ANCHORAGE, Alaska - In Alaska, a state rich in oil and gas, officials are seeking to stir interest in a different source of underground energy -- the geothermal heat simmering beneath the volcanoes and hot springs that dot the landscape that could power thousands of homes.
The state Division of Oil and Gas is preparing a lease sale that would allow companies to explore the geothermal resources beneath Mount Spurr, a snowcapped 11,070-foot volcano along Cook Inlet that could potentially send power to thousands of homes 75 miles to the east in Anchorage.
"The reasons Mount Spurr and Augustine are attractive is that they're sitting right here in the middle of the market, the biggest market in the state," he said.
Past attempts at harnessing geothermal heat at Mount Spurr were cut short by poor economics of alternative energy projects, and no real development occurred at the volcano, Banks said. But it appears that the economic picture has changed, he said.
"There seems to be enough interest this time that we'll see activity on site," he said.
"There seems to be enough interest this time that we'll see activity on site," he said.