Colorado Energy Office issues $17 million in geothermal grants
The Colorado Energy Office announced $14.4 million in new funding awards this month to further support geothermal heating projects across Colorado.
The grants promote Gov. Jared Polis’ “Heat Beneath Our Feet” program to exploit geothermal energy to reduce greenhouse gas emissions. The program began with $12 million in grants authorized by the General Assembly in 2022 by House Bill 22-1381.
State policymakers have begun to seriously consider geothermal energy in their pursuit of decarbonization goals. Geothermal energy is widely used across the globe. In absolute terms, the U.S. is among its biggest producers, though per capita, other countries, such as Iceland the Philippines, use more.
Only 0.4% of America’s electricity is generated by geothermal energy.
Under Democratic control of the state Capitol, Colorado is seeking to quickly transition away from fossil-fired energy. Supporters argued the transition — while acknowledging it might be painful in the short term — positions Colorado for a more sustainable and energy-efficient future. They said it would help wean the country from dependence on foreign oil. Ultimately, they added, the transition toward green energy is good for the environment and people’s health.
Critics maintained the quick transition is failing to protect American consumers, particularly low-income residents, who already contend with soaring inflation, and that the singular focus on alternative energy is short-sighted, given that America is rich in all forms of energy and that nuclear power can provide the state with a viable, sustainable and “green” baseline.
In the past few weeks, Colorado added nuclear to the list of “clean” sources, alongside wind, solar and geothermal, a move that signaled policymakers’ changing attitude toward this energy source and the realization — some said — that “renewable” sources are insufficient to provide sustainable and affordable energy and at the same time meet Democrats’ carbonization goals.
At the 2023 Western Governors’ Association meeting in Boulder, Polis held up Boise, Idaho’s century-old downtown geothermal heating and cooling system, one of the largest in the country. It delivers 177° geothermally heated water through a network of pipes that warms more than 6 million square feet of building space, warms swimming pools and melts snow on city sidewalks, according to the city’s website.
“Governor Polis is excited that geothermal energy is an opportunity for Coloradans to save money, while utilizing clean energy to power their homes,” said Polis spokesperson Eric Maruama in a statement. “He is proud that Colorado is ahead of other states in creating a robust geothermal industry and continues pursuing this innovative technology.”
In Colorado, two examples of geothermal heating systems that have been in operation for decades include the Town of Pagosa Springs and Colorado Mesa University in Grand Junction.
While air-sourced heat pumps are being touted as energy-saving solutions for private homes, commercial buildings, including apartment buildings, ground-source heat pumps are even more efficient and don’t suffer from the same cold-climate efficiency reductions that affect air-sourced heat pumps, according to experts.
But they are more expensive.
Temperatures underground remain constant year-round, with temperatures increasing as depth increases. Below the surface, the ground acts as an efficient thermal battery to heat and cool using geothermal heat pumps.
“Geothermal energy is a low-cost, clean energy option for Coloradans and we are seeing increased demand for this type of energy,” Josh Chetwynd, spokesperson for the Colorado Energy Office in a statement to The Denver Gazette. “Colorado is proud to be a leader on this front, with Governor Polis leading the Heat Beneath Our Feet Initiative as Chair of the Western Governors Association, and Colorado continues supporting efforts around the state to utilize the power of geothermal.”
The City and County of Denver received a roughly $5 million grant to support the engineering, design, and implementation of a pilot project aimed at transitioning 11 city-owned buildings.
“The downtown thermal network pilot project is a key step toward a carbon-free downtown Denver,” said Liz Babcock, Executive Director of Denver’s Office of Climate Action, Sustainability and Resiliency in a release.
“In our multisource concept, we will leverage multiple thermal inputs – primarily geothermal, sewer heat recovery, and a connection to the remaining Xcel Energy Chilled Water network” said Chelsea Warren, spokesperson for CASR in a statement to The Denver Gazette. “We may also consider additional inputs from chillers, air-source heat pumps, other waste heat sources, thermal storage, or others. Each input type has advantages for certain operating conditions and will be used in concert to minimize operational costs and impacts on the energy grid.”
The Liberty School District J-4 will apply its funding to install a geothermal energy network for two buildings at Liberty School. This will replace a 60-year-old hydronic heating system with three cost-efficient heat pumps that will add cooling, improve ventilation, and enhance indoor air quality for better occupant health and comfort.

