skid—is contract manufactured in Colorado and Wyoming before both parts are assembled and tested.

From a regulatory perspective, Burke noted minimal hurdles when the power is used exclusively onsite at oil and gas operations. The regulatory landscape becomes more complex with dedicated geothermal operations, where subsurface rights vary by state—sometimes conveyed with surface rights, sometimes considered mineral rights, and occasionally treated as water rights.

Energy Recovery for a Greener Future

Gradient Geothermal represents an innovative approach to energy recovery that bridges the gap between the oil and gas industry, and renewable energy goals. By creating modular, portable geothermal systems that turn an oil and gas liability into an asset, the company offers a practical step toward greater energy efficiency. As Burke and his team continue to expand their temperature thresholds and geographic reach, their technology could play a significant role in the transition to more sustainable energy systems—proving that adaptability and flexibility may be just as important as scale in the future energy landscape.

To hear the full interview with Burke, listen to The POWER Podcast. Click on the SoundCloud player below to listen in your browser now or use the following links to reach the show page on your favorite podcast platform:

For more power podcasts, visit The POWER Podcast archives.

—Aaron Larson is POWER’s executive editor (@AaronL_Power, @POWERmagazine).