Case Studies on the Economics of Geothermal District Heating Systems in the American West

As decarbonization continues to be a key focus across the globe, the heating sector remains a critically challenging area to reduce greenhouse gas emissions. Geothermal district heating presents a low-carbon alternative to traditional fossil fuel-based heating systems, yet its deployment in the United States remains relatively limited. In this paper, we conduct case studies of existing geothermal district heating systems in the Western U.S. states and find that project economics can vary greatly from system to system. For instance, systems with more funding through grants tend to have better project economics, while only three systems have a cheaper levelized cost of heat than average state natural gas costs. Our findings underscore the need for stronger geothermal policy, along with an increased public awareness of geothermal district heating. By identifying and quantifying the key economic and regulatory barriers, this study contributes to the broader discourse on the clean energy transition and the global pursuit of net-zero emissions, all while better discerning the role of geothermal district heating in the decarbonization of heating systems. Finally, our study provides key insights on the current feasibility of geothermal district heating in the United States to inform future policymakers, developers, and related stakeholders of geothermal district heating.