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Four Western States Form Geothermal Energy Partnership to Develop Underground Power Resources

Utah, Colorado, Arizona and New Mexico have established a regional partnership to accelerate development of geothermal energy across the Mountain West, officials announced Wednesday following a Western Governor’s Association workshop on energy production.

The Mountain West Geothermal Consortium brings together state officials from the four states to coordinate efforts on developing what organizers describe as hundreds of gigawatts of potential underground energy capacity in the region.

Utah Republican Gov. Spencer Cox and Colorado Democratic Gov. Jared Polis announced the consortium after meeting with geothermal technology executives. Cox said geothermal development enjoys bipartisan support uncommon for energy sources in recent years.

Geothermal technology converts underground heat into electricity. The consortium will provide participating states with coordinated resources and insights to speed up project development, according to the group’s fact sheet.

States in the partnership plan to develop financing mechanisms and regulatory frameworks aimed at reducing investment risk while protecting ratepayers.

Polis said the partnership allows states to pool resources and expertise to address market risks and policy barriers affecting geothermal development.

Cox said accelerating geothermal projects requires substantial capital investment, which depends on providing certainty to investors. He also pointed to permitting reform as necessary for faster development.

Utah currently hosts multiple geothermal projects, including an enhanced geothermal system in Beaver County expected to generate about 100 megawatts of capacity by early 2027, Cox said.

The governor cited Utah Forge, a Department of Energy laboratory developing geothermal drilling technologies, as a model that could be replicated with federal support.

Cox said universities across the four states could collaborate to train workers for the expected geothermal industry growth. He added that unified state efforts could increase influence with federal officials in Washington when discussing geothermal support.

Cox connected the geothermal partnership to questions about a proposed data center project in Box Elder County that has generated controversy. The 40,000-acre facility backed by investor Kevin O’Leary has been linked to plans for a natural gas pipeline and power plant.

Cox said only about 1 gigawatt of natural gas generation would occur in the project’s first phase, adding that a 9-gigawatt natural gas facility would not receive necessary air permits.

The governor said geothermal and other technologies could provide reliable, affordable and clean power for projects like the data center.

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