Senate bill would help oil and gas developers produce geothermal
May 8, 2015 | By
Jaclyn Brandt
A Senate bill would make it easier for oil and gas developers to produce geothermal energy. The bill, introduced by Montana Senator Jon Tester, would allow the developers to co-produce geothermal energy without going through a competitive lease process.
"Montana's public lands contain some of the best renewable energy sources in the world, and we should be leading the nation to increase our energy independence and reduce the amount of carbon we put into the atmosphere," Tester said in a statement. "Developing Montana's geothermal resources will expand our energy portfolio and create good-paying jobs that can't be outsourced." The Geothermal Energy Opportunities Act would remove what Tester calls "a lengthy approval process" that oil and gas developers currently undergo when there is also geothermal energy on the land they are developing. The bill would also establish an initiative to promote development of geothermal heat pumps, as well as setting a goal for the United States to produce 50,000 megawatts (MW) of geothermal energy by 2025. The goal would be to "promote the mapping and development of United States geothermal resources by establishing a direct loan program for high risk geothermal exploration wells, to amend the Energy Independence and Security Act of 2007 to improve geothermal energy technology and demonstrate the use of geothermal energy in large scale thermal applications, and for other purposes." The Geothermal Energy Opportunities Act would also allow research into possible locations for the goal of 15,000 MW goal of new geothermal energy capacity on public lands in the first 10 years after the bill is passed. The director of the Geological Survey and the Department of Energy (DOE) Secretary would be given the go-ahead to look for sites capable of 50,000 MW of geothermal capacity. The federal government would begin the process of geothermal exploration on federal lands through a grant process -- managed by DOE. Sen. Tester's home state of Montana already produces plenty of geothermal through its 300 thermal wells and springs. The bill is co-sponsored by Oregon Sen. Ron Wyden. For more: © 2015 FierceMarkets, a division of Questex Media Group LLC. All rights reserved. http://www.fierceenergy.com/story/bill-would-help-develop-montana-geothermal/2015-05-08 |