Use of geothermal resources falls into two categories: direct use and electricity production. Direct use includes applications such as district heating, greenhouses, absorption chilling and swimming pool heating.
A number of small-scale direct use projects exist across the state, but even though Alaska has locally impressive surface expressions of geothermal energy, attempts to develop Alaska’s geothermal resources for community-scale power generation have so far been unsuccessful.
Exploration in the 1980s near Mount Makushin outside of Dutch Harbor indicated that tens of megawatts could be generated from geothermal resources there and recently new plans for the resource have begun to evolve. Since 2008, several potential geothermal resources have been explored across Alaska with no commercially viable resource found. That year, the State awarded geothermal leases to Ormat Technologies, Inc. for tracts 80 miles west of Anchorage at Mount Spurr. After extensive investigations and drilling in 2011, Ormat did not encounter temperatures capable of supporting a power plant. Akutan in the Aleutians is another potential geothermal site investigated since 2008. In 2010 and again in 2017, the City of Akutan drilled exploratory wells in Hot Springs Bay Valley, encountering shallow, hot water over 350 degrees Fahrenheit, but with flow rates insufficient for electricity production.