Colorado Adopts Rules for Geothermal Energy

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The first set of rules established for geothermal energy will help to decarbonize the economy with an arguably unique resource, Colorado's governor said.

"Colorado has incredible low-cost renewable-energy resources, like geothermal, that can help reduce emissions and save Coloradans money," Gov. Jared Polis said.

His comment came as the Colorado Energy & Carbon Management Commission (ECMC) adopted rules governing geothermal operations in the state. Designed in comprehensive fashion to cover everything from public health to the environment, the regulations are centered around the commission's experience with surface and subsurface energy resources.

Drawing from the Niobrara Shale, Colorado accounts for about 4% of the nation's total crude oil production, with output doubling in 2023 relative to 2010 levels. The U.S. Energy Information Administration (EIA), the data arm of the Energy Department, finds that Colorado also has a "significant" potential to develop geothermal energy, though there are currently no utility-scale operations in the state.

The state, however, has deployed geothermal heat pumps that can be networked together from building to building. State data show Colorado Mesa University has reduced its energy costs by nearly $12 million since 2008 through geothermal networks.

In May, the state announced $7.7 million in grant money for geothermal programs, including programs at University of Colorado's campus in Boulder that could offset 20 megawatts (MW) of coal-fired electricity.

Despite the merits, obstacles remain in tapping into the full potential of geothermal power. Uncertainty surrounding the location and exploration of resource reserves confines activity to specific regions. Additionally, high drilling and exploration costs can pose hurdles to geothermal power development.

Last year, however, Geothermal Technologies Incorporated (Baltimore, Maryland) announced plans to develop a geothermal system in Colorado by drilling production and injection wells into the sandstone associated with the broader Denver-Julesburg Shale.

The company believes it can develop enough geothermal energy to last for 20 years, with multiple plants combining for a potential 400 megawatts of power.

Geothermal power plants emit significantly fewer greenhouse gases, with 99% less carbon dioxide and 97% less sulfur dioxide compared with large-scale fossil-fuel-based facilities of the same size.

The ECMC, meanwhile, believes there are at least three potential sites in Colorado with subsurface conditions supportive of geothermal power generation "in the near future."

"Colorado's geothermal resources can help us meet our clean air and clean energy goals," the state's governor added. "Geothermal energy can play an integral role in powering the way Coloradans live, work and play, and will help future generations."

Industrial Info is tracking 19 geothermal projects across the U.S. that have a greater than 70% chance of completion. Those facilities have a combined total investment value of $3.85 billion, the largest of which is the Hell's Kitchen facility in California.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a detailed list of U.S. geothermal projects.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).