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EMD-81-110 1 (1981-06-25)

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BY THE U,S, GENERAL ACCOUNTING OFFICE

Report To The Chairman, Subcommittee On
Energy Development And Applications
Committee On Science And Technology
House Of Representatives




Elimination Of Federal Funds For

The Heber Project Will Impede Full

Development And Use Of

Hydrothermal Resources


High-temperature hydrothermal resources have
a significant potential for generating electricity
which can help reduce the Nation's dependence
on fossil fuels. The majority of these resources,
however, can only be efficiently used with
binary cycle geothermal technology.
The Department of Energy was sharing the
cost of the Heber binary cycle geothermal
demonstration project to show the viability of
binary cycle geothermal powerplants and stim-
ulate the use of this technology. However, the
administration has proposed to eliminate Fed-
eral funding of this project. The administration
believes that private industry should solely
undertake this demonstration project.

The elimination of Federal funding for this
project could cause it to be terminated. Private
industry currently cannot undertake this pro-
ject, because of its high technical risks and
economic uncertainties, without the assistance
of the Government. Industry does not intend
to use binary cycle geothermal technology un-
til its commercial feasibility has been demon-
strated. Consequently, the use of this technol-
ogy will be delayed, thereby impeding the
full development and widespread use of hydro-
thermal resources.
       DST



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115707


  EMD-81-110
JUNE 25, 1981


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