James C. WitcherSouthwest Technology Development Institute

NEW MEXICO STATE UNIVERSITY

Las Cruces, NM

GEOTHERMAL ECONOMIC IMPACT

GEOTHERMAL CORE DRILLING, MCGREGOR RANGE, NEW MEXICO

GEOTHERMAL DIRECT-USE

• GREENHOUSES• INDUSTRIAL USES• AQUACULTURE• SPACE/DISTRICT HEATING

Plate and Frame Heat Exchanger SWTDI/NMSU Business Incubator Greenhouse, Las Cruces, New Mexico

GEOTHERMAL GREENHOUSING

GEOTHERMAL AQUACULTURE

GEOTHERMAL TALAPIA FARM NEAR HYDER, ARIZONA

GEOTHERMAL IS AN ECONOMIC DEVELOPMENT TOOL IN RURAL

AREAS

• SUMMARY OF WHOLESALE CASH RECIEPTS

$$$$$$

Pump testing AmeriCulture 1 State well, Animas Valley, New Mexico

GEOTHERMAL POWER CASH FLOW

• $0.045 kW/hr cost (wholesale)

• 8,760 hrs/yr

• ~$394 thousand per MW/yr

GEOTHERMAL GREENHOUSE

CASH FLOW• Annual sales of $325,000 to $850,000 per

acre (wholesale)• 4 to 8 employees per acre• $18,900/yr energy savings per acre in

southern New Mexico • 4,200 MMbtu/yr at $1.50/MMbtu • Natural gas $6.00/MMbtu (boiler

inefficiency included)

DEVELOPMENT INFRASTRUCTURE

• PRODUCTION WELLS• INJECTION WELLS• HEAT EXCHANGERS• PIPE LINES

Drilling Masson 36 well, Radium Springs, New Mexico

DEVELOPMENT APPROACH

• RESOURCE ASSESSMENT AND RESERVOIR CONFIRMATION

• ENGINEERING FEASIBILITY• PERMITTING• BUSINESS AND MARKETING PLAN• RESOURCE MANAGEMENT PLAN

Alligator aquaculture, Alamosa, Colorado

GEOTHERMAL GREENHOUSING

• NEW MEXICO LEADS THE NATION IN GEOTHERMAL GREENHOUSE ACREAGE

• A TOP TEN RANKING IN AGRICULTURE SECTOR ECONOMY AHEAD OF CHILE

• GROWTH POTENTIAL VERY HIGH

• PAST GROWTH SPURRED BY SWTDI/NMSU RESEARCH AND BUSINESS INCUBATOR GREENHOUSE IN LAS CRUCES

SOUTHWEST TECHNOLOGY DEVELOPMENT INSTITUTE AT NEW MEXICO STATE UNIVERSITY

GEOTHERMAL GREENHOUSE• FIVE CLIENTS SINCE 1987 –

FIFTH CLIENT CURRENTLY LEASING FACILITY

• FOUR COMMERCIAL GREENHOUSES WITH TOTAL ACREAGE OVER 30 ACRES

• 18 ACRES ARE GEOTHERMALLY-HEATED

• ESTIMATED 270 JOBS CREATED

• ESTIMATED CAPITAL INVESTMENT MORE THAN $10 MILLION

• ESTIMATED ANNUAL SALES OVER $14 MILLIONSWTDI/NMSU Business Incubator

Geothermal Greenhouse Las Cruces, New Mexico

CONCLUSION

• Direct-use geothermal can be an economic development tool is rural areas.

• Successful geothermal projects require a sound business plan.

• A university-based business incubator coupled with technical assistance can spur successful development.