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Akin to making sausage
Legislation not always pretty, but HB 50 geothermal section nutritious
Kay Cashman Petroleum News
It's common for Alaska lawmakers to combine loosely related bills near the end of a legislative session in order to get them passed before the session ends. House Bill 50 was one such measure. Lawmakers dumped various types of Cook Inlet energy bills into HB 50, including expansion of the state's geothermal energy program.
(See map in the online issue PDF)
The geothermal language was initially introduced by Gov. Mike Dunleavy in House Bill 74 and Senate Bill 69, which expanded the size of the tracts that may be leased to 100,000 acres from 51,200 acres. The bills also lowered the temperature threshold from 120 degrees Celsius to 80 degrees (176 degrees F), although the final language in HB 50 was somewhat unclear regarding temperature.
On May 23, Petroleum News interviewed Alaska's premier leader in geothermal energy, Paul Craig, CEO of GeoAlaska LLC, based in Anchorage.
What does Craig think of the geothermal section of HB 50?
"What the legislature does in Juneau is akin to making sausage. It's not always pretty nor does it always turn out exactly as you would hope, but in terms of geothermal policies, HB 50 looks like it is reasonably nutritious. I think it will help move the geothermal energy industry in Alaska forward favorably to the benefit of all Alaskans," Craig said.
"Moving from two-year geothermal prospecting permits to five-year exploration licenses is a major step forward and helps make geothermal energy prospecting realistic. A five-year permit is just not long enough in Alaska," Craig said.
About GeoAlaska GeoAlaska is a geothermal energy company based in Anchorage. The company was founded in May 2020 by Paul Craig with the goal of proving sustainable, affordable, carbon-free, baseload geothermal power to the benefit of Alaska and its citizens.
GeoAlaska owns and operates geothermal prospecting permits and leases at Mount Spurr and Augustine Island.
GeoAlaska is partnered with Ignis Energy Inc., a sister company to Geolog. Ignis is involved with geothermal energy projects internationally, while Geolog is well known to the energy industry in Alaska as a premier surface logging company over the past 25 years.
On April 16, GeoAlaska told Petroleum News that effective April 1, the Alaska Department of Natural Resources granted GeoAlaska a geothermal prospecting permit (ADL 394374) covering 7,299 acres on Augustine Island. This acreage expanded GeoAlaska's existing geothermal footprint at Augustine Island by 240%, encompassing the entire southern half of the island.
The company already had (ADL 394080), which involved 3,031 acres. The two permits totaled 10,830 acres,
Based on the expanded acreage and the recommendations contained in an independent geothermal reservoir engineering study commissioned during 2023, GeoAlaska and its partner are commissioning a new magnetotelluric survey covering the southern half of Augustine Island to be completed during June and July.
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