GEOTHERMAL RESOURCES GLENWOOD SPRINGS, COLORADO

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GEOTHERMAL RESOURCES GLENWOOD SPRINGS, COLORADO ( geothermal-resources-glenwood-springs-colorado )

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geothermal heat pump system having a capital cost of $475,000 and a payback of 5.6 years; (3) a closed loop geothermal heat pump system with a capital cost of $927,500 and payback of 9.8 years; and (4) use of waste water from the pool with a capital cost of $700,000 and a payback of 10.8 years. Taking into account several critical project parameters, as listed in Table 4 in Appendix D, the potential uses are ranked as follows: 1. Waste Water Use 2. Space Heating 3. Hybrid System 4. Downhole Heat Exchanger 5. District Heating 6. Closed Loop Heat Pump 7. Open Loop Heat Pump 8. Electric Power Generation The Community Center was analyzed using several of the above project parameters, with direct use of the geothermal resource being the recommended technology with an ROI of 21%. FUNDING OPPORTUNITIES Funding Research by the contractors has confirmed that there are several sources of funding that may be applicable to a Glenwood Springs geothermal project. They include Federal Grants, Federal Tax Incentives, and State Funding. In the first group, a Ground Source Heat Pump program, available for application until August 6, 2009, was most appropriate. Investment Tax Credits of 30% and Production Tax Credits of 2.1 cents per kWh are available for power generation with no current time constraints. State funds may be available via “Capital Investment Grants and Revolving Loan Funds” as well as “Energy Efficiency and Conservation Block Grants”. Details are too complex to describe in this section, but they are contained in the report body. To date the contractors have not identified potential investment partners from the geothermal industry, the institutional, or the private sectors. If an electric power project is pursued, it might interest utility investors as was the case with the Rifle, Colorado photovoltaic project where Southern California Edison became financially involved. RECOMMENDATIONS On the basis of the information summarized above, the following recommendations are made: 1. If thermal waters are produced, the drilling of a reinjection well is recommended to help maintain aquifer pressure and temperature and to help mitigate any possible negative effects on existing thermal water users. Estimated cost of drilling a 600-foot injection well at $125/ft is $75,000. The depth may vary depending upon the subsurface conditions encountered and the dip of the Leadville Limestone. 2. A geologist and/or groundwater engineer should be consulted to determine the optimum sites for both production and injection wells. Conduct of a geophysical study such as a reflection seismic survey would help in identifying these sites. The cost of a geologist or ground-water engineer for one week of work at $200/hr is $8,000. The cost of a seismic reflection survey would be $100,000 for a two-dimensional, two-line survey and analysis of the results. 4

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