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WASHINGTON, DC, US, October 4, 2006 (Refocus
Weekly)
The state of Arizona is seeing a resurgence of
interest in its geothermal resources, according to a report from the
Geothermal Energy Association.
“Arizona contains acres and acres of clean sustainable geothermal
resources, and improved economics and advanced technology have made
geothermal resource development an attractive alternative to reduce
Arizona's reliance on fossil fuels,” says Daniel Fleischmann, author
of ‘Geothermal Resource Development Needs in Arizona.’ Recent
efforts to raise the existing Renewable Portfolio Standard to 15% by
2025 and to be the first state to include geothermal heat pumps in a
RPS are cited as notable incentives behind the resurgence.
The report is based on interviews with 40 geothermal experts in the
U.S., and examines Arizona's current and future potential for
geothermal development, including highlights of three specific
resource areas, updates of the status of existing geothermal
resource discoveries, and descriptions of new projects under
development. It also examines the impact of recent government
programs on new development and the policies federal and state
lawmakers could put in place to encourage this development.
It found that farmers and ranchers use geothermal to increase their
production of fruits, fish and shrimp in the face of foreign
competition, while geothermal heating systems are an energy option
for expanding communities in Phoenix and its surrounding
metropolitan area. Northern Arizona University is also testing the
feasibility of power production at a geothermal resource located
east of the San Francisco Peaks, north of Flagstaff.
The state has numerous geothermal resources, including what may
potentially be a "major resource" in the northern region, and the
report examines current plans that are underway to heat a large
greenhouse in Willcox and to develop the state's first geothermal
power plant at Clifton Hot Springs in Greenlee County.
“Every state with geothermal resources faces different challenges to
utilizing those resources to help meet their energy needs,” the
report notes. Previous studies of Utah and New Mexico, as well as
ongoing studies of Idaho and Nevada, created a framework for this
research.
“When people think of renewable energy in Arizona, they often think
of the sun,” it explains. “Indeed, Arizona has one of the greatest
resource potentials for solar energy in the United States. However,
underneath Arizona’s soil rests acres and acres of clean sustainable
geothermal resources that can be utilized for agriculture,
industrial applications, heating homes and businesses, and in some
places even powering electrical generation facilities.”
Companies have used geothermal for thermal space heating,
aquaculture and recreation in several locations and, currently,
there are no operating geothermal power facilities in the state,
although Arizona residents buy green power from geothermal plants
located in California. “Perhaps the greatest promise for near-term
geothermal development in Arizona rests with low-to
intermediate-temperature resources that can be tapped for direct
uses.”
There is a large greenhouse industry in Arizona but the source of
most heating is almost exclusively from fossil fuels, particularly
natural gas, and there has been interest for several years to pursue
geothermal heating in the southeastern part of the state where
geothermal resources are most prevalent. Geothermal-heated
greenhouses throughout the western U.S. have demonstrated the
significant benefits and business opportunities available through
direct-uses and, if a project in Willcox is successfully
demonstrated, “it could raise visibility of the technology and may
encourage other greenhouse businesses to consider them for their
operation.”
“Government incentives reduce risks, reduce upfront costs, and
encourage investment that could help spur growth in the development
of geothermal technologies,” the report notes. “Currently, there is
little, if any, incentive for farmers or communities to use
geothermal direct-use and according to direct-use facility operators
in Arizona they receive no financial incentive from the federal or
state government for using their existing systems.”
Modifications of the state Renewable Portfolio Standard are “a prime
opportunity to increase the utilization of geothermal direct-use
applications,” and the Arizona Corporation Commission is considering
raising the existing standard of 1.1% by 2007 to 15% by 2025 and
adoption of the RPS would be the first in the U.S. to allow a
geothermal process for space heating to be included, allowing
utilities to receive credits towards their RPS requirements by
encouraging green heat systems.
“Geothermal resources are already at a disadvantage because they are
less known to the public than wind and solar, and advocates say that
the geothermal industry needs a larger, more unified, advocacy
presence to remain on the public and government radar,” it
concludes. “Ultimately, most agree that the time is ripe to
reconsider developing Arizona’s geothermal resources for power
production; however, the will to provide the necessary funding for
new exploration will only come once the government recognizes the
value of the technology.”
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