Geothermal plans given $5 million

Energy Secretary Bill Richardson and Sen. Harry Reid, D-Nev., announced today a $5 million initiative that one day may produce enough geothermal energy for 40 million people in six Western states.

The program -- Geopowering the West -- will include Nevada's natural resources and would tap the Earth's interior heat to produce electricity.

California produces the most geothermal energy today, but geologists say Nevada has the highest potential because of its many earthquake faults.

"Geothermal energy is an important alternative power source for the 21st century, and Nevada is on the cutting edge of its development," Reid said.

Richardson said more than $4.8 million will be awarded in the next four to five years for geothermal development in Nevada, California, Texas, Utah, Idaho and North Dakota.

The DOE predicted up to 100,000 jobs will be created by the new focus on geothermal energy, but critics said the forecast was optimistic.

"We are confident that this initiative will help to increase the power produced by this existing resource and make it a major contributor to our clean energy mix," Richardson said.

Along with other alternative energy sources, such as solar, wind and biomass, geothermal energy has the potential to supply electricity or heat to at least 7 million homes by 2010, Richardson said.

The Department of Energy hopes to supply at least 10 percent of the West's electricity needs by 2020 through geothermal energy, Richardson said.

As part of the award, Geomechanics International, one of the largest geothermal companies in the world, received a one-year, $150,380 grant to develop techniques for determining the relationship between the Earth's stress and the geothermal potential of Dixie Valley in Northern Nevada. The research will be done in Nevada, Reid said.

"This modest investment by the federal government has the potential to stimulate billions of dollars in investment and tens of thousands of new jobs and in turn help make Nevada the Saudi Arabia of geothermal energy," Reid said, adding it could help rescue the state's rural economy, which booms and busts with mining ventures.

Geothermal energy works by tapping into the hot layers deep inside the planet. Water is poured into cracks in the earth, and the resulting steam is used to power generators or provide heat for homes and businesses.

In addition to Geomechanics International, two Nevada companies are already operating in Nevada. Ormat of Sparks has installed geothermal energy sources on every continent except Antarctica, and Empire Farms uses a geothermal plant to produce electricity and sends heat to garlic and onion farmers near Northern Nevada's Black Rock Desert.

The DOE hopes to include Indian tribes, federal agencies and rural areas in the initiative.