Geothermal on Launch Trajectory

• Industry Growth
  Despite the recession, geothermal energy grew at a robust pace in 2009, adding 750 full time jobs and 2,827 construction-related jobs due to a roughly $800 million investment in the technology. With six new geothermal plants online in the United States, power capacity rose 6% during the year.

• Pushing Toward 10 GW
  Currently, 144 new geothermal plants are under development in the United States. The accelerating growth of geothermal projects could bring the nation 7,000 MW of new baseload geothermal power in the next few years, raising the prospects of 10 GW of geothermal power in coming years. At that level, geothermal power will satisfy the needs of over 10 million people and still have tremendous growth potential in the United States.

• Range of Technology Grows
  The U.S. took major steps towards advanced geothermal technology through investment in Enhanced Geothermal Systems (EGS). New EGS systems will allow geothermal power to expand its effective range across the nation. Additionally, inaugurated this year were two projects that would utilize hot water produced by oil and gas wells to produce geothermal power.

• Federal and State Policies Fuel Growth
  The stunning progress of the geothermal industry this year has been propelled by state and federal policies. The two largest geothermal producers, California and Nevada, each raised their renewable standards; California to 33% by 2020 and Nevada to 25% by 2025. Utilities in those states are looking to geothermal energy to fill these needs. In addition, the DOE this year opened its loan program for innovative technologies to geothermal technology, and Congress created a new DOE loan guarantee program for renewable projects using commercial technology. Finally, BLM held a sale involving lands in Nevada, California and Utah which resulted in the sale of 255,355 acres of land and total revenue of approximately $9 million.

• ARRA Funding Boosts Geothermal
  Up to $338 million in Recovery Act funding was allotted for the exploration and development of new geothermal fields and research into advanced geothermal technologies. These grants will support 123 projects in 39 states, with recipients including private industry, academic institutions, tribal entities, local governments, and DOE’s National Laboratories. When completed, these projects will represent a federal-private total of $691 million invested in new geothermal technology and applications.

• A Record Trade Show
  The 2009 Geothermal Energy Expo, held in Reno, Nevada in October, saw 120 exhibitors, 40 more than in 2008. Individuals, new start-ups, and well-established companies are learning about geothermal energy and are willing to develop it in record numbers. GEA estimates that roughly 2,300 attendees walked the 2009 Expo floor, up from 1,700 in 2008. Visitors came from across the U.S., Iceland, France, Germany, Italy, Turkey, Indonesia, Canada, Australia, New Zealand, the Philippines, and Chile.

• Future Potential
  The outlook for 2010 is for even stronger growth in the industry, continued progress with new technology, and greater priority from federal and state policymakers. GEA predicts in the new year that the number of states with geothermal power will reach double digits, with new power projects coming on line in four to eight states. New technology advances will continue to expand the recognized power potential of geothermal resources; DOE will officially recognize a near-term potential of at least 20 GW, or 5% of U.S. power needs, with longer-term possibilities well over 100 GW.

On January 14, the Geothermal Energy Association (GEA) will host a Geothermal Energy Finance Forum in New York City to showcase the prospects of geothermal energy investment with top experts and major players in geothermal development and finance.

The full report can be accessed at http://www.geo-energy.org/.

About the Geothermal Energy Association:

The Geothermal Energy Association (GEA) is a trade association composed of U.S. companies who support the expanded use of geothermal energy and are developing geothermal Resources worldwide for electrical power generation and direct-heat uses. GEA advocates for public policies that will promote the development and utilization of geothermal resources, provides a forum for the industry to discuss issues and problems, encourages research and development to improve geothermal technologies, presents industry views to governmental organizations, provides assistance for the export of geothermal goods and services, compiles statistical data about the geothermal industry, and conducts education and outreach projects. For more information, please visit http://www.geo-energy.org/. Check out GEA’s YouTube Channel. Follow GEA on Twitter. Become a fan on Facebook.