That may change soon, thanks to state and federal funding for evaluation and development of geothermal resources, to include a power production project envisioned by the owners of Chena Hot Springs Resort in Interior Alaska.

The resort has applied to state and federal agencies for two separate, but related, geothermal research projects. Chena Hot Springs also recently hosted a national conference focused on the emerging alternative energy resource.

"The first theme we heard over and over is that we need to get one project going in Alaska, and that's sure to snowball and get people interested in it when they see that it is a viable technology," said Gwen Holdmann, vice president of new development at Chena Hot Springs Resort. Holdamann's comments came following the GeoPowering the West Initiative conference held Aug. 10 and 11 at the resort.

Secondly, more exploration for geothermal sources in Alaska needs to take place, she said. "We need more data, because there's not much information about geothermal in Alaska," Holdmann said.

Grant requests proposed by Chena Hot Springs would achieve both of those needs for advancing geothermal development, Holdmann said.

One proposal, pending with the Alaska Energy Authority and the Denali Commission, would provide $500,000 to be used for the purchase and installation of a power system that would use the resort's hot springs as an electrical power source. The resort would cover the remainder of the system's total cost of $1.7 million for the 400-kilowatt geothermal powered electrical generation system.

Because the hot springs at Chena are only 250 degrees Fahrenheit, direct steam won't generate electricity. A binary generation system is required, which uses the naturally occurring hot water to heat a refrigerant, such as isobutane or ammonia, to create steam at a lower temperature than water. The steam then drives a turbine that generates electricity.

Tapping the geothermal resource would allow Chena Hot Springs to shut off its diesel-fired generators that currently provide electric power to the facility, located about 60 miles northeast of Fairbanks and about 30 miles off of the state's Railbelt electric grid. Last year, Chena Hot Springs spent about $200,000 on its 200-kilowatt power system, when fuel prices were much lower, Holdmann said. "Now we're paying almost a dollar more per gallon of diesel."

The resort already heats 40 buildings with its hot water, as well as using the springs for an indoor swimming pool and an outdoor rock pond.

Owners have contemplated installing a geothermal power system for some time, and have conducted some limited drilling to test the potential. Those previous tests, with drilling down to the 300-foot level, indicated a 400-kilowatt system could be supported, Holdmann said. Excess electric power could be used for greenhouses and other needs at Chena Hot Springs, she said.

In a second research project, Chena Hot Springs is hoping to secure funds to evaluate the potential for additional electric generation at the resort by drilling deeper into the geothermal source. The project would also allow for regional reconnaissance of geothermal resources.

Chena Hot Springs Resort has requested from the U.S. Department of Energy a grant to provide 80 percent of a $3.7 million, three-year geothermal research project. The grant would evaluate potential electric generation capabilities at six different known hot springs in the Interior.

Work at Chena Hot Springs would include drilling down to 4,000 feet, to assess whether hotter water is present at depth, eliminating the need for a binary power generation system or allowing for a larger-sized generator.

In addition, the DOE-funded project would conduct aerial surveys and collect water and chemical samples at five other hot springs locations in Interior Alaska, Holdmann said. Those test locations include Circle Hot Springs, a resort located off of the Steese Highway about 130 miles northeast of Fairbanks and about seven miles from the village of Central; and Manley Hot Springs, which is located about 90 miles west of Fairbanks at the end of the Elliott Highway. Manley Hot Springs, a small village located on a slough of the Tanana River, has a population of about 70.

Three remote locations for proposed geothermal research in the Interior include Big Windy Hot Springs, located about 30 miles northeast of Chena Hot Springs; Hutlinana Hot Springs, located about 24 miles northeast of Manley Hot Springs, and the Tolovana Hot Springs, located about 16 miles northeast of the village of Minto.

"We need more data on more of the sites," Holdmann said. "There's hardly been anyone who has drilled deep and hit hot water. We need more aerial and ground-based surveys."

She expects to hear at a national conference later this monthwhether the larger, DOE-funded research proposal is approved. The resort was encouraged to attend that conference, Holdmann said, hopefully a positive sign for the proposal.

Chena Hot Springs hosted a western regional geothermal workshop in August, with an unexpectedly large turnout. About 40 people were expected for the two-day conference, Holdmann said, and about 75 people attended. "There is a lot of enthusiasm about geothermal use in Alaska," Holdmann said.

Alaska Energy Authority and its parent agency, the Alaska Industrial Development and Export Authority, were awarded a grant for geothermal development from DOE, announced at the August conference.

Final negotiations for the funding amount and use of the money are still in the works, according to AIDEA's geothermal coordinator, Bernie Smith. The state agency requested the ceiling amount of the grant fund, $100,000, to be used to assist the state in continuing to evaluate and develop geothermal resources to produce electricity and to displace diesel fuel, he said. He expects to announce the final grant terms later in August. Also participating and speaking at the conference held at Chena Hot Springs was Roy Mink, who heads DOE's $25 million Geothermal Technologies division within the department's Energy Efficiency and Renewable Energy section.

Alaska's biggest roadblock in developing the alternative power source is its remoteness, Mink said, following a tour of some of the state's geothermal sites last fall. To overcome that hurdle, the state should consider efforts to move industry to geothermal sites, rather than trying to move the power created by geothermal resources.