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July 2007, Issue No. 29
Federal Update
News from DOE
Financiers call for tax credits and R&D to stimulate private investment in geothermal
Geothermal-biz.com newsletter: All good things must come to an end
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30 September - 3 October 2007 John Ascuaga's Nugget Resort Sparks, Nevada |
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Current Solicitations
National News
State Roundup
Federal Update
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FY 2008 appropriations for geothermal program
- While the Administration zeroed out the U.S. Department of Energy's geothermal program in FY08, both the House and Senate have included it in their appropriations bills. President Bush has threatened to veto any appropriations bill that exceeds his request.
H.R. 2641 - The House passed the FY08 Energy and Water Development Appropriations Bill on 17 July 2007 by a vote of 312-112. The House Bill appropriates $1.98 billion for DOE Energy Efficiency and Renewable Energy (EERE) programs for FY08, $742 million more than the Administration's FY08 request of $1.23 billion. The House bill funds the DOE geothermal program at $44.3 million. For more information.
S. 1751 - The Senate Committee on Appropriations reported the Energy and Water Development Appropriations Bill of 2008 out of Committee on 28 June 2007. The Senate Bill appropriates $1.72 billion for DOE EERE programs for FY08, $479 million more than the Administration's request. The Senate bill funds the DOE geothermal program at $25 million.
In the report language (S. Report 110-127), the Senate Committee specifically noted the Massachusetts Institute of Technology (MIT) report on the Impact of Enhanced Geothermal Systems on the United States in the 21st century, urging DOE "to build upon the success of its geothermal program and move the program forward." The Senate bill has been placed on the calendar.
For more information: "FY08 Appropriations for Renewable Energy and Energy Efficiency: House and Senate Vote for Increase in EERE" by the Environmental and Energy Study Institute (EESI).
Section 45 Production Tax Credit and Clean Renewable Energy Bonds
- Extending the Section 45 Production Tax Credit (PTC) for renewable resources, including geothermal, and the Clean Renewable Energy Bond (CREB) program are in both the House and Senate tax packages.
H.R. 2776 - The Renewable Energy and Energy Conservation Tax Act of 2007 extends the placed-in-service date for PTC eligibility for four years (through 31 December 2012) for qualifying facilities. The bill would cap the aggregate amount of tax credits that can be earned for qualifying facilities placed in service after 31 December 2008 to an amount that has a present value equal to 35% of the facility's cost.
The bill also authorizes $2 billion of new CREBs for public power providers and electric cooperatives. Sixty percent of the authorization must go to public power providers; 40% to electric cooperatives. The House Ways and Means Committee voted 24-16 to approve H.R. 2776 on 20 June 2007. The bill now goes to the full House for consideration.
Energy Advancement and Investment Act of 2007 - In the Senate, Finance Committee Chairman Max Baucus (D-MT) reportedly has the votes to pass an energy tax package that failed to obtain the 60 votes necessary last month. The timing of a new vote is uncertain. The Energy Advancement and Investment Act of 2007 would extend the Section 45 PTC to 31 December 2013, and eliminate the inflation adjustment factor for electricity produced and sold after 31 December 2007. The bill also authorizes $900 million annually from 2008 through 2011 for CREBs.
House energy bill and geothermal subtitle
- H.R. 3221 - House Speaker Nancy Pelosi (D-CA) introduced the House's energy independence bill on 30 July 2007. The 786-page bill is expected to go to the floor before the August recess. While the bill does not currently include a national renewable portfolio standard (RPS), an RPS amendment could be added during the debate. Ten committees contributed to the bill.
Subtitle C - Geothermal Energy, of H.R. 3221 is the "Advanced Geothermal Energy Research and Development Act of 2007" (H.R. 2304). The subtitle calls for expanding the DOE GeoPowering the West program throughout the entire country, renaming it "GeoPowering America." It authorizes $90 million to be appropriated annually for geothermal subtitle activities for FY08 through FY12, of which $10 million each year will support the development of geothermal energy production from oil and gas fields and geopressured resources. The subtitle also authorizes $5 million per year for the Intermountain West Geothermal Consortium.
National Geothermal Initiative Act of 2007
- S. 1543 - Senator Jeff Bingaman (D-NM) introduced the National Geothermal Initiative Act of 2007 on 5 June 2007. The bill establishes a national goal by which at least 20% of the total electrical energy production (equivalent) in the United States is generated from geothermal resources by 2030. The national goal will be accomplished by establishing and carrying out new programs for geothermal research, development, demonstration, and commercial application. The bill authorizes $110 million annually for DOE’s geothermal program, and $25 million annually for the Interior Department. It has been referred to the Senate Committee on Energy and Natural Resources.
Renewable energy in the FY08 agriculture appropriations bills
- H.R. 3161 - On 19 July 2007, the House Appropriations Committee approved the FY08 agriculture spending bill that would nearly double funding for renewable energy loans and grants to businesses to $1.2 billion, $810.4 million above the President’s request. Rural energy spending includes $350 million for biomass and renewable
energy projects. The bill was placed on the House calendar on 24 July 2007. For more information.
- S. 1859 - The Senate Appropriations Committee approved an agriculture spending bill for FY08 on 19 July 2007 that would boost funding for renewable energy projects. The spending bill funds the Section 9006 renewable energy program at $28.5 million, $5 million more than FY07 but less than both the President's request and the House bill. The bill has been placed on the Senate calendar. For more information.
2007 Farm Bill
- H.R. 2419 - The House passed the Farm Bill Extension Act of 2007 (2007 Farm Bill) on 27 July 2007 by a vote of 231-191. Energy Title IX of the bill calls for increased funding of the Renewable Energy and Efficiency Improvements Program, renaming it the Rural Energy for America Program, and allows feasibility studies to be eligible for the program. The program authorizes loans, loan guarantees, and grants to farmers, ranchers, and rural small businesses to purchase and install renewable energy systems, including geothermal, and to make energy efficiency improvements. The Senate must now consider the Farm Bill. The 2002 Farm Bill expires on 30 September 2007. For more information.
For more information on legislation:
- Text and other information on specific bills may be found on the Thomas Library of Congress website.
- Information on FY08 House and Senate appropriations bills .
- GEA Update, Geothermal Energy Association.
News from DOE
Geothermal does not need R&D
In response to questions submitted by the Senate Energy and Water Appropriations Subcommittee, DOE responded recently that the agency's "Geothermal Program has achieved its key research objectives for conventional geothermal resources. There are substantial incentives that support development of the geothermal resource base without further investment in R&D."
DOE went further on to say that:
The FY 2007 operating plan for the Department included $5 million to support geothermal power co-produced with oil and gas demonstration efforts, for an evaluation of enhanced geothermal systems to help industry prioritize its technology needs, and to bring to completion selected projects on exploration, drilling, and/or conversion technologies. In addition, some FY 2006 unspent or uncosted funds will also be used to conclude research projects on exploration, drilling, and/or conversion technologies.
For the complete questions and answers.
Secretary Bodman responds to Senate inquiry on geothermal
Secretary Bodman wrote on 18 July 2007 to Senator Harry Reid (D-NV) in response to prior communications from the
Senator Reid on the status of the geothermal program. "While the response was not an enthusiastic
endorsement of geothermal energy, it has a different and more constructive tone from previous communications," commented Karl Gawell, Executive Director of the Geothermal Energy Association (GEA). "The letter also for the first time
clearly states that geothermal projects are eligible for the DOE loan guarantee program, as Congress
intended," Gawell added.
According to GEA, both Assistant Energy Secretary for EERE Alexander "Andy" Karsner and Deputy Assistant Secretary Steve Chalk seem to be more engaged in
geothermal energy recently. Both met with Jeff Tester of MIT and ORMAT representatives to discuss
geothermal energy; and traveled to Iceland at the end of July to participate in geothermal meetings.
Nevertheless, Gawell warned that it is not clear that the Office of Management and Budget (OMB) has changed its position
on terminating the DOE geothermal program. "Congress needs to pass a strong, new authorization for geothermal energy research," he stressed (Source: GEA Update, 23 July 2007).
Karsner terms enhanced geothermal "gigwatt-scale renewable"
Assistant Energy Secretary Karsner spoke at the 4th Renewable Energy Finance Forum-Wall Street in New York City on 21 June 2007, mentioning the MIT report on Enhanced Geothermal Systems (EGS) in his remarks:
...And there are the other potential baseload renewable energy technologies that will qualify for our movement into gigawatt-scale renewables. And here I'm talking about reviving the potential for the Enhanced Geothermal Systems that came out of the MIT study, and what a wonder to use geothermal as baseload, not just in the easy hot spots and the low hanging fruit, but to find the hot rock and figure out the way to technologically engineer our solutions and expand a far greater market nationwide, beyond the West.
"The Future of Geothermal Energy – Impact of Enhanced Geothermal Systems (EGS) on the United States in the 21st Century," drafted by a 21-member panel of experts supported by DOE and headed by Jefferson Tester of MIT, found that:
- The accessible U.S. EGS resource base is enormous—greater than 13 million quads or 130,000 times the current annual consumption of primary energy in the United States.
- With a reasonable investment in R&D, i.e., a combined public and private investment of $800 million to $1 billion in the first 15 years (about the cost of a new clean-coal power plant, or one third the cost of a new nuclear generator), EGS could provide 100 GWe or more of cost-competitive generating capacity in the next 50 years.
Financiers call for tax credits and R&D to stimulate private investment in geothermal
Capital is not the constraint. Technology is not the constraint. And so, in the axiomatic way that we like to look at the proverbial three-legged stool, and talk about technology and capital markets and policy, we know where the weakest link is. And it is a lack of durable policy with sufficient longevity and predictability that can enable capital to flow continuously in a way that we can project... - Assistant Secretary Andy Karsner,
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Sixteen financial companies, which combined have arranged financings for energy and power sector transactions totaling more than $300 billion since 2000, have come together to encourage consistent and predictable public policies to support increased private sector investment in geothermal power development.
Created in November 2006 with support from DOE's GeoPowering the West Program, the Geothermal Financing Working Group (GFWG) has formulated a series of policy recommendations designed to result in greater private investment in geothermal power development. GFWG members include:
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Certain that favorable governmental incentives and policies—including increased and sustained research and development—are required to attract the capital investment necessary to realize the nation’s geothermal potential, the GFWG offers several policy recommendations including the following:
- The GFWG supports the GEA's position on revising the
Section 45 PTC to
support sustained geothermal power
development. GEA calls on Congress to extend
the PTC for five to ten years, and allow
geothermal and other baseload projects to
qualify once they have binding contracts and
are under construction.
- The GFWG supports the creation of an
“Exploration and Drilling Tax Credit” (EDTC) that
would be claimed at the time of exploration or
drilling. The EDTC should be set at 30%,
the level currently given to new solar energy
investment. An EDTC would encourage greater
private investment in exploration and drilling
because different sets of investors provide
financing for different stages of geothermal development.
- The GFWG calls for a strong and sustained federal R&D program. A consistent and coherent federal R&D program in new geothermal technologies will lower risks and costs and thereby encourage private investment.
Geothermal-biz.com newsletter: All good things must come to an end
You have before you the twenty-ninth and final issue of the Geothermal-biz.com newsletter. Supported since its inception in April 2002 by DOE's GeoPowering the West Program, the newsletter has become widely known as a concise source of information for the ever-growing U.S. geothermal community, and an important venue for States to get the word out on how they are developing geothermal resources.
Published bimonthly for the past six years, the Geothermal-biz.com newsletter is being discontinued due to a substantial cut in funding for DOE's Geothermal Technologies Program and GeoPowering the West. Since the creation of GeoPowering the West, interest and action in developing the United States' significant geothermal resources for power generation, direct uses, and geothermal heat pumps, have grown exponentially.
Initially distributed to approximately 300 people in the United States, the newsletter now goes to almost 2,600 people in the United States, Antigua, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Denmark, France, Germany, Honduras, Hong Kong, Iceland, India, Indonesia, Ireland, Israel, Italy, Japan, Kenya, Mexico, New Zealand, Norway, Pakistan, the Philippines, Poland, Romania, Russia, South Korea, Switzerland, Turkey, Uganda, United Kingdom, and Yugoslavia.
The Editor remains optimistic that funding will be restored, and hopeful that the DOE geothermal program will receive the financial support it needs to take the country forward into the 21st century, helping to diversify the country's energy portfolio; wean us from traditional, carbon-emitting fossil fuels; and make the U.S. stronger, economically and strategically.
And when that day comes, and funding is restored, Geothermal-biz.com looks forward to continuing its work to help increase the use of clean, green geothermal energy across the United States.
Until then, the Editor wishes to thank all of you who supported the newsletter over the past six years, and faithfully submitted news. You—and geothermal—rock!
Editor, Geothermal-biz.com newsletter
National News
- 30 September - 3 October 2007 - The Geothermal Resources Council
(GRC) 2007 Annual Meeting and GEA Trade Show will take place at the John Ascuaga's Nugget Resort in
Sparks, Nevada.
Co-sponsored by the generous contributions of GRC
Corporate and Individual Members, the 2007 Annual
Meeting theme is "Renewable Baseload Energy: Geothermal
Heat Pumps to Engineered Reservoirs." The annual GEA Trade Show is fast becoming the largest geothermal energy trade show in the world! Don't miss either event.
- Bureau of Land Management
- The Bureau of Land Management (BLM) and the USDA Forest Service (FS) are preparing a joint Programmatic Geothermal Leasing Environmental Impact Statement (PEIS) to analyze and expedite the leasing of BLM-and FS-administered lands with high potential for geothermal resources in 11 western states and Alaska. The agencies held a series of public scoping meetings across the western U.S. this month. For more information.
- The BLM is in the final stages of modifying the Land and Mineral Records-LR2000 database for the new leasing program. The BLM expects to be able to receive formal nominations for geothermal leasing from the public and industry by 1 August 2007.
- In response to the Energy Policy Act of 2005, the BLM recently added numerous enhancements to its popular National Integrated Land Systems (NILS) GeoCommunicator website. This public web-based application is an interactive map that permits users to search and display land and mineral use authorization and conveyance records including oil and gas, geothermal, solid mineral and coal leases, mining claims, stipulations, and more, as well as download and dynamically map Public Land Survey System (PLSS) data.
- BLM is in the final stages of issuing guidance on leasing, lease conversions, and production incentives under the Energy Policy Act of 2005 and the revised Geothermal Regulations.
- The Bureau of Land Management (BLM) and the USDA Forest Service (FS) are preparing a joint Programmatic Geothermal Leasing Environmental Impact Statement (PEIS) to analyze and expedite the leasing of BLM-and FS-administered lands with high potential for geothermal resources in 11 western states and Alaska. The agencies held a series of public scoping meetings across the western U.S. this month. For more information.
- Members of Congress from both parties joined hundreds of others on 12 July 2007 to celebrate the first "green" building on Capitol Hill, and discuss the pressing need for legislation that would vastly reduce U.S. energy consumption by promoting "green" construction across the country.
The Friends Committee on National Legislation (FCNL), a Quaker Lobby, transformed two Civil War-era buildings into a high performance, energy-efficient green building. With the installation of a geothermal heat pump, the FCNL expects its heating cost to be 40% less per year in comparison with conventional heating and cooling. Buildings in the United States account for nearly 50% of U.S. energy consumption and 40% of CO2 emissions. For more information.
- Western Area Power Administration's (WAPA) Renewable Resource Program (RRP) and the DOE GeoPowering the West Program co-sponsored a pre-conference workshop entitled "Public Participation for Community-Owned Utilities" on 23 June 2007 at the American Public Power Association (APPA) Annual Conference in San Antonio, Texas. The Utility Geothermal Working Group director organized and chaired the event on behalf of APPA. WAPA staffed the GeoPowering the West booth at the conference. Approximately 2,000 public power officials and interested parties attended the conference. WAPA developed the Public Participation Handbook through a grant from the APPA Demonstration of Energy Efficiency Developments (DEED) and funding from GeoPowering the West.
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For
further information on geothermal in Alaska, contact: |
- 11 August 2007 -
3rd Annual Alaska Renewable Energy Fair, Anchorage.
- 14 August 2007 - Renewable Energy Alaska Project (REAP) Bi-monthly Forum: Geothermal Energy in Alaska: Overview and Project Update, Anchorage.
- 18 August 2007 - Chena Hot Springs Renewable Energy Fair: From Hot Water to Hydrogen,
Chena Hot Springs.
- 27-28 August 2007 - The Alaska Energy Authority (AEA) will sponsor the 2007 Mt. Spurr Geothermal Workshop in Anchorage. The meeting is a technical conference for developers, utilities, and
other interested parties; and will include an overflight of the area. For more information.
- 15-18 October 2007 - Arctic Energy Summit,
Anchorage.
- 16 October 2007 - The next meeting of the Alaska Geothermal Working Group will take place during the Arctic Energy Summit in Anchorage. Time and place TBA. For more information, contact Dave Lockard.
- The Denali Commission and AEA are requesting Letters of Interest (LOI) in developing alternative renewable energy and energy efficiency projects in Alaska. The Commission and AEA want to create an inventory of these types of projects to help design programs which provide technical and financial assistance to potential project developers. LOIs are due 31 August 2007. For more information.
- The AEA is compiling a database of Alaska's geothermal data as part of a statewide energy inventory. The interactive energy inventory will be publicly available on the AEA's website in October 2007. If you have data or know of any that should be included, contact Amanda Kolker at Tel: (907) 269-4550 or akolker@aidea.org. Amanda is a Ph.D. candidate in the University of Fairbanks' Department of Geology and Geophysics. She is interning at AEA, assisting with geothermal issues, through mid-August 2007.
Look out for improvements to the AEA geothermal website—coming soon!
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For
further information on geothermal in Arizona, contact: |
- One of Sun Groves' newest wells is tapping into an underground hot spring that can reach temperatures of over 100°F, according to Bob Mulvey, assistant municipal utilities director. Mulvey said the hot well is amazingly productive, producing 3 million gallons a day, three times the quantity of an average city well, saving the city more than $4 million in well-drilling costs. Due to low arsenic levels, the water does not have to be treated, and its low mineral content does not corrode plumbing.
Residents of the Chandler neighborhood southeast of Lindsay and Riggs roads are dealing with the hot water in many ways; including putting ice cubes in the washing machine to protect delicate fabrics. In April 2009, when the join Chandler-Gilbert water treatment plant is finished, treated canal water will be mixed with the hot water to lower the temperature.
"We second-guessed our decision when we brought that well on line, but now I'm glad we did," Mulvey said (Source: "Well from hell' spewing hot water from taps" by Edythe Jensen, The Arizona Republic, 18 July 2007).
- Salt River Project (SRP) signed an agreement in late June 2007 to purchase 49 MWe from a geothermal plant to be built near the Salton Sea in southern California. The plant will be owned and operated by Hudson Ranch Power I, LLC, an affiliate of CHAR LLC. Jointly owned by Catalyst
Renewables Corp. and Hannon Armstrong, CHAR LLC will build the plant.
SRP has signed a 30-year agreement to purchase power beginning in March 2010 and will arrange transmission of the energy from the Imperial Valley to Arizona.
Arizona's Renewable Energy Standard (RES) requires that utilities obtain 15% of their electricity from renewable energy sources by 2025. SRP currently obtains 5% of its electricity from renewable energy sources. For more information.
- 14 August 2007 - The Nevada and California State BLM offices will jointly
conduct a competitive geothermal lease sale under the new regulations which were effective 1 June 2007.
BLM California will offer six parcels containing more than 2,700 acres in Lake, Sonoma, and Mendocino counties for lease. Details regarding the lease sale procedures and stipulations attached to
each parcel are provided in the Notice of Competitive Lease Sale. The competitive oral auction will take place at the BLM Nevada State Office in Reno. The sale room opens at 8 a.m. to allow potential bidders to register and obtain a bid number. The competitive oral auction begins at 9 a.m. For more information.
- On 27 July 2007, Western GeoPower Corp. announced commitments for $18.4 million in financing through a combination of private placement from two strategic investors—Geysir Green Energy and Glitnir Bank—and exercise of warrants and options. "We are pleased to report that the $18.38 million of funding represents most of the equity component of the project finance for drilling the wells and constructing our proposed 25.5 MWe (net) power plant at The Geysers Geothermal Field in California," said Kenneth MacLeod, President and CEO of Western GeoPower. "As an added benefit, having Geysir Green Energy and Glitnir Bank as strategic investors reinforces our ability to secure the remainder of the project finance on favorable terms." For more information.
- Southern California Edison (SCE), the nation's leading purchaser of renewable energy, recently signed six new renewable energy contracts totaling 480 MWe of low-carbon generation—enough power to serve 314,000 average homes. The agreements, subject to approval by the California Public Utilities Commission, include two valuable "baseload" geothermal 20-year contracts with Ormat Technologies, Inc. and Caithness Energy, LLC. Baseload projects produce power around the clock and therefore contribute significant amounts of energy. Ormat will supply 50 MWe from the Brawley I Project currently under construction in Imperial County in southern California. Caithness will supply 50 MWe from the Dixie Valley geothermal plant in Nevada. For more information.
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For further information on geothermal in Colorado, contact: Angela Crooks |
- 31 July-3 August - The
2007 Southwest Renewable Energy Conference will take place in Boulder. The leading-edge technical and policy conference on renewable energy development will feature a trade show and presentations by preeminent speakers on wind, solar, biomass, and geothermal energy.
- 19 October 2007 - The Colorado Geothermal Working Group will hold a day-long Investors' Forum in Montrose. Presentations will be made on policies, investment criteria, and opportunities in the areas of GeoExchange, low temperature applications, and electricity generation. For more information, contact Angela Crooks.
- The Utility Geothermal Working Group (UGWG) recently developed a roadmap to guide its outreach partnership with the Colorado Geothermal Working Group. The roadmap identifies joint activities to increase the use of geothermal resources in the state by addressing crosscutting issues, e.g., regulation, financing, lack of technology standards, awareness, etc. Success in implementing the Colorado roadmap will set the stage for similar partnership efforts with other state geothermal working groups. The UGWG is supported by DOE's GeoPowering the West Program. For more information: Guy Nelson, Utility Geothermal Working Group, at Tel: (541) 994-4670, or gnelson181@aol.com.
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For
further information on geothermal in Hawai'i, contact: |
- The State of Hawaii and the Oregon Institute of Technology’s Geo-Heat Center have completed an assessment of a downhole heat exchanger in an existing well in the Puna District of Hawaii County. The experiment, conducted in June 2007 at the
Malama Ki well in Puna District, confirmed the economics, ease, and thermal conductivity of crosslinked polyethylene (PEX) tubing in downhole heat
exchangers (DHE), and also the significant flow of warm ground water in Puna’s aquifer.
The research and resulting report, "Assessment of Downhole Heat Exchangers in Existing Wells in Puna District, Hawaii County, Hawaii," were supported by the National Renewable Energy Laboratory under the DOE GeoPowering the West Program.
PEX DHE assembly prior to insertion into the Malama Ki well (Photo: Andrew Chiasson, Geo-Heat Center)
| For further information on geothermal in Idaho, contact: Gerry Galinato Energy Division, Idaho Department of Water Resources Tel: (208) 287-4897 Email: Gerry.Galinato@idwr.idaho.gov |
- News from the Idaho Department of Water Resources (IDWR) Energy Division:
- A representative from Ormat Technologies, Inc. met with the Idaho Energy Division on 10 July 2007 to discuss the state's geothermal resources, their current uses, and potential for new development and expansion.
- The Idaho "25 x 25" Renewable Energy Council, established by Governor Butch Otter through Executive Order No. 2007-02, met for the first time on 10 July 2007. The meeting was hosted and chaired by the Idaho Department of Agriculture. Idaho Energy Division Administrator Robert Hoppie is a member of the council which is tasked, among other things, to seek new and innovative means to increase the production of renewable energy, including geothermal, in the state.
- Interest in geothermal development continues to grow in Cascade and Ketchum.
The Idaho Energy Division agreed last month to pay the incremental cost of deepening an exploratory well being drilled for the Cascade School District to encounter geothermal temperatures and provide technical data. Under an energy services contract with the school district, Chevron Energy Solutions has recommended the use of a geothermal heat pump to heat and cool Cascade High School. The well, part of this project, reached a total depth of 1,113 feet with a bottomhole temperature of about 77°F. It is being cased and will be tested for flow and sustained temperature.
The City of Ketchum initially requested financial assistance for a feasibility study of expanding Guyer Hot Springs, located about two miles west of Ketchum in the Warm Springs ski area. The study will assess the local geothermal resources and the options for their use. After meeting with officials from the City of Ketchum and the Ketchum Community Development Corporation on 18 June 2007, the Idaho Energy Division agreed to support the effort with a small grant. It is currently negotiating a contract with the Wood River Valley city for this project.
- Under contract with the Idaho Energy Division, the Idaho Water Resources Research Institute is developing a geothermal direct use tour guide for the Boise area. The publication should be available later this summer.
- The BLM's first competitive geothermal lease sale under the Energy Policy Act of 2005 was held on 20 June 2007 at the Utah State Office in Salt Lake City. A total of eight parcels were offered: five in Idaho and three in Utah. The total bonus for the five Idaho parcels, which totaled 8,901 acres, was over $5.7 million. Four parcels totaling 7,162 acres lie in the Raft River Valley of Cassia County. One 1,739-acre parcel lies in Washington County in the Crane Creek area. All the Idaho parcels are located on BLM-administered land.
Idaho Geothermal Lease Sale ResultsBid per acre ($)AcresTotal revenue ($)8752,3182,033,0166001,6861,015,1021301,080142,6905252,0801,096,2908251,7401,439,110Totals8,9045,726,208
Bids on the Idaho parcels ranged from $130 to $875. According to BLM Idaho State Office Geologist Karen Porter, "The highest bid for an Idaho parcel was from Agua Caliente LLC, located in Englewood, Colorado at $875 per acre, for a total sale of $2,033,016." Under the Energy Policy Act of 2005, 50% of all bonus bid, rental and royalty monies collected are distributed to the State in which the leased lands are located; 25% to the County; and 25% to the BLM.
- On 19 June 2007, Idaho Energy Division staff toured the US Geothermal, Inc. Raft River geothermal power plant currently under construction. The binary vapor turbine and accessories and water cooling towers were being installed. Target completion date for the plant is October 2007.
Cooling towers at the Raft River Geothermal Power Plant (Photo: Idaho Energy Division)
The construction of the Raft River Unit One, 13-MWe power plant is under the direction of Ormat Nevada Inc., a subsidiary of Ormat Technologies Inc. Plant construction is proceeding on schedule and budget. This element of the Raft River project is expected to be fully functional and online in the fourth quarter of 2007. For more information.
- Idaho Code Section 57-1306 applies to rentals and royalties derived from federally-owned oil, gas, and mineral resources. Under federal law, royalties and rents from geothermal leases are distributed to the states and its subdivisions. If the geothermal lands are described as "mineral lands" under state law, the money received from the federal government is distributed pursuant to the percentages established by state statute. Idaho Code Section 57-1306 provides that 10% of such receipts is remitted to the general funds of the counties in which the resources were extracted, and the remaining 90% is deposited into the public school income funds. If the geothermal lands are described as sui generis or something other than "mineral lands" under state law, it is unclear how the state would distribute the money from the federal government.
- Gerry Galinato of the Idaho Energy Division and chair of the Idaho Geothermal Energy Working Group, was invited by Stoel Rives LLP to join the "2007 Idaho Innovation Awards" selection committee. Seven award categories will be reviewed including one in energy.
- In addition, Idaho Energy Division staff:
- Updated the popular Idaho Geothermal Consumer Guide and is having 1,500 copies printed.
- Participated in the Water-Energy Nexus Seminar in Boise on 26-27 June 2007, contributing to the development of a research agenda forum on renewable energy resources.
- Hosted a “Feed-in Tariff in Europe and Renewable Portfolio Standards” webcast on 8 May 2007 in Boise. Although the webcast primarily targeted the wind industry, the division invited members of the Idaho Geothermal Energy Working Group to attend or host a local downlink.
- Updated the popular Idaho Geothermal Consumer Guide and is having 1,500 copies printed.
- A representative from Ormat Technologies, Inc. met with the Idaho Energy Division on 10 July 2007 to discuss the state's geothermal resources, their current uses, and potential for new development and expansion.
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For further information on geothermal in Montana, contact: Kathi Montgomery |
- U.S. Senator Jon Tester (D-MT) held a geothermal energy listening session at Montana Tech in Butte on 3 July 2007. Over 40 people representing resource owners and managers; developers; state, federal , and non-profit agencies; and the general public told the senator that they want to develop geothermal resources, both for electricity generation and direct uses. Projects being considered include utility-scale generation, distributed generation using waste fluids from oil and gas production and surface hot springs; district heating systems, and greenhouse and aquaculture facilities.
- A partnership between the state energy program, the state geology program, a local community college, a tribal energy program, and the National Center for Appropriate Technology will choose up to 15 sites from the known geothermal locations in Montana for additional site evaluation and project development. Little new data have been collected on the state's known geothermal resources in over 20 years. Site assessments will verify existing data and also gather preliminary information needed for further project development. The site assessments are being funded by a grant from the Montana Department of Natural Resources and Conservation through the Renewable Resource Grant and Loan program.
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For
further information on geothermal in Nevada, contact: |
- 14 August 2007 - The Nevada and California State BLM offices will jointly conduct a competitive geothermal lease sale under the new regulations which were effective 1 June 2007. BLM Nevada will offer 43 parcels for more than 122,849 acres, located mainly in Churchill, Pershing, Mineral, Nye, and Lander counties. Details regarding the lease sale procedures and stipulations attached to each parcel are provided in the Notice of Competitive Lease Sale. The competitive oral auction will take place at the BLM Nevada State Office in Reno. The sale room opens at 8 a.m. to allow potential bidders to register and obtain a bid number. The competitive oral auction begins at 9 a.m. For more information.
- Nevada Geothermal Power Inc. on 26 July 2007 announced that it has signed Commitment Letters and Term Sheets for a construction loan and permanent financing with Morgan Stanley. Morgan Stanley will extend a loan facility of up to $100 Million for the construction of the 35 MWe Blue Mountain, Faulkner I project. The closing of the Construction Loan is subject to certain conditions and is expected to occur on or before the end of the year. Loan proceeds will be used to fund construction of the Faulkner I geothermal power plant, geothermal well field, related infrastructure, and development costs. For more information.
In addition, Nevada Geothermal has signed a Commitment Letter and Term Sheet for a Bridge Loan Facility with Glitnir Bank for up to $20 million for the development of the 35 MWe Blue Mountain, Faulkner I project. The closing of the Loan is subject to receipt of a resource report from GeothermEx, Inc. The proceeds of the loan will be used to fund the continuous development of the Faulkner I geothermal power plant, geothermal well field, related infrastructure, and development costs.
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For further information on geothermal in New Mexico, contact: |
No news.
- 11-12 September 2007 - Basin Electric Power Cooperative (Basin Electric) and Western Area Power Administration (WAPA) are hosting a Geothermal Heat Pump (GHP) Workshop in Bismarck at the Country Inn and Suites. Attendees will learn how to use WAPA's new GHP Handbook and accompanying worksheets to determine the benefits and costs of GHP programs from the utility and customer perspectives. They will hear from utilities that have developed and implemented the programs, and get the results of "A Tale of Two Buildings," a side-by-side comparison of two buildings, one using GHP, the other conventional HVAC.
The $50 registration fee covers workshop materials, meals, and refreshments.
The workshop is sponsored by the American Public Power Association, the National Rural Electric Cooperative Association, and the Utility Geothermal Working Group, and supported by DOE's GeoPowering the West. For more information.
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For further information on geothermal in Oregon, contact: Carel C. DeWinkel |
- Thirty-one members of the Oregon Geothermal Working Group (OGWG) met in Portland on 23 July 2007. Supported by DOE's GeoPowering the West program, the eighth OGWG meeting was preceded by a luncheon hosted by the Pacific Northwest Section of the Geothermal Resources Council, and preceded a Geothermal Resources Leasing
Programmatic Environmental Impact Statement
Scoping Meeting held by the BLM. Meeting presentations and minutes are posted online. For more information, contact Carel DeWinkel.
Luncheon speaker Daniel Fleischmann of ORMAT Nevada Inc. gave a presentation entitled "Getting Geothermal Electricity Projects On Line." His talk concluded that many opportunities exist for geothermal power projects in the state.Following introductions, Carel DeWinkel of the Oregon Department of Energy (ODOE) described renewable energy legislation passed in the recently concluded 2007 Oregon Legislative Session, in particular the Renewable Portfolio Standard (RPS) and the changes to the Business Energy Tax Credit program.
Al Waibel of Columbia Geoscience presented a short update of activities Davenport Power LLC, operator for Northwest Geothermal Co., is conducting on the western flank of Newberry Volcano. Alex Sifford of Sifford Energy Services provided updates on Nevada Geothermal, US Geothermal, and Eugene Water and Electric Board (EWEB). Nevada Geothermal continues to investigate power transmission options for Crump Geyer. US Geothermal is planning a production well drilling program at Neal Hot Springs. EWEB continues discussions with US Geothermal for possible power purchases, most likely from Raft River, Idaho. EWEB seeks renewable power sources including geothermal energy starting around 2011.Joe Eberhardt provided an excellent talk on Portland General Electric’s (PGE) interest in geothermal energy. PGE will be seeking 300 MWe of power from renewable sources starting in 2012 period, 50 MWe of which is earmarked for geothermal. PGE forecasts geothermal power costs at about $67 per megawatt-hour. For more information.
Nick Rahn of PacifiCorp Energy shared the utility’s interest in geothermal energy. PacifiCorp is adding 11 MWe of new capacity at Blundell, and plans to acquire 1,400 MWe of new cost-effective renewable resources by 2015. For more information.
The Energy Trust of Oregon has an interest in geothermal energy, according to Betsy Kaufman. The avenue for support is the Open Solicitation program, designed to support renewable energy projects that are not eligible for other Energy Trust renewable energy programs. The Energy Trust is currently accepting proposals for projects. For more information.
Clark Niewendorp, with the Oregon Department of Geology and Mineral Industries officially unveiled the Geothermal Information Layer for Oregon (GTILO) Release-1 database and geographic information system. The interactive GTILO map
Geothermal Information Layer for Oregon (GTILO) interactive map (Oregon Department of Geology and Mineral Industries)displays information on the location, temperature, and other features of thermal springs and wells (e.g., geothermal exploration, geothermal test, and water wells), as well as known geothermal resource areas and direct-use areas. GTILO was supported by DOE's GeoPowering the West.
- In a tour of Klamath Falls on 6 July 2007, one of four cities visited by U.S. Senator Ron Wyden (D-OR) over the July 4th recess, the senator saw firsthand how the city uses its extensive geothermal resources for heating and other purposes. Senator Wyden toured several sites in the city including the Creamery on Main Street, a restaurant that uses geothermal heat in its brewing process; the city's geothermal network; and the Oregon Institute of Technology and its Geo-Heat Center where Senator Wyden participated in a roundtable discussion with county and economic development officials and renewable energy researchers. The senator was particularly interested in hearing from local officials what federal legislation and other measures are needed to promote the continued and growing use of geothermal and other renewable energy sources (Source: "U.S. Senator to visit Klamath: Ron Wyden will be looking into geothermal energy in town " by Ty Beaver, Herald and News).
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For further information on geothermal in Texas, contact: David Blackwell |
- The Southern Methodist University (SMU) Geothermal Lab hosted its second "Conference on Geothermal Energy Utilization Associated with Oil and Gas Development" on 12-13 June 2007.
Nearly 200 people from four continents attended the conference to learn new ways to generate geothermal energy using existing oil and gas wells.
Bernie Karl, owner of Chena Hot Springs Resort in Alaska set the mood for the conference with his remarks: "Don’t ever take 'no' for an answer. 'No' means 'maybe' and 'maybe' means 'yes!'"
Pictured from left to right: Russ and Carol Crosby, ACES Energy Conservation Specialist, with Maria and Ian Richards, SMU (Photo: SMU Geothermal Lab)
Coordinated by SMU's David Blackwell and Maria Richards, and supported by DOE's GeoPowering the West Program, the conference covered all aspects of geothermal power development from basics like how to successfully buy a used well and what resource base is needed, to where to find financing and to whom to sell the power.
While the geographic focus was primarily on Texas, other regions were discussed as well including Wyoming, Louisiana, and Arkansas; Europe’s ENGINE project; the Cooper Basin in Australia; and Canada. The conference showcased five technologies for resources ranging in temperature from 150°F to over 300°F, opening the door for usage in many more areas of existing wells and types of applications.
The conference agenda and speaker presentations are available online. An audio recording of the conference is available. Contact Maria Richards.
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For further information on geothermal in Utah, contact: |
- The Milford Flat fire, one of the largest in recent history, prompted an evacuation order of PacifiCorp's Blundell Geothermal Power Plant on 7 July 2007.
Plant personnel were unable to evacuate. however, due to the fire which surrounded the plant, burning up to the plant fence. No one was injured but transmission and distribution structures and the brine-steam piping insulation sustained damage.
The Blundell Plant was knocked offline by the lightning strike that started the Milford Flat fire. The strike occurred next to one of the main transmission lines in the Milford-Escalante Valley. The fire, which eventually burned over 300,000 acres, moved northwest from the site of the lightning strike, crossing over and around the Blundell Plant. It burned up to the fenced perimeter, but because of efforts of plant personnel, did not do extensive damage to the plant. Following the fire, the plant lost its domestic water supply as a result of flash flooding in a nearby canyon where the spring source is located.
The plant's bottoming-cycle addition is proceeding on schedule. PacifiCorp hopes to have the new 11-MWe plant operational for testing in September, and online in November.
- The recently formed Renewable Energy Initiative Focus Group (REI), an extension of the Department of Environmental Quality (DEQ) Climate Change Stakeholder Working Group Energy Supply Sector, will meet every Wednesday through September, from 10:00 a.m. to 12:00 p.m. (call-in is also available). The REI's purpose is to develop detailed public policy actions that can be taken by state government and other leaders to increase the development of cost-effective renewable electrical energy resources. The REI is an open group; all are encouraged to participate.
- New rules for administering the Utah renewable energy tax credits authorized by the 2007 Utah General Assembly were published for public review in the Utah State Bulletin on 1 July 2007. Renewable energy tax credits expired on 31 December 2006. S.B. 223 in the 2007 General Session re-authorized the credits, expanded eligibility for credits to new technologies (biomass, geothermal, and ground source heat pumps), and created new production tax credits. Comments are due 1 August 2007. For more information.
- The BLM's first competitive geothermal lease sale under the Energy Policy Act of 2005 was held on 20 June 2007 at the Utah State Office in Salt Lake City. Three parcels were offered in Utah.
Utah Geothermal Lease Sale ResultsBid per acre ($)AcresTotal revenue ($)8502,5782,196,5866002,4371,467,204201,00322,196Totals6,0183,685,986
- Raser Technologies, Inc. has secured rights to geothermal resources located on 3,972 acres located in three counties in central and Southern Utah. The lease terms are up to 10 years and are renewable for additional periods based on development activity or upon the payment of minimum rental payments. The financial terms of the leases are undisclosed. These leases bring the total land Raser has under lease in Utah alone for geothermal development to over 40,000 acres. Raser also has significant geothermal holdings in Nevada and California and plans to expand its operations and holdings into other states in the near future.
According to Raser CEO Brent Cook, the company's goal is to initiate the development of 100 MWe of power plant capacity per year for the first three years, and 150 MWe per year thereafter. For more information.
For further information on geothermal in Washington, contact: |
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For further information on geothermal in Wyoming, contact: |
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The Geothermal biz.com newsletter is produced with support from the U.S. Department of Energy, Assistant Secretary for Energy Efficiency and Renewable Energy, Geothermal Technologies Program. Neither the U.S. Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by the U.S. Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the U.S. Government or any agency thereof.
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