Colorado awards $12.4 million for geothermal energy projects

DENVER — The Colorado Energy Office has awarded $12.4 million to support seven geothermal energy projects across the state, including heating and cooling systems and electricity development.

The funding comes from the Geothermal Energy Grant Program and the Geothermal Energy Tax Credit Offering. Projects include installing thermal energy networks, conducting studies and drilling test wells to assess geothermal electricity potential. Recipients include school districts, universities, hospitals, local governments and energy developers.

To date, the state has awarded $42.6 million through the two programs to expand geothermal development. State officials said geothermal could help reduce emissions from buildings and electricity generation, two of Colorado’s highest-emitting sectors.

“Geothermal energy is an essential part of our work to transform Colorado’s energy system,” said Will Toor. “By advancing technologies such as high-efficiency geothermal heat pumps and geothermal electricity generation, we can provide clean, affordable heat and reliable electricity.”

Five of the awards, funded through the tax credit program, focus on heating and cooling projects. Three of those installations are expected to avoid emissions equivalent to 2.8 million miles of vehicle travel each year. Two additional awards support geothermal electricity exploration and development.

Projects include a thermal energy network installation by the Aspen School District to serve multiple campus buildings totaling more than 400,000 square feet. Fervo Energy received funding to assess geothermal resources in the Denver Basin and northwest Colorado.

Other recipients include The Memorial Hospital in Craig, McKinstry Essention LLC, Adams State University, the Town of Hayden and ZGEO Energy.

The latest awards include the final round of funding from the grant program, which has provided $9.8 million since 2023 for 49 geothermal projects. The tax credit program is accepting applications through June 30 and could award up to $2.2 million in its current cycle.