The Polis administration is awarding another $12.4 million in state energy tax credits and cash to advance geothermal energy development in Colorado, supporting seven new projects for building heating and cooling systems as well as electricity generation.

The funding, announced by the Colorado Energy Office in a news release, brings the state’s total investment through two dedicated programs to $42.6 million. The money comes entirely from state resources authorized by the state legislature.

Five awards come from the Geothermal Energy Tax Credit Offering, a 2023 program of refundable state investment tax credits authorized up to $35 million. The remaining two are the final round from the Geothermal Energy Grant Program, which provided $12 million in direct cash grants from the state general fund.

“Colorado is leading the way in harnessing the heat beneath our feet to study and unlock geothermal potential that saves Coloradans money on energy bills,” Gov. Jared Polis said in a release.

Aspen School District received $5 million to install a thermal energy network serving more than 400,000 square feet of middle and high school buildings. Adams State University received $4.3 million for a new geothermal system serving student buildings.

Other recipients include McKinstry Essention LLC for $1.3 million to expand a downtown Vail thermal energy network, the Town of Hayden for $970,000 in ground-source heat pumps at its utility park, and The Memorial Hospital in Craig for an $18,000 pre-feasibility study.

Fervo Energy received $494,000 for a geothermal resource assessment in the Denver Basin and northwest Colorado. ZGEO Energy received $306,000 to advance an exploration well in Montrose and San Miguel counties for potential utility-scale power.

“Geothermal energy is an essential part of our work to transform Colorado’s energy system,” said Will Toor, executive director of the Colorado Energy Office, in the release. “By advancing technologies such as high-efficiency geothermal heat pumps and geothermal electricity generation, we can provide clean, affordable heat and firm, reliable electricity to Coloradans across the state.”

The tax credit program remains open for its fifth cycle, with applications due by June 30. The grant program has closed to new applications.

For more information on these and previously awarded projects, see the Colorado Energy Office Geothermal Incentive Award Tracker.