Alaska’s untapped geothermal riches could dwarf its power needs

Launch Alaska and New Energy Alaska call for regulatory reform to unlock the state’s vast underground heat resources.

Alaska is sitting on one of North America’s largest undeveloped geothermal resource bases and a new policy brief says the state is running out of excuses not to use it.

Published by Launch Alaska and New Energy Alaska, the 2026 brief lays out a striking case: a preliminary assessment found that tapping just one percent of Alaska’s superhot rock could yield roughly 624 gigawatts of generating capacity, far exceeding current statewide demand. With 97 documented thermal springs and an entire volcanic arc along the Aleutians, the geology is there. What’s missing, the authors argue, is the regulatory and financial framework to attract developers.

The brief arrives as Cook Inlet natural gas production, the Railbelt’s main electricity source, continues to decline, and rural communities remain locked into expensive diesel. Meanwhile, advances in enhanced geothermal systems and superhot rock drilling are making it possible to produce power from underground heat in places that lack natural steam vents.

Several Alaska projects are already moving. Near Nome, a 75 kW geothermal plant with a year-round greenhouse is planned for Pilgrim Hot Springs in 2026. On Augustine Island, a feasibility study flagged the volcano as a candidate for geothermal-powered synthetic fuel production and Chugach Electric issued a letter of interest for a power purchase agreement last year.

But barriers remain steep. The most promising volcanic sites face punishing logistics and transmission costs of up to $2 million per mile. Reaching commercially viable temperatures near the Railbelt would require drilling to 22,000 feet, more than double a typical North Slope well.

To close the gap, the brief recommends four moves: clarifying who owns geothermal heat under Alaska law, streamlining permitting, creating a risk mitigation fund modeled on Iceland’s approach to reimbursing failed exploratory wells, and building long-term demand through defense partnerships and extended state funding. The authors also highlight that 80 percent of geothermal skills overlap with oil and gas work, positioning Alaska’s existing workforce as a competitive advantage rather than a liability.