TODAY’S STUDY: THE GEOTHERMAL JOBS OPPORTUNITY

Green Jobs Through Geothermal Energy
Dan Jennejohn, October 2010 (Geothermal Energy Association)

Geothermal energy, New Energy's prodigal son, will no longer be refused its seat at the New Energy economy table. And it brings gifts, in the form of enormous economic benefits, on its arrival. Witness the big numbers and wide spectrum of urgently needed jobs it will provide, as delineated in the report below.

Introduction and Background

The Geothermal Energy Association (GEA) is often asked: How many jobs will a new geothermal power plant create? What kind of jobs? Where? When? These questions are being asked about all new energy technologies. The answers you read about job creation can be confusing. Driving past an operating geothermal power plant, one would see few actual employees despite claims of thousands of new jobs being created through geothermal development! In this report the GEA breaks down the numbers that the industry uses in job generation statements, and provides a picture of the nearly one thousand people whose jobs are involved in a typical geothermal project.

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Basic Findings From Previous GEA Analysis

GEA’s A Handbook on the Externalities, Employment, and Economics of Geothermal Energy addresses some basic questions regarding geothermal energy jobs. This report was based on a detailed survey of the geothermal industry, also conducted by GEA: Assessing total workforce involved in the Geothermal Industry: Employment Survey Results & Analysis, completed in 2005. Both the report and the survey address topics related to employment in the geothermal industry such as current levels of employment, comparative industry employment, types of jobs, job quality, rural employment, and future job potential.

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Current Employment

Geothermal energy supports and generates a significant number of jobs when compared to other energy technologies. On a per megawatt basis, geothermal energy provides more jobs than natural gas...

The ability of geothermal energy to employ relatively high numbers of workers has enabled it to grow a diverse and expanding workforce. Using the employment factors at the end of section 1.2.2, GEA estimates that the industry currently supports approximately 5,200 direct jobs related to power production and management, while the total direct, indirect, and induced impactv of geothermal energy is approximately 13,100 full-time jobs.vi Employment is expected to increase in coming years as geothermal plant development and research expands. In the remaining months of 2010 and throughout 2011 GEA estimates that up to 660 MW of geothermal projects under development will enter stages of steamfield (production and injection drilling) and/or power plant construction. The total direct, indirect and induced impact of these advanced geothermal projects would represent up to 2,805 full-time jobs.

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Job Quality

Not only does geothermal energy provide more jobs than conventional energy technologies, it also provides quality, long-term jobs. According to the EIS/EIR for the proposed Telephone Flat geothermal development project located in the Glass Mountain Known Geothermal Resource Area in California, the average wage at the facility will be more than double the average wage in surrounding counties. According to the U.S. Census Bureau, the average per capita income in 1999 in the closest counties was around $21,000, with the average California per capita income nearly $2,000 higher.vii The average projected wage related to operation at the Telephone Flat facility would be higher than both the county and state averages, totaling between $40,000 and $50,000 (1998 $).

In addition to providing high average-wage jobs geothermal energy supports long-term employment. Geothermal developers, who typically negotiate 10- to 30-year agreements with purchasers, provide jobs that can be guaranteed for decades. The overwhelming majority of geothermal jobs are permanent (95%), and most are also full-time.

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Rural Employment

Geothermal resources tend to be located in rural areas and require the support of the local workforce. For example, of the staff employed directly by one company at the Geysers Geothermal Complex in California, 425 full-time and 225 part-time employees are residents of the local community.x Rural communities face many unique challenges. The lack of stable, secure, long-term jobs in rural communities leads many young adults with “the most education and the greatest earning potential” to emigrate, leaving a poorer, older, and smaller population. xi Many rural communities, including those in which geothermal facilities tend to be located, suffer from significantly higher unemployment rates than the general population. In 2004, California’s unemployment rate was 6.2%, but Siskiyou County, near the proposed Telephone Flat geothermal power plant, had an unemployment rate of 9.3%, more than one-third higher than the California average.xii The Center for Mental Health Services (CMHS) found that “many rural Americans are at or below the national poverty level.”xiii Unemployment in rural communities makes residents particularly susceptible to high levels of social and health-related problems—more so than their urban counterparts.

The development of geothermal resources provides not only income for rural communities but also a means by which to educate, train, and employ a diverse workforce. Rural communities tend to focus on a single source of revenue, such as manufacturing or agriculture, which can contribute to unemployment and economic instability. Geothermal offers a means of diversifying the economic base of local communities, thereby building on and sustaining established economies while attracting new business.xv Such diversification is a direct indicator of economic stability.

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Types of Jobs Created

The development of geothermal resources provides long-term income for people with a diversity of job skills. This includes welders; mechanics; pipe fitters; plumbers; machinists; electricians; carpenters; construction and drilling equipment operators; surveyors; architects and designers; geologists; hydrologists; electrical, mechanical, and structural engineers; HVAC technicians; food processing specialists; aquaculture and horticulture specialists; managers; attorneys; regulatory and environmental consultants; accountants; computer technicians; resort managers; spa developers; researchers; and government employees who all play an important role in bringing geothermal energy online.

While many of the types of jobs mentioned here are directly involved in developing a geothermal resource, growth in many of the industry’s “behind-the-scenes” sectors has been picking up. The increase in on-line geothermal capacity over the last ten years has similarly spurred growth in geothermal research and development activity by academic and government institutions. While it is currently unclear precisely how many additional jobs have been created in these sectors as a result of geothermal growth, it is apparent that more and more people are becoming involved in areas beyond direct power plant development. A Federal Interagency Geothermal Working Group, for example, is composed of 13 representatives from various offices within six government agencies.

Also significant are the numerous colleges and universities around the country that are engaging in geothermal-related research extending from geological assessment to Enhanced Geothermal System (EGS) development. The jobs involved in these areas are not within the scope of this report, but the increased attention being paid to geothermal energy in stages prior to and outside of resource development and construction are important to consider in characterizing geothermal employment.

In short, the development of geothermal resources requires the support of many skilled laborers and professionals from different sectors and during different stages of resource development. Section 2: Green Jobs in Geothermal Resource Development, will give a more extensive discussion of the wide range of jobs involved in a geothermal power project.

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Future Potential and New GEA Analysis

The development of geothermal energy resources has the potential to generate and support numerous “green jobs” in the US. Geothermal projects that are currently in advanced stages of development in the states of Nevada, California, and Utah alone have the potential to create more than 2,500 permanent full-time positions and nearly 10,000 annual construction jobs. However, numbers don't always tell the complete story regarding the many and diverse jobs supported throughout the development of a geothermal resource. Section 2 will endeavor to walk through a geothermal project from start to finish, and will discuss both the types of jobs and the number of people involved at each stage in the development process. The information gathered by GEA for this analysis indicates that one typical 50-MW geothermal power plant can involve up to 860 different people with a wide range of skills over its development cycle. Some of these jobs will be "on-site" where the power plant is located, others can be in nearby major cities, and others can be found in manufacturing plants hundreds of miles from the actual geothermal resource.

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Green Jobs Through Geothermal Development

The development of geothermal energy resources has the potential to generate and support numerous “green jobs” in the US. Geothermal projects that are currently in advanced stages of development in the states of Nevada, California, and Utah alone have the potential to create more than 2,500 permanent full-time positions and nearly 10,000 annual construction jobs using employment calculation methodology developed as part of the Western Governors Associations Geothermal Task Force Report.

The large number of jobs involved in the development of geothermal projects is not always obvious. Plant operation displays only a small fraction of the employment supported through developing geothermal resources. The road to completion of a plant begins well before construction, is comprised of many different stages, and requires the contribution and support of employees from a wide variety of backgrounds. Degreed professionals such as engineers, geologists, and geophysicists play an important role throughout resource development and operation. Technical “green collar” laborers such as drill rig operators, welders, mechanics, and safety managers are integral to the development of geothermal resources. An additional workforce of professionals such as lawyers, project managers, archeologists, sales people, assembly workers, and administrative staff work behind the scenes to support the development of renewable geothermal resources.

This section examines the phases in the development of a typical geothermal power project and identifies the many different types of workers who are involved. While this is not a quantitative analysis of the type prepared for the Geothermal Task Force Report, it is intended to show the broad range of different jobs involved in a geothermal. Today, a typical geothermal project can involve approximately 860 different workers.

Job Generation Throughout the Development Timeline…Project Start-Up...Exploration…Drilling…Plant Design and Construction…Manufacturing…Operation and Maintenance…

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Conclusion

The US has the potential to significantly bolster levels of employment by further developing its geothermal resources. From the early stages of leasing, permitting and exploration, to components of the geothermal supply chain, to later stages of production well drilling and plant construction, and finally, the continued operation and maintenance of a plant, geothermal project employs large numbers of professionals and supports a growing green collar industry. When considering the complex nature of the geothermal supply chain, as well as continued plant operation and maintenance, the number of professionals employed via geothermal development increases even more. Just as important, geothermal resource development not only employs large numbers of people, it employs professionals from different backgrounds. While degreed professionals such as engineers, lawyers, and managers are important to the development of a geothermal power plant, the process would be impossible without the experience of technical green collar personnel such as drillers, welders, and machinists. It is difficult to quantify the exact number of jobs generated and supported by geothermal energy, but a closer look into the development process reveals geothermal development as integral to the nations clean energy portfolio in providing numerous stable and long lasting jobs.