Ignis Energy and GeoAlaska are dedicated to uncovering promising geothermal reservoirs. Their ongoing efforts aim to harness the energy beneath the surface using traditional geothermal methods.
Neither the DNR exploration permits nor the Makushin project are new endeavors; lease sales have been held in the Aleutian Arc, particularly on the stratovolcano Mount Spurr, since 1983, and the Makushin project has been in the works since 2020. However, there's reason to believe that these more recent developments are better poised for success.
The federal Inflation Reduction Act of 2022 provides new incentives for geothermal development, such as tax credits up to 30 percent through 2032. In May, the Alaska Legislature passed House Bill 50, which mainly relates to storing carbon dioxide deep underground on state lands, but it was amended to include language specific to geothermal exploration. Governor Mike Dunleavy had requested legislation to extend the length of geothermal exploration permits from two years to five.
The US Department of Energy estimates that 8.5 percent of the country's electricity could be generated by geothermal power by 2050, and more than 28 million homes could be heated and/or cooled by geothermal heat pumps. Alaska, given its location in the geologically active Ring of Fire, remains a focal point for advancing such technology.
