Geothermal Program Newsletter

August 2023 | Issue 2

Update on First Application Round for Geothermal Energy Grant Program

The Colorado Energy Office's $12 million Geothermal Energy Grant Program is excited to announce its first request for applications will open no later than November 14th, 2023. We will formally announce the opening of the program, including final eligibility criteria and the application process, through this newsletter and the grant website. CLEAResult has been selected to serve as the program grant administrator with the CEO.

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Colorado leads the nation with projected $158 million of incentives for geothermal energy through 2032

With the passage of House Bill 23-1272 Tax Policy That Advances Decarbonization, Colorado is taking full advantage of opportunities provided by the Inflation Reduction Act to achieve Colorado's goal of 100% economy-wide decarbonization by 2050. Learn more about what state incentives have been created for building heating and cooling, thermal energy networks, and geothermal electricity.

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CEO is Seeking a Geothermal Electricity Tax Credit Administrator

With the passage of HB23-1272, CEO is directed to develop and implement a merit-based, refundable $35 million investment tax credit and a $0.003/kWh production tax credit for qualified geothermal electricity projects. The CEO has released a Request for Proposal seeking to engage the services of an experience qualified contractor or contractors to facilitate this tax credit offering and support technical evaluation of a variety of projects. The first application round is scheduled to open on April 1, 2024.

View the RFP on BidNet

Governor Polis Releases Heat Beneath Our Feet Report; Tours Utah Geothermal Projects

As chair of the Western Governors Association, Governor Polis released the Heat Beneath Our Feet (HBOF) Initiative Report on June 28th. The report highlights ways the West can lead on geothermal energy, which will help harness more renewable energy, create jobs and protect our planet for future generations. Its recommendations include improving resource assessment and data collection, mitigating risk, optimizing permitting, improving financial modeling, expanding funding opportunities, implementing incentives, developing the workforce, and increasing awareness. Refer to the Governor's press release for more information .

As part of the initiative, in early June, Governor Polis toured a geothermal power plant and Utah FORGE, a DOE sponsored enhanced geothermal systems field laboratory that recently made the news for successfully linking two test wells through a stimulated reservoir.

State Agency Geothermal Information Roundup

Energy and Carbon Management Commission

On July 1st, the Colorado Oil and Gas Conservation Commission transitioned into the Colorado Energy and Carbon Management Commission (ECMC). As part of this, deep geothermal operations will now be permitted and regulated through the ECMC. Initial stakeholder outreach has begun and the ECMC will be working on establishing new rules and providing a protective and thoughtful permitting and regulatory pathway for deep geothermal operations. A rulemaking for deep geothermal operations is planned to be initiated in fall 2023. You may sign up to receive rulemaking updates or provide information regarding geothermal .

Department of Water Resources

The Colorado Division of Water Resources (DWR) regulates “shallow geothermal operations” which includes all geothermal developments that are less than 2,500 feet deep. Shallow geothermal operations include closed-loop geoexchange systems, also known as geothermal loop or ground-source heat pump systems. DWR reminds contractors who are doing this type of work that they must be certified by DWR to install such systems and, upon certification, apply for and receive an annual permit to install geoexchange systems.

For more information about the regulation of geoexchange systems, see the subtopic "Final Rules - Geothermal Rules (2 CCR 402-10)" on the DWR web page. For questions on the topic of geoexchange systems please contact DWR at AskDWR Information Request and select the topic “Well Permits”.

Geothermal News & Resources

There are many articles, podcasts, funding opportunities, reports, videos, and other content being released all the time about geothermal sector information and trends. This section is intended to provide some key highlights of this content and is not necessarily endorsed nor affiliated with the CEO. If there is content you'd like to see featured in the next CEO GEO Newsletter, please email bryce.carter@state.co.us.

Enhanced Geothermal Systems: Two significant developments were recently announced in the EGS world:
Fervo Energy successfully demonstrated EGS at their Project Red facility by producing 3.5 MW of electric capacity
Utah FORGE announced their successful creation of a connected reservoir through deep granite linking their two test wells at their EGS underground laboratory.
The New York Times reviews these successes and other innovations as a reflection of the success of the oil and gas industry.

The Denver Post highlighted the role the newly renamed Energy and Carbon Management Commission (ECMC) has as part of the emerging market trends for geothermal in Colorado.

The Ark Valley Voice has published several articles "about the ongoing conversation on geothermal energy in Chaffee County" following a growing interest, and some debate, within the community. The pieces include an initial issue overview, procedural aspects, and addressing community concerns.

The Department of Energy announced their first cohort in the INTERN program to support the geothermal energy workforce, which includes the work three Colorado School of Mines students.

Upcoming Geothermal Events - Notable geothermal sector events are listed below and can be viewed on the geothermal program's event tracker.

CO Geothermal Rising Regional Interest Group Event (virtual option)
When: September 20th - 6pm to 9pm MT
Where: New Terrain Brewery, Golden, Colorado
What: Guest presentation by Nathan Rogers, Geologist with the Colorado Geological Survey on "Overview of geothermal work that has been done in Colorado.
Learn more and RSVP; a zoom link will be shared to confirmed virtual attendees.

PIVOT2023: Building Bridges (virtual and in-person)
When: September 2023
Where: Virtual with in-person options
What: PIVOT is a global conference series featuring leaders and change makers who are building the future of geothermal energy.
Learn more and RSVP

Geothermal Rising Conference
When: October 1-5
Where: Peppermill Resort Spa Casino, Reno, Nevada
What: The Geothermal Rising Conference is the geothermal industry's flagship annual conference, reflecting the global nature of the geothermal industry and bringing together people in industry, academia, government, and the general public.
Learn more and RSVP

Renewable Thermal Collaborative Summit
When: October 19-20
Where: Park Hyatt Hotel, Washington, D.C.
What: Connect with large thermal energy buyers, renewable thermal technology developers and suppliers, financiers and investors, government officials, and other renewable thermal stakeholders from across the country and the world at the premier event dedicated to renewable heating and cooling.
Learn more and RSVP

IGSHPA Annual Conference 2023
When: December 5-7
Where: Las Vegas Convention Center, Las Vegas, Nevada
What: The International Ground Source Heat Pump Association (IGSHPA) is the ideal bridge between the latest technology and the people who benefit from advancing ground source heat pump technology on a local, state, national, and international levels. The conference is partnered with the National Ground Water Association's conference and will feature thermal energy network, technology, applications, industry, commercial, residential, GHEX, sales/marketing, and net zero participation tracks.
Learn more and RSVP

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