Western State and Local Policy Momentum: California, Utah, Colorado, Idaho, Arizona Advance Geothermal
Key Questions
What progress has Utah made on geothermal development?
Utah Governor Cox pledged full permitting for the Stratos data center, and two new generators are expected to triple the state's capacity. Rodatherm partnered with Fulcrum Point on a closed-loop project in Brigham City targeting 10 MW initially and up to 200 MW.
What geothermal initiatives are underway in Colorado?
Colorado's SB26-142 expands community-scale projects to 25 MW with a 120-day PUC review. The State Land Board issued an RFP for geothermal on state trust lands across five counties, excluding Chaffee County due to local opposition.
Which other western states are advancing geothermal policies?
Arizona allocated $1.5M for geothermal siting research and approved wells for copper extraction. New Mexico awarded $7.5M in grants including support for HeatFlow's Trilateral Flash Cycle turbine, while Idaho advanced a geothermal leasing bill.
What recent closed-loop geothermal test was completed in California?
GreenFire Energy completed a closed-loop test at The Geysers generating 1.1 MW from an idle well. The project could unlock up to 200 MW across California at $90-95/MWh, though Lake County opted out due to local concerns.
How are states repurposing oil wells for geothermal use?
Texas, New Mexico, Oklahoma, and Pennsylvania are pushing to convert abandoned oil wells for geothermal applications. Gradient Geothermal is converting waste heat to lower costs and address orphan well liabilities.
A bipartisan four-state consortium (AZ, NM, CO, UT) continues to scale; director Mike O'Connor identifies capital formation as key barrier. Utah Governor Cox pledged full permitting for Stratos data center; Senator Curtis noted two new generators will triple Utah's capacity. Colorado's SB26-142 expands community-scale projects to 25 MW with 120-day PUC review. Colorado State Land Board issued an RFP for geothermal on state trust land across five counties, excluding Chaffee County due to local opposition. Idaho geothermal leasing bill advances. Arizona allocated $1.5M for geothermal siting research and approved geothermal wells for copper extraction. New Mexico awarded $7.5M in advanced energy grants including HeatFlow for a Trilateral Flash Cycle turbine. Western governors launched a bipartisan transmission task force. Fervo's Serrurier called for standardized geothermal practices. US states (Texas, New Mexico, Oklahoma, Pennsylvania) are pushing to repurpose abandoned oil wells for geothermal, with Gradient Geothermal converting waste heat. GreenFire Energy completed a closed-loop test at The Geysers, generating 1.1 MW from an idle well, with potential to unlock 200 MW across California at $90-95/MWh, though Lake County opted out. Ormat continues exploration in Nevada, updating Churchill County on seven sites with core drilling at Diamond Flat (3-5 year timeline). Ormat is re-entering enhanced geothermal with SLB and Sage, developing a new 100 MW unit design. A new Rodatherm project in Brigham City, UT plans 10 MW initial, targeting 200 MW, using organic refrigerant closed-loop tech, enabled by SB132 (2025) allowing direct connection for large loads, bypassing Rocky Mountain Power monopoly. Fulcrum Point has partnered with Rodatherm for this project, with construction expected to start Q1 2027. Zanskar is moving into Pershing County, NV, with a 75 MW target and 2030 timeline, taking over Ormat's leases. BLM completed an EA for Open Mountain Energy's Wabuska exploration project in Lyon County, NV, allowing up to 11 wells.