On September 21, the U.S. Department of Energy selected 21 projects nationwide for up to $99 million in geothermal funding, including three in New Mexico. Zanskar will advance drilling at the Lightning Dock geothermal plant in Hidalgo County. XGS Energy will drill a deep appraisal well in Socorro County, and San Ildefonso Services will conduct exploration drilling on San Ildefonso Pueblo land.
On October 8, the New Mexico Energy, Minerals and Natural Resources Department awarded another $17.3 million through the state’s Geothermal Projects Development Fund. Recipients included New Mexico Tech ($10 million), New Mexico State University ($2.85 million), the Jicarilla Apache Nation ($2.5 million), and San Ildefonso Pueblo ($2 million). Established in 2024, the fund has received additional appropriations in every legislative session since.
While exploration funding is an important step, confirming a geothermal resource is only part of bringing a project online. Developers must still finance production wells, construct facilities, and secure the skilled workforce needed to build and operate them. To help address these challenges, InnerSpace Action is advancing two pieces of legislation for New Mexico’s 2027 legislative session.
The first would establish a refundable geothermal investment tax credit to help offset the substantial upfront costs of geothermal development, including exploration and drilling. The credit would cover both geothermal electricity generation and direct-use heat applications, opening opportunities for businesses and industries to use geothermal energy beyond the power sector.
The second, the Geothermal Workforce Development Act, would establish registered geothermal apprenticeships through the Department of Workforce Solutions, create a pathway for experienced oil and gas workers to enter the geothermal industry, and develop regional training hubs serving legacy oil and gas communities and Tribal lands.
Both proposals build on recommendations from The Future of Geothermal in New Mexico and aim to address the financing and workforce needs that will become increasingly important as exploration projects advance.