Idaho has ‘the highest potential’ for geothermal power. Why aren’t we using it?

For geothermal scientists, steaming hot springs scattered throughout Idaho are more than just a popular relaxation destination. They’re an indicator of the state’s potential in clean energy.

Despite having prime land for geothermal energy, Idaho only uses it to provide a sliver of the state’s electricity. And as extreme weather temperatures strain energy grids nationwide, more utility companies have sought alternative, renewable energy sources.

Idaho researchers are working on ways to make it easier for companies to develop geothermal power and make use of the natural heat constantly being generated under the Earth’s surface. But company officials told the Idaho Statesman that without more incentives from the state, efforts to expand the renewable energy source will continue to have major challenges.

Developing new geothermal plants and verifying that a location would work through exploratory wells are costly endeavors that have dissuaded developers from building new plants in the state. Only 1% of Idaho’s electricity is powered through geothermal sources, according to the U.S. Department of Energy. California uses geothermal energy to power around 4% of its electricity, while Nevada uses it to power 10%.

“Idaho has the highest potential and the least development of any place that I can think of” when it comes to geothermal power, Travis McLing, a research scientist at the Idaho National Laboratory, told the Idaho Statesman. “There’s a lot of companies seeing Idaho’s potential, but they’re not drilling wells yet.”

Companies reel at renewable energy costs

Idatherm LLC, a geothermal power company based in Idaho, felt the brunt of how much it costs to pursue geothermal energy.

In 2007, the company had big plans for the state’s geothermal resources, with two leases at potential hot spots. But by 2010, after failing to get funding for exploratory drilling, the company closed up shop, Mike Watts, the former owner of Idathem LLC, told the Statesman in an email.

“We needed about $4 million and did not have the connections with the Department of Energy that we needed,” Watts said.

Raft River Geothermal, Idaho’s only commercial geothermal power plant , got its start with federal funding from the Department of Energy in the 1980s. But the plant lost funding and only operated for six months. In 2008, energy company U.S. Geothermal, later bought by Ormat, revived the plant to provide around 10 megawatts of energy, according to the Idaho Governor’s Office of Energy Resources.

Only one new project that could bring more geothermal generated power to Idaho is known to be in the works. Mountain Home Air Force Base last year signed agreements in partnership with Zanskar Geothermal & Minerals Inc., a geothermal power company, to develop a geothermal project that would produce electricity for the base. They’re still verifying resources and development hasn’t begun, said John Horsley, the energy manager for Mountain Home Air Force Base.

McLing has been working on new technologies to reduce the cost of geothermal development and hopes his research will help boost the state’s use of clean energy. The tool he developed at Idaho National Laboratory provides a more accurate reading of underground temperatures before drilling, a key indicator of whether the area is a prime spot to harness geothermal power.

The geothermometer combines a range of chemical measurements in geothermal water with mathematical modeling to accurately predict underground temperatures. It’s an improvement on older methods, which only examine one or two chemicals.

“Geothermal companies are not oil and gas companies. They’re small and don’t have that kind of revenue and kind of capital,” McLing said. “But if we had a way of helping them reduce the risk of drilling a well to prove out a resource, geothermal would go through another resurgence.”

In an effort to expand where geothermal energy can be produced, McLing is also working with the U.S. Department of Energy to improve enhanced geothermal systems and make them cheaper . Enhanced geothermal systems pump high-pressure water into dry, hot rock to crack it open, making locations without a natural water reservoir suitable for geothermal use.

In addition to providing more tools, McLing wants to develop ways to increase profits out of geothermal projects. One way would be to combine geothermal with other energy sources; solar energy, for example, can be used to heat geothermal water to higher temperatures, which generates more power, he said.

Geothermal water can also be a source for rare elements — such as Lithium, a mineral used in batteries. The ability to extract those minerals would provide another revenue stream for geothermal projects, McLing said.

While Idaho is not a top producer of geothermal energy, the state does have the largest number of geothermal direct-use applications in the U.S., using geothermal water to heat everything from buildings to fish farms, according to the U. S. Department of Energy.

Boise is home to the largest municipally operated geothermal heating system. Although the ground under the city isn’t hot enough to generate power, the heat used in downtown buildings reduces the CO2 equivalent of about 1,500 cars annually, said Tina Riley, city of Boise’s geothermal coordinator.

“It is a very effective, reliable, affordable form of energy with a low footprint that certainly in Boise helps us to meet our climate goals and is a great source of pride for the locals,” Riley told the Statesman.

Idaho Power plans for more geothermal use

Last month, as record-breaking heat hit Boise Idaho Power shut off electricity for 8,500 customers to reduce wildfire risk from power lines falling in high winds, according to prior Statesman reporting . July 22 also broke Idaho Power’s record for the most energy use the company has seen in a day.

Energy outages in extreme temperatures across the country have been dangerous. Over 200 people died in 2021 when a winter storm in Texas shut down power plants , causing mass outages in freezing temperatures. The same year, in the Pacific Northwest, over 100 people died from heat-related illnesses in a heat wave that led to rolling blackouts.

More companies have looked to expand their renewable energy sources. Idaho Power, which covers eastern and Southern Idaho, has the goal of generating 100% clean energy by 2045. Geothermal energy, for one, “can always be on,” Idaho Power spokesperson Brad Bowlin said.

“It’s predictable,” Bowlin told the Statesman. “The price of resources like coal, overall, those costs keep going up, whereas you know the costs for some renewable resources are trending down.”

For Nevada-based company Ormat, renewable energy requirements, tax incentives and policies that favor quick geothermal development determine the best places to invest, said Paul Thompson, Ormat’s vice president of business development — though he credited Idaho with having one of the “fastest and easiest permitting regimes,” with a permitting process that is less complicated than California’s.

“It’s kind of a courting exercise from the states,” Thompson told the Statesman. “It’s not by coincidence that we tend to own and operate a lot of projects in states that have favorable renewable policies.”

Tax abatements can provide major incentives for development. Nevada has up to a 55% reduction in property and sales tax for renewable energy projects, according to the Nevada Governor’s Office of Energy. Idaho offers a replacement for property taxes if a 3% tax on gross geothermal energy earnings is paid, according to state law.

Unlike Nevada and California, Idaho also lacks a renewable portfolio standard, which is a policy that mandates a certain amount of electricity from a renewable energy source and requires clean energy developments over initially cheaper options. That renewable portfolio standard would have to be approved by the Idaho Legislature.

“I don’t think it’s even on our radar,” state Rep. Rod Furniss, who is the vice chair of the House energy committee, told the Statesman by text. “We have other fish to fry, like water and schools.”

Ormat has made attempts in Idaho to expand beyond Raft River Geothermal. In 2017, the U.S. Forest Service denied Ormat’s proposed lease to develop a geothermal power plant by the Salmon River and Panther Creek near Salmon. The environmental impact statement noted a potential impact on the recreational and indigenous use of surrounding hot springs, according to the U.S. Forest Service.

But Ormat continues to explore potential developments in Idaho and consider leasing locations for power generation, Thompson said.

“Seven years ago, I was banging on people’s door, being like, ‘Please let me in and tell you a little story about geothermal.’ Now I’ve got people wanting to procure geothermal into 2035,” Thompson said. “There are more people looking at how to use geothermal in Idaho right now than ever before.”