Geothermal Energy Set to Double Across Western States

WASHINGTON, DC – The amount of new geothermal power now under development in the United States will roughly double U.S. geothermal capacity, according to a survey that will be released Wednesday by the Geothermal Energy Association, GEA.

These projects, when developed, will provide up to 3,368 megawatts of new electric power capacity for the grid, more than doubling U.S. geothermal power capacity from 2,936 MW to almost 6,304 MW – enough to meet the needs of six million households.

Geothermal power is energy generated by heat stored beneath the Earth’s surface. New projects are underway in Alaska, Arizona, California, Hawaii, Idaho, New Mexico, Nevada, Oregon, Texas, Utah, Washington and Wyoming, the association says.

U.S. Geothermal Inc. achieved commercial operation last week at its new geothermal power plant in Raft River, Idaho, making it the first commercial geothermal power plant in the state. So far, the plant output is around nine megawatts, but the company expects the plant to achieve an average annual net power output of 13 megawatts.

“The surge in new geothermal power development continues in the U.S.,” said Karl Gawell, GEA’s executive cirector. According to the new report, 86 new geothermal power projects are currently underway in 12 states.

This is an increase of 35 projects in an additional three states compared to a survey completed in November 2006.

Development of these new projects will provide economic benefits across the West, says Gawell.

“New projects will result in the infusion of $11 billion in capital investment in the western states, and create 5,600 permanent jobs and over 21,000 person-years of construction and manufacturing employment,” he said.

Geothermal power does not emit greenhouse gases and so the geothermal power plants do not contribute to global warming.

“New projects will offset 25 million metric tons of carbon dioxide compared to coal-fired power plants, which is equivalent to removing over five million cars off the road,” said Gawell.

The survey will be presented at a GEA Workshop Wednesday at Bally’s Casino and Resort in Las Vegas, Nevada.

“New federal and state initiatives to promote geothermal energy are paying off,” commented Gawell. “State renewable standards coupled with the federal production tax credit are creating a renaissance in U.S. geothermal power production,” he added.

But, the federal production tax credit is about to expire at the end of 2008. In December the Senate failed by one vote to keep a multi-year extension of the renewable tax credits in the energy bill. According to the industry, it is now facing a serious dilemma.

“If we can build and sustain this momentum, geothermal energy can become a major US energy source,” according to Gawell. “But, Congress and the administration must work together to extend the renewable energy tax credits before they expire.”

Without an extended credit, the resulting tax hike will undercut one of the fastest growing segments of the U.S. economy – renewable energy, he warned.

On January 16, the full text of the “Geothermal Production and Development Update” will be on the GEA website at: http://www.geo-energy.org/.