ZGEO Energy Awarded $306,000 to Advance Geothermal Exploration in Southwest Colorado
ZGEO Energy has been awarded $306,000 through the Colorado Energy Office’s Geothermal Energy Grant Program to further develop an exploration well and evaluate geothermal resource potential for a future utility-scale power plant in Montrose and San Miguel Counties. The award is part of a larger statewide investment to accelerate clean, reliable energy solutions and better understand Colorado’s geothermal potential.
What this grant supports
The project will build on prior exploration work to generate the technical data needed to assess whether the resource can support long-term geothermal electricity production. In practical terms, this funding helps ZGEO Energy take the next step in confirming reservoir characteristics, reducing development risk, and informing future project decisions.
"ZGEO Energy has been at the forefront of geothermal development in Colorado,” according to Wendy Fenner, ZGEO Energy President. “ZGEO's leadership, team-building and proactive approach to educating the community on the geothermal energy potential are critical to the overall success of expanding this vital renewable energy resource throughout Colorado. The research and planning that has gone into demonstrating the Good Shepherd Ranch's high-temperature electricity production, along with the cascading uses for the mixed-use development, makes it an important addition to Colorado's portfolio of renewable energy projects."
How ZGEO fits into Colorado’s geothermal momentum
Across Colorado, the Energy Office announced $12.4 million in new awards supporting seven geothermal projects—spanning both building heating and cooling (such as thermal energy networks) and geothermal electricity development. In total to date, the state has awarded $42.6 million through the Geothermal Energy Grant Program (GEGP) and the Geothermal Energy Tax Credit Offering (GETCO) to help cut emissions while expanding access to clean, affordable, and reliable energy.
While several awards focus on geothermal heating and cooling for schools, hospitals, campuses, and communities, ZGEO’s award is part of the state’s electricity-focused portfolio—supporting the critical early-stage work that helps determine where utility-scale geothermal power can be developed responsibly and cost-effectively.
About the Colorado Energy Office geothermal programs
The announcement includes awards from both GETCO (focused on geothermal heating and cooling) and the final round of GEGP funding (focused on geothermal electricity development). As part of GEGP, ZGEO Energy received $306,000 to further develop an exploration well to evaluate resource potential for a utility-scale power plant in Montrose and San Miguel Counties.
What’s next
ZGEO Energy will use this funding to continue advancing technical evaluation and due diligence work needed for geothermal electricity development in Southwest Colorado. This milestone reflects Colorado’s broader commitment to exploring geothermal as a clean, always-available energy resource that can complement other renewables and strengthen grid reliability. Source: Colorado Energy Office funding announcement.
