Governor Greg Abbott Allocates $280 Million for Permian Basin Produced Water Desalination

MIDLAND, Texas — Governor Greg Abbott and Texas Water Development Board (TWDB) Chairman George Peyton announced on Monday the distribution of $280 million in state industrial water resilience matching grants from the new Texas Water Fund to construct three commercial thermal desalination and membrane recycling facilities in Midland, Odessa, and Pecos.

The commercial-scale water recycling plants, matched by $550 million in private energy capital, will treat over 100 million gallons of hypersaline produced water generated daily from Permian Basin oil and gas operations, purifying wastewater into fresh water suitable for industrial manufacturing, agricultural non-food crop irrigation, and green hydrogen production.

Eliminating Deep Disposal Wells and Solving West Texas Water Scarcity Oil and gas wells in the Permian Basin produce five barrels of salty wastewater for every barrel of crude oil extracted. Historically, operators disposed of billions of gallons by pumping it into deep underground disposal wells, causing reservoir pressure build-up and triggering induced seismic earthquakes across West Texas.

"Texas leads the world in energy production, and we are leading the world in innovative water technology to protect our natural resources," Governor Abbott said during an announcement at an industrial water recycling facility in Midland. "In arid West Texas, water is life. This $280 million investment builds the largest produced water desalination network in the world, turning oilfield wastewater into clean, usable water, reducing deep injection earthquakes, and securing a reliable water supply for the Permian Basin's booming economy."

Desalination Plant Specifications and Water Pipeline Networks The $280 million program finances:

• Three Thermal Vacuum Vapor Compression Desalination Plants: Treating 100 million gallons of hypersaline water daily with 90 percent freshwater recovery rates.
• Mineral Extraction Pilot Lines: $45 million to recover valuable commercial lithium, bromine, and industrial salts from concentrated brine streams.
• 85 Miles of Regional Produced Water Conveyance Pipelines: Connecting central gathering points in Reeves, Loving, and Midland Counties.

Energy industry leaders, municipal mayors in Midland and Odessa, and civil water engineers commended the state investment, highlighting that produced water recycling protects municipal freshwater aquifers while solving oilfield disposal challenges.