Arizona State Profile
Background
Arizona, a state better known for solar power, is gradually cultivating its potential for geothermal energy. Although high-temperature geothermal resources needed for electric power production have not yet been discovered, the state contains lower-temperature resources that can be put to direct use.
Most thermal wells in Arizona are located south of the Colorado Plateau. Areas of geothermal activity in Arizona are mostly located in the Basin and Range geologic province. Irrigation wells in the region tap deep-seated aquifers that are overlain by thermally-insulating sediments in agricultural areas. Three locations, Buckhorn Baths in Apache Junction, Castle Hot Springs in the Bradshaw Mountains, and Childs on the Verde River, exhibit potential for further geothermal exploration. Two high-temperature springs, (70-82°C) at Clifton and Gillard in the Clifton-Morenci area could be used as sources for low-grade steam.
Arizona uses geothermal energy primarily to support aquatic life. There are several aquaculture operations in the state that use geothermal resources for raising fish and shrimp. The Desert Springs Tilapia facility near Hyder houses half of the state's installed geothermal direct-use capacity. Additionally, hydrothermal resources are being used for crop irrigation, spas, and greenhouse heating.
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Current Development
Geothermal development in Arizona has included direct use, and therapeutic and recreational applications. A recently-developed geothermal database for Arizona identifies 1,251 discrete thermal wells or springs in the state. Wells and springs having particular development potential due to the close proximity of residential communities have been documented in the counties of Cochise, Graham, Greenlee, Maricopa, Pima, Pinal, Yavapai, and Yuma.
Geothermal research is ongoing with leadership from the state government and Northern Arizona University. However, researchers are finding it difficult to investigate resources in areas like Tucson and Phoenix due to the rapid growth of these urban areas.
Potential Development
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Arizona has many areas with low- to moderate-temperature geothermal fluids at shallow depths that could be used directly for various heating applications. In helping to meet agricultural energy needs, these resources can be applied to controlled-environment agriculture (greenhouses and nurseries), aquaculture, grain and vegetable drying, and soil warming for mushroom growing and earthworm farms. Space heating in residential and commercial facilities is often accomplished in other states having similar geothermal resources.
In the 1970s, the Geothermal Commercialization Team within the University of Arizona's Department of Chemical Engineering studied possible uses of geothermal resources. The team completed geothermal development plans for Cochise, Graham, Greenlee, Maricopa, Pima, Pinal, Santa Cruz and Yuma counties; these plans are available from the Arizona Geological Survey.
Between 1977 and 1982, a state geothermal assessment team conducted a study of the state's geothermal resources, with attention focused mainly on the southern part of the state. The team's reports indicated Arizona has many areas with low- to moderate-temperature fluids at depths sufficiently shallow to harness thermal energy. Areas of geothermal activity in Arizona are primarily located in the Basin and Range geologic province in the southern part of the state. Reports were also prepared to analyze the geothermal potential for various cities, including Clifton, Scottsdale-Paradise Valley, Tucson, Wilcox, and Yuma.
Arizona Public Service (APS), along with Northern Arizona University, Arizona State University, New Mexico State University, and the Ormond Group, has received a Department of Energy grant to drill an exploration well near Clifton to gauge the potential for a geothermal power plant. Researchers anticipate that the area has the potential to generate 20 megawatts of electric power, but data from a 3,000-foot-deep test hole will be used to confirm the resource potential. If a hydrothermal reservoir with a sufficiently high temperature and flow-rate is discovered, an initial two-megawatt binary-cycle plant may be constructed.
Economic Benefits
The economic benefits to Arizona from the use of geothermal resources can take various forms. For example, agricultural enterprises using geothermal energy are able to reduce fossil fuel consumption and increase their profit margins. Aquaculture and greenhouse businesses often bring employment opportunities to rural areas. Additionally, increased tourism resulting from the development of new resorts can generate new jobs and increased state revenue.
Technical Capabilities
There are several agencies, universities, and private companies assisting in the efforts to further explore Arizona's geothermal capabilities. This collaboration includes: Vulcan Power, Northern Arizona University, Arizona State University, New Mexico University, Arizona Public Service, and the Ormond Group. This partnership has been awarded a grant through the U.S. Department of Energy to investigate geothermal development opportunities in Arizona.
Northern Arizona University (NAU) is also participating in outreach efforts to educate Arizona's population regarding geothermal resources, and how these resources might benefit the state. NAU is also evaluating sites in the San Francisco Peaks area for geothermal potential.
Incentives
With the passage into law 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.
Although most of the state's renewable energy incentives are focused on solar and wind power, Arizona has established an Interconnection Standards Incentive to establish statewide interconnection standards for distributed electricity generation.
Arizona's original Renewable Energy Portfolio Standard was one of the first in the nation to be enacted on a statewide level. As of 2001, it only required that 0.2 percent of in-state electricity sales be derived from renewable energy. The standard was scheduled to increase to 1.1 percent for 2007-2011, with solar energy comprising 60 percent of renewable sources. However, in early 2006, the Arizona Corporation Commission voted to raise renewable energy standards to 1.25 percent by 2006, and to 15 percent by 2025. Approval has also been granted for geothermal to be included as an acceptable renewable energy source for purposes of achieving the standard.
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. Geothermal State Working 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 accomplish networking conferences, analyze regulatory issues, and assess the progress of local geothermal projects.
The Arizona Working Group has established two primary tasks: collecting data on all of the current state geothermal applications and documented resources, and identifying future energy development activities that will be the most beneficial to the state.
List of Projects
Geothermal projects operating in Arizona include the following:
- Ringboldt Rapids Hot Springs Pool/Spa
- Buckhorn Mineral Wells Pool/Spa
- Castle Hot Springs Pool/Spa
- Kaiser Hot Springs Pool/Spa
- Verde Hot Springs Pool/Spa
- Hyder Ranch Aquaculture
- Hyder Valley Aquaculture
- Buckhorn Mineral Wells Space Heating
- Safford Pool/Spa
- Safford Aquaculture
- Marana Aquaculture
Details regarding the location and geothermal energy capacity of each project can be found at the Arizona State Geothermal Projects website, http://geoheat.oit.edu/state/az/az.htm, developed by the Oregon Institute of Technology's Geo-Heat Center.
State Contacts
Arizona Energy Office
Department of Commerce
GeoPowering the West — Arizona State Working Group
Amanda Ormond
The Ormond Group
(480) 491-3305
Arizona Coalition for New Energy Technologies
Arizona Corporation Commission
Arizona Department of Agriculture
Arizona Game and Fish Department
Bureau of Land Management
Arizona State Office
Department of Geosciences
University of Arizona
University of Arizona, Department of Geosciences
National DOE Contacts
U.S. Department of Energy
Curtis Framel
Senior Energy Project Officer
Golden Field Office
Golden, Colorado
(303) 275-4872
U.S. Department of Energy
Sandy Glatt
Senior Energy Project Officer
Central Regional Office
Golden, Colorado
(303) 275-4857