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HAYDEN, Colo. — For decades, Dallas Robinson’s family excavation company developed coal mines and power plants in the rugged, fossil-fuel-rich region of northwest Colorado. It was a good business to be in, one that helped hamlets like Hayden grow from outposts to bustling mountain towns — and kept families like Robinson’s rooted in place for generations.
“This area, with the exception of agriculture, was built on oil and gas and coal,” said Robinson, a former town councilor for Hayden.
But that era is coming to a close. Across the United States, bad economics and even worse environmental impacts are driving coal companies out of business. The 441-megawatt coal-burning power plant just outside Hayden is no exception: It’s shutting down by the end of 2028. The Twentymile mine that feeds it is expected to follow.
Coal closures can gut communities like Hayden, a town of about 2,000 people. That story has been playing out for decades, particularly in Appalachia, where coal regions with depressed economies have seen populations decline as people strike out for better opportunities elsewhere. Robinson, a friendly, gregarious guy, fears the same could happen in Hayden.
“I grew up here, so I know everyone,” he said. “It’s hard to see people lose their jobs and have to move away. … These are families that sweat and bled and been through the good and the bad times in small towns like this.”
Struggling American coal towns need an economic rebirth as the fossil-fuel industry fades. Hayden has a vision that, at first, doesn’t sound all that unusual. The town is developing a 58-acre business and industrial park to attract a diverse array of new employers.
The innovative part: companies that move in will get cheap energy bills at a time of surging utility costs. The town is installing tech that’s still uncommon but gaining traction — a geothermal heating-and-cooling system, which will draw energy from 1,000 feet underground.
In short, Hayden is tapping abundant renewable energy to help invigorate its economy. That’s a playbook that could serve other communities looking to rise from the coal dust.
At an all-day event hosted by geothermal drilling startup Bedrock Energy this summer, I saw the ambitious project in progress. Under a blazing sun, a Bedrock drilling rig chewed methodically into the region’s ochre dirt. Once it finished this borehole — one of about 150 — it would feed in a massive spool of black pipe to transfer heat.
Bedrock will complete the project, providing 2 megawatts of thermal energy, in phases, with roughly half the district done in 2026 and the whole job finished by 2028. Along the way, constructed buildings will be able to connect with portions of the district as they’re ready.
“We see it as a long-term bet,” Mathew Mendisco, city manager of Hayden, later told me, describing the town as full of grit and good people. Geothermal energy “is literally so sustainable — like, you could generate those megawatts forever. You’re never going to have to be reliant on the delivery of coal or natural gas. … You drill it on-site, the heat comes out.”
Geothermal is also the rare renewable resource that the Trump administration has embraced. In July, Secretary of Energy Chris Wright, whose firm invested in geothermal developer Fervo Energy, helped convince Congress to spare key federal investment tax credits for the sector.
These incentives apply to both the deep projects for producing power as well as the more accessible, shallower installations for keeping buildings comfy. Unlike geothermal projects for power, ones for direct heating and cooling don’t depend on geography; any town can take advantage of the resource.
“We disagree on the urgency of addressing climate change, [but] this is something that Chris Wright and I agree on,” Colorado Senator John Hickenlooper (D), a trained geologist, told a packed conference-room crowd on the day of the event. “Geothermal energy has … unbelievable potential to, at scale, create clean energy.”
The eventual closure of the Hayden Station coal plant, which has operated for more than half a century, has loomed over the town since Xcel Energy announced an early shutdown in 2021.
The power plant and the mine employ about 240 people. Property taxes from those businesses have historically provided more than half the funding for the town’s fire management and school districts — though that fraction is shrinking thanks to recent efforts to diversify Hayden’s economy, Mendisco said.
Taking into account the other businesses that serve the coal industry and its workers, according to Mendisco, the economic fallout from the closures is projected to be a whopping $319 million per year.
“Really, the highest-paying jobs, the most stable jobs, with the best benefits [and] the best retirement, are in coal and coal-fired power plants,” Robinson said.
But coal has been in decline for over 20 years, largely due to growing investment in cheap fossil gas and renewables. While the Trump administration tries to defibrillate the coal industry and force uneconomic coal plants to stay open past their planned closure dates, states including Colorado still plan to phase out fossil fuels in the coming years. Colorado’s remaining six coal plants are set to shutter by the end of the decade.
Hayden aims for its business park to help the town weather this transition. With 15 lots to be available for purchase, the development is designed to provide more than 70 jobs and help offset a portion of the tax losses from Hayden Station’s closure, according to Mendisco.
“We are not going to sit on our hands and wait for something to come save us,” Mayor Ryan Banks told me at the event.
Companies that move into the business park won’t have a gas bill. They’ll be insulated from fossil-fuel price spikes, like those that occurred in December 2022, when gas prices leapt in the West and customers’ bills skyrocketed by 75% on average from December 2021.
In the Hayden development, businesses will be charged for their energy use by the electric utility and by a geothermal municipal utility that Hayden is forming to oversee the thermal energy network. Rather than forcing customers to pay for the infrastructure upfront, the town will spread out those costs on energy bills over time — like investor-owned utilities do. Unlike a private utility, though, Hayden will take no profit. Mendisco said he expects the geothermal district to cut energy costs by roughly 40%, compared with other heating systems.
The setup will deliver such massive savings because geothermal appliances, which draw energy from the always-temperate Earth, are the most efficient space-conditioning tech you can get. They pump out the same amount of heat as a fossil-fuel-fired furnace while using just one-sixth to one-quarter of the energy.
Municipally owned geothermal districts are rare in the U.S., but the approach has legs. Pagosa Springs, Colorado, has run its geothermal network since the early 1980s, when it scrambled to combat fuel scarcity during the 1970s oil embargo. New Haven, Connecticut, recently broke ground on a geothermal project for its train station and a new public housing complex. And Ann Arbor, Michigan, has plans to build a geothermal district to help make one neighborhood carbon-neutral.
Hayden’s infrastructure investment is already attracting business owners. An industrial painting company has bought a plot, and so has a regional alcohol distributor, Mendisco said.
One couple is particularly excited to be a part of the town’s clean energy venture. Nate and Steph Yarbrough own DIY off-grid-electrical startup Explorist.Life; renewable power is in the company’s DNA. The Yarbroughs teach people how to put solar panels and batteries on camper vans, boats, and cabins to fuel their outdoor adventures, and Explorist.Life sells the necessary gear.
“When we bought that property, it was largely because of the whole geothermal concept,” Nate Yarbrough told me. “We thought it made a whole bunch of sense with what we do.”
Reducing reliance on hydrocarbons, he noted, is “a good thing for society overall.”
The geothermal network that could transform Hayden’s future is mostly invisible from aboveground. Besides the drilling rig and a trench, the most prominent features I spotted were flexible tubes jutting from the earth like bunny ears.
Those ends of buried U-shaped pipes will eventually connect to a main distribution loop for businesses to hook up to. Throughout the network, pipes will ferry a nontoxic mix of water and glycol — a heat-carrying fluid that electric heat pumps can tap to keep buildings toasty in the winter and chilled in the summer.
Despite their superior efficiency, these heat pumps are far less common than the kind that pull from the ambient air, largely due to project cost. Because you have to drill to install a ground-source heat pump, the systems are typically about twice as expensive as air-source heat pumps.
But the underground infrastructure lasts 50 years or more, and the systems pay for themselves in fuel-cost savings more quickly in places that endure frostier temperatures, including Rocky Mountain municipalities like Hayden. Those long-term cost benefits were too attractive to ignore, Mendisco said.
Hayden’s project “is 100% replicable today,” Mendisco told attendees at the event, which included leaders of other mountain towns. Geothermal tech is ready; the money is out there, he added: “You can do this.”
Colorado certainly believes that — and it’s giving first-mover communities a boost.
In October, the state energy office announced $7.3 million in merit-based tax-credit awards for four geothermal projects. Vail is getting nearly $1.8 million for a network, into which the ice arena can dump heat and the library can soak it up. Colorado Springs will use its $5 million award to keep a downtown high school comfortable year-round. Steamboat Springs and a Denver neighborhood will share the rest of the funding.
At least one other northwest Colorado coal community is also getting on board with geothermal. In the prior round of state awards, the energy office granted $58,000 to the town of Craig’s Memorial Regional Health to explore a project for its medical campus.
With dozens of communities warming to the notion, “it’s an exciting time for geothermal in Colorado,” said Bryce Carter, geothermal program manager at the state energy office.
So far, the state has pumped $30.5 million into geothermal developments — with over $27 million going toward heating-and-cooling projects specifically — through its grant and tax-credit programs. The larger tax-credit incentive still has about $13.8 million left in its coffers.
Hayden, for its part, is also taking advantage of the federal tax credits to save up to 50% on the cost of its geothermal district. That includes a 10% bonus credit that the community qualifies for because of its coal legacy. After also accounting for a bonanza of state incentives, the $14-million project will only be $2.2 million, Mendisco said.
Tech innovation could further improve geothermal’s prospects, even in areas with less generous inducements than Colorado’s. Bedrock Energy, for one, aims to drive down costs by using advanced sensing technology that allows it to see the subsurface and make computationally guided decisions while drilling.
“In Hayden, we have gone from about 25 hours for a 1,000-foot bore to about nine hours for a 1,000-foot bore — in just the last couple of months,” Joselyn Lai, Bedrock’s co-founder and CEO, told me at the event. Overall, the firm’s subsurface construction costs from the first quarter of 2025 to the second quarter fell by about 16%, she noted.
Hayden is likely just at the start of its geothermal journey. If all goes well with the business park, the town aims to retrofit its municipal buildings with these systems to comply with the state’s climate-pollution limits on big buildings, Mendisco said. Hayden’s community center could be the first to get a geothermal makeover starting in 2027, he added.
Robinson, despite coal’s salience in the region and his family’s legacy in its extraction, believes in Hayden’s vision: Geothermal could be a winner in a post-coal economy. In fact, he’s interested in investing in the geothermal industry and installing a system in a new house he’s building, he said.
“I’ve lived a lot of my life making a living by exploiting natural resources. I understand the value of that — as well as lessening our impact and being able to find new and better,” Robinson said. “This is the next step, right?”
ITHACA, N.Y. — A faded-red wellhead emerged in the middle of a pockmarked parking lot, its metal bolts and pipes illuminated only by the headlights of Wayne Bezner Kerr’s electric car. He stepped out of the vehicle into the dark, frigid evening to open the fence enclosing the equipment, which is just down the road from Cornell University’s snow-speckled campus in upstate New York.
We were there, shivering outside in mid-November, to talk about heat.
Bezner Kerr is the program manager of Cornell’s Earth Source Heat, an ambitious project to directly warm the sprawling campus with geothermal energy pulled from deep underground. The wellhead was the tip of the iceberg — the visible part of a nearly 10,000-foot-long borehole that slices vertically through layers of rock to reach sufficiently toasty temperatures. Cornell is using data from the site to develop a system that will replace the school’s fossil-gas-based heating network, potentially by 2035.
“We can’t decarbonize without solving the heat problem,” Bezner Kerr repeated like a refrain during my visit to Ithaca.
The Ivy League university is trying to accomplish something that’s never been done in an area with rocky geology like upstate New York’s. Most existing geothermal projects are built near the boundaries of major tectonic plates, where the Earth’s warmth wells up toward the surface. Iceland, for example, is filled with naturally heated reservoirs that circulate by pipe to keep virtually every home in the country cozy. And in Kenya and New Zealand, geothermal aquifers supply the heat used in industrial processes, including for pasteurizing milk and making toilet paper.
Bezner Kerr and I, however, stood atop a multilayered cake of mudstone, limestone, sandstone, and other rocks — seemingly everything but water. To access the heat radiating beneath our feet, his team will need to create artificial reservoirs more than 2 miles into the earth.
America’s geothermal industry has made significant strides in recent years to generate clean energy in less obvious locations, and it’s done so by adapting tools and techniques from oil and gas drilling. One leading startup, Fervo Energy, is developing “enhanced geothermal systems” in Utah and Nevada to produce clean electricity around the clock. The approach involves fracking impermeable rocks, then pumping them full of water so that the rocks heat the liquid, which eventually produces steam to drive electric turbines.
Earth Source Heat plans to use similar methods to drill a handful of super-deep wells and create fractures near or within the crystalline basement rock, where temperatures are consistently around 180 degrees Fahrenheit, no matter the weather above. The project is also unique in that, among next-generation systems, it’s focused only on heating buildings — not supplying electricity — for the nearly 30,000 students and faculty. That’s because heat represents the biggest source of Cornell’s energy use, and its largest obstacle to reducing planet-warming emissions.
On the chilliest days, the campus can use up to 104 megawatts of thermal energy, which is more than triple its peak use of electrical energy during the year.
Such a ratio poses a big conundrum for not only large institutions like Cornell but also any cold-climate cities that burn fossil fuels to keep warm, as well as manufacturing plants that require lots of steam and hot water for steps as varied as fermenting beer, making oat milk, and sterilizing equipment.
Right now, one of the most immediate ways to cut emissions from thermal energy use is to replace gas-fired boilers and the like with heat pumps and other electrified technologies. But that can substantially increase a city’s or factory’s electricity use. In an ideal world, all the new power demand would be satisfied by renewable energy projects and served by a modern and efficient grid, helping limit the costs and logistical headaches of ditching fossil fuels.
In reality, though, the U.S. electricity system is straining to keep up with the emergence of data centers, new factories, and electrified buildings and vehicles. Utilities are pushing plans to build new gas-fired power plants and proposing higher electricity rates to cover the costs. New York, for its part, is failing to meet its own goals for installing gigawatts of new renewables and energy storage projects by 2030, in part because of barriers to permitting projects in the state. New York’s independent grid operator recently warned of “profound reliability challenges” in coming years as rapidly growing demand threatens to outpace supply.
Geothermal heating could provide a way to curb thermal-energy emissions without burdening the electric system even more, said Drew Nelson, vice president of programs, policy, and strategy with Project InnerSpace, a nonprofit that advocates for geothermal energy use.
“Electrification is great, but that’s a whole lot of new electrons that need to be brought onto the grid, and a whole lot of new transmission and distribution upgrades that need to be made,” Nelson said by phone. “For applications like industrial heat, or building heating and cooling, geothermal almost becomes a ‘Swiss Army knife,’ in that it can help reduce demand.” Using geothermal energy directly is also far more efficient than converting it to electricity, since a lot of energy gets lost in the process of generating electrons.
Still, deep, direct-use geothermal systems like the one Cornell is developing are relatively novel, and many manufacturers and city planners are either unfamiliar with the solution or unwilling to be early adopters.
Sarah Carson, the director of Cornell’s Campus Sustainability Office, explained that Earth Source Heat is intended to reduce technology risks and costs for other major heat users that might benefit from geothermal, including the region’s dairy producers and breweries. We spoke inside her office, which is attached to the 30-megawatt gas-fired cogeneration plant that currently provides both electricity and heating for the campus.
“We’re working really hard to build a ‘living lab’ approach into the ethos of how we approach things,” she said. “Can we not only take care of our own [carbon] footprint but also help develop and demonstrate solutions that could scale out?”
Earlier on that overcast day, Bezner Kerr and I drove to the shores of Cayuga Lake.
Winds whipped up the grayish-blue waters, which form one of the 11 long, skinny Finger Lakes that glaciers etched into the Earth millions of years ago. Cayuga Lake is, in a way, the inverse of a heated geothermal reservoir. Cornell uses the chilly lake to cool the water that circulates across campus, replacing the need for industrial chillers that use lots of refrigerants and electricity.
Inside the Lake Source Cooling facility, giant blue pipes intersect through pieces of equipment called heat exchangers. Since heat naturally flows from hotter objects to colder ones, the lake water acts like a magnet, pulling heat out of the campus-water loop. The lake-water loop then moves the heat down to the cold bottom of Cayuga, and the cycle repeats. Bezner Kerr said Earth Source Heat will do the same but in reverse, flowing hot water up to the surface and returning the cooled-off water underground, where the earth can continuously reheat it.
Initially, he said, the new geothermal system will connect to an existing underground hot-water loop that heats East Campus, including two energy-intensive research buildings. This first stage is expected to cost over $100 million and could be completed in the next few years. Depending on how Earth Source Heat performs, the university might expand the system to warm around 150 large buildings on the main campus.
The university’s approach is far more intensive than the geothermal systems that cities and high-rise buildings are increasingly deploying across the country. An underground thermal network in Framingham, Massachusetts, consists of 90 holes drilled about 650 feet deep that heat 36 homes and commercial buildings; it also uses electric heat pumps to boost the temperatures coming out of the ground. Cornell’s home city of Ithaca has proposed piloting its own thermal network to heat and cool buildings on a city block.
Jefferson Tester, a Cornell professor and the principal scientist for Earth Source Heat, said these shallower geothermal systems aren’t as practical for heating the 15-million-square-foot campus.
For one, the university would need to drill north of 10,000 smaller wells to adequately warm all its buildings, instead of the five very deep wells it has planned. And digging deeper into the ground will allow Cornell to use the heat straight away, without adding heat pumps.
Tester joined Cornell in 2009 to help launch Earth Source Heat, which is part of the university’s larger plan to achieve a carbon-neutral campus in Ithaca by 2035. For over a decade, faculty and engineers gathered data and developed models to get a better sense of the region’s geology, heat resources, and potential for drilling-related earthquakes, often in partnership with the U.S. Department of Energy.
But to fully grasp the subsurface’s conditions, they needed to drill. “And once you understand the geology well enough … you could go anywhere in this region” to harness geothermal energy, Tester said.
In 2022, the university drilled that first 10,000-foot-long hole, which is called the Cornell University Borehole Observatory, in the parking lot. “It was the same level of intensity as an oil-and-gas exploration rig,” Bezner Kerr recalled. “It was oil-and-gas workers drilling a well that produces knowledge instead of producing hydrocarbons.” Cornell received about $7 million from the Energy Department for the project, which cost around $14 million to deploy.
Now the team is ready to drill again, though the timing of the next phase is up in the air amid funding uncertainty.
Earth Source Heat wants to reopen the borehole, deepen it, and use fiber-optic cables and other tools to study how the rock responds to stress and high-pressure injections of water — data that will inform the design of the final system. In 2024, during the Biden administration, Cornell applied for over $10 million from the Energy Department for the project, with plans to line up drilling equipment this year. But the Trump administration hasn’t yet responded to the request.
If the team can finish the second phase of its borehole observatory, the next step will be to drill a demonstration well pair — two vertical spines with horizontal legs, and fractured rocks in between — to begin heating part of East Campus.
The drilling delays come as Cornell faces growing criticism from climate activists both on and off campus, who argue that the university isn’t reducing its emissions nearly fast enough to help limit global temperature rise. Cornell on Fire, a climate-justice group, has raised concerns that Cornell is using Earth Source Heat as a “delay tactic to avoid undertaking necessary actions now on other critical fronts.” The group says Cornell should immediately provide more adequate funding for the geothermal project and be more transparent about its timeline for implementing the system.
Meanwhile, Carson said her office is feeling pressure from climate advocates to start replacing the current gas-fueled heating network with electrified technologies like heat pumps and electric boilers. But she and her colleagues believe that swiftly boosting Cornell’s electricity demand would require increasing gas-fired power generation off campus, reducing the school’s CO2 footprint on paper without lowering emissions overall. Even so, Carson’s team is evaluating a range of potential solutions, including heat-storing batteries and shallower geothermal networks, in case Earth Source Heat doesn’t work as well as hoped.
These tensions highlight the tricky reality of developing big and novel clean-energy projects. A well-designed, smartly managed geothermal system could help decarbonize heat for buildings and factories over the course of many decades. But finding the right locations and best ways to install those networks takes careful planning, patience, and significant upfront investment. That can be tough to stomach, both for project investors antsy to see financial returns and for citizens eager to dump polluting fossil fuels today.
“We’ve got to be thinking about a long-term, multigenerational commitment” for tackling climate change, Tester said. “And that is really hard for people.”
To Bezner Kerr, it doesn’t seem like larger discussions on decarbonization fully acknowledge just how big of a challenge heat represents — and what it would mean to electrify all the country’s heating needs. We were speaking then in his office, where a grayish chunk of Potsdam sandstone retrieved from deep below sat in a white plastic bucket next to his desk.
“It’s like there’s this huge train coming down the tracks,” he said. “And nobody realizes we’re about to get flattened by this thing if we do it wrong.”
A correction was made on Dec. 10, 2025: This story originally misstated Cornell on Fire’s position on the Earth Source Heat project; this piece has been updated to more accurately reflect the group’s stance.
The startup Fervo Energy just raised another $462 million to build America’s next generation of geothermal power plants.
On Wednesday, the Houston-based company said it closed a Series E funding round led by a new investor, B Capital, a global venture capital firm started by Facebook cofounder Eduardo Saverin. With the latest announcement, Fervo says it’s raised about $1.5 billion overall since 2017 as it develops what could become the world’s largest “enhanced geothermal system” in Utah.
“Fervo is setting the pace for the next era of clean, affordable, and reliable power in the U.S.,” Jeff Johnson, general partner at B Capital, said in a news release.
The Series E funding comes as Fervo reportedly prepares to become a publicly traded company, which would let it raise even more capital for its ambitious projects. When asked about a potential IPO, Fervo said only that the company is “focused on executing our development plan” in an email to Canary Media. “We have a lot of capital needs going forward to fuel our planned growth and will be tapping a lot of different opportunities to make that happen.”
Fervo is part of a burgeoning movement in the U.S. and globally to unleash geothermal energy in many more places.
The carbon-free energy from deep underground is available around the clock, but it represents only about 0.4% of total U.S. electricity generation — largely because the existing technology is constrained by geography. Today’s geothermal plants rely on naturally occurring reservoirs of hot water and steam to spin their turbines and generate power, which are available in a limited number of places.
Fervo’s approach involves creating its own reservoirs by fracturing hot rocks and pumping them full of water. The company uses the same horizontal drilling techniques and fiber-optic sensing tools as the oil and gas industry in an effort to reach deeper wells and hotter sources than is possible with conventional geothermal technology.
Its flagship development, Cape Station, is well underway in Beaver County, Utah. The project’s initial 100-megawatt installation is on track to start delivering power to the grid in October 2026, which will make it the first commercial-scale enhanced geothermal project to hit such a milestone worldwide, according to Fervo. An additional 400 MW is slated to come online in 2028.
“It’s very exciting to see at this point in time, because of the tangible progress that has been made,” Sarah Jewett, Fervo’s senior vice president of strategy, told Canary Media. “It’s really looking like a power project out there” in Utah, she added, noting that an electrical substation and three power facilities now sit alongside the drilling equipment and well pads. About 350 people currently work at the site.
Fervo has already completed a pilot project in Humboldt County, Nevada. The 3.5-MW facility went online in November 2023 and supplies power directly to the Las Vegas-based utility NV Energy. Google, which backed the project, also joined the Series E as one of Fervo’s new investors.
The financing announced this week will enable the startup to continue building Cape Station and to start development on other project sites where Fervo is conducting rock and soil analyses, Jewett said. One of the new projects will be in Nevada, where Fervo is working with NV Energy and Google to develop 115 MW of geothermal energy that will power the tech giant’s data centers. But the startup isn’t ready to disclose more details on the other locations.
Jewett said the fact that Fervo’s Series E was oversubscribed — meaning the firm raised more funding than it initially sought — is a reflection of the robust U.S. market for clean energy that’s available 24/7, not only for powering data centers but also for new domestic factories and electrified vehicles and buildings.
“There is just massive demand for the type of electricity that we’re providing,” she said.
Hot rocks might be the next big thing in energy.
Global investment in geothermal energy is growing quickly — and it’s expected to keep climbing in the years to come, per new data from research firm Rystad Energy.
At the start of the 2020s, less than $2 billion flowed each year toward projects that harness the Earth’s natural underground heat to either produce electricity or directly warm buildings. By 2030, that figure could hit nearly $9 billion, Rystad predicts.
Geothermal systems have been around for decades in places where the Earth’s warmth sits close to the planet’s surface — think regions with lots of hot springs, for example. But decarbonization goals and rising power demand are fueling renewed enthusiasm for the always-available clean energy source, and emerging technologies mean companies can tap into it in areas with more challenging terrain.
Geothermal heating is most popular in Europe, where there’s growing interest in using the energy source for thermal networks that can warm up multiple buildings. Iceland, which has long leveraged its volcanic geology to keep homes toasty, is the famous example here.
When it comes to electricity, geothermal makes up less than 1% of the world’s supply. The U.S. is the global leader in terms of geothermal power capacity, with much of it located in California’s steamy Geysers region. It’s no surprise, then, that America is among the countries investing the most in the energy source, topping the chart this year and last.
Rystad doesn’t expect the U.S. to be No. 1 for much longer, predicting that volcano-laden Indonesia will steal the top spot for investment starting in 2027. Even so, geothermal could have a bright future in the U.S. It’s something of a unicorn: a clean energy source that has broad support among both Democrats and Republicans.
Geothermal energy is undergoing a renaissance, thanks in large part to a crop of buzzy startups that aim to adapt fracking technology to generate power from hot rocks virtually anywhere.
Meanwhile, the conventional wisdom on conventional geothermal — the incumbent technology that has existed for more than a century to tap into the energy of volcanically heated underground reservoirs — is that all the good resources have already been mapped and tapped out.
Zanskar is setting itself apart from the roughly one dozen geothermal startups currently gathering steam by making a contrarian bet on conventional resources. Instead of gambling on new drilling technologies, the Salt Lake City–based company uses modern prospecting methods and artificial intelligence to help identify more conventional resources that can be tapped and turned into power plants using time-tested technology.
On Thursday, Zanskar unveiled its biggest proof point yet.
The company announced the discovery of Big Blind, a naturally occurring geothermal system in western Nevada with the potential to produce more than 100 megawatts of electricity. It’s the first “blind” geothermal system — meaning that the underground reservoir has no visible signs, such as vents or geysers, and no data history from past exploration — identified for commercial use in more than 30 years.
In total, the United States currently has an installed capacity of roughly 4 gigawatts of conventional geothermal, most of which is in California. That makes the U.S. the world’s No. 1 user of geothermal power, even though the energy source accounts for less than half a percentage point of the country’s total electricity output.
The project is set to go into development, with a target of coming online in three to five years. Once complete, it will be the nation’s first new conventional geothermal plant on a previously undeveloped site in nearly a decade, though it may come online later than some next-generation projects.
“We plan to build a power plant there, and that means interconnection, permitting, construction, and drilling out the rest of the well field and the power plant itself. But that’s all pretty standard, almost cookie-cutter,” said Carl Hoiland, Zanskar’s cofounder and chief executive. “We know how to build power plants as an industry. We’ve just not been able to find the resources in the past.”
Prospecting is where Zanskar stands out. While surveying, the company’s geologists found a “geothermal anomaly” indicating the site’s “exceptionally high heat flow,” according to a press release. The team then ran the prospecting data through the company’s AI software to predict viable locations to drill wells in order to test the temperature and permeability of the system.
Zanskar drilled two test wells this summer. Roughly 2,700 feet down, the drills hit a porous layer of the resource with temperatures of approximately 250 degrees Fahrenheit. The company said those “conditions exceed minimum thresholds for utility-scale geothermal power” and “contrast greatly” with other areas in the region, which would require digging as far down as 10,000 feet — potentially viable for the next-generation technologies Zanskar’s rivals are pitching.
The firm’s announcement comes as the U.S. clamors for more electricity, in large part because of shockingly high forecasts of power demand from data centers. Many of the tech companies developing data centers, like Google and Meta, are eager to pay big for “clean, firm” power — electricity that is carbon-free and available 24/7. Geothermal, whether advanced or conventional, is a tantalizing option for meeting those standards, and tech giants already anchor some next-generation projects.
Ultimately, Zanskar thinks it can convince data centers to colocate near where it finds resources.
If it’s able to find additional untapped resources that are suitable for conventional technology, Zanskar could deliver new geothermal power faster and cheaper than the flashier startups on the scene can. Those firms, including Fervo Energy and XGS Energy, are making significant progress in bringing down the cost of their drilling techniques, but they are still using new technologies that remain more expensive than the traditional approach, which has been refined over time.
“The core reason we started the company is we came to believe that the Department of Energy’s estimates of hydrothermal potential were just orders of magnitude too low and were all based on studies that are over 20 years old,” Hoiland said. “We think that there’s 10 times more out there than they thought, and that every one of those sites can be 10 times more productive in terms of the number of megawatts they can generate.”
Among the notable cheerleaders of this same theory? The chief executive of the leading next-generation geothermal company. Responding to a post on X from Zanskar cofounder and chief technology officer Joel Edwards describing how much more conventional geothermal remains untapped, Fervo CEO Tim Latimer wrote, “Joel makes a great point about geothermal that you see all the time in resource development: when technology improves, turns out there’s a lot more of something than we thought.”
This story was first published by Inside Climate News.
The U.S. Department of Energy has approved an $8.6 million grant that will allow the nation’s first utility-led geothermal heating and cooling network to double in size.
Gas and electric utility Eversource Energy completed the first phase of its geothermal network in Framingham, Massachusetts, in 2024. Eversource is a corecipient of the award along with the city of Framingham and HEET, a Boston-based nonprofit that focuses on geothermal energy and is the lead recipient of the funding.
Geothermal networks are widely considered among the most energy-efficient ways to heat and cool buildings. The federal money will allow Eversource to add approximately 140 new customers to the Framingham network and fund research to monitor the system’s performance.
The federal funding was first announced in December 2024 under the Biden administration. However, the contract between HEET and the Department of Energy was not finalized until Sept. 30 and was just announced Wednesday. The agreement, which allows construction to move forward, comes as the Trump administration is clawing back billions of dollars in clean energy funding, including hundreds of millions of dollars in Massachusetts.
“This award is an opportunity and a responsibility to clearly demonstrate and quantify the growth potential of geothermal network technology,” Zeyneb Magavi, HEET’s executive director, wrote in a statement.
The existing system provides heating and cooling to approximately 140 residential and commercial customers in the western suburb of Boston. The network taps low-temperature thermal energy from dozens of boreholes drilled several hundred feet below ground, where temperatures remain steady at 55 degrees Fahrenheit. A network of pipes circulates water through the boreholes to each building, enabling electric heat pumps to provide additional heating or cooling as needed.
“By harnessing the natural heat from the earth, we are taking a significant step toward increasing our energy independence and promoting abundant local energy sources,” Charlie Sisitsky, Framingham’s mayor, wrote.
Progress on the project is a further indicator that despite their opposition to wind and solar, the Trump administration and Republicans in Congress appear to back geothermal energy.
President Donald Trump issued an executive order on his first day in office declaring an energy emergency that expressed support for a limited mix of energy resources, including fossil fuels, nuclear power, biofuels, hydropower, and geothermal energy.
The One Big Beautiful Bill Act, passed by Republicans and signed by Trump in July, quickly phases out tax credits for wind, solar, and electric vehicles. However, the bill left geothermal heating and cooling tax credits approved under the Inflation Reduction Act of 2022 largely intact.
A reorganization of the Department of Energy announced last month eliminated the Office of Energy Efficiency and Renewable Energy but kept the office for geothermal energy as part of the newly created Hydrocarbons and Geothermal Energy Office.
“The fact that geothermal is on this administration’s agenda is pretty impactful,” said Nikki Bruno, vice president for thermal solutions and operational services at Eversource. “It means they believe in it. It’s a bipartisan technology.”
Plans for the expansion project call for roughly doubling Framingham’s geothermal network capacity at approximately half the cost of the initial buildout. Part of the estimated cost savings will come from using existing equipment rather than duplicating it.
“You’ve already got all the pumping and control infrastructure installed, so you don’t need to build a new pump house,” said Eric Bosworth, a geothermal expert who runs the consultancy Thermal Energy Insights. Bosworth oversaw the construction of the initial geothermal network in Framingham while working for Eversource.
The network’s efficiency is anticipated to increase as it grows, requiring fewer boreholes to expand. That improvement is due to the different heating and cooling needs of individual buildings, which increasingly balance each other out as the network expands, Magavi said.
The project still awaits approval from state regulators, with Eversource aiming to start construction by the end of 2026, Bruno said.
“What we’re witnessing is the birth of a new utility,” Magavi said. Geothermal networks “can help us address energy security, affordability and so many other challenges.”
New Haven, Connecticut, has broken ground on an ambitious geothermal energy network that will provide low-emission heating and cooling to the city’s bustling, historic Union Station and a new public housing complex across the street.
The project will play a crucial role in the city’s attempt to decarbonize all municipal buildings and transportation by the end of 2030. As one of Connecticut’s first geothermal energy networks, it will also serve as a case study of how well the technology can both lower energy costs and reduce greenhouse gas emissions as the state considers promoting wider adoption of these systems.
“At the end of the day, you’re going to have the most efficient heating and cooling system available for our historic train station as well as roughly 1,000 units of housing,” said Steven Winter, New Haven’s executive director of climate and sustainability. “Anything we can help do to improve health outcomes and reduce climate change–causing emissions is really valuable.”
In climate-conscious states across the country, thermal energy networks are emerging as a promising way to reduce reliance on fossil fuels for heating, lower utility bills, and create a pathway for the gas industry to transition its business model for a cleaner-energy future. These neighborhood-scale systems use ground-source heat pumps and a web of underground pipes to deliver heating and cooling to connected buildings.
The thermal energy for heating can come from a variety of sources, including geothermal systems, industrial waste heat, and surface water. Because no fossil fuels are directly burned to produce heat, the only emissions are those created generating the electricity to run the network. At the same time, the systems insulate customers from volatile and rising natural gas prices.
“There’s a lot of excitement around networked geothermal because it actually offers solutions to a lot of problems,” said Samantha Dynowski, state director of Sierra Club’s Connecticut chapter. “It can be a more equitable solution for a whole neighborhood, a whole community — not just a single home.”
The practice of deploying such systems as a neighborhood loop is relatively new, but the component parts are well established: Geothermal heat pumps have been around for more than 100 years, and the pipe networks are very similar to those used for natural gas delivery.
“The backbone technology is the same kind of pipe you use in the gas system,” said Jessica Silber-Byrne, thermal energy networks research and communications manager for the nonprofit Building Decarbonization Coalition. “They’re not experimental. This isn’t an immature technology that still needs to be proved out.”
There are a handful of networked geothermal systems around the United States, owned by municipalities, private organizations, and universities. A couple of miles away from the Union Station project, at Yale University, development is underway on a geothermal loop serving several science buildings.
But the idea is catching on among gas utilities, too. The nation’s first utility-owned geothermal network came online in Framingham, Massachusetts, in June 2024, and just received an $8.6 million federal grant that will allow it to double in size. Across the country, 26 utility thermal energy network pilots are underway, and 13 states have passed some form of legislation exploring or supporting the approach, according to the Building Decarbonization Coalition.
In Connecticut, a comprehensive energy bill that passed earlier this year established a grant and loan program to support the development of thermal energy networks. Advocates are now pushing Gov. Ned Lamont, a Democrat, to issue the bonds needed to fund the new initiative.
The New Haven network could provide a concrete example of the opportunities offered by such systems.
The plan began when the federal government was seeking applications for its Climate Pollution Reduction Grant program, an initiative created by President Joe Biden’s 2022 Inflation Reduction Act. Union Station seemed like an excellent property to retrofit because of its age, its size, and its prominent role in the city: Nearly a million travelers pass through the station each year, making it one of Amtrak’s busiest stops and an excellent platform for demonstrating the potential of geothermal networks.
“We thought it would be a powerful message to send for this beautiful landmark building that’s also the gateway to the city,” Winter said.
In July 2024, the federal program awarded the proposal just under $9.5 million; though there were questions earlier in the year about whether the Trump administration would attempt to block the money, the grant program ultimately proceeded. Planners expect federal tax credits and state incentives to cover the remaining $7 million in the project budget.
The network will use as many as 200 geothermal boreholes. Fluid will circulate through pipes in each of these wells, picking up thermal energy stored within the earth; in hotter weather, when cooling is needed, the systems will transfer energy back into the ground.
The city began drilling the first test boreholes in November. The results were promising: One test hole was able to extend down 1,200 feet, significantly farther than the 850 feet projected, Winter said. If more boreholes can be drilled that deep, it could mean fewer holes are needed overall — and thus less materials — making the project more efficient, he said.
Construction of the network is still in the early stages. The test boreholes should be completed this month, and the design of the ground heat exchanger — the underground portion of the system in which the thermal energy is transferred — is about halfway done, Winter said. The city is also preparing to accept proposals for the retrofit of the heating and cooling systems in the station itself.
The goal is to have the system up and running in the latter half of 2028. The apartment units, which are still in the design phase, will be connected to the system as they are built.
Even as the initial plan comes together, New Haven is already considering the possibility of expanding the nascent network to include more buildings, such as other apartment units under development nearby, existing buildings in the neighborhood, and a police station around the corner, Winter said.
“Ideally, we end up with a municipally owned thermal utility that can help decarbonize this corner of the city and provide affordable, clean heating and cooling,” he said.
In the early 2000s, the owners of the Mammoth Pacific geothermal station proposed expanding the plant into an area just east of California’s Yosemite National Park. The project boasted on its website in 2004 that the potential new wells, which would be located in one of the state’s richest heat resources, had been “carefully chosen to reduce or avoid potential environmental impacts.”
By 2009, the company had produced a study on how the development could impact plant life. The power station had been running since the 1980s, so the decades of data on its safe operation seemed to bode well for a swift approval at a moment when, much like today, rising electricity demand and concern over climate change were converging to bolster development of carbon-free power. The prospects looked so good that, in 2010, geothermal giant Ormat Technologies bought the company that owned Mammoth. In 2013 — a decade after the expansion was first conceived — federal regulators gave the project the green light.
Yet that was just the start of Mammoth Pacific’s permitting saga.
An environmental group and local opponents quickly accused regulators of failing to properly consider how the geothermal project could release organic gases into the atmosphere and groundwater, and filed a lawsuit under the California Environmental Quality Act. The litigation took years to resolve. By the time Ormat finally completed the expansion in 2022, the so-called Casa Diablo IV project had been in the works for nearly two decades.
“People in the industry know it took 17 years to expand an existing facility,” said Joel Edwards, the cofounder and chief technology officer at the geothermal startup Zanskar. “And that’s the last facility that’s been built in California.”
Building a new geothermal plant from scratch on an undeveloped site, he said, would presumably “be an even bigger lift.”
A bill that California lawmakers passed almost unanimously last month promised to change that calculus for the geothermal industry. AB 527 would have provided geothermal developers with categorical exemptions to CEQA reviews, clearing the way for companies to carry out the most expensive part of the process — drilling wells to identify viable hot-rock resources — without the costly burden of lawsuits and ecological assessments the state’s landmark environmental law imposes. A companion bill, known as AB 531, gives geothermal energy projects the same special “environmental leadership” status as solar, wind, energy storage, and hydrogen facilities.
But, in a move that has mystified the industry, Gov. Gavin Newsom (D) vetoed AB 527. In his letter explaining the rejection, Newsom said the legislation would have required state regulators to “substantially increase fees on geothermal operators to implement the new requirements imposed by the bill.”
Of more than half a dozen industry executives and analysts that Canary Media spoke to, however, none believed that argument.
“Something doesn’t add up,” said Samuel Roland, a research fellow at the Foundation for American Innovation who has tracked the bill. “It was a political play for him.” The foundation is a right-leaning think tank that advocates for speeding up energy deployments.
While Roland said it’s difficult to determine exactly which groups may have persuaded the governor to block the legislation, “the only people who were objecting were environmentalists,” a dynamic that echoes the fight against Mammoth Pacific’s expansion.
“It does seem like it was a giveaway to environmental groups,” Roland said.
Izzy Gardon, a spokesperson for Newsom, declined to comment. “The Governor’s veto message speaks for itself,” he wrote in an email to Canary Media.
California’s unique geology has made it the destination for the geothermal industry for decades. The Western Hemisphere’s first commercial geothermal power station opened in California in 1960. That plant — The Geysers geothermal complex, located in a valley of the Mayacamas Mountains north of the San Francisco Bay Area — remains the world’s largest electrical station powered by the planet’s heat.
The state has enormous untapped potential — and a growing need for electricity. California has shut down all but one of its nuclear power plants over the past few decades. In recent years, persistent drought has made the state’s hydroelectric stations less dependable. Solar generation has soared, and a growing fleet of batteries has helped steady the supply when sun-soaked days threaten to overwhelm the grid with electrons and dark nights send panels’ production plummeting. But the state remains reliant on natural gas and power imports from neighboring states to meet surging demand. To achieve its carbon-cutting goals and bring down electricity rates that are more than double that of nearby states, California needs to increase its supply of clean, firm generation.
Burning biomass, such as dry wood cleared from California’s forests to help prevent wildfires, could provide one option — but that still generates carbon dioxide, and the demand for wood might encourage logging of healthy trees. Despite the state’s reversal of its plan to shut down Diablo Canyon, its final atomic station, building new nuclear reactors is still banned in California. Hydropower is dogged by water scarcity. That makes geothermal a particularly attractive choice.
It’s not without some drawbacks. Conventional geothermal, which involves drilling down into underground reservoirs warmed by volcanic heat, is limited to easily accessible areas and comes with the challenge of maintaining the subterranean water source over time. Next-generation geothermal companies are rapidly advancing drilling techniques that the oil and gas industry perfected in recent years to go deeper and harvest heat from dry, hot rocks, vastly expanding the locations with potential to generate energy. In a seismically active state, that carries some risk since the version of next-generation geothermal that uses hydraulic fracturing, or fracking, technology to drill could trigger earthquakes.
But every energy source comes with challenges, and neighboring states such as Utah, Nevada, and New Mexico are aggressively pursuing next-generation geothermal projects.
In theory, the best place to develop those first-of-a-kind plants would be California, with its energy-affordability woes and status as a major global economy.
“Utah has low prices, and geothermal is still expensive,” said Thomas Hochman, director of infrastructure and energy policy at the Foundation for American Innovation. “If you want to bring geothermal down to cost parity with other technologies, you have to sell it to Californians. As a result, geothermal scaling runs through California.”
For the most part, however, developers are steering clear of the Golden State. Companies such as Fervo Energy, XGS Energy, and Sage Geosystems — three of the biggest next-generation startups — are based in Houston and are pursuing debut projects in Utah, New Mexico, and Texas itself. Zanskar, a developer using modern prospecting methods to tap conventional geothermal resources, is headquartered in Salt Lake City. States such as Arizona, Colorado, Idaho, and Oregon are “really exciting” as potential next areas for development, Edwards said.
“If California ever fixes CEQA,” he added, “it could be huge.”
The regulatory hurdles represent “the only real barrier” to geothermal taking off in the Golden State, said Wilson Ricks, a Princeton University researcher who focuses on geothermal.
“You can find projects pretty much all across the Western states but very few, if any, in California, despite it being the biggest potential market,” Ricks said.
“It’s stark. People are exploring projects in Texas, which has far, far worse-quality resources than the ones in California,” he added. “That’s because of the regulatory environment there. So the fact that regulatory barriers are going to remain in place doesn’t give me a lot of confidence that California’s going to be leaping ahead on geothermal anytime soon.”
In response to emailed questions, Fervo said it maintains leases near the Salton Sea region, an area with vast geothermal potential. But those parcels aren’t currently under development since the state’s permitting regime makes investing in drilling too risky.
“With the right legislative and permitting reforms, similar to those that were proposed in AB 527, the state could better position in-state resources for development and unlock the enormous economic benefits that come with local clean energy development,” said Sarah Harper, Fervo’s senior policy and regulatory affairs associate.
Not everyone is so bearish. Ormat, the nation’s largest geothermal operator of conventional sites, said the fact that the vetoed bill passed in the Legislature without a single no vote, just a handful of abstentions, shows there’s political support for geothermal “like we haven’t seen in the past.”
“It’s like a revolution for geothermal,” said Marisol Collons, Ormat’s manager of communications and government affairs. “We’re still highly optimistic about the future and ready to kickstart all our next legislative sessions across the country.”
While Fervo lamented that a small number of green groups fought the bill, the company said the fact that there were “more environmental groups in favor than there were ones opposed, or even neutral,” left it feeling hopeful about the possibility of future legislation.
For XGS, a next-generation company whose technology forgoes fracking and minimizes its water usage by keeping the fluid for its operations contained in a closed tube, California remains “the highest-priority market.”
“We feel that California provides a unique combination from both a resource perspective and a market perspective,” said Lucy Darago, chief commercial officer at XGS. “It’s a high-demand market that really needs the attributes that geothermal brings.”
The company backed the bill and said categorical exemptions from CEQA permitting for drilling would have shaved anywhere from six months to two years off its development efforts.
“It’s disappointing, but I’m optimistic that a future iteration of the bill will pass,” Darago said.
The key, she said, is time. Geothermal will grow in California no matter what — of that, Darago said, she’s certain. The question is whether that happens in time to stave off blackouts and slash emissions on the trajectory the state has set for its electrical system.
“The industry is going to happen. It will get there,” she said. “But if it’s going to get there on a timeline that’s meaningful for California’s resource-adequacy challenges and climate goals, we’ll need some of these changes.”
Eavor, an advanced-geothermal startup, says it has significantly reduced drilling times and improved technologies at its nearly online project in Germany — milestones that should help it drive down the costs of harnessing clean energy from the ground.
On Tuesday, the Canadian company released results from two years of drilling activity at its flagship operation in Geretsried, Germany, giving Canary Media an exclusive early look. Eavor said the data validates its initial efforts to deploy novel “closed-loop” geothermal systems in hotter and deeper locations than conventional projects can access.
“Much like wind and solar have come down the cost curve, much like unconventional shale [oil and gas] have come down the cost curve, we now have a technical proof-point that we’ve done that in Europe,” Jeanine Vany, a cofounder and executive vice president of corporate affairs at Eavor, said from the Geothermal Rising conference in Reno, Nevada.
Eavor is part of a fast-growing effort to expand geothermal energy projects beyond traditional hot spots like California’s Salton Sea region or Iceland’s lava fields. The company and other firms — including Fervo Energy, Sage Geosystems, and XGS Energy — are adapting tools and techniques from the oil and gas industry to be able to withstand the harsh conditions found deep underground.
The industry wants to produce abundant amounts of clean electricity and heat virtually anywhere in the world, and it could serve as an ideal, around-the-clock pairing to solar and wind power. But geothermal companies are only just starting to put their novel technologies to the test.
Eavor began drilling in Geretsried in July 2023, shortly after winning a $107 million grant from the European Union’s Innovation Fund. For its first “loop,” the company drilled two vertical wells reaching nearly 2.8 miles below the surface, then created a dozen horizontal wells — like tines of a fork — that each stretch 1.8 miles long. Once in place, the wells are connected underground and sealed off so that they operate like radiators: As water circulates within the system, it collects heat from the rocks and brings it to the surface.
Operations on the first of four loops are nearly complete, and the startup plans begin construction on its second loop in March 2026. All told, the system will supply 8.2 megawatts of electricity to the regional grid and 64 MW of district heating to nearby towns, operating flexibly to provide more heat during chilly winter months and produce more electricity in summer.
In its new paper, Eavor said it encountered significant challenges in drilling its first eight of twelve lateral wells, which took over 100 days to complete — a major expense in an industry where drilling rigs can cost about $100,000 a day to run. But the company said it improved its techniques and adapted its equipment in ways that reduced the drilling time for the remaining four wells by 50%.
For example, Eavor said it successfully deployed an insulated drill pipe technology, which can actively cool drilling tools even as they encounter increasingly hotter conditions underground and helps to increase drilling speed. The adjustments also enabled Eavor to triple the length of time its drill bit could run before wearing out, further reducing downtime during the operation.
On top of cutting drilling time and costs, these improvements should also pave a path to boosting Eavor’s thermal-energy output per loop by about 35%, Vany said.
The Germany project will be the first commercial system of its kind when it starts producing power later this year. But other next-generation approaches — like the enhanced geothermal systems that Fervo is building in Utah and operating in Nevada — are also scaling up.
Enhanced geothermal involves fracturing rocks and pumping down liquids to create artificial reservoirs. The hot rocks directly heat the liquids, which return to the surface to make steam. This approach is relatively more efficient at extracting heat from the ground, but it can also raise the risk of inducing earthquakes or affecting groundwater — though experts say that’s unlikely to happen in well-managed projects. In places that ban fracking, like Germany, closed-loop systems can still move forward.
But the closed-loop design has trade-offs of its own, said Jeff Tester, a professor of sustainable energy systems at Cornell University and the principal scientist for Cornell’s Earth Source Heat project. Namely, the pipes can limit the transfer of heat from the underground rocks to the fluids inside the pipe, which in turn limits how much energy a system can produce.
“While companies developing closed-loop systems can make them work, the main challenge they face is for fluid temperatures and flow rates to be high enough to pay off economically,” Tester said. “You can get energy out of the ground; it’s just, how much can you sustainably and affordably produce from a single closed-loop well connection?”
Vany said that Eavor’s modeling shows its technology is already in line with the “levelized cost of heat” in Europe, which estimates the average cost of providing a unit of heat over the lifetime of the project. That figure can fluctuate between $50 and $100 per megawatt-hour thermal in the region’s volatile energy market, she said.
“After we’ve drilled those first four loops, we will be at the bottom of the learning curve,” Vany added. “And that’s the purpose of the Geretsried project.”
When Matt Cooper found out in 2020 that the northwest Colorado coal mine where he works would close by the end of the decade, he was pissed.
Questions raced through his mind: Why didn’t the mine’s leaders fight harder to keep it open? And why was the coal industry being singled out? “Is it political?” he wondered.
But coal has been declining in the U.S. for over 20 years, outcompeted by cheap fossil gas and, more recently, even cheaper renewables. Cooper eventually accepted there was nothing he could do — except plan for what’s next.
Now the coal-fired Craig Station is set to shutter in 2028, and the Colowyo mine that feeds it is halting production by the end of the year. For his part, Cooper is choosing to dig for a different kind of energy: geothermal, the renewable heat beneath our feet.
“It works wonderfully well,” said Cooper, a longtime Hamilton, Colorado, resident with a snowy-white goatee and a strong Western accent. Geothermal energy from the shallow earth can be tapped to superefficiently heat and cool individual buildings or even entire neighborhoods. Leveraging his ample experience operating heavy equipment at the mine, Cooper has started a new business, High Altitude Geothermal, to drill for the resource. With the startup’s first projects underway, he’s working alongside his wife, daughter, and two sons, both of whom are also coal miners.
Others in the fossil-fuel industry could follow, finding a foothold in geothermal as clean energy takes off. Colorado plans to decarbonize its economy by 2050, and its remaining six coal plants are shutting down by the end of the decade. The Centennial State’s six active coal mines, which employed roughly 900 workers as of July, will likely shut down along with them.
The northwest corner of the state is the epicenter of the transition. And affected communities stand to lose not only jobs, but big chunks of their tax base. Moffat County, where Cooper lives, will be the hardest hit; Craig Station made up a third of its property taxes in 2022.
In 2019, Colorado created the Office of Just Transition, the first state-level office in the nation dedicated to providing personalized support to coal workers and their families, as well as funding to their communities.
“Small towns have this tendency to be dependent on one or two large employers,” said Wade Buchanan, director at the just-transition office, which helped the Coopers connect to state agencies as they worked on their business concept. “You want to help communities find a way to be more diversified, so that their fortunes are not subject to the fortunes of any single employer.”
Buchanan said he’s thrilled by the Coopers’ venture into geothermal, a tech that the state and federal government are backing with incentives. “They’re trailblazers showing the way for a lot of other people that opportunities exist.”
Cooper still isn’t happy that Colorado’s coal industry is sunsetting. “We produce some of the cleanest coal in the nation,” even if it is a fossil fuel, said Cooper, who plans to keep doing shift work at the coal mine until it closes. President Donald Trump also dubs coal clean, and Cooper reports feeling more aligned with Republicans than Democrats.
He’s clear-eyed that change is inevitable, though, like it or not. “I can’t save the coal industry,” Cooper said.
The Trump administration, meanwhile, has undertaken the Sisyphean task of resuscitating coal in the U.S. by, among other tactics, forcing uneconomic coal plants to keep running past their planned closure dates.
Cooper, who worked at a heat- and power-generating plant when he was in the military, isn’t a fan of most forms of renewable energy. “Windmills are ugly things to me,” he said — a view shared by the U.S. president. He finds batteries unpalatable. And solar panels send jobs overseas, he said.
“When you’re buying solar panels from China, I don’t think that’s the right way to go. If you’re going to buy the things, they ought to be built here,” Cooper said. (Though perhaps not a well-publicized statistic, domestic solar manufacturing employed about 34,000 workers in 2024.)
Geothermal is an up-and-coming energy source Cooper can get behind. Hooked up to heat pumps, it’s the most efficient way to warm and cool buildings.
In a geothermal system, loops of flexible pipe are installed ten to hundreds of feet deep into the ground. At these depths, the earth is a fairly stable 45 to 75 degrees Fahrenheit, funneling a ready source of heat in cold weather to a building’s electrically powered geothermal heat pump. In the summer, the appliances provide air conditioning by dumping a building’s extra warmth underground.
Geothermal heat pumps are extremely efficient. They can deliver the same amount of heating as a fossil-fueled or electric-resistance system using just a fourth or even a sixth of the energy.
“In northwest Colorado, you can pay $700 a month for propane to heat your house, or $400 for natural gas,” said Cooper. “That’s a chunk of change, because our winter up here lasts about five to six months — about half a year where you’re going to be heating your home.” And the cold cuts like a knife: Cooper recalls winters in the area with lows in the minus 50s and 60s Fahrenheit.
Plus, a geothermal heat pump actually “helps the grid out,” Cooper said. The appliances are not only superefficient but also provide warmth steadily, rather than in bursts. That reduces peaks in power demand, keeping electricity more affordable for everyone.
Geothermal systems aren’t yet widespread. Most people don’t know the tech exists, and the up-front cost to install them is typically two to three times the price tag of an air-source heat pump or gas furnace plus a central air conditioner.
But the higher costs in northwest Colorado are partly due to far-flung geothermal drillers having to haul their equipment across the Rocky Mountains, said Cooper, who’s been spinning up the startup in his off-time. “I think I can keep my costs of mobilization down, and so that makes the product more affordable.”
His geothermal drilling business will be the first in Moffat County and neighboring Routt and Rio Blanco counties — a region home to more than three-quarters of the roughly 1,700 workers that make up Colorado’s coal industry and its supply chain. The state is backing High Altitude Geothermal, providing four years of tax relief and a $40,000 grant for operations through the economic development program Rural Jump-Start.
For now, the startup consists of Cooper and his family members. His wife, Kristine, is helping with administrative work. His daughter, Anna, handles operations. His sons, Matthew and Nathan, are drilling alongside him. Anna is also certified to do that work, so she can step in when the need arises. But as business picks up, Cooper aims to expand to a second crew and hire more people — especially other miners in the area.
“Hiring displaced coal workers was part of Matt’s ‘why’ for starting this business,” Kristine said. “He wanted to be part of the solution for the employment of these individuals.”
Going into geothermal energy “felt so right,” Anna said. “It’s a wonderful resource that everyone has access to. It’s there all the time.” And it’s a boost to the local economy. “It’s really exciting … when you have something that’s so powerful.”
High Altitude Geothermal has already secured its first contracts: retrofits of two homes in Moffat County. The Coopers are also bidding on two large-scale commercial projects in the municipalities of Steamboat Springs and Gunnison. They’re building a future with geothermal energy, regardless of the federal push for coal.
“There’s some people that are holding out that somehow Trump will be able to make coal viable again and make the power plants stay open,” Cooper said. “Maybe they’ll be right. … I have no idea. But my intuition is that this ball is rolling, and I don’t see it stopping.”
“So you better just try to figure out what’s next for you.”
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