Last year on the presidential campaign trail, both major political-party candidates referred to geothermal energy in the same breath as wind and solar when they discussed America’s energy future. Meanwhile, what began in a small office above a convenience store in Southeast, Washington, D.C., the trade group for the nation’s geothermal industry, the Geothermal Energy Association (GEA), tried to keep up with an increasing crescendo of interest in geothermal energy, requests for information, press calls, and needs of an expanding membership.

The entire industry—drillers, financiers, plant operators, and others across the U.S. and around the world—have worked hard as interest in geothermal power generation grows. The association’s March 2009 report on the state of the industry, U.S. Geothermal Power Production and Development Update, identified 126 projects under development, with the potential to put 5,500 megawatts (MW) of electricity on line. This is equivalent to 15,000–20,000 MW from wind turbines or enough to power 5.5 million homes. That is no small feat—in just six months the number of new geothermal projects jumped by 25 percent, and overall production-potential increased by 35 percent

And with the passing of the federal economic stimulus bill, the American Recovery and Reinvestment Act of 2009 (HR 1), many key geothermal provisions were put into place that should continue to build momentum.

Geothermal energy, generated by the heat of the earth, is harnessed in a host of ways. Geothermal electricity production wells tap into hot water reservoirs, harnessing steam to power turbines. Geothermal exchange systems provide heating and cooling for homes and a wide range of other buildings. Through direct heating uses such as food preparation, hot spring bathing and spas (balneology), agriculture, aquaculture, greenhouses, and industrial processes, cultures have tapped into geothermal sources for hundreds of years. Although these examples of geothermal application are completely different in their technology and operations, they all come from the heat continuously flowing from the Earth’s core and mantle, estimated to be equivalent to 42 million MW of power. Expected to remain so for billions of years to come, geothermal heat ensures an inexhaustible supply of energy.

HR 1 Economic Stimulus Bill
“The financial crisis has been stalling new development,” noted Karl Gawell, executive director of GEA. “Financing for new projects has been difficult to obtain, and when available very expensive.” Fortunately, the economic stimulus bill includes a range of provisions intended to support expanded, geothermal-energy use.
Among the most important are the tax-credit provisions in HR 1, particularly the extension of the federal Production Tax Credit through 2013 for new geothermal projects. The legislation also dramatically expands support for the Department of Energy’s geothermal research, setting aside $400 million for geothermal technology research, development, and deployment efforts. Further, the stimulus bill provides expanded tax credits for geothermal heat pumps and supports a range of programs to spur growth in the geothermal heat-pump market.

Key Geothermal Provisions:

• Loan guarantees for renewable and transmission technologies - $6 billion. This appropriation is expected to support more than $60 billion in loans for eligible projects.
• Applied research, development, demonstration and deployment through the Department of Energy Office of Energy Efficiency and Renewable Energy (DOE EERE) programs - $2.5 billion. Of this amount, $400 million is dedicated for geothermal activities and projects.
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• Three-year extension of the production tax credit for renewable electricity production (through 2012 for qualified wind, and through 2013 for geothermal and other qualifying resources.)
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• Qualifying renewable-energy facilities may take a 30-percent, investment-tax credit for qualified expenditures placed in service in 2013 (2012 for wind) in lieu of the production tax credit.
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• The creation of a Treasury Department Energy Grant Program, which will allow taxpayers with an investment-tax credit in qualifying renewable-energy facilities to receive a cash grant in an amount equal to the credit.
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• $1.6 billion in new funding for Clean Renewable Energy Bonds.
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• The establishment of a 30-percent, investment tax credit for qualifying, advanced-energy projects that re-equip, expand, or establish a manufacturing facility for the production of property used to produce, refine, store or transport renewable energy or other advanced energy property designed to reduce greenhouse gas emissions.
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• The elimination of the $2,000 limitation on consumer tax credits for the purchase of geothermal heat pumps.

Looking Back
For millennia, geothermal steam and hot springs have been used for bathing, heating, healing and cooking. On July 4, 1904, at the Larderello dry steam field in Italy, Prince Piero Ginori Conti tested the first, geothermal-power generator and successfully lit four light bulbs. Seven years later, in 1911, the world’s first geothermal power plant to produce electricity was built.

The first geothermal power plant on U.S. soil was constructed at The Geysers Resort Hotel in California, in 1922. The plant fell into disuse, but in 1960, Pacific Gas and Electric resurrected the concept and began operation of the first successful geothermal power plant in the U.S. at the site. Today, it is the largest geothermal field in the world, producing over 750 MW of electricity.

Status Report
The U.S. produces more geothermal electricity than any other country, comprising approximately 30 percent of the world total.

In 2007, geothermal was the fourth largest source of renewable energy in the country. Today the U.S. has about 3,000 MW of geothermal electricity connected to the grid—and potential output from current projects will more than double that total. California is the state with the largest amount of on-line, geothermal power.

It is the largest non-hydro renewable energy source in the state, significantly exceeding the contribution of wind and solar combined. In 2003, electricity from geothermal resources there accounted for five percent of the state’s electricity generation on a per-kilowatt-hour basis.

The majority of geothermal power plants currently under development use one of four common systems that provide 24-hour-a-day, base-load electrical output. Nevada, with 58 confirmed projects, has the most production under development. California is second with 27 projects, followed by Idaho, Oregon, Utah, and Alaska, respectively. New geothermal power projects have been identified in Alaska, Arizona, California, Colorado, Florida, Hawaii, Idaho, Nevada, New Mexico, Oregon, Utah, and Washington.

“Interest in geothermal development continues to grow. We are seeing new entrants to the industry, in part because of new leasing by the Bureau of Land Management (BLM) and several new projects by the U.S. Navy,” according to Kara Slack, author of the association’s March 2009 report.

“The report shows a substantial movement of projects into the later stages of development, the permitting and construction phases,” Gawell said. “If federal and state governments give them the support and priority they need, most of these projects could be on-line in a few years.”

Looking Ahead
The future of the geothermal energy market is bright. Electric-power potential and heating-use markets are growing around the world with support from government and international organizations. Technology development is advancing, which compliments the growth expected in the marketplace. The pace of geothermal-energy development is not only seeing a sharp increase, but is also set for long-term expansion.

Technological advancements make it possible for geothermal developers to venture onto previously non-commercial land sites. New research focuses on co-production from oil and gas wells, production of power and natural gas from geopressured resources, and the development of enhanced geothermal systems (EGS).

The latter in particular has drawn attention from developers and the federal government for its strong, electrical-generation potential, which is estimated at100 GW in the next 50 years with a reasonable investment in R&D, according to a 2006 report by the Massachusetts Institute of Technology, The Future of Geothermal Energy.

As defined by several experts, EGS refers to a resource that requires artificial stimulation. This somewhat broad definition involves the development of tools and techniques that will allow geothermal production by artificially creating permeability in hot rock and introducing water (or another working fluid) to extract the heat. EGS technology is still young and many aspects remain hypothetical, however, several projects are already underway. Once proven commercially successful, EGS is expected to not only extend production on existing fields but allow development in new locations.

The alternative-energy potential in this area is drawing significant interest.

In October of 2008, the U.S. Department of Energy (DOE) chose 21 recipients under a Funding Opportunity Announcement for the research, development and demonstration of EGS. Subject to annual appropriations, DOE will provide up to $43.1 million over a four-year period to the 21 awardees.

The European Union and Australia have also supported EGS research in recent years. In August of 2008, the U.S., Iceland and Australia signed a charter creating the International Partnership for Geothermal Technology (IPGT). This joint effort seeks to “aggressively foster and promote cutting edge geothermal technologies.”

Direct Heating Uses and ­Geothermal Heat Pumps
Geothermally produced electricity could provide up to an estimated 26,000 MW by 2015 and over 100,000 MW by 2025, according to a 2006 report by the National Renewable Energy Laboratory (NREL), Geothermal—The Energy Under Our Feet. The same report estimates direct use and heat pumps could contribute another 20,000 MW by 2015 and 70,000 MW by 2025.

Direct uses of the earth’s warmth for heating and bathing can be traced back to ancient times. Currently, geothermal direct heating can be found in 26 states—almost as many as those that produce coal—where its installed-capacity totals 470 MW or enough to heat 40,000 average-sized houses. New direct-use projects are encouraged by the provisions of the Geothermal Steam Act Amendments passed by Congress in 2005, which included provisions for such projects. Further interest has been raised out of regions across the country, including attention from various Native American reservations.

Geothermal heat pump (GHP) installations have been growing at an annual rate of 15 percent, with more than 600,000 units installed in the U.S. by the end of 2005. Every year in the U.S., 50,000 to 60,000 new units are installed—the largest growth in the world for the alternative-energy source. The systems transfers the relatively constant, ambient warmth from surround soil through a pipe loop buried in the ground, which is then distributed through a conventional duct system. For cooling, the process is reversed; the system extracts heat from the building and transfers it back to the loop and into the soil. The warmth can also be directed to a hot-water tank, providing another advantage—free hot water. GHPs reduce electricity use 30–60 percent compared with traditional heating and cooling systems.

Sustainable Energy Solution
Geothermal energy provides a number of advantages that on a national scale are exactly what the doctor prescribed. An industry that is new enough commercially to attract excitement, but ancient in its concept, geothermal offers the potential to create thousands of quality jobs, boost rural economies, increases tax bases, reduces foreign oil imports, stabilizes prices, and diversifies the fuel supply. Direct-use applications provide an alternative to electricity, gas, propane or oil in commercial, industrial, and agricultural uses. At a time when the U.S. imports more than 60 percent of its oil and nearly 10 percent of its natural gas, geothermal provides an entirely domestic resource. The government predicts both oil and gas imports to increase, but geothermal can diminish that need and improve the nation’s ability to control its economic future and improve national security.

GEA estimates that bringing new projects on line could help economic ­recovery, spurring as many as 100,000 new jobs. Most geothermal resources are located in rural areas, which tend to ­suffer from economic depression and high unemployment, and often contain large minority populations. Geothermal ­development brings jobs to these ­communities.

Every day, the effects of climate change endanger life on the planet. Binary, air-cooled, geothermal-power plants effectively have zero emissions of the best-known gas associated with global warming: carbon dioxide. Geothermal energy production offsets emissions produced by fossil-fuel power plants, and in turn reduces the overall release of CO2 into the atmosphere. SLDT

About the author: Leslie Blodgett is director of outreach and senior editor for the Geothermal Energy Association. She can be reached at 202-454-5241 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it