U.S. Bureau of Land Management Opens Land in Colorado, Nevada for Geothermal Power Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--So far in 2012, the U.S. Bureau of Land Management (BLM) has leased 10 parcels of land in Nevada and Colorado for geothermal development companies to pursue renewable power projects. Companies which apply to lease taxpayer-owned BLM land are taking the initial step in the development process before eventually applying to permit and produce geothermal power from this public resource. In 2011, the BLM leased 25 parcels of land in Nevada and Idaho for geothermal development, and if developed, these thousands of acres could produce hundreds of megawatts of renewable geothermal power from natural resources.

The BLM manages more than 245 million acres of public land primarily located in 12 western states, including Alaska. The BLM's geothermal leases generate more than $12 million in federal royalties each year and generated more than 4,600 gigawatts of electric power in 2011. The development of these geothermal resources will bring the nation closer to meeting its targets for electric energy production from renewable resources.

Currently, Industrial Info is tracking 60 geothermal power projects valued at $10.87 billion in total investment value (TIV), with Nevada leading the way with 30 projects and more than $5.7 billion. The breakdown for the remaining states is:

• Alaska: 4 projects, $370 million TIV
• Arizona: 1 project, $20 million TIV
• California: 14 projects, $3.725 billion TIV
• Idaho: 2 projects, $100 million TIV
• New Mexico: 1 project, $65 million TIV
• Oregon: 6 projects, $730 million TIV
• Utah: 2 projects, $137 million TIV

For more information, see November 30, 2011, article - U.S. Geothermal Power Plants See Slow and Steady Increase.

Sandia National Laboratory and the U.S. Navy recently have been testing new polycrystalline diamond compact (PDC) drill bits at the Chocolate Mountains Aerial Gunnery Range in Imperial Valley California. The drill bit advancements seek to increase access to geothermal resources in the U.S. by enabling the drilling of deeper wells in harder and hot basement rock formations.

Geothermal resources typically are associated with igneous and metamorphic rocks, which are harder than sedimentary rocks, through which most oil and gas wells are drilled. These types of rock formations contain large amounts of abrasives, such as quartz, which cause accelerated wear and damage to drill bits. The drilling of geothermal wells is the most difficult drilling on a cost-per-foot basis because of the higher temperatures and pressures and density of the rock formations associated with the process. In the recent tests, new PDC drill bits were able to penetrate approximately 30 feet per hour during the drilling interval, which is nearly three times better than standard roller bits used for comparison.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.