Update: The State of U.S. Geothermal Production and Development

Leslie Blodgett, Geothermal Energy Association
September 25, 2008 | 22 Comments

With 2,957.94 megawatts (MW) of installed geothermal capacity, the United States remains the world leader with 30% of the online capacity total. A recent industry update showed an increase in the pace of geothermal production in the U.S., a country that many experts believe should take initiative to shed the expensive, foreign-dependent lifestyle of running on oil and gas and begin to help mitigate the threat of global warming.

Geothermal energy, considered by a growing number of renewable energy experts as the best form of renewable energy for its ability to provide continuous, 24-hour, clean, sustainable energy production, has long been an underdog to other technologies. With advances in technology and funding from government and investors, the U.S. can steadily increase development in using the heat of the Earth itself for substantial and widespread energy production.

The U.S. Geothermal Production and Development Update, August 2008, published by the Washington, D.C.-based Geothermal Energy Association, shows a 20% increase in the number of new geothermal power projects under development in the U.S. as of January 2008.

"The surge in new geothermal power development continues," said Karl Gawell, GEA's Executive Director.

The report identified 103 projects underway in 13 states (see Table, below). When developed, these projects could potentially supply up to 3,979 MW of power, meeting the needs of roughly 4 million homes. When we add that number to the 2,957 MW currently online, geothermal power could reach nearly 7,000 MW. At this pace of development, geothermal production could exceed 15,000 MW by 2025, which is significantly more more than the 12,558 MW projected by the Geothermal Task Force in a report that was submitted to the Western Governors' Clean and Diversified Energy Initiative in 2006.

State	New Projects	MW
Alaska	5	53-100
Arizona	2	2-20
California	21	927.6-1036.6
Colorado	1	10
Florida	1	0.2-1
Hawaii	2	8
Idaho	6	251-326
Nevada	45	1082.5-1901.5
New Mexico	1	10
Oregon	11	297.4-322.4
Utah	6	244
Washington	1	Unspecified
Wyoming	1	0.2
Total	103	2885.9-3979.7

August 2008 Results by State

Spurring the Growth: Better Policy, Better Technology

While geothermal remains relatively unknown in the mainstream, experts in the industry recognize the importance and degree of the recent surge. Growth is attributed to increases in state renewable portfolio standards (RPS), growing climate change concerns, higher prices for conventional fuels and the federal production tax credit being extended to geothermal projects.

To complement this, the Bureau of Land Management has been aggressively working through a lease application backlog, with successful new geothermal lease sales in 2007 and 2008, with a total of 245,695 acres sold. A Nevada lease sale this year brought in a record-breaking US $28.2 million. Other lease sales are scheduled for later this year in Utah and possibly California and Oregon. Expect to see the number of geothermal projects rise with these 2007 and 2008 lease sales.

Projects under development will provide significant economic benefits, according to GEA. "These new projects will result in the infusion of roughly US $15 billion in capital investment in the western states and will create 7,000 permanent jobs and more than 25,000 person-years of construction and manufacturing employment," Gawell stated.

Further, new technologies promise increased growth in locations previously not considered, indicating that the future outlook for expanded production from conventional and enhanced geothermal systems is positive.

With technological advancements, scientists and developers can get more out of resources at lower temperatures and in new locations where production was not feasible in the past. While geothermal growth using current technology stands on its own, two promising newer technologies are Enhanced Geothermal System (EGS) and geothermal co-production.

EGS involves engineering reservoirs so that workable flow rates can be produced in otherwise nonviable resources. This new technology could add an additional 100 gigawatts (GW) or more to the U.S. electricity grid by 2050, according to the 2006 Future of Geothermal Energy report by the MIT. In Nevada, the first commercial project to apply EGS in the U.S. currently being developed by Ormat, is underway. Upon completion, it could add at least 5 MW to an already existing plant and prove the potential of EGS for further projects around the country.

Geothermal co-production, another technology, produces electricity from thermal fluid that flows from oil and gas wells. It is predicted that co-production is capable of providing 1,000-5,000 MW to the seven states in the Texas Gulf Coast Plain alone. A co-production demonstration project is now operating at the Rocky Mountain Oilfield Testing Center in Wyoming, and another demonstration project is set to begin in Florida this year. The capacity of the Florida project is expected to be between 200 kW and 1 MW.

A Burgeoning Industry Still Needs Support

Fortunately, geothermal energy has earned the attention of the media and is establishing itself as a viable power in the finance world. Al Gore included geothermal as an important aspect of his 10-year vision for a 100% renewable energy America. Measures are still needed before more definitive growth will materialize. The U.S. Department of Energy has increased its 2009 federal funding budget for geothermal research by US $10.2 million; the DOE further committed US $90 million over the next four years to advance research, development and demonstration of next-generation geothermal energy technology in the United States.

Together, state renewable portfolio standards, federal tax incentives, prioritized leasing and permitting and new research and development support are bringing about a renaissance in geothermal energy. But will this continue long enough to really create the momentum needed to achieve the potential of geothermal energy? Geothermal projects and technology will take years to develop, and the industry needs sustained federal and state support over the next decade to achieve substantial and significant results. If it can sustain this support, what seems today on the verge of impossible is likely to look like conservative thinking in the future.

Recent Developments

In the time since GEA's U.S. Geothermal Production and Development Update came out in August, the U.S. geothermal market has continued to grow. Along with the tax extension legislation being finalized in Congress, the GEA also hopes to also see an increase in research funding before the fall recess.

In addition to developments in the U.S., the U.S. Department of Energy inaugurated an International Geothermal Technology Partnership with Iceland and Australia to enhance international technology development.

Companies have posted their second quarter results and completed rounds of financing, prompting feedback from investors. Google announced US $10.25 million investments in geothermal, a move that received a flurry of media and public attention. Google has also introduced an interactive map showing EGS potential in each state and finally GE and Google have announced a partnership to help achieve these and other goals.

An additional power plant has opened — the Lightning Dock plant in New Mexico. And to bring all of the players together, the Geothermal Energy 2008 Conference and Expo Guide in Reno, October 5-8, is expected to be the largest international geothermal conference and expo ever held.

22 Comments

Fred Linn
October 2, 2008

-------"Great point about solar panels Fred. One is a start .. more is better. Even a couple will charge a battery so you will always have lights duing a storm."----------------------

You can buy automotive LED worklights with built in rechargable batteries (ie: Black and Decker, and a couple of other brands---around $30 at WalMart). They can run on low setting, 18-24 hours----high setting for about 6 hours. They put out a LOT of light. And once charged, you can use them at home, or take them with you camping etc.

You can buy foldable, portable solar panels you can use to charge twelve volt batteries. I have seen them prices ~$100 dollars. WalMart has Power to Go 12 volt battery systems with built in power inverters. You can run many electronics or other 120 volt systems several hours off of one charge. And they are completely portable. If you look in the RV accessories----you will find wireless LED lights that can be put up anywhere you want extra light but wiring would be difficult. They come in a variety of sizes, shapes and outputs. They generally run on AA or AAA batteries, and a few larger ones use C or D cell batteries. A portable solar panel or two---a couple of battery packs----and you are all set to get off of the grid. You can do everything incrementally if you want, start small and add to your system as you go along.

Look around in the camping and RV and automotive sections of WalMart or other larger camping and RV/automotive/boating stores----there are a whole lot of options out there now to start building your own off grid system. Start small and add to it as you grow and expand it. There are even rechargeable flourescent lanterns/ AM/FM radios that can be charged from 120AC/12DC/handcrank----about 10 or 15 mins. of handcranking will give you 2-3 hours of light and/or music.

Maurice Turgeon
October 1, 2008

I had a friend who simply laid a coil of PVC pipe on his roof. He fed it with the cold water taht normally went to his water heater. It sucked up the sun's rays all summer and his water heater hardly ever came on.

I colder months he drained it.

Great point about solar panels Fred. One is a start .. more is better. Even a couple will charge a battery so you will always have lights duing a storm.

Fred Linn
October 1, 2008

Joseph----don't rely on the government for subsidies or anything else. Oil/Coal/Nuclear lobbyists OWN Washington. Bought and paid for.

Find other people like yourself. Form your own company. Invest in geothermal and other renewable and sustainable energy sources.

Instead of wishing----go fishing----get a group together that will DO something constructive. Have some meetings, advertise them in the papers and TV/radio stations----WANTED, PEOPLE WILLING TO DO SOMETHING TO MAKE AMERICA WORK AGAIN. Have some promotional events---network---and get together and come up with a definite plan to do something, even to build one small project. One small proect can lead to another, and another, and another, ...........................one really good thing about renewable energy sources, generally---they are perfect for starting small and adding more to them at a later time. One solar panel can have another added later, and another, and another........and so on.

The longest journey begins with but a single step. But the journey never begins without the first step.

Mortimer Shnerdlyfrump
October 1, 2008

I'd like to see geothermal push for a 20-20 plan. 20 GW by 2020. It would need extra subsidies, but it would be money well spent.

Maurice Turgeon
September 30, 2008

Thanks Fred, I just did!

Fred Linn
September 30, 2008

Maurice----would you join me on Breaking The Chains? I'd love to have you----I think if things are going to be done, they will be done by people, not the government.

http://groups.msn.com/BreakingTheChains/_whatsnew.msnw

Maurice Turgeon
September 29, 2008

Correct Fred, moving water with excess grid power is the perfect storage battery. And, the water provides irrigation, driking water, recreation, transportation etc to arid areas.

Windmills like trees planted on the Great Plains help keep soil in place as well as provide power. It also puts lots of locals to work maintaining them.

All kinds of bio-fuel projects are surfacing. Corn is/was the first step and even if algae, sawgrass etc. is better the world will gobble up any surplus.

I read there is a new solar cell being worked on that has 48% efficacy, I believe it was MIT.

And think about how many dried up oil wells there are that are just sitting around to be used for geo.

America, I believe will rise to the challenge and stop this vast transfer of wealth...to the very people who would like to see us perish.

Fred Linn
September 29, 2008

You absolutely right Maurice----more efficient, more reliable, more secure, a better model economically, socially, and politically.

I think with biofuels and a diversified production system---we will have little need of an extensive petroleum pipeline. But we could make use of a national grid pumping water from areas of abundance by means of wind and solar pumping water to resevoirs set along the continental divides. This will make water available to drought areas---and the wind and solar pumping means that power is stored as potential hydropower in the resevoirs.

The word I've heard from inside circles in middle east oil production is that you are competely correct about the oil outlook. They have been lying for years about production capacity and reserves. Not only there, but here too. I think one day soon it is going to be impossible to hide the truth any longer----and most people will be bolled over at the news. There are a few of us who know what will happen. We are on the downward slope of the Peak now----and have been for about 10 years. If we are smart---we need to be on a crash program to produce biofuels ASAP.

Maurice Turgeon
September 29, 2008

Well said Fred. If we have enough sources of energy tied to the grid all over the Country it would be much more efficient than a few big sources, due to transmission losses. And much harder on terroists to bring down.

I believe as you do, no single solution is the answer. We must do it all and no single locality has it all. The "not in my backyard" reply just won't cut it.

I see where Dubai says their wells will dry up in 2016. I suspect that's the case for Iran et al.

Fred Linn
September 29, 2008

Maurice----unfortunately, I don't have any good work to keep up right now. I'm a victim of cut taxes---borrow and spend---let future generations worry about paying the bills, so long as we can get people short sighted and greedy enough to vote for us right now---inflation from war spending like drunk sailors on three day shore leave after 9 months at sea, hike fees and interest rates and give credit to anyone so we can get rich overnight, sell people foreign oil at inflated prices, let's pay off government officials and get the same ole status quo that made us rich and put all the working chumps under our thumbs, destroyed the environment, freedom and the American Dream, security and the future embedded in more and more laws, regulations keep the lies and propaganda churning.

The only thing I see on the horizon that even comes CLOSE to doing anything at all to reversing all the things I feel like are sinking the ship, is the way that some renewable energy sources are developing. Grid ties for wind and solar would allow homeowners to become utilities themselves and spread the profits of energy generation from the hands of a wealthy few---and into the hands of many. Better economically, better politically. Better environmentally. Better socially. More freedom and more politcal power spread to the people who built the country and the same ones who keep it runnng.

To me, biofuels, grid tie solar and wind, conservation--learning to do more with less, recycle, reuse, renew and revitalize----all mean new life, new hope and a new day of freedom, choice and a better life for all of us who love America, and love life. The answer has been right in front of us ALL the time. We have everything we need right here, right now---we should USE it.

Maurice Turgeon
September 29, 2008

Fred Linn, I don't know what you do for a living, but you're right on!

Also, watching "Tough Fixes" last night I thought about the giant nuclear power plant cooling towers. Surely all that heat energy they were trying to get rid of could be used for something, like geothermal energy.

I suspect the NRC however might not like gadgets hooked up to anything in their fence line.

Keep up the good work!

Fred Linn
September 27, 2008

Sherry---I think you are absolutely, 100% right on all counts. We need not only energy that is environmentally viable, but also provide a differing economic base that will spread the wealth of energy production back to the people and communities that use it. I think geothermal energy can fit that bill, so long as it is developed by local community investor groups. I hope that people won't rush to sell off their natural resources at bargain basement prices to predator robber barrons on the prowl. The other areas I see great hope and potential to change the monopolistic present system is grid tie wind, solar and small scale hydro power sources---along with biofuel production.

Sherry Jan
September 27, 2008

energy crisis at the forefront of their agenda. There is a new book coming out soon called...The Manhattan Project of 2009 by Jeff Wilson.

Sherry Jan
September 27, 2008

Our country is going to **** in a handbasket. The high cost of fuel has driven up the production and shipping cost of everything. Consumers have nothing left over after filling the tank and paying more for the necessities of life to spend on extras, save or invest. We need to get ourselves out from under our dpendency on foriegn oil.Just as gas prices start to fall slightly and we felt like there might be hope along comes Ike and causes them to spike to an all time high. Families everywhere are wondering where else they can cut back to cover the cost of fueling up the family vehicle to get back and forth to work and take care of the necessities of life. There is no money left for relaxation and family fun. The stress level continues to rise. Most areas of the country have seen a sharp rise in their electric bill as power companies pass their increased production costs on to consumers. The cost of every consumer product has risen sharply. Americans are stretched to the limit. Jobs are being lost, foreclosures are increasing at an alarming rate. Seems even the family pets are suffering the high cost of fuel as almost daily a sad new story is on TV about shelters being forced to euthanize record number of surrendered pets from those forced out of their homes due to foreclosure or they simply can't afford to feed them anymore. The energy crisis in our country is far reaching and needs immediate attention. Our economy is in a sorry state of affairs directly related to the high cost of fuel. We have become so dependant on foreign oil that we have neglected to fully utilize such natural sources of energy such wind power & solar power. Along with modern technology such as plug in cars, hybrid cars, v2g technology ,and regenerative braking, technology we still seem to be floundering as a nation as to devising the best plan utilize all that is available to us and lift ourselves out of this mess we are in. We need to take o ur closest look at which candidates put our economy

Fred Linn
September 26, 2008

Phil----I really agree with what you say, especially the part about the economics involved. I think we should try to have a varied mix of inputs to the overall system. No one technology is perfect all the time, in all situations---but having many options in the mix such as, geothermal and grid tie solar and wind power I think we'll have a reliable, and much more economically beneficial system.

Fred Linn
September 26, 2008

-----------"Also who makes this equipment? What's the difference between Geothermal Drillers and Oil Well drillers? Are they the same? And what factories and jobs are there in supporting the industry? How about the International Arena, and how will Geothermal Development affect the Railroad industry when trains can be converted to electrical use?"-------

Dominic, in answer to your questions.

1) For the most part where geothermal energy(heat) is high enough to produce enough steam---the equipment used is for the most part conventional steam turbines and generators. The energy input does not matter what the source is----the steam and electrical generators will be the same.
This is different than a heat pump---which simply moves heat from one area to another, like a refrigerator. Heat pumps are used to heat and cool houses---but they are not true geothermal energy sources.

2) There is no functional difference between oil well and geothermal drilling, except what you are drilling to. The temperature of oil at the wellhead in most oilwells is 120-150*C University of Texas did a survey and found 600,000 abandoned oil wells in the western half of the state alone that could be used for geothermal.
3) Yes, they are the same.
4) Current oil drilling technology and people could just a easily be drilling for geothermal energy as oil----and we could extract energy from abandoned oil wells with very little cost---the most expensive part(drilling) is already done.
5) Train locomotives are already electric and have been for over 60 years. The diesel engines run charging generators that charge banks of lead-acid batteries, the same system used in hybrid cars. With current to charge the batteries available from overhead wires as many railroads in Europe use, there is no need to run the diesel engines. All we have to do is add overhead powerlines and you don't the diesels.

Robert Clark
September 26, 2008

Dominic is absolutely correct !

Too low temperatures offered by current DEEP-DRILLING technology make no sense, but are only provided for the "GEOTHERMAL approach"!
Also, the telescoping downsizing of conventional deep-drilling bore-holes beside the very limited penetration into the deeper lithosphere is another obstacle for an """efficient, economic and large-scale geothermal-electricity production""".

As long as the "Geothermic approach" with SVTs - SIREX Vertical Tunnels â initiated and developed by Dr. Sieke and his team of experts remains ignored rising energy costs will prevail in the US.
Ignoring and not willing to learn about these important, innovative and progressive facts is not responsible and unfortunately more hunger, poverty and victims we will see in future in the US.

Other countries opted already and are beginning to establish new GPPs { GEO Power Plants } - offering 2, o - 8,o [ GW ] electric capacity at almost any location between 2,o and 3,o [Â¢/kWh ] for the consumers - . Also, to convert nuclear power stations into GPPs is in progress in Europe. These leaders understood, that clean and inexpensive energy independence is needed â now - and no discussions will help them to survive safe on our planet with the most reliable energy source economically and efficient available from our deeper underground territory!

Only the rich in the US and some other countries can afford in future the staggering energy costs associated with the proposed renewables and the offered restricted geothermal â low temperature â options.

Clear thinking about future energy costs, efficiency and accelerating global demand must be dominant instead of egoistic, selfish and greedy proposals.

Robert
2008-09-26

Phil Manke
September 26, 2008

Perhaps the GEO push denies the energy that floods our atmosphere every day from the only safe nuclear plant we orbit at a radius of 92 to 94 million miles. Solar heat is much safer and easier to mine at the surface. Big business favors developments where it can capture energy development for sale at their determined margin. Solar heating is obtainable by nearly everyone with only modest investment. The only thing it lacks is a huge profit potential for large corps and hence, government coffers. I see no need for federal funding in areas that are, on the promoted surface, self sustaining or profitable. Far better to ask funding for programs to enable the private and individual sector to establish it's own solar infrastructure.

Dominic Jermano
September 26, 2008

Conrad you have to drill deeper, for the hot temps.

Dominic Jermano
September 26, 2008

There needs to be so much more to this....such as getting the Universities to have degree programs in becoming Geothermal Engineers, and Geothermal Businessmen.. Where is Geothermal University?

Also who makes this equipment? What's the difference between Geothermal Drillers and Oil Well drillers? Are they the same? And what factories and jobs are there in supporting the industry? How about the International Arena, and how will Geothermal Development affect the Railroad industry when trains can be converted to electrical use?

Geothermal is the winner in this Global War-ming resource debate, yet we have a government that wages phoney wars for Oil, and is literally crashing the Financial Banks in the US on Wall Street from the huge debt created.

We are not going anywhere until we get rid of this government and end the Oil occupations.......

The War on terrorism is becoming the War on Clean Energy....You are either for Geothermal Development or against us! This one is easy.....of course I support Geo-USA.

Conrad Watson
September 26, 2008

Geo is dependent on ground water temp. In Northeast it is 50 to 55 degrees. The problem is getting it to 130 to 140 degrees. There is really isn't any sense to it. Very difficult. Good for water towers for AC.

FRANKLIN BAUDET
September 26, 2008

Renewable Energy make my mind stronger,more positive.Because most of the time I read my e-news,I feel more power from in my head:
1-Power from solar system,wind system.ETC
I promise to keep hands with us and go forward.
FRANKLIN BAUDET MECHANICAL ENGEENER.

Add Your Comments

To add your comments you must sign-in or create a free account.

Leslie Blodgett

Leslie Blodgett edits the Geothermal Energy Association's weekly newsletter. She has been involved in the production of many of GEA's recent reports and workshops and has written articles for several renewable energy publications. Prior...