Resource assessment of a variety of locations in Alaska has demonstrated that the State owns significant geothermal sites. Certain reservoirs have already been identified and they could be utilized for either direct space heating or (probably) for power generation. While several of these reservoir s would have been quite attractive elsewhere, extremely high contruction costs, the sparsity of the Alaskan population and the remoteness from urban markets, indicate unfavorable economics in most cases. The State owns some of the largest petroleum, natural gas and coal resources in the U.S.A. There is an enormous potential for hydroelectric power.

Hence, the demonstration of the desitability of geothermal energy utilization in Alaska faces highly adverse odds. The sites where this mode of energy could compare favorably with other available options are prima facie few.

For example, the Aleutian volcanic arc represents a favorable setting, due to the existence of possible shallow magma bodies and deep tectonic fractures for a "vapor dominated" geothermal reservoir as defined Iby White et al. (1971). Three 1500 ft temperature gradient wells, drilled on Unalaska in the Summer of 1982, have revealed extraordinary geothermal temperature gradients. A reservoir yet to be discovered would be of a quality to produce significant amounts of electric power. .Pet, its desirability must be demonstrated against the presently used diesel. Obscuring the issue are future ( real or projected ) uses. The future price of fossil fuels is difficult, to assess. New markets may emerge or expand such as a major bottom fish industry or other heavy users of power. Although "vapor dominated " reservoirs are expected to be rare (or non-existent) in the rest of Alaska, hot water reservoir s are presumed quite common. The State contains an impressive collection of natural hot springs. Limited drilling activity has produced very encouraging results in at least one site (Prilgrim Springs), while geological and geophysical surveys of a large number of sites have indicated good potential .

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