In response to the Obama administration’s release of the 2011 federal budget, which includes a 25% increase in geothermal technology funding through the Department of Energy, the Geothermal Energy Association (GEA) Executive Director Karl Gawell, said:

“The United States is the world leader in geothermal energy production and the industry, with its expected double digit year-over-year growth, will be keeping our nation at the forefront of renewable energy development. We applaud President Obama’s emphasis on the need for our country to lead the world in renewable energy during his State of the Union address. His budget increases funding for geothermal energy, showing that this country is serious about developing the new technologies that will ensure energy independence, help sustain our planet, and create jobs.”

In addition to the $55 million requested specifically for geothermal technology development, the President’s budget set out Department of Energy funding for which the geothermal industry is poised to compete:

• The budget provides $300 million for the Advanced Research Projects Agency–Energy to assist in developing game-changing technologies such as the Enhanced Geothermal Systems (EGS) that an MIT report says could prove upwards of 800,000 MW of geothermal power across the United States.
• The budget gives $500 million in credit subsidy to support $3 billion to $5 billion in loan guarantees for innovative energy efficiency and renewable energy projects.
• The budget directs DOE to take the lead in federal efforts to double renewable energy generating capacity by 2012; a target that GEA’s most recent report says is possible within the industry.

The budget also included tax credit and permitting initiatives important for geothermal growth. The Treasury Department budget proposes an additional $5 billion to expand tax credits for new renewable manufacturing facilities. 

“This will be an important stimulus for ramping up the domestic manufacturing capacity needed to supply a growing geothermal power industry,” Gawell added. And, the budget would add funds for the Department of Interior to speed up permitting geothermal and other renewable projects on public lands, adding $14 million to the currently $50 million DOI renewable energy budget. 

“DOI has set a goal of permitting 9,000 MW of new renewable power by 2011, and we expect geothermal energy to be a significant part of that total,” Gawell said.
 
The Geothermal Energy Association (GEA)
www.geo-energy.org