Colorado touts new geothermal renewable energy projects

Colorado ushered in a new era of geothermal energy investment Friday with a dual-pronged effort to expand renewables and lower consumer bills, with Gov. Jared Polis delving into the details of a $7.7 million round of grants intended to support private developers.

Polis said state geothermal grants will help unlock $100 million in total investment in emerging technology, from hot water testing deep in oil wells to new ground source heat pumps that will allow Pueblo’s three fire stations to achieve net-zero emissions.

Polis said adding geothermal energy sources to Colorado’s market-leading solar and wind generation efforts is necessary both to meet the state’s greenhouse gas reduction goals over the next two decades and to provide consumers with a break on heating costs and cooling.

“Energy is a cost that frustrates everyone,” Polis said in an interview Wednesday. “It’s really important and important that we look for creative ways to help people with their monthly bills. Imagine having zero heating and cooling bills on warm summer days and cold winter days. This can save a family a lot of money with simple improvements made before the family moves in.”

Geothermal projects take advantage of constant, average air and water temperatures underground compared to wide seasonal fluctuations in the air outside. A geothermal heat pump takes underground springs, which can have temperatures of 50 to 60 degrees all year round, and uses them as the basis for a heat exchanger to efficiently heat or cool the air in homes and offices.

Other potentially larger geothermal projects could use Colorado’s large supplies of hot underground water to create heat exchangers that heat entire neighborhoods or city blocks. The search for such ideas is ongoing in places where there are geothermal energy storages, such as around Mount Princeton.

Although recent designs have improved, air source heat pumps can have difficulty operating efficiently when outdoor temperatures in Colorado drop below freezing. When the difference between the outside air and the ideal room temperature is too great, air source heat pumps require too much additional electricity to reach the appropriate temperature. Polis said underground geothermal energy sources are more stable and efficient.

“We are really helping to remove pollution from buildings without creating new, large costs on the electricity side,” he said.

Colorado energy officials also touted existing oil and gas exploration infrastructure as greater geothermal energy research opportunities, with the potential to descend into warmer water. Energy officials say northeastern Colorado’s oilfields have hot water at their fingertips, and developers could deepen existing wells to take advantage of it.

The $7.7 million awarded Friday under the geothermal energy grant program covers 35 projects, including one in Pierce exploring the possible use of heat from unproductive oil and gas wells. Nearly half of the awards went to projects related to disproportionately impacted or “just transition” communities, and the Pierce project is an area of Weld County where oil and gas development has ended.

In another grant, Pueblo will provide $270,000 for ground source heat pumps at three new fire stations designed to achieve net-zero greenhouse gas emissions.

A state release said Pueblo’s new fire stations would be located in majority-minority neighborhoods that are currently far from emergency services and “will help lower insurance rates and improve emergency response times and outcomes.” This project will also save taxpayers money, which will translate into energy cost savings of over $28,000 annually.”

Colorado cannot meet a larger share of its energy needs through geothermal energy, as countries like New Zealand and Iceland do, Polis said. However, a few percentage points of the share of geothermal energy are important because they help lower emissions in some areas of the economy that are difficult to decarbonize, and can provide support for the electric grid at times when solar and wind power are not being produced.

Waiting for the free market to develop geothermal energy on its own isn’t fast enough to meet Colorado’s needs, Polis said. Energy is subject to strict regulations, and the development of long-term alternative sources involves technological and investment risks, he said.

“When we are less likely to engage in future-oriented ventures, we may have to prove it. That’s why we’re going to prove them,” Polis said.

Story type: News