Colorado announces $12m award to geothermal heating, cooling, and power projects

Vail, Colorado (source: Daderot, Public domain, via Wikimedia Commons)

Carlo Cariaga 23 Apr 2026

The Colorado Energy Office (CEO) has announced a total of USD 12.4 million in funding awards to support seven geothermal projects across Colorado, covering heating and cooling projects, as well as electricity production. The funding will cover planning and installation of thermal energy networks (TENs), as well as studies and drilling of test wells for geothermal power.

The funding comes from the Geothermal Energy Grant Program (GEGP) and Geothermal Energy Tax Credit Offering (GETCO). Of the seven awards, five come from GETCO and are focused on geothermal heating and cooling. The two awards come from the final round of GEGP funding, focusing on projects exploring and implementing geothermal electricity development

The awardees are as follows:

• GETCO awardees
  • The Memorial Hospital ($30, 542) – TEN pre-feasibility study for a hospital in Craig
  • McKinstry Essention, LLC ($1.3 million) – Designs to expand TEN in downtown Vail
  • Aspen School District ($5 million) – TEN installation for heating and cooling of middle and high school buildings
  • Adams State University ($4.3 million) – TEN installation for reliable heating and cooling of student buildings
  • Town of Hayden ($970,000) – Ground source heat pump installation at multiple installations

• GEGP awardees
  • Fervo Energy ($494,000) – Geothermal resource assessment in Denver Basin and Northwest regions
  • ZGEO Energy ($306,000) – Development of exploration well to evaluate potential for utility-scale power plant in Montrose and San Miguel counties

To date, CEO has awarded a total of $42.6 million through GEGP and GETCO to advance geothermal in the state. About a year ago, a $14.4 million funding round was announced for geothermal heat pump and TEN projects. The CEO is also working with the Colorado Energy and Carbon Management Commission (ECMC) on a project that seeks to evaluate the potential to repurpose orphaned oil and gas wells across Colorado for geothermal energy production.

“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. 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,”  said Colorado Governor Jared Polis.

This funding announcement represents the final round of funding through GEGP, which was launched in 2023.  The program has now provided USD 9.8 million in funding for 42 heating and cooling projects and six electricity projects in Colorado. The GETCO program is still ongoing and is currently accepting applications for its 5th cycle until 30 June 2026, where up to USD 2.2 million in funding may be offered.

Source: Colorado Energy Office