New Wells for Renewell: Regulatory Strategies for Converting Inactive Oil and Gas Wells into Gravity-Based Energy Storage Systems in Colorado and Pennsylvania

Abstract

The U.S. is home to almost three million inactive oil and gas wells that pose risks to the environment and human health. To reduce those risks, most states require inactive wells to be sealed (plugged) by operators; however, the plugging process is slow and costly. Renewell Energy has developed technology for repurposing inactive wells into gravity-based energy storage systems, which would lower harmful emissions and provide valuable support to the nation’s growing clean energy infrastructure. The company is currently running a pilot in California and would like to expand into other states. This project screened and identified priority states for Renewell’s expansion and then completed a detailed regulatory analysis of two target states: Colorado and Pennsylvania. As state regulations were designed with traditional plugging in mind, many of them are not applicable to Renewell’s novel technology. This project identified specific policy barriers and proposed regulatory solutions to create a clear pathway for implementation. Renewell will use these findings to pitch its technology to regulators and operators.