Alaska Has the Heat. Now We Need the Framework.
Alaska sits on one of the largest untapped geothermal resource bases in North America. A 2023 assessment found that just one percent of Alaska’s superhot rock resource could represent roughly 624 gigawatts of generating capacity, far beyond current statewide electricity demand. We have the geology. The question is whether we can build the conditions necessary for development to happen.
New Energy Alaska and Launch Alaska have released a joint policy brief, Geothermal Potential in Alaska, that lays out the barriers and the levers. The workforce case is as strong as the resource case: up to 80% of the skills required in geothermal drilling and development overlap with what Alaska’s oil and gas workers already do. But translating these advantages into operating energy projects requires getting the right policy conditions in place.
The brief identifies four areas where state action can move the needle:
- Legal certainty. Clarifying geothermal resource ownership on public, private, and ANCSA lands would reduce developer risk and improve project financing.
- Permitting reform. A dedicated project coordinator and state primacy on Class V injection well permitting would shorten timelines without requiring new legislation.
- Risk reduction tools. Financing mechanisms through AIDEA or the Renewable Energy Fund, modeled on approaches that have worked in Iceland and Colorado, could backstop early-stage exploration.
- Long-term demand. Defense partnerships and extending the State Geothermal Energy Program beyond 2027 would give developers the certainty they need to commit capital.
Geothermal development in Alaska won’t be fast or easy. The most promising high-temperature sites come with real logistical costs, and advanced drilling technologies are still proving out at scale. But Alaska has the geology, the workforce, and growing private-sector interest. The policy framework is where we can make progress now.
