The Reese River project is underway with a 1,200m slim hole for exploration. Sierra Geothermal expects to tap somewhere between 13 and 30 megawatts (MW) when the project enters production. At 30MW, that represents enough power to run around 26,000 households in the US for a year.

An interesting side note on this is that Sierra’s drilling program is receiving some $580,000 of Federal assistance throught the GRED program, a program that has been eliminated with the release of the FY2007 US Federal budget. See this entry for more detail on this subject.

Thanks to Jim for passing this along.


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Technorati Tags: Energy | Geothermal | Drilling

Joint Venture of Silicon Valley publishes an annual report attempting to provide a holistic view of life and opportunity in the valley. To their credit, I’ve not seen a more complete view than what they’ve published – tip of the hat to Kevin for passing this along. The report for 2006 is available here. The report covers people, economy, society, place, and governance in the valley and is assembled by a diverse group of private and public agencies.

The general report is interesting enough, but I found a section on investment in clean tech to be very telling. Overall venture investment in the valley Quarters 1-3 in 2005 (Q4 2006 not yet available, so this will be a 3 quarter comparison) was $4.6B. The same period in 2006 saw the total rise to $5.2B, a healthy 13% increase year over year.

When we break out the clean tech segment, it’s even more interesting. Check the chart below:



As you can see the 2005 Q1-3 total investment was on the order of $95M compared with $480M in the same period for 2006. A 505% increase year over year. Perhaps even more importantly, the total share of clean tech in the overall venture picture increased from 2% in 2005 to 9% in 2006. The chart below gives a breakout of the general areas of investment in clean tech and the dollar amount in each category:



It’s clear that we’re starting to see a shift in the way people are thinking about “green” from something that “is good for the planet” to something that “is good business.” And that’s exactly the shift that needs to happen, until these technologies and their attendant environmental benefits are profitable, we won’t see the magnitudes of change required to make a difference. However, venture capitalists as a rule seek out places their money can work at multiples, it’s encouraging to see the expectation of returns in this segment.


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Technorati Tags: Energy | Investment | Clean Tech

Richard Branson today announced a $25M prize for the first viable means of “scrubbing the atmosphere of billions of tons of carbon gases from the atmosphere.”

It’s a big challenge, sort of the same spirit of the Ansari X Prize that gave $10M to the first non-government organization to reach space with manned flights twice within two weeks.


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Technorati Tags: Carbon Prize | 25 Million | Atmosphere Scrubber

Ormat Technologies (ORA) was granted an 11,000 acre geothermal lease off the coast of Texas. This is significant in it represents the first such lease in Texas, home of petroleum.

One has to wonder about the feasibility of tapping into such a resource in that area. By all indications it is a DEEP resource we’re talking about that will be technically difficult to tap – think ocean drilling rig expensive. We’ll watch development of this resource with interest. Thanks to Jim for passing this along yesterday.


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Technorati Tags: Energy | Geothermal | Texas

In what has become one of the latest examples of the Bush Administration’s difficulty with matching their actions to their words, the geothermal program at the Department of Energy will receive funding this fiscal year of $0 if the budget passes as is. This is a national tragedy in the making as we are unable (or unwilling) to make use of all the assets we have to drive toward energy independence.

Why is geothermal important? I’m glad you asked. Geothermal power is the only renewable capable of baseload generation – meaning, it’ll be there when you flip your TV on (you do expect it to come on, right?) Solar, wind, biomass, and hydro are all less than baseload as they are affected by external factors (sunlight, wind, and drought.) Geothermal power generation in a closed system is zero emission. In an open system, it’s still far less than 1% as polluting as coal generation. The recent MIT study demonstrated there is more than enough heat stored in the Earth’s crust for us to harvest to power the nation (and indeed, the world.) You would think that a power source with these attributes would be at or near the top of any energy policy’s priorities.

When one considers the size of the Department of Energy’s proposed budget, the ridiculousness of this action becomes clear: The total budget is $24,300,000,000 or $24.3 BILLION. The size of the geothermal program? $0.0022B or $22 MILLION. The amount budgeted for maintaining our nuclear capability? $9.4 billion. The amount set aside to clean up the environmental messes we’ve already made? $9.4 billion. The amount budgeted for basic science? $4.4 billion (this is a good thing, but geothermal must be part of the research program.) $3.1 billion is budgeted for energy efficiency and supply programs. Fundamentally, I have nothing against other renewable programs being funded (an aside, solar funding is flat, wind has been cut 10%, hydro and geothermal have been cut altogether; hydrogen, biomass, and “clean coal” have all seen big increases in funding.) But I do have heartburn with failing to fund the one renewable electricity generation source that stands a chance of displacing aging, dirty coal plants.

The geothermal program is a rounding error in a budget of this size. The program deserves to be funded an order of magnitude more per year in order to realize the potential of the geothermal resources inside our border, not eliminated. The solution to this budget mess is clear, cut “clean coal” research by $250 million and use it to fund geothermal at the right level. After all, if coal pollution is cut by anything less than 99%, it’s still more polluting than the dirtiest geothermal resource. This is a matter of priorities and, as usual, the Bush Administration is confused in what is in the national interest by why is in the interest of their big money donors (see TXU and the $11 BILLION dollar coal construction binge in Texas.) Politics clearly play a role in this as well as Harry Reid (D,) US Senator from Nevada (home to huge amounts of geothermal potential) is the Senate Majority Leader, the Administration is aiming to hurt him at home and/or use that as a lever to get something else in the future if they cave on the geothermal research request.

In the end, it doesn’t really matter why this is happening. The action signals the end of US government support for geothermal as a renewable energy source. A resource that could over the course of 50 years displace the entire coal electricity generation infrastructure in the United States with the attendant environmental benefits. And that’s the point, isn’t it? Geothermal is being sacrificed on the altar of “clean coal” – if ever there was an oxymoron, it is “clean coal.”

We’ll watch closely to see what changes happen in the proposed budget, but we’re not hopeful. If you would like make yourself heard on the subject, write your local Congressial representative and your Senators.


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Technorati Tags: DoE | FY07 Budget | Geothermal Slashed