TECHNOLOGY
Can this New Mexico startup make geothermal power more affordable?
HeatFlow says its turbine-cycle technology could slash costs in half
New Mexico is looking for a source of baseload renewable energy to provide power when the sun doesn鈥檛 shine or the wind doesn鈥檛 blow. Many of the state鈥檚 politicians see promise in geothermal energy, which taps into Earth鈥檚 natural underground heat to spin turbines and generate electrons.
New Mexico is one of seven states with an active geothermal plant 鈥� the Lightning Dock plant in Hidalgo County. And geothermal developer XGS Energy is partnering with Meta to develop a 150-megawatt to support its Los Lunas data center.
鈥淚t鈥檚 always there when you need it,鈥� Logan Stephens, vice president for development of Houston-based XGS, told lawmakers at a Monday meeting of the Economic and Rural Development and Policy Committee. 鈥淚t operates around the clock.鈥�
But building a geothermal power plant can be costly. Lucas Mejia hopes his company, HeatFlow, has a solution to bring down those costs.
The startup is designing turbine-cycle technology that can pull more electricity from geothermal brine than today鈥檚 power plants. The technology would allow geothermal generators to operate with heat as low as 176 degrees. Traditional plants need higher temperatures.
鈥淚f we do that, we can also use very cheap materials,鈥� Mejia said in an interview. 鈥淲e can make our turbines, for example, out of plastic. That really brings the costs down.鈥�
HeatFlow hopes to cut in half capital costs associated with developing geothermal power. He pitched the technology to investors at Los Alamos National Laboratory鈥檚 annual New Mexico Demo Day in Santa Fe late last month.
鈥淥ne phrase that is used a lot in the geothermal industry is that you are using capital expenses at the scale of oil and gas but with the returns of renewable energy 鈥� which are way lower,鈥� Mejia said.
In July, the state Economic Development Department it gave HeatFlow $650,000 through its Advanced Energy Award, money doled out in two phases. Currently, the company is in the first phase of development and will be paid half of that if it achieves certain milestones.
HeatFlow is also supported by venture capital funding from Roadrunner Venture Studios. New Mexico鈥檚 State Investment Council is an investor in Roadrunner.
Such technology would provide the state鈥檚 utilities, which are waiting for geothermal power to take off, a solution to the intermittency problem of renewable energy sources like wind and solar.
Depending on the day, up to 80% of the power generated by Public Service Company of New Mexico comes from renewable energy sources. But it still relies on fossil fuels when its intermittent wind and solar plants are not generating electricity.
鈥淚f we can get that at scale and get the costs where it is affordable for customers, that could potentially be a renewable resource in New Mexico, I believe,鈥� Omni Warner, senior vice president of operations for PNM, said in an interview.
Jackson Grimes, director of global engagement for InnerSpace Action, a nonprofit that advocates for geothermal development, recently told lawmakers that New Mexico has access to 163 gigawatts of geothermal generation. For perspective, that is more than 15 times the power generated in New Mexico.
New Mexico offers a tax credit that pays geothermal power plants $15 per megawatt-hour of power produced. But Grimes told lawmakers that the tax credit is not being used because it is offered at the wrong point of development for geothermal power plants. He called for an investment tax credit to help developers finance upfront construction costs.
鈥淭hey can take that to the bank to help with the underwriting of receiving the check to help build here,鈥� Grimes said.
Even the Trump administration, which has been hostile to renewable energy development, is supporting geothermal power.
In February, the administration $171.5 million in funding to support the next generation of geothermal power plants. The U.S. Bureau of Land Management鈥檚 New Mexico office in June said it received $16.5 million in a geothermal lease sale of 152,381 acres of federal land.
And New Mexico Land Commissioner Stephanie Garcia Richard announced new rules in April to allow geothermal development on state lands.
Mejia said the company鈥檚 technology 鈥� which they are set to test by year鈥檚 end 鈥� could operate within small generators. He said a current industry trend is toward modularization.
鈥淲e have several hotspots that can be accessed or are underdeveloped,鈥� Mejia said. 鈥淎nd the idea is to start deploying here in New Mexico.鈥�
Justin Horwath covers tech and energy at the Journal. You can reach him at jhorwath@abqjournal.com.
