South Dakota State Profile
Background
South Dakota possesses significant low-temperature (<150°C) geothermal resources that have been put to beneficial use for over 100 years. The state's numerous direct-use applications include therapeutic spas and recreational swimming facilities. Energy from hydrothermal resources is also being harnessed for purposes such as district heating in two communities, an aquaculture business, and space heating. South Dakota's geothermal resources, concentrated primarily in the western and south-central portions of the state, are not considered to be adequate for electric power generation. However, there is potential for the expansion of direct heating uses, particularly in conjunction with South Dakota's prevalent agricultural and livestock operations, and its growing tourism industry.
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Current Development
Geothermal development in South Dakota has historically included therapeutic hot spring baths and the direct use of thermal water by ranchers for space heating and grain drying. Development continues to include spas throughout the state, and a large recreational pool located in the Black Hills town of Hot Springs in the southwestern quadrant of the state. Within the same region, a district heating system was constructed in 1980 in the town of Philip that heats five school buildings and eight buildings in the adjacent business district. The nearby town of Midland also employs a district heating system for public and commercial buildings. A fish-farming business is also supported with geothermal resources, and the installation of geothermal heat pumps is increasing in popularity for commercial, public, and residential facilities.
Proposed Development
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Hydrothermal activity considered to have the greatest development potential is located in the western and south-central regions of South Dakota in association with the Madison Group and Dakota Sandstone geologic strata. Hydrothermal reservoirs in the state are not considered favorable for the discovery of high-temperature resources suitable for electricity generation, and the potential capacity for electricity generation has not been quantitatively estimated. The total potential capacity for direct thermal use has been estimated at 2,592 MWt.1
New plans for the development of geothermal resources in South Dakota continue to focus on geothermal (ground-source) heat pump systems in public and private facilities. The opportunity exists for new direct-heating systems using thermal waters directly in recreational and agricultural applications.
Economic Benefits
In South Dakota, public school districts, municipalities, and private business owners and individuals have utilized geothermal energy as a lower-cost alternative to fuel oil and natural gas. Geothermal heat pump (GHP) systems, sometimes referred to as ground-source heat pumps, are used due to their superior cost-effectiveness in providing heating and cooling for municipal buildings such as the City Hall in Pierre (the state capital), and numerous private residences.
Technical Capabilities
South Dakota possesses universities, state agencies, and private firms that have the capability to contribute expertise to the investigation and development of geothermal energy in the state. Faculty from the South Dakota School of Mines assisted with implementation of the Midland district heating system.
Incentives
South Dakota farmers, ranchers, and other rural small businesses have the opportunity to receive funding assistance from the United States Department of Agriculture for renewable energy and energy efficiency projects under Section 9006 of the Farm Bill (Farm Security and Rural Investment Act of 2002). Projects eligible for funding include those involving the utilization of geothermal energy, either directly or to enhance production of other renewable energy resources such as hydrogen derived from biomass. Projects are selected for funding through an annual competitive solicitation process. More information regarding this opportunity is available at: http://www.rurdev.usda.gov/rbs/farmbill/index.html.
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. They 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.
South Dakota has not established a Geothermal State Working Group at this time. However, the South Dakota Energy Office is actively engaged in partnership with the U.S. Department of Energy through the State Energy Program, which provides funding assistance to facilitate projects utilizing energy efficiency and renewable energy technologies.
List of Projects
Geothermal projects operating in South Dakota include the following:
- Stroppel Hotel Spa and Pool, and Space Heating
- St. Mary's Hospital Space Heating
- Philip District Heating
- Midland District Heating
- Min-Kota Fisheries
- Evan's Plunge Spa and Pool
Details regarding the location and geothermal energy capacity of each project can be found at the South Dakota State Geothermal Projects website, http://geoheat.oit.edu/state/sd/sd.htm, developed by the Oregon Institute of Technology's Geo-Heat Center.
State Contacts
South Dakota Energy Office
Michele Farris, P.E.
Statewide Energy Manager
523 E. Capitol Avenue
Pierre, SD 57501-3182
Phone: (605) 773-3899
Bureau of Land Management
Montana/Dakotas State Office
South Dakota Department of Agriculture
Governor's Office of Economic Development
South Dakota Department of Environment and Natural Resources
South Dakota Geological Survey
South Dakota Public Utilities 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
1Estimate of thermal resource potential from United States Geological Survey Circular 892-Assessment of Low-Temperature Geothermal Resources of the United States; Thermal Installed Capacity and Annual Energy data from Oregon Institute of Technology-GeoHeat Center