Funding to provide for geothermal development

Lisa Snedeker

Thursday, Aug. 10, 2000 | 9:18 a.m.

Energy Secretary Bill Richardson announced more funding for a federal initiative that would have 10 percent of the West's electricity needs provided by geothermal resources within 20 years.

More than $33 million will go toward the development and use of geothermal energy in the next four years in Nevada, California, New Mexico and Utah, Richardson said Wednesday in detailing 21 partnerships between private industry and the Department of Energy.

"The West needs access to reliable electricity," he said, referring to recent power brownouts and blackouts in California. "We're working to develop technology to generate power."

Richardson likened Nevada to Saudi Arabia when it comes to its geothermal energy deposits. Geologists say Nevada has the highest potential of any state in the nation to deliver energy generated by the earth's heat.

Nevada companies and sites will receive at least $12 million in private and public funds over the next three or four years, said Sen. Harry Reid, D-Nev.

They are: Empire Energy LLC, Empire; Steamboat Envirosystems LLC, Reno; Coso Operating Company of Caithness Resources, U-boat; Mount Wheeler Power Co., Rye Patch; Noramex Corp., Blue Mountain; and SB Geo, Steamboat Springs.

Last month, Reid won a subcommittee's approval to substantially increase the funding for development of solar and renewable and alternative energy sources.

Reid has said the nation must end its dependence on fossil fuels in favor of renewal energy such as solar, wind and geothermal sources.

Developing the clean and cost-effective energy source will fuel economic development, create jobs in rural areas and support a cleaner environment, Reid said.

In January, Richardson launched a Geopowering the West initiative with $4.8 million in research grants for developing the power source in Nevada, California, Utah, Texas and North Dakota.

Its goal is to have 7.5 percent of the western states' energy needs provided by geothermal energy by the year 2010, increasing to 10 percent by 2020. In addition, goals include supplying electric power or heat to at least 7 million homes by 2010 and doubling the number of states with geothermal electric power facilities to eight by 2006. States currently with geothermal power plants are Nevada, California, Utah and Hawaii.

Reid, who is the ranking Democrat on the Energy and Water appropriations subcommittee, successfully sought increased funding for the new solar and renewable energy initiative from $360 million in fiscal year 2000 to $445 million in fiscal year 2001. The Clinton administration requested $450 million in its fiscal year 2001 budget.

As part of his visit, Richardson also opened the United Steelworkers of America's 30th Constitutional Convention.