News

November 19, 2009

Reno Resort Goes Geothermal

Looking for a greener way to generate heat and hot water, the operator of 10 resort restaurants in Reno, Nev., bet the answer lay below its feet. Way, way below its feet.

In January, the Peppermill Resort will become what is believed to be the first hospitality facility in the nation to get all of its heating needs from geothermal energy, a distinction that cost Peppermill Casino Properties some $8.1 million in drilling and other fees.

The resort declined to say when it might recoup that investment, but noted that the property covers 2.1 million square feet, including a heated swimming pool, a sizeable casino, 1,635 guest rooms, extensive meeting space, and the 10 restaurants. Now, the company said, all but the resort's electrical power will be self-generated.

Management acknowledged that the stab at near self-sufficiency was a gamble. The property was no stranger to geothermal energy, or heat produced deep within the earth. It's usually tapped by sinking a well, pumping in water to be heated, then pumping it back out for use in radiators or, if the water is hot enough, to turn the steam turbines of electricity generators. Starting in 1980, the resort had used the process on a limited basis to offset some of its power needs, like heating water for the pool.

Eager to lessen its reliance on non-renewable energy sources, Peppermill decided earlier in 2009 to see if it could use geothermal power for all its heating needs. But it had no idea if that feat could be accomplished, given the scale of the facility. "In order for a well to produce the level of geothermal energy that could accomplish what we've set out to do, we need[ed] to find water at 170 degrees that can [be pumped at] 800 gallons per minute at 80 to 90 psi," or pounds per square inch, Peppermill facilities director Dean Parker said in a statement.

It would be a bit of a crapshoot, the casino company realized.

The resort started drilling to see if it would find sufficient water and heat. It finally hit the right conditions at a depth of 4,400 feet—at more than three-quarters of a mile, the deepest well ever drilled in the region, which is known a leader in exploring geothermal power.

"With this well, we found [what we needed] and more," said Parker.

Water is taken from a subterranean aquifer at a high temperature and pumped through the property and its restaurants, which range from the fine-dining Bimini Steakhouse to the grab-and-go Sports Deli.

The system is a closed loop, with the water used only as a heat conveyor. The heat it carries is captured and used to warm potable water from a conventional source.

The water that carried the heat is then pumped back into the ground via a "reinjection well," where it will be heated again.

Peppermill expects the changeover to the self-generation system to be completed by February.

The installation was recently featured at one of the geothermal energy industry's big conventions, the Geothermal Resources Council Annual Meeting and Geothermal Energy Expo.

President Barack Obama has often cited geothermal power as a form of renewable energy that should be used more within the United States.

Did You Know?

Spending on utilities consumes approximately 2.5 percent to 3.4 percent of total restaurant sales, depending on the type of operation.

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