Geothermal Grows 26% in 2009
WASHINGTON, Apr 13, 2010 -- BUSINESS WIRE
The US geothermal power industry continued strong growth in 2009,
according to a new report by the Geothermal Energy Association (GEA).
The April 2010 US Geothermal Power Production and Development Update
showed 26% growth in new projects under development in the United States
in the past year, with 188 projects underway in 15 states which could
produce as much as 7,875 MW of new electric power.
When completed, these projects will add over 7,000 MW of baseload power
capacity; enough to provide electricity for 7.6 million people, or 20%
of California's total power needs, and roughly equivalent to the total
power used in California from coal-fired power plants. "Geothermal power
can be a critical part of the answer to global warming," according to
GEA's Executive Director, Karl Gawell. "For example, California could
achieve its 2020 goal for global warming emissions reductions just by
keeping energy demand level and replacing its coal-fired generation with
geothermal," he asserted.
Nevada continued to be the leading state for new geothermal energy, with
over 3,000 MW under development. The fastest growing geothermal power
states were Utah which quadrupled its geothermal power under
development, New Mexico which tripled, Idaho which doubled, and Oregon
which reported a 50% increase. In addition, Louisiana, Mississippi and
Texas all reported their first geothermal projects compared with a year
earlier.
"These geothermal power projects will create substantial sources of
new employment across the country," said GEA Executive Director Karl
Gawell. "Not only are we seeing more and more development and hiring in
places with a long history of geothermal like Nevada and California, but
for the first time these jobs are being created in the Gulf Coast, in
states such as Louisiana and Mississippi. Along with a huge number of
new construction jobs, geothermal power also creates many permanent
positions that can never be outsourced." Together, the direct, indirect
and induced employment created by these projects is estimated by GEA to
be 29,750 permanent jobs and 112,000 person-years of construction and
manufacturing employment." According to GEA, the projects under
development will represent capital investment of more than $35 billion
when completed.
New geothermal power projects are in progress in fifteen states from the
Pacific to the Gulf Coast. GEA identified new projects in Alaska,
Arizona, California, Colorado, Hawaii, Idaho, Louisiana, Mississippi,
Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming. In
addition to large utility scale power projects, the survey continued to
show expanding interest in small power systems (under 1MW) with projects
in Mississippi, Louisiana, Texas, Oregon and Wyoming.
"The federal stimulus, tax incentives, and strong state renewable
standards continue to fuel the growth in geothermal power," said Gawell.
"Many geothermal developers are building several projects in the US, and
the cash grant provides them an effective incentive that quickly reduces
their debt -- an important fact in the present economic recession." GEA
noted that all of the geothermal power projects coming on line in 2009
utilized the new federal tax grant provisions authorized in the stimulus
bill. In addition, four of the top five states with geothermal power
under development have substantial renewable standards. Those states in
order of geothermal development and their state renewable requirement
are: 1) Nevada (25%), 2) California (33%), 3) Utah (20%), 4) Idaho
(none), and 5) Oregon (25%).
The report also documents federal stimulus funding in the geothermal
industry, which will result in over $600 million of research into new
technology at 135 projects in 25 states over the next two years.
"Stimulus funding will support geothermal development in states where
geothermal technology presents vast new opportunities," notes Dan
Jennejohn, the author of the report. DOE stimulus funding has been
targeted to support development of enhanced geothermal systems
technology, new drilling and exploration techniques, geothermal power
production from oil and gas wells, and other industry needs.
"In our survey last fall, we were concerned that the progress of new
projects appeared to be stalling due to financing and permitting
problems," Jennejohn noted. "Now, along with a number of new projects,
we are seeing projects continue rapid development indicating that growth
is returning across the industry."
The full report is available at http://www.geo-energy.org/.
Leaders from the US geothermal power industry will discuss the state of
the industry during a tele-press conference on Tuesday, April 13, at
11:00am ET. For dial-in information, please contact Garret Drexler,
646-695-7042 or garret@rosengrouppr.com.
About the Geothermal Energy Association:
The Geothermal Energy Association (GEA) is a trade association composed
of U.S. companies who support the expanded use of geothermal energy and
are developing geothermal resources worldwide for electrical power
generation and direct-heat uses. GEA advocates for public policies that
will promote the development and utilization of geothermal Resources,
provides a forum for the industry to discuss issues and problems,
encourages research and development to improve geothermal technologies,
presents industry views to governmental organizations, provides
assistance for the export of geothermal goods and services, compiles
statistical data about the geothermal industry, and conducts education
and outreach projects. For more information, please visit
http://www.geo-energy.org/. Check out GEA's YouTube Channel. Follow GEA
on Twitter. Become a fan on Facebook.
SOURCE: Geothermal Energy Association
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