Alaska State Profile
Background
Geothermal resources are present at various locations within Alaska's Interior and throughout the southern coastal region, including the volcanically-active Alaska Peninsula, Aleutian Islands, and Alaska Panhandle. Several moderate- to high-temperature hydrothermal reservoirs with the potential for electrical power production have been identified throughout Alaska. Among the sites that have been considered for power projects are the islands of Unalaska and Akutan, both within the Aleutian Chain, as well as various locations throughout the Interior. However, geothermal energy is not currently being used for large-scale electricity generation in Alaska. Hydrothermal resources with temperatures too low for power production are useful for applications in which thermal energy is transferred directly from geothermal fluids. Such direct-use applications, including the heating of greenhouses and other commercial and residential structures, are widespread throughout Alaska. Additionally, many of Alaska's geothermal resources are manifested as surface hot-springs that are developed for therapeutic and recreational purposes.
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Current Development
To date, geothermal development in Alaska has been focused on the direct use of thermal waters for therapeutic bathing and recreation, and space heating. Alaska's numerous hot spring resorts include Circle Hot Springs and Chena Hot Springs, both of which are located in the northeast Interior region and use thermal waters to supply swimming pools and to heat on-site lodging and greenhouse buildings. Chena Hot Springs also features an ice museum-the world's largest year-round building constructed of ice and snow. As a conventional fuel-powered chilling system would be cost-prohibitive, geothermal energy enables this unique structure to be maintained year-round through the resort's use of geothermal fluids to operate an absorption chilling system.
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Although geothermal resources are widespread throughout Alaska, some of the state's most promising resources are in remote locations lacking large population centers, or they are isolated from potential users by rugged terrain. For these reasons, the construction of large geothermal power plants has not yet taken place in Alaska. A high-temperature (above 150°C) hydrothermal reservoir identified on Unalaska Island has been considered for the development of a 15 MWe (megawatts electric) power plant to supply the city of Unalaska and Dutch Harbor, one of the nation's most active seaports. However, the challenges of transmitting the electricity over the terrain separating the energy source from the city, coupled with subsidies for diesel generation, have necessitated additional feasibility studies to implement geothermal power. By instead bringing energy-intensive industries and processes to the site of a geothermal resource, it may be possible to take greater advantage of Alaska's geothermal energy in the absence of transmission infrastructure or high population density. Furthermore, geothermal energy can serve as a renewable energy input to the production of hydrogen and other alternative fuels, thereby improving the economics of their production and facilitating industrial opportunities for Alaska.
Field investigations are ongoing to further characterize Alaska's geothermal resources and identify areas appropriate for development. The U.S. Geological Survey has estimated that Alaska's geothermal resources hold the potential for 189 MWe of power production and 434 MWt (megawatts thermal) for direct use. Recent investigative efforts have focused on the resource area currently tapped by the Chena Hot Springs Resort. The resort, located about 60 miles northeast of Fairbanks, hopes to eliminate its current use of diesel-fired generators by using geothermal fluids for electricity generation. Resource characterization and test drilling activities have resulted in a partnership with United Technologies to construct a demonstration plant consisting of two 200-kilowatt modular units which will begin operating in July 2006 to generate electricity for use by the resort. This project will demonstrate state-of-the-art use of a Rankine Cycle power plant system and the ability to use a relatively low-temperature reservoir for small-scale, on-site electricity generation. The Chena site is similar to other locations throughout the region-it is in a remote setting off of the main power grid, with a geothermal resource in a temperature range once considered too low for power production. Success at the Chena site will open the door for similar geothermal development opportunities throughout Alaska.
Economic Benefits
Hot-spring resorts in Alaska are tourist destinations that help to boost local economies. The direct use of geothermal energy allows resorts to decrease their operating costs and supports enterprises such as green housing. Chena Hot Springs Resort, one of Interior Alaska's most popular tourist destinations, estimates a yearly heating fuel cost savings of approximately $183,000 by using a geothermal district heating system throughout all buildings on the property. Chena's geothermal greenhouse also produces crops year-round for use at the resort. Furthermore, upon installation of the geothermal power plant, power production costs at the resort are expected to be reduced from 30¢ to 5¢ per kilowatt-hour.
Technical Capabilities
Alaska universities, state agencies, and private firms contribute technical capabilities to the local and national geothermal communities. The University of Alaska has participated in various research and exploration projects throughout Alaska, including the investigation of the Chena Hot Springs area.
Incentives
With the passage of the Energy Policy Act of 2005, the national Production Tax Credit (PTC) was extended to include geothermal facilities in operation by January 1, 2008. The PTC is an incentive of 1.5¢ per kWh for electricity produced from renewable sources during the first ten years of a new facility's operation.
State Working Groups
Geothermal State Working Groups are networks of individuals typically including geothermal developers, utility representatives, local officials and policymakers, and other energy stakeholders within a given state or region. Such groups are sponsored by the U.S. Department of Energy's GeoPowering the West Initiative and often work in conjunction with the State Energy Office of the group's respective state to conduct networking conferences, analyze regulatory issues, and assess the progress of local geothermal projects.
Alaska has established a Geothermal State Working Group with leadership from the Alaska Energy Authority. The Alaska group brings together state and regional energy professionals to promote the increased utilization of the state's geothermal resources.
List of Projects
Geothermal projects operating in Alaska include the following:
- Bell Island-Space Heating
- Baranof Warm Springs-Pool/Spa and Space Heating
- Tenakee Springs-Pool/Spa
- Goddard Hot Springs-Pool/Spa
- White Sulphur Hot Springs-Pool/Spa
- Circle Hot Springs-Pool/Spa and Space Heating
- Tolovana Hot Springs-Pool/Spa
- Chena Hot Springs-Pool/Spa, Space Heating, Greenhouse
- Melozi-Space Heating
- Ophir Creek-Space Heating
Details regarding the location and geothermal energy capacity of each project can be found at the Alaska State Geothermal Projects website, developed by the Oregon Institute of Technology's Geo-Heat Center.
State Contacts
Alaska Energy Office
Alaska Housing Finance Corporation - Rural Research and Development Department
Scott Waterman
State Energy Program Manager
(907) 330-8195
GeoPowering the West - State Working Group
David Lockard
Alaska Energy Authority
(907) 269-4541
http://www.akenergyauthority.org
National DOE Contacts
U.S. Department of Energy
Curtis Framel
Senior Energy Project Officer
Golden Office
Golden, CO
(303) 275-4872
U.S. Department of Energy
Sandy Glatt
Senior Energy Project Officer
Golden Field Office
Golden, Colorado
(303) 275-4857