Hearings and Business Meetings
July 11, 2006
Full Committee Hearing- Geothermal Energy
SD-366 Energy Committee Hearing Room 02:30 PM
Mr. Bernie Karl
Proprietor, Chena Hot Springs Resort
Testimony by
Bernie Karl
Proprietor, Chena
Senate Energy and Natural Resources Committee
Hearing on Geothermal Energy
July 11, 2006
My name is Bernie Karl. I am the proprietor of Chena Hot Springs outside of
The power generation project at Chena would not be possible without support from the United States Department of Energy’s Geothermal Technologies Program, which is currently threatened with elimination. I am testifying in support of reinstating and expanding the Department of Energy’s geothermal budget as well as extending the production tax credit for geothermal resources.
Our country faces a number of critical energy concerns including the need for a diverse portfolio of clean, renewable domestic sources of supply. Additional investment in public private geothermal R&D partnerships can open up extensive new opportunities for domestic production of renewable energy. New technologies that hold tremendous promise for tapping moderate temperature geothermal resources, including those associated with oil and gas production are emerging. Without validation in real world operating conditions and a stable, sustained commitment to financial incentives, the necessary investment will not be made and these technologies will never penetrate the market resulting in lost opportunities for renewable domestic energy production and the associated economic and environmental benefits.
For example, until just a few years ago, it was believed that power generation from geothermal resources lower than 230ºF was uneconomical. However, that picture is changing as the cost of energy rises, and the technology improves. Moderate temperature geothermal resources are by far the most prevalent in the
In fact, you could hit those temperatures right here underneath
4% of power generation in the West today is generated from geothermal resources. However, this existing generation is almost all from high temperature, easily accessible resources. The next step in geothermal power generation will require new technologies, including enhanced geothermal (EGS), exploration for blind systems, and development of improved technologies for moderate temperature power generation. All of these areas are being explored by the Department of Energy’s Geothermal Technologies Program and are jeopardized by the Administration’s proposed elimination of funding.
I can testify from firsthand experience that the Department of Energy’s program, with Dr. Roy Mink, and until recently David Garman, at the helm represents the best our government can offer. They are hands-on managers, who understand the possibilities and are tirelessly working to steer our country in the right direction while keeping a close eye on the bottom line. Without their support, the geothermal projects at Chena Hot Springs, which have attracted $3 million in private investment alone, would never have come to fruition.
In the future, the geothermal industry is also going to need to think outside of the box. There are currently 225,000 producing oil and gas wells[2] in
If every producing oil and gas well in
Geothermal energy is also a potentially vital piece of a future ‘hydrogen economy’ in which Congress is investing research dollars. Hydrogen production over the long run makes sense only from using renewable energy sources. Therefore, development of those resources should go hand in hand with hydrogen research.
President Bush has stated repeatedly that we are addicted to oil and as a country we need to wean ourselves from this addiction. Geothermal energy is part of that solution. Geothermal development has had success with readily accessible higher temperature sources. The opportunities for geothermal technology development have not been exhausted; there is still huge potential for additional future generation of heat and power by applying new technologies to abundant lower temperature resources.
The Department of Energy has historically been the driving force behind new development and exploration in geothermal – the ‘thinking outside the box’ that industry is often reluctant and financially unable to undertake alone. I believe that reinstatement, and even expansion of the geothermal technologies program budget is critical for the future of power generation in the
In addition, I recommend the Renewable Electricity Production Credit that is due to sunset in 2008 be extended until 12/31/14 as provided in S 2829. The continued R&D investment via cost shared public private partnerships sponsored by DOE coupled with a longer term production credit will provide the market with more certainty and enable sound investment choices. There are never simple solutions, only intelligent choices. Thank you for the opportunity to speak on this important and timely topic.