Vail Council to Decide on Geothermal District for Lower Emissions

Vail Council to Discuss $9.1m Energy Proposal for Geothermal District

On Tuesday, the Vail Town Council will discuss a $9.1 million energy performance contract that, if approved, would establish a geothermal district for town facilities. The proposal, part of Vail’s larger initiative to reduce emissions and modernize outdated infrastructure, has been in the works for over a year with energy-services firm McKinstry.

If the contract is approved, town facilities, including the Vail Public Library and Dobson Ice Arena, could potentially eliminate their dependency on natural gas for snowmelt systems operations, transitioning instead to geothermal energy. These systems currently account for a significant portion of the town’s fossil fuel use.

Geothermal, Solar, and Electric Infrastructure Part of Proposal

Along with geothermal heating and cooling systems, the proposal suggests incorporating solar photovoltaic panels, backup power battery storage, and expanded electric vehicle charging infrastructure for town facilities.

Decarbonization of Vail’s Snowmelt System

Kristen Bertuglia, Vail’s environmental sustainability director, explained that the plan to decarbonize the town’s snowmelt system has been in progress “since the last brick was laid over the snowmelt system.” The town’s goal is to reduce the financial burden associated with gas consumption for these systems. Over the years, they have explored various alternatives, including biomass, solar, and offsetting methods.

Geothermal District Creation: A Significant Opportunity

According to Bertuglia, the current timing offers “a truly incredible opportunity, I think, to finally do it.” The town can leverage more than $4.2 million in external funding, most of which expires in 2026. This includes a $1.78 million grant from the Colorado Energy Office for geothermal installation, approximately $2.2 million in federal Inflation Reduction Act incentives for geothermal, solar, battery storage, and electric vehicle charging, and between $150,000 and $200,000 committed by Holy Cross Energy for electrical upgrades related to the project.

Long-term Geothermal Vision and Benefits

With the proposed geothermal district, if fully built out, annual town-wide emissions could be reduced by more than 10,000 metric tons. This also aligns with the long-term goals of the Eagle River Water and Sanitation District.

The cost of initializing the geothermal node, estimated at $6 million, would be offset by grants, incentives, and partner commitments, resulting in a net cost of $1.3 million for the town. In the long run, the project is projected to generate a positive cash flow of $2.1 million, a figure Stephan Rank, a project director at McKinstry, describes as “very unusual.”

Achieving Emission Reduction Targets

The plan stated in the energy performance contract would help Vail achieve 27% of its emission reduction target for 2030. The town’s goal is to reduce emissions by 50% by 2030 and 80% by 2050. Bertuglia believes the proposed geothermal district could help the town and its business community reach the 2050 goal.

To form an official geothermal energy district, at least two buildings that can share energy must be included. The Vail Library and Dobson Ice Arena, both of which require system upgrades, present an ideal opportunity for this. The town is also in talks with the Evergreen Lodge about connecting it to the system.