New Mexico should do more to develop its geothermal potential

WASHINGTON, DC, US, September 20, 2006 (Refocus Weekly) New Mexico could use its geothermal resources to produce green fuels such as ethanol and biodiesel, according to a report from the Geothermal Energy Association.

The state has at least nine identified resource areas where power production potentially can be developed, explains ‘Geothermal Development Needs in New Mexico.’ The report documents a resurgence in geothermal development in New Mexico and identifies specific barriers to achieving the state’s geothermal potential.

“New Mexico’s geothermal resource base is both underestimated and under-utilized, and improved economics and advanced technology have made geothermal resource development an attractive alternative to reduce New Mexico’s reliance on fossil fuels,” says author Daniel Fleischmann. The report examines plans to develop new power projects in the Animas Valley, and development of large-scale geothermal heating systems as evidence of a resurgence of interest.

There are plans to expand an existing greenhouse complex to become the largest geothermal-heated greenhouse in the United States, and proposals for a self-contained geothermal power unit to be installed at an aquaculture facility in Hidalgo County.

The state could generate 10% to 25% of its power from specific geothermal sites excluding the Valles Caldera area, according to recent reports including the 250 MW estimate in this year’s geothermal task force of the Western Governors Association and the 240 MW to 600 MW range from Sandia National Laboratory. The WGA report said there are 80 MW of near-term power potential in New Mexico (compared with 5,508 MW in ten other western states examined in the report), with resources located mainly in the southwestern region from the Arizona border to Las Cruces.

The report examines the impact of government programs on new development and recommends an extension of the federal production tax credit as “critical” to expanding New Mexico’s geothermal power production beyond 2007. It also says New Mexico could expand geothermal direct-use production by incorporating thermal provisions in the state Renewable Portfolio Standard and the state could revitalize rural companies by providing funds for geothermal development in agricultural industries.

The report says hundreds of megawatts of power potential could be identified by providing funding for new exploration in the Rio Grande rift, and says geothermal ‘green heat’ systems can serve residents in the two largest cities of Albuquerque and Las Cruces. The most significant current application of geothermal in New Mexico is for greenhouses, and the state leads the nation in geothermal greenhouse acreage, which covers half the total greenhouse acreage in the state. Geothermal-heated greenhouses have been one of the most lucrative agricultural products in the state, employing hundreds of workers and producing $30 million in annual sales.

“As energy demand continues to rise throughout the U.S. (particularly in the west), states are forced to grapple with their reliance on fossil fuels,” the report notes. New Mexico sources 95% of its electricity from fossil fuels (primarily coal) while green power (including hydro) supplies 4%.


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