National Renewable Energy Laboratory (NREL)

From the Report of the National Renewable Energy Laboratory

Executive Summary~ This report, the 2021 U.S. Geothermal Power Production and District Heating Market Report, was developed by the National Renewable Energy Laboratory (NREL) and Geothermal Rising (previously the Geothermal Resources Council, or GRC), with funding support from the Geothermal Technologies Office (GTO) of the U.S. Department of Energy (DOE).

The report presents analysis of the current state of the U.S. geothermal market and industry for both the power production and district heating sectors, with consideration of developing power projects.

Geothermal heat pumps, although a key technology in the wider use of geothermal resources, are outside the scope of this report.

U.S. Geothermal Power Generation — Key Findings

>> Current U.S. geothermal power generation nameplate capacity is 3,673 MW from 93 power plants. Of this capacity, 1,300 MW are located on public lands.

>> California and Nevada contribute more than 90% of the current U.S. geothermal power generation, with additional contributions from plants in Alaska, Hawaii, Idaho, New Mexico, Oregon, and Utah.

>> From the end of 2015 through the end of 2019, the United States brought seven new geothermal power plants online in Nevada, California, and New Mexico, adding 186 MW of nameplate capacity. In the same time period, 11 plants were retired or classified as non- operational, subtracting 103 MW of nameplate capacity. The remaining difference in capacity from 2015 to 2019 can be attributed to the reduction of nameplate capacity at individual plants.

>> After the data for this report were collected, Ormat brought the Steamboat Hills expansion in Nevada online, increasing its generating capacity by 19 MW. In addition, in late 2020, the Puna geothermal plant was brought back online, which should increase geothermal net-generation numbers in 2021.

>> Geothermal companies operating in the United States have a combined 58 active developing projects and prospects across nine states, with a majority located in Nevada.

>> Of these projects, five are in Phase IV, the phase immediately preceding project completion. Three are located in Nevada, and two are in California.

>> From November 2019 through September 2020, nine new geothermal Power Purchase Agreements (PPAs) have been signed across four states. Included in these agreements are plans for the first two geothermal power plants to be built in California in a decade—Hell’s Kitchen and Casa Diablo IV.

>> Geothermal power provides several non-cost advantages, including supplying continuous baseload power, ancillary grid services, resilience, environmental benefits, and a small land footprint compared to other renewable energy technologies.

>> Twenty-eight states have renewable portfolio standards (RPS) that count geothermal power as an eligible resource, seven of which include direct use. RPSs support geothermal development by requiring a certain amount of electricity sold by utilities to come from renewable energy sources.

U.S. Geothermal District Heating — Key Findings

• Currently, there are 23 geothermal district heating (GDH) systems in the United States, with a capacity totaling more than 75 MW of thermal energy (MWth). The systems range in size from 0.1 MWth to over 20 MWth.

• Of these 23 commercial projects, 10 received DOE loan and grant support. Federal, state, and local funding support have proven critical to develop a majority of the existing GDH projects in the United States.

• The oldest GDH installation dates from 1892 in Boise, Idaho, and the most recent installation was completed in 2017 in Alturas, California. The remaining systems are located in California, Colorado, Idaho, New Mexico, Nevada, Oregon, and South Dakota.

• The majority of the GDH systems in the United States are more than 30 years old.

• The average U.S. levelized cost of heat (LCOH) value for GDH systems is $54/MWh, slightly lower than the average European LCOH value of $69/MWh. However, this LCOH is slightly higher than the 2019 average U.S. residential natural gas LCOH. Estimated LCOH for existing U.S. systems ranges from $15 to $105/MWh, a range that is consistent with the range of LCOH for existing European GDH systems.

• U.S. GDH systems tend to be smaller in size (average of 4 MWth) than European GDH systems (continent-wide average of ~17 MWth), and orders of magnitude smaller than the average GDH system in China (~1,000 MWth).

• U.S. GDH systems run at 23% capacity, on average. This low utilization factor is due to frequent operation at less than full capacity and the seasonality of heating needs (i.e., the system is not needed for satisfying heating demands year-round).

• As of 2020, few policy mechanisms intended to support GDH development are in place in the United States.

Conclusions ~ This report is intended to provide policymakers, regulators, developers, researchers, engineers, financiers, and other stakeholders with up-to-date information and data reflecting the 2019 geothermal power production and district heating markets, technologies, and trends in the United States. Geothermal Rising collected U.S. geothermal power production data via a questionnaire sent to all known U.S. geothermal operators and developers. This questionnaire requested information about both existing power production capacity and developing projects, which was then added to an existing GEA database and shared with NREL. For GDH systems, an NREL geothermal direct-use database
was updated with information obtained from news articles, publications, and interviews conducted in 2020 with project owners, operators, and other stakeholders.

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Geothermal Energy Development in West Virginia ~ Here is a link to the House Bill 4098 that passed in WV on March 12, 2022, the last day of the Legislative Session for this year. It remains for the approval of the Governor, which is expected.

https://www.wvlegislature.gov/Bill_Text_HTML/2022_SESSIONS/RS/bills/HB4098%20SUB.pdf

The potential for significant heat energy is under foot

From the Essay by Delegate Evan Hansen (Monongalia County), WV Legislature

The promise of a booming clean energy sector and new clean energy jobs for West Virginia workers has never been more hopeful. The potential for job growth is enormous, which is why it is so critical that Sen. Manchin maintains a seat at the negotiating table to fight for new jobs in the budget package that is still being discussed in Washington.

Investment in clean energy technologies like solar and wind energy was a focal point of the original Build Back Better plan. These opportunities will supplement coal and natural gas and provide West Virginians with a lifeline to a new era of prosperity and growth. Our state has an immense opportunity to create good-paying, clean energy jobs, but only if a deal can be made in Washington.

One area that would see substantial growth with federal investment is geothermal energy.

As West Virginians, we hold an ace up our sleeve. In 2010, a team of researchers at Southern Methodist University discovered that West Virginia may well be sitting on a gold mine of renewable energy. The team uncovered the largest geothermal hot spot in the eastern United States and significantly increased the previous geothermal generation capacity estimate, opening the door to the possibility that large-scale renewable energy power plants could be built in our state.

Geothermal energy is effectively the heat that comes from below the surface of the earth. To produce power, wells are dug thousands of feet deep. Cool liquid is pumped down into the ground, and hot liquid is pumped up, producing steam that, if hot enough, can then be used to generate electricity. In the near future, West Virginia University researchers will drill the state’s first geothermal test well near Morgantown to take actual temperature measurements. If the temperatures are hot enough, electricity generation may be possible. If not, geothermal energy could still be used to generate steam to heat buildings.

What makes our situation unique is that, while there are literally thousands of geothermal locations that have been identified west of the Mississippi River, there are but a couple dozen east of the Appalachian Mountains. Right here in West Virginia, we are sitting on top of the mother lode.

So, consider this for a moment. If the most recent Build Back Better framework were to pass through Congress, the state of West Virginia could tap into more than $300 billion in tax incentives and lead the way in promoting renewable energy technologies like geothermal. Our state would see an inflow of new jobs that can’t be outsourced. And new, zero-carbon electricity and/or heat would be available to attract companies to the state that have strict carbon reduction targets.

While WVU researchers continue to do their groundbreaking research, getting a deal over the finish line in Washington is a win-win-win for West Virginia. We could once more be looked upon as an energy sector pioneer and create good-paying jobs, while also providing for a better future for our children.

>>> Delegate Evan Hansen (D-Monongalia) is a member of the WV House Energy and Manufacturing Committee.

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See Also: West Virginia has a (Deep) Geothermal Hot Zone | Science | AAAS, Eli Kintisch, October 4, 2010

Researchers have uncovered the largest geothermal hot spot in the eastern United States. According to a unique collaboration between Google and academic geologists, West Virginia sits atop several hot patches of Earth, some as warm as 200˚C and as shallow as 5 kilometers. If engineers are able to tap the heat, the state could become a producer of green energy for the region.

WV repealed a renewable energy portfolio standard in 2015

Letter by Joey James and Evan Hansen, Charleston Gazette, March 18, 2018

For many years, private and government forecasts have predicted sharp declines in Central Appalachian coal production in southern West Virginia, eastern Kentucky, southwestern Virginia and northeastern Tennessee. These declines have occurred, largely as predicted, and our region has suffered.

Even after Donald Trump’s election, headlines tell stories of miners losing their jobs, mines closing, companies filing for bankruptcy and decreases in severance tax revenues — which have significant impacts on local economies and the wellbeing of Central Appalachia’s people.

Meanwhile, in what seems like an entirely different world, investment across the country in renewable energy is at an all-time high. While our coal-fired power plants are closing, new plants fueled by natural gas, wind farms and solar arrays are being built in large numbers. In recent years, global investments in renewables were more than double those for new coal and natural gas generation.

There is no silver bullet to solve Central Appalachia’s economic woes, and modernizing our region’s generation portfolio is only part of the solution. However, when taken together, three state-sponsored incentives have been proven to attract significant investments, and at this point, that is what we need — significant investments.

If Central Appalachia wishes to promote growth in the renewable energy industry, the following policies should receive support:
• Renewable portfolio standards.
• Renewable portfolio standards require
• electricity producers to integrate a certain amount of renewable energy. Most states have an RPS, and in 2016, the 29 states with an RPS and Washington, D.C., accounted for nearly 75 percent of our nation’s GDP. States without an RPS contributed just over 16 percent. The rest have enacted voluntary goals rather than standards. No Central Appalachian states have enacted mandatory standards, and only Virginia has enacted a goal.
• Net metering.
• For electric customers that generate their own electricity, net metering allows for the flow of electricity both to and from the customer — typically through a bi-directional meter. When generation exceeds use, electricity from the customer flows back to the grid, offsetting electricity consumed at other times. All Central Appalachian states, with the exception of Tennessee, have enacted legislation that enables net metering.
• Property-assessed clean energy financing.
• Property-assessed clean energy financing allows commercial property owners to borrow money for energy efficiency and renewable energy projects and repay the amount borrowed through an assessment added to their tax bill. Kentucky and Virginia have passed PACE-enabling legislation. West Virginia and Tennessee should follow suit.

Worldwide, private sector champions of the 21st century economy are making vigorous commitments to sustainability and renewable energy. Google, for example, powers 100 percent of its operations, including many data centers, with renewable energy through power-purchase agreements.

Amazon, another quintessential 21st century business, is committed to achieving 100 percent renewable energy across its global infrastructure and is currently constructing wind and solar farms in Ohio, Virginia, Indiana and North Carolina. When completed, these installations will deliver more than 1.6 million megawatt-hours of renewable energy into the electric grids that power Amazon Web Services’ cloud data centers.

Attracting investments, jobs and tax revenues from these types of companies will require new policies like the three presented above, and legislatures, state agencies and local governments should act now. New energy jobs are being created across the country — why not here?

NOTE — Joey James and Evan Hansen assist communities across Appalachia on issues related to sustainable economic development. They work for Downstream Strategies and are based out of Morgantown.

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Sustainable Development Goals (SDGs) are a collection of 17 global goals set by the United Nations for achievement by 2030 (next 12 years). … The SDGs cover a broad range of social and economic development issues. These include poverty, hunger, health, education, climate change, gender equality, water, sanitation, energy, environment and social justice.

www.CleanEdge.com

West Virginia lacks in clean energy leadership, study says

From a Report by Sarah Tincher, WBOY News 12, July 15, 2014

For those interested in the clean energy business, West Virginia isn’t the place to be, according to Clean Edge’s 2014 U.S. Clean Tech Leadership Index.

Using data collected by the Clean Edge’s State and Metro Indexes, the report assigned each state with a rank and score in categories — all in terms of clean energy — including technology, policy and capital, which are ultimately used to calculate overall clean energy leadership scores.

And for West Virginia, the outcome was almost shameful. [almost]!

Overall, Clean Edge ranked West Virginia 49th, with a score of 9.5 — the lowest score is 7.5, held by Mississippi, and California has the highest with a score of 93.7.

The technology category rankings and scores were determined by clean electricity, clean transportation, and energy intelligence and green building indicators — which, evidently, the Mountain State doesn’t yet excel in, as it was ranked 48th and a sad score of only 3.6.

State incentives, regulations and mandates dictated rankings and scores for policy category; and having only eight of 34 regulations and incentives listed on the study’s policy checklist sent West Virginia down to 48th again, with a score of 8.8.

In the capital category, which was determined by financial, and human and intellectual capital indicators, the state fared slightly better, landing in 37th place with a score of 16.3.

Visit the Clean Edge website to download the full report.