Montana State Profile
Background
Although many areas of Montana may have high enough temperatures at depth to support geothermal power generation, geothermal development in the state has thus far been limited to low-temperature (less than 100°C) near-surface geothermal resources. Many areas in the mountainous western part of Montana have been found to have such near-surface resources, and the eastern third of the state has abundant deeper geothermal aquifers. Hot water from such low-temperature geothermal resources can be used directly to heat buildings, grow plants in greenhouses, or heat water for aquaculture, while the potential exists for electricity generation from moderate-temperature resources (below 150°C). Nearly 20 hot-spring resorts and public bathing facilities in the state take advantage of these resources, with many also using geothermal energy for space heating.
Three areas in Montana, including the area just north of Yellowstone National Park, and many of the valleys within the Rocky Mountains in southwestern Montana, have the potential for groundwater temperatures above 100°C. In eastern Montana, hydrothermal resources may be accessed by drilling wells to tap deep aquifers. Geothermal wells in eastern Montana can reach water that is hotter than the natural hot springs and other near-surface hydrothermal systems. One well located near Poplar has encountered water with a temperature that exceeds 115°C.
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Current Development
Nearly 20 public or commercial recreational facilities have been built around Montana hot springs. The Fairmont Hot Springs Resort has 152 rooms and the state's largest pool. Natural springs supply hot water to the pool, while the hotel is heated with geothermal well water. Chico Hot Springs Resort has 80 rooms and cabins, a pool/spa, and a geothermally-heated greenhouse. The Spa and Hotel at White Sulfur Springs uses geothermal energy for heating, along with wind turbines and solar panels for electricity. Reestablishment of geothermal space heating for the Warm Springs State Hospital is also being investigated. In addition, use of geothermal heat pumps is common throughout Montana.
Proposed Development
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One private company is currently exploring the feasibility of installing a small binary power system near one of the state's existing spas. Power would be used by the resort and sold to the utility under a net-metering program. Binary systems use geothermal water to heat a secondary, lower-boiling-point fluid that serves as the working fluid to generate electricity. Small binary power systems can take advantage of moderate-temperature resources and avoid the environmental impacts of air emissions and released geothermal water.
A second company is tapping geothermal heat from the approximately 50°C spring water that is filling the former Anaconda open pit mine complex in Butte. Water/antifreeze transfer fluid will be pumped to a heat exchanger 800 feet down one of the shafts and back to the surface to radiators or heat exchangers to heat three businesses housed in the Parrot Mine Shop, a former shop building at the mine. This project is funded in part by a renewable energy grant, and both this project and the binary power production project are partially funded by 2005 grants from NorthWestern Energy under Montana's Universal Systems Benefit Fund.
A "Collocated Resources Study" by Oregon Institute of Technology's Geo-Heat Center identified 18 communities in Montana that are within five miles of a geothermal resource with a temperature of at least 50°C, and are good candidates for district heating or other direct geothermal uses. Also, a 1994 study by the Montana Bureau of Mines and Geology identified five priority research areas based on the proximity of geothermal areas to population centers and transportation routes.
Higher-temperature water encountered in deep oil wells may also be used to produce electricity. A recent study by Black Mountain Technology of the potential associated with wells in the Poplar Dome Oil Field located on the Fort Peck Indian Reservation in the northeast corner of Montana indicates a potential for generating one megawatt from producing oil wells, or three megawatts by deepening and then hydrofracturing some unused wells. This area currently produces 20,000 barrels per day of hot water at 130°C.
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.
Montana's renewables portfolio standard (RPS), was enacted in April 2005 through the Montana Renewable Power Production and Rural Economic Development Act. The Act requires public utilities to procure five percent of their retail electricity sales from renewable sources in 2008 and 2009. The standard increases to 10 percent in 2010-2014, and increases again to 15 percent in 2015. The standard applies to facilities in Montana, or new facilities built after January 1, 2005 that deliver electricity to Montana. Geothermal energy is among the resources that are eligible under the RPS as renewable energy sources for the generation of electricity.
Renewable energy projects are also eligible for grants from the state's Universal Systems Benefit Fund. Montana also has a revolving loan program, which is available for small alternative energy projects. Geothermal and other renewable energy facilities up to 1 megawatt in capacity are exempt from corporate property tax for their first five years of operation. Larger facilities are eligible for either reduced property tax assessment or a 35 percent corporate tax credit. Montana offers a personal income tax credit of up to $1,500 for installation of geothermal heat pumps for principal residences plus a property tax exemption for the systems.
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.
A state Geothermal Working Group is planned for Montana. The GPW state lead for Montana is Kathi Montgomery, Air, Energy and Pollution Prevention Bureau, Montana Department of Environmental Quality Tel: (406) 841-5243, Email: kmontgomery@mt.gov.
List of Projects
Geothermal projects operating in Montana include the following:
- Bigfork Greenhouses Greenhouse
- Camas Hot Springs Pool/Spa
- Camp Aqua Pool/Spa
- Lolo Hot Springs Resort Pool/Spa
- Quinn's Hot Springs Pool/Spa
- Symes Hotel and Medicinal Spring Pool/Spa
- Lolo Hot Springs Space Heating
- Lost Trail Hot Springs Resort Pool/Spa
- Medicine Hot Springs Pool/Spa
- Sleeping Child Hot Springs Pool/Spa
- Brooks Warm Springs Aquaculture
- White Sulfur Springs Space Heating
- High Country Rose Greenhouses Greenhouse
- Broadwater Hot Spring Pool/Spa
- Spa Motel Pool/Spa
- Boulder Hot Springs Space Heating
- Broadwater Athletic Club and Hot Spring Space Heating
- Fairmont Hot Springs Resort Space Heating
- Hillbrook Nursing Home Space Heating
- Warm Springs State Hospital Space Heating
- Boulder Hot Springs Pool/Spa
- Fairmont Hot Springs Resort Pool/Spa
- Bozeman Hot Springs Space Heating
- Chico Hot Springs Space Heating
- Ennis Laundry Industrial
- Jackson Hot Springs Lodge Space Heating
- Hunter Hot Springs Greenhouse
- Chico Hot Springs Greenhouse
- Bozeman Hot Springs Pool/Spa
- Chico Hot Spring Pool/Spa
- Barkell's Hot Springs Pool/Spa
- Bear Trap Hot Spring Pool/Spa
- Elkhorn Hot Springs Pool/Spa
- Jackson Hot Springs Pool/Spa
- New Biltmore Hot Springs Pool/Spa
- Silver Star Greenhouse and Space Heating
- Potosi Hot Springs Space Heating
- Quinn's Hot Springs Space Heating
- Norris Hot Springs Pool/Spa
Details regarding the location and geothermal energy capacity of each project can be found at the Montana State Geothermal Projects website, http://geoheat.oit.edu/state/mt/mt.htm, developed by the Oregon Institute of Technology's Geo-Heat Center..
State Contacts
Montana Department of Environmental Quality
Kathi Montgomery
Air, Energy and Pollution Prevention Bureau
Tel: (406) 841-5243
Bureau of Land Management
Montana/Dakotas State Office
Department of Geology
University of Montana
Department of Natural Resources and Conservation
Montana Bureau of Mines and Geology
Montana Tech University of Montana
Planning, Prevention and Assistance Division State Revolving Fund Loan Programs
Montana Fish, Wildlife, and Parks
Montana Public Service Commission
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