Oct 29 2009

Geothermal Gets Government Grants

Posted by: Jonathan Marshall

The geothermal power industry, which has suffered several well-publicized setbacks in recent months, today got a huge financial and morale boost in the form of up to $338 million in Recovery Act grants from the Department of Energy to support research, exploration and development of new production fields.

The matching grants will help fund 123 projects in 39 states. As much as $133 million will go to support the promising new field of "enhanced geothermal systems" (EGS), which involves drilling deep into hot rocks to develop power resources in locations that were never previously considered candidates for geothermal energy.

If EGS proves economically feasible, relatively clean, renewable geothermal energy could go from a niche resource to a major contributor to U.S. power needs. Total geothermal capacity in the United States today is about 3,100 megawatts, of which 2,600 MW are in California. The U.S. Geological Survey estimated that the nation's geothermal resources could in theory support 500,000 megawatts of generation, almost half of all electricity consumed in the United States.

And a report produced in 2006 at Massachusetts Institute of Technology concluded that with a few hundred million dollars in R&D to jumpstart the industry--on the order of what DOE is now providing--EGS could feasibly produce 100,000 MW of power by 2050, enough for about 85 million homes.

"Geothermal energy from EGS represents a large, indigenous resource that can provide base-load electric power and heat at a level that can have a major impact on the United States while incurring minimal environmental impacts," according to the MIT study. "Further, EGS provides a secure source of power for the long term that would help protect America against economic instabilities resulting from fuel price fluctuations or supply disruptions."

Four of the new DOE grants are for EGS projects at Lawrence Berkeley National Laboratory, a prime center of research on clean energy. They will help engineers better understand how hot fluids move through fractured rock deep underground.

One study will examine the potential for using carbon dioxide to absorb heat from underground rocks for use in electricity generation, an idea that's getting a lot of attention of late.

Last month, two companies--Enhanced Oil Resources Inc. and GreenFire Energy--announced a joint venture to evaluate the potential for CO2-based geothermal power in parts of Arizona and New Mexico. They hope to start building a 2 MW demonstration plant next year. If it works, one could imagine capturing CO2 from coal plants, injecting it underground and producing geothermal energy from the hot fluid. 

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