US Sen Reid to Push for More Geothermal Power

US: November 16, 2006

WASHINGTON - The lawmaker set to head the US Senate called Wednesday

for more incentives to expand geothermal power production, and accused

the White House of being slow to support renewable energy.

Sen. Harry Reid of Nevada, who will be the chamber's majority leader

once Democrats take control of Congress in 2007, said US energy

companies need more incentives to produce geothermal power, which uses

heat pockets beneath the earth's surface to turn water to steam,

powering turbines and generating electricity.

"The reason geothermal is a good alternative energy is that it's a

good 24-hour cycle," Reid told reporters after meeting with geothermal

industry officials. "The sun goes down at nighttime, the wind doesn't

blow all the time, but the steam comes from the Earth all the time."

According to the Geothermal Energy Association, 58 new US geothermal

energy projects are in the works, which would double the nation's

geothermal capacity to more than 5,000 megawatts.

But a production tax credit to build new geothermal plants expires at

the end of 2007, which means some plants on the drawing board could be

scrapped if they lose a tax credit of 1.8 cent per kilowatt-hour.

"We have some tax problems," Reid said. "These geothermal plants cost

money to build and the tax credits for them have not been as favorable

as for wind and solar."

Reid said he will seek more money for geothermal projects, but worries

the Bush administration is more interested in expanding US crude oil

pumping capacity than in expanding renewable energy sources.

"This administration is so oil-friendly that we have been able to get

their attention on virtually nothing that is not oil related," Reid

said. "They're not that interested in renewables."

Bush administration officials said they are already pushing hard to

expand renewable supplies.

"To say that we're not interested in renewables is categorically

incorrect," said Craig Stevens, an Energy Department spokesman, citing

administration proposals to set aside more money for new energy sources.

The Advanced Energy Initiative, proposed by President Bush this year,

expands production from biomass, solar, wind, hydrogen and battery

technologies, Stevens said.

Energy legislation that became law last year gives US$14.5 billion in

incentives for a range of energy sources, including low-emission coal,

nuclear, cleaner cars and energy efficiency.

The Bush administration wants Congress to repeal US$1 billion in tax

credits for oil and gas production and about US$600 million for

refinery expansions.

"There is plenty of profit incentive for oil companies to further

explore and build refining capacity," Stevens said, referring to US

crude oil prices near US$60 a barrel.

Story by Chris Baltimore

REUTERS NEWS SERVICE

- Ross Mayhew.

posted to ClimateConcern