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Texas GLO Explores Power Plant Development on State Lands

By Stocks Desk · 2026-09-15 · 2 min read
A geothermal power plant with steam rising from vents in a desert landscape
Illustration: Tradingbird

The Texas General Land Office plans to evaluate geothermal, natural gas, and small nuclear facilities on state property to diversify its revenue streams beyond traditional hydrocarbon leasing.

Texas Land Commissioner Dawn Buckingham announced on Tuesday that the General Land Office will begin exploring the development of geothermal, natural gas, and small modular nuclear power plants on state-owned land. This strategic shift expands the agency’s portfolio beyond its historical focus on oil, gas, and renewable energy leasing, aiming to secure long-term revenue for state schools through diverse energy infrastructure.

Buckingham stated that the office intends to pursue every responsible opportunity to enhance Texas energy reliability and security. The initiative positions the GLO to generate income from advanced power generation technologies, treating these facilities as a new category of commercial asset within the state’s land management framework.

Diversifying Revenue Through Energy Assets

The General Land Office currently leases state land for various commercial uses, including solar and wind farms, with proceeds funding public education. By adding thermal and nuclear power generation to this mix, the agency seeks to broaden its revenue base. University of Houston Energy Fellow Ed Hirs noted that this move is a logical extension of the GLO’s existing business model, which consistently seeks to monetize state land resources.

Hirs emphasized that the GLO has always prioritized financial returns from state holdings. Allowing surface property for power plant development fits into the broader strategy of maximizing the utility of Texas land. This approach treats energy infrastructure as a critical component of the state’s asset management portfolio, similar to how agricultural and hydrocarbon leases are handled.

Industry Support for Geothermal Expansion

The Texas Geothermal Energy Alliance responded positively to the announcement, highlighting the immediate potential for geothermal projects. Executive Vice President Matt Welch stated that the move confirms that geothermal energy development is actively occurring in Texas. The alliance views the GLO’s exploration as a validation of the technology’s viability within the state’s regulatory and land-use framework.

Buckingham described geothermal, advanced nuclear, and natural gas plants as distinct approaches to the same objective: producing dependable local power. The announcement signals a multi-pronged strategy where the GLO will evaluate each technology for its suitability on specific state lands, prioritizing reliability and security in the energy supply chain.

Strategic Focus on Energy Security

The GLO’s initiative aims to keep Texas powered for decades by leveraging diverse resource technologies. By exploring these options, the agency addresses the need for dependable power generation while maintaining its core function of generating revenue for state schools. The move reflects a broader state policy of integrating advanced energy technologies into public land management.

The announcement marks a significant step in how the GLO approaches land utilization. Rather than limiting development to traditional extractive industries or renewables, the agency is now considering high-density power generation facilities. This expansion underscores the state’s commitment to strengthening its energy infrastructure through diversified, responsible development of state-owned assets.

Based on reporting by tpr.org, compiled by the Tradingbird desk.

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