The Colorado Energy Office announced $12.4 million in funding this week to support seven geothermal heating, cooling and electricity projects across the state, bringing the state's total geothermal investment to $42.6 million.

Wednesday's announcement builds on earlier rounds of state investment, including a 2024 package in which Colorado awarded $7.7 million in geothermal grants.

The funding comes from the Geothermal Energy Grant Program and the Geothermal Energy Tax Credit Offering. Awardees include school districts, universities, hospitals, local governments and power developers that will plan and install thermal energy networks or conduct studies and test wells for geothermal electricity.

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“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,” said Governor Jared Polis. “By investing in innovative geothermal technology, we are cutting down our emissions, and utilizing our unique natural resources to provide clean and affordable heat for Colorado homes and businesses to save money.”

“Geothermal energy is an essential part of our work to transform Colorado’s energy system,” said Colorado Energy Office Executive Director Will Toor. “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.”

Five of the seven awards come from the tax credit program and focus on geothermal heating and cooling, including three installation projects expected to avoid emissions equivalent to 2.8 million vehicle miles traveled annually. The remaining two awards come from the final round of grant program funding for geothermal electricity projects.

Tax Credit Offering awardees:

• The Memorial Hospital (about $18,000) — Thermal energy network pre-feasibility study at a hospital in Craig.
• McKinstry Essention, LLC ($1.3 million) — Detailed designs to expand the thermal energy network in downtown Vail.
• Aspen School District ($5 million) — Thermal energy network installation to heat and cool middle and high school buildings.
• Adams State University ($4.3 million) — Thermal energy network installation for student buildings on campus.
• Town of Hayden (about $970,000) — Ground source heat pump installation at multiple locations to further develop the utility park.

Grant Program awardees:

• Fervo Energy ($494,000) — Geothermal energy resources assessment in Colorado's Denver Basin and Northwest regions.
• ZGEO Energy ($306,000) — Further development of an exploration well to evaluate resource potential for a utility-scale power plant in Montrose and San Miguel counties.

The Aspen School District award will install the first section of a thermal energy network connecting three instructional, administrative and athletic buildings that total more than 400,000 square feet. Fervo Energy will use its award to assess geothermal resources in the Denver Basin and Northwest regions for potential future electricity development.

This was the final round of funding through the grant program, which has awarded $9.8 million for 43 heating and cooling projects and six electricity projects since 2023. The tax credit program is accepting applications for its fifth cycle through June 30 and may award up to $2.2 million this cycle.

The funding is part of Governor Polis's Heat Beneath Our Feet initiative to advance geothermal technology across the Mountain West.