Colorado awards $7.3 million for geothermal projects

DENVER — The Colorado Energy Office has awarded $7.3 million to four geothermal heating and cooling projects across the state, expanding efforts to develop renewable thermal energy networks for schools, local governments and businesses.

The funding, distributed through the third cycle of the Colorado Geothermal Energy Tax Credit Offering (GETCO), will support three new installations and one feasibility study. To date, Colorado has awarded a total of $23.2 million for geothermal projects, including $13.8 million through GETCO and $9.4 million from the state’s Geothermal Energy Grant Program.

Geothermal systems use consistent temperatures below the earth’s surface to heat and cool buildings efficiently while reducing greenhouse gas emissions. The technology can help lower energy costs, improve air quality and ease strain on the electric grid during extreme weather, according to state officials.

“Heating buildings with fossil fuels is a leading source of greenhouse gas pollution in Colorado,” said Will Toor, executive director of the Colorado Energy Office. “We are seeing growing interest in geothermal heating and cooling across the state, not only to help us achieve our climate goals but also to reduce energy costs and improve indoor air quality.”

The projects receiving funding include:

• Town of Vail ($1.78 million): Installation of a thermal energy network connecting the Vail Public Library and Dobson Ice Arena, with plans for future expansion to nearby facilities.
• Colorado Springs School District 11 ($5 million): Creation of a thermal energy network linking a new and existing building at Palmer High School to demonstrate cost savings in education facilities.
• Colorado Bathhouse in Denver ($526,200): Retrofit of two 1948 buildings into a geothermal-powered wellness center in the La Alma neighborhood.
• City of Steamboat Springs ($41,866): A feasibility study to assess a potential ground-source loop system for municipal buildings.

The GETCO program, funded through House Bill 23-1272, provides refundable tax credits to encourage geothermal innovation. About $13.8 million in funding remains available, and the next application cycle is open through Dec. 31.

Colorado officials say more than 40 geothermal projects have been supported statewide so far, positioning the state as a national leader in renewable thermal energy technology.