Geothermal energy projects in New Mexico receive $17.3M in state funding

Four geothermal energy projects across New Mexico recently received more than $17 million to evaluate potential “hot spots” across the state.

Geothermal energy taps into heat under the Earth’s surface to generate electricity. 

State leaders have eyed geothermal energy alongside renewables such as wind and solar as deadlines approach to comply with the landmark Energy Transition Act’s renewable energy goals. An academic report released last year indicated the state has the potential to be a leader in the field.

According to Rebecca “Puck” Stair, director of the New Mexico Energy Conservation and Management Division, these particular projects all address the “thorniest spot” of geothermal energy development: the lack of knowledge about the Earth’s subsurface. 

“All four of these grants are aimed at doing research on the subsurface in four different zones in New Mexico,” she said, “which we are pretty sure are hot zones and that’s what this research will confirm.” 

The grants come via the Geothermal Projects Development Fund created by state lawmakers in 2024. New Mexico Institute of Technology received the largest one: $10 million to drill a test well in Socorro County. Other recipients included New Mexico State University, which received $2.85 million to survey for geothermal potential around Las Cruces; the Jicarilla Apache Nation, which received $2 million to survey around Dulce; and $2 million to the San Ildefonso Pueblo to conduct geothermal modeling and exploration in the Pueblo, according to a New Mexico Energy, Minerals and Natural Resources Department news release.

Stair said the state should know if the areas are viable for building further geothermal infrastructure by June 30, 2027, and will publish the data for the public.

From that point, the timeline will be in the hands of private developers, where there is “a lot of interest and that’s the reason the timeline is aggressive,” Stair said. Private developers “are ready to move as soon as we have an inkling of data.”

The state’s largest electric provider, PNM, has already tapped into a southern New Mexico geothermal plant.

Entities eligible for Geothermal Development Projects include municipalities, counties, state agencies, public schools, universities, and Native American Nations, Tribes and Pueblos. When asked if there are additional projects pending fund approval, Stair told Source NM that there is a “wait list.”

New Mexico is well poised for continued geothermal energy development, Stair said, because “we already have the workforce here and we already have the equipment” from drill rigs and crews from the state’s oil and gas industry. “It’s a great opportunity for them to continue being employed and continue using their skills as they crosswalk over into clean energy,” she said.