Idaho geothermal opportunities

Alexander Richter 12 May 2009

In a recent blog piece on energy consumption and renewable opportunities in Idaho, University of Idaho researcher Robert Zemetra looked into the state’s options for renewable development.

As part of this piece he also talks about geothermal, in which he talks about that geothermal has been used in Idaho “since the 1800s for everything from spas to greenhouses to the farming of warm-water fish and alligators. The Idaho State Capitol building complex is heated by geothermal energy.”

He continues that, “the U.S. Geothermal Raft River Facility located in southeast Idaho is the first geothermal electricity plant in the Northwest, according to the State of Idaho Office of Energy resources. It began generating in Jan. 2008, and can generate up to 110 megawatts of power.

“Idaho has substantial geothermal resources,” said Steven Peterson, a professor of business and economics at UI. “It has potential for much wider use.”

Peterson co-authored a study about the economic impacts of a possible geothermal electricity plant that could be constructed at Willow Springs Idaho. The study found the plant could create 240 jobs in Idaho and generate an estimated $10.2 million in earnings.

The problem with geothermal electricity, Peterson said, is it requires a substantial amount of money to get started.

“The fuel is nearly free,” he said. “But the marginal cost of capital is high.”

If constructed, the Willow Springs facility could cost $150 million for the facility itself. Labor for construction, studies and the drilling of test wells could cost another $260 million. But once completed, it could produce $37 million annually in net revenue, the study stated.

Peterson said the costs of start-up for alternative energies are often overlooked and unmentioned by politicians who talk about creating “green jobs” to stimulate the economy.

Source: NW Renewable News