March 31, 2010 7:41 AM

Oregon Town Warmed by Geothermal Energy

(CBS/AP)  When snow falls on this downtown of brick buildings and glass storefronts in southern Oregon, it piles up everywhere but the sidewalks. It's the first sign that this timber and ranching town is like few others.

A combination of hot rocks and water like those that created Yellowstone's geysers have been tapped by the city to keep the sidewalks toasty since the early 1990s. They also heat downtown buildings, kettles at a brewhouse, and greenhouses and keep the lights on at a college campus.

Geothermal wells in this town of 20,000 mark one of the nation's most ambitious uses of a green energy resource with a tiny carbon footprint, and could serve as a model for a still-fledgling industry that is gaining steam with $338 million in stimulus funds and more than 100 projects nationwide.

"We didn't know it was green. It just made sense," said City Manager Jeff Ball.

Geothermal energy is unknown in much of the country but accounts for 0.5 percent of the nation's energy production.

How America Could Get Rich by Going Green

It can be seen on a snowy day in a handful of Western towns like Klamath Falls. That's because hot rock is closer to the surface here, and comes with the water needed to bring the energy to the surface. Northern California is home to the world's largest geothermal power complex. The Geysers, 75 miles north of San Francisco, produces enough electricity for 750,000 homes.

With more than 600 geothermal wells heating houses, schools and a hospital as well as turning the turbine on a small power plant, Klamath Falls shows what everyday life could be if stimulus grants and venture capitalists turn geothermal energy from a Western curiosity to a game-changing energy resource.

Until now, geothermal energy has been limited by having to find the three essentials ingredients occurring together in one place naturally: hot rock relatively close to the surface, water, and cracks in the rock that serve as a reservoir.

Those limitations go away if engineers can tame a technology known as EGS, for Enhanced Geothermal Systems.

A 2007 Massachusetts Institute of Technology report estimates that EGS, with support, could be producing 100 gigawatts of electricity - equivalent to 1,000 coal-fired or nuclear power plants - by 2050, and has the potential to generate a large fraction of the nation's energy needs for centuries to come.

"If we are going to try to achieve a transformational change in this country, geothermal should be part of that recipe," said Jefferson Tester, chairman of the committee that produced the report and professor of sustainable energy at Cornell University. "It's not treated that way. It's typically forgotten."

Home geothermal heating and cooling systems have also become increasingly popular with today's high fuel costs. CBS News' Josh Landis reports on the benefits of this eco-friendly utility:


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One form of EGS involves drilling thousands of feet down to reach hot rock, pumping water down to fracture the rock to create reservoirs, then sending down water that will come back up another well as hot water or steam that can spin a turbine to generate electricity.

The system can be dropped in practically anywhere that hot rocks are close enough to the surface to make drilling economical.

The major problem with EGS is the potential to create earthquakes.

Pumping water into the ground to open numerous tiny fractures in the rock for a reservoir makes the earth move - what scientists call induced seismicity. Earthquakes stopped an EGS project in the middle of Basel, Switzerland, last year, and an international protocol has been developed for monitoring and mitigating earthquake problems.

As long as the wells are not close to major earthquake faults, "it is not damaging, but very upsetting to the community that lives literally on top of it," said Ernie Majer, a seismologist at Lawrence Berkeley National Laboratory in California, and lead author on the protocol.

Federal funding for geothermal started during the 1970s Arab oil embargo, waned when oil prices subsided, and essentially stopped when Texas oilman George W. Bush entered the White House, Majer said.

With interest growing in energy with a tiny carbon footprint, the Obama administration revived support for geothermal energy. Besides handing out more than $40 million a year from the Department of Energy, it is funding 123 demonstration projects in 38 states with stimulus funds. Projects include home heat pumps, power plants, drilling, rock fracturing, exploration and underground mapping.

"The goal of the department is to try to validate that a source of energy could be produced at an adequate price," said Jacques Beaudry-Losique, deputy assistant secretary for renewable energy. He expects results in two to three years.

The centerpiece is $25 million to AltaRock Energy, Inc., of Seattle and Sausalito, Calif., to demonstrate EGS can produce electricity economically and without producing earthquakes just outside the Newberry Craters National Monument in central Oregon. Investors, Google among them, put in $60 million.

Earthquake concerns were mounting around AltaRock's EGS work at The Geysers when they shut it down over drilling problems, before getting to the point of trying to fracture rocks, AltaRock CEO Don O'Shei said. They are developing a system to monitor quakes at Newberry.

"If EGS becomes economical, it will really be a game-changer," O'Shei said. "Even though it is relatively high risk in terms of the money to develop that kind of technology under the ground ($6 million to $20 million for a well that could prove worthless), it is very important."

People in Klamath Falls don't have to be convinced.

IFA Nurseries, Inc., wouldn't have come to Klamath Falls if there wasn't geothermal energy. The geothermal heat cut greenhouse heating costs by a third compared to natural gas, said Jacqueline Friedman, nursery manager for IFA Nurseries.

The city is stepping beyond heat to electricity, building a geothermal generator like the one at Oregon Institute of Technology with the help of an $816,000 stimulus grant.

Stepping gingerly from the icy street to the dry sidewalk on his way to a bakery for a cinnamon roll, Klamath County Museum Manager said visitors are often curious about the geothermal energy in town, which also heats the museum.

"I've always said the city should adopt a slogan, `City of Warm Sidewalks,"' he joked. "But I've been told we'll get every hobo in America who will be drifting into town."

© 2010 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Add a Comment
by TomColt March 22, 2010 8:39 PM EDT
The use of geothermal energy in Klamath Falls didn't start because of a recent political or technological movement. I lived there during the 1950s and our home was one that was heated by geothermal, and we were certainly not even close to being "well-to-do".

The main problem I remember was my dad's disgust with how often the heating pipes clogged up with scale. Evidently, hot water dissolves a lot of minerals and then those minerals build up in the pipes until they choke off the flow of water. So, at least in those days, constant maintenance was necessary to keep the pipes open.

I would like to hear from someone with more recent knowledge of how they are dealing with this problem. Maybe they've fixed it. If not, it would be a significant part of the costs that weren't mentioned in the article.
Reply to this comment
by Empire-George- March 22, 2010 4:46 PM EDT
by vielmann March 22, 2010 12:31 PM EDT

What this article doesn't tell you is that only the very well-to-do in Klamath Falls have the benefit of this technology
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Were you under the impression, that tapping into geo-thermal energy was inexpensive ? of course those who are well-to-do, can afford doing this.

Geothermal energy couldn't possibly have anything to do with temperature rises, right ? there is no way, this town had real "Global Warming" from inside the Globe....did they ?
Reply to this comment
by vielmann March 22, 2010 12:31 PM EDT
What this article doesn't tell you is that only the very well-to-do in Klamath Falls have the benefit of this technology.
Reply to this comment
by patocc123 March 22, 2010 9:35 AM EDT
One problem I've seen on a Discovery show about why geothermal is not used regularly acrossed the continent is that only is specific areas where it is viable.

Areas where it is not viable would reguire drilling and the cost and dangers to make is safe outwiegh the current means of energy use. End result its cheaper and safer in what we are doing.

I think its great we have some areas of the country that have the ability to utilize thier surroundings but its sorta like windmills. They are only viable in certain parts of the country.

Wish people would understand things like that.
Reply to this comment
by patocc123 March 22, 2010 2:16 PM EDT
I do not think people do. People are sold on catch phrases. They as a whole of the masses do not understand use alternative methods collectively. If you do not believe that just read the boards more.
by newsterl March 22, 2010 9:34 AM EDT
Federal funding for geothermal started during the 1970s Arab oil embargo, waned when oil prices subsided, and essentially stopped when Texas oilman George W. Bush entered the White House, Majer said."

Yeah, OIL MAN Bush, no wonder the program faded away.
Reply to this comment
by rockcutr March 22, 2010 9:24 AM EDT
Oil is free for the drilling too. Yet we pay...
Wind is free for the capture....yet we pay...
Hydro dams on rivers free,,,until captured,,,then we pay.
Those with the desire to release carbon footprint might even make a difference.
Energy shall always cost because, providers have an inflated view of how valuable they are.
Reply to this comment
by KeithDrippingSprings March 22, 2010 9:01 AM EDT
This technology can be used anywhere. Long ago when I was young I worked on the Bertha Rogers well in Oklahoma. They stopped drilling at 32,000 feet because they ran into molten sulfur.

There were drilling temperatures high enough for geo-thermal applications long before they got that deep. The lack of a comprehensive energy policy is the only reason this technology isn't already in use nationwide. The reason we don't have a comprehensive energy policy is because we have Thieves and Scoundrels running our government.
Reply to this comment
by alphaa10000 March 22, 2010 6:01 AM EDT
Thanks, CBS editors, for finding this gem of a technology article.

In a time when policy-makers scramble for reliable, non-polluting, inexpensive technologies, how remarkable most Americans overlook the power source literally beneath their feet.

Yellowstone, for example, could be "mined" for a huge amount of geothermal power-- the park area rests atop a massive dome of magma. Last eruption was millions of years back, but the heat generated is a continuous, thermal Niagara Falls.

The power is bubbling away, free for the taking.

Steam generation from a complex of Yellowstone wells to run power plants has the potential of a major dam like Hoover or Grand Coulee.

A salute to the people of this Oregon town who saw the need and moved to solve their own problem with engineering and practicality that still marks this country as a land of opportunity.
Reply to this comment
by mecury69 March 22, 2010 11:53 AM EDT
The thought of 'mining' Yellowstone to satisfy energy needs is repulsive.
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