Funding will support seven geothermal projects and studies to advance affordable clean heating, cooling, and electricity in Colorado

Statewide - The Colorado Energy Office (CEO) announced a total of $12.4 million in funding awards Wednesday to support seven geothermal projects across Colorado, including both heating and cooling and electricity development. This funding from the Geothermal Energy Grant Program (GEGP) and Geothermal Energy Tax Credit Offering (GETCO) will enable awardees to plan and install thermal energy networks that deliver efficient heating and cooling to buildings, as well as implement studies and test wells for geothermal electricity. Awardees include school districts, universities, hospitals, local governments, and power developers.

"Colorado is leading the way in harnessing the heat beneath our feet to study and unlock geothermal potential that saves Coloradans money on energy bills. By investing in innovative geothermal technology, we are cutting down our emissions, and utilizing our unique natural resources to provide clean and affordable heat for Colorado homes and businesses to save money," said Governor Polis.

To date, CEO has awarded a total of $42.6 million through GEGP and GETCO to advance geothermal in the state. Geothermal technology will play an important role in reducing emissions from two of the state's top five highest emitting sectors: buildings and electricity generation.

"Geothermal energy is an essential part of our work to transform Colorado's energy system," said CEO Executive Director Will Toor. "By advancing technologies such as high-efficiency geothermal heat pumps and geothermal electricity generation, we can provide clean, affordable heat and firm, reliable electricity to Coloradans across the state. We are proud to support geothermal innovation in Colorado, which will help ease demand on our electric grid and enable us to achieve our climate goals."

Of the seven awards, five come from GETCO and are focused on geothermal heating and cooling, including three installation projects that are expected to avoid emissions equivalent to 2.8 million miles of vehicle miles traveled annually. The other two awards come from the final round of GEGP funding, which focused on projects exploring and implementing geothermal electricity development.

The awarded projects include a broad range of geothermal applications. For example, Aspen School District is installing the first section of a thermal energy network (TEN) that will connect and provide heating and cooling to three instructional, administrative, and athletic buildings - totaling over 400,000 square feet of conditioned space. Meanwhile, Fervo Energy will utilize their award to conduct a geothermal resource assessment in Colorado's Denver Basin and Northwest regions to evaluate the potential for future geothermal electricity development.

The awardees for each program are as follows:

• GETCO awardees:
  • The Memorial Hospital ($18,000): TEN pre-feasibility study at a hospital in Craig
  • McKinstry Essention, LLC ($1.3 million): Detailed designs to expand the TEN in downtown Vail to serve more buildings
  • Aspen School District ($5 million): TEN installation to heat and cool middle and high school buildings
  • Adams State University ($4.3 million): TEN installation to integrate a new system to provide continued efficient and reliable heating and cooling to student buildings on campus
  • Town of Hayden ($970,000): Ground source heat pump installation at multiple locations to further develop their utility park
• GEGP awardees:
  • Fervo Energy ($494,000): Geothermal energy resources assessment in Colorado's Denver Basin and Northwest regions
  • ZGEO Energy ($306,000): Further develop an exploration well to evaluate resource potential for a utility-scale power plant in Montrose and San Miguel Counties
    

For more information on these projects, as well as previously awarded initiatives through GEGP and GETCO, see the Colorado Energy Office Geothermal Incentive Award Tracker.

This funding is part of Governor Polis' nation-leading Heat Beneath Our Feet initiative to advance geothermal technology in the Mountain West. This was the final round of funding through GEGP. Since GEGP launched in 2023, the program has provided $9.8 million in funding for 43 heating and cooling projects and six electricity projects in Colorado. The GETCO program is currently accepting applications for its fifth cycle until June 30, 2026, and may award up to $2.2 million this funding cycle.

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