In a bid to reinvent its economy as coal fades, the northwest Colorado town of Hayden is turning to geothermal energy, tapping underground heat to cut energy costs, attract new business and build a pathway beyond fossil fuels.
Canary Media reports that the town of 2,000, once anchored by coal mining and a coal-fired power plant that supplied jobs and tax revenue for decades, is now drilling into subterranean thermal resources to heat and cool buildings in a new industrial and business park. The project is intended not just to lower utility bills for prospective tenants but to help counter the economic shock of the local coal plant’s scheduled closure in 2028, town officials and residents say.
“This area, with the exception of agriculture, was built on oil and gas and coal,” Dallas Robinson, a former town councillor and lifelong resident whose family’s excavation business once supported the region’s fossil fuel infrastructure, told Canary Media. “It’s hard to see people lose their jobs and have to move away.”
From coal dust to geothermal loops
The geothermal project is part of a broader business park on 58 acres designed to attract firms seeking low, predictable utility costs. To achieve that, crews are drilling boreholes about 1,000 feet deep and installing ground-loop piping that will transfer heat between the earth and buildings’ heating and cooling systems. The municipal utility being formed to manage the system will spread infrastructure costs over customer energy bills rather than charging large upfront fees.
Town manager Mathew Mendisco told Canary Media that the initiative was a “long-term bet” on geothermal’s potential to eliminate dependence on coal and natural gas while anchoring sustainable economic activity. Geothermal systems use less energy than conventional space-conditioning and offer stable performance in both winter and summer, advantages that local officials say make them well suited to the Rocky Mountain climate.
The development is expected to provide more than 70 jobs and deliver energy costs roughly 40 per cent below conventional heating systems, according to Mendisco. Early adopters of the park’s geothermal energy include an industrial painting company and a regional distributor, suggesting that new industries see value in Hayden’s clean energy story.
Broader context for geothermal in Colorado and the U.S.
Hayden’s initiative comes as geothermal interest is rising across Colorado and the U.S. Though direct use of geothermal for heating and cooling is more common, the state has also seen a broader push to support geothermal networks. In 2025, the Colorado Energy Office awarded millions in tax credits to projects in Vail, Colorado Springs, Steamboat Springs and other communities, reflecting state efforts to help small towns diversify energy sources.
Across the Mountain West, rural communities are navigating the decline of coal and traditional energy jobs, with residents in nearby Craig, Colorado noting the broader uncertainty as mines close and employment shifts toward new sectors. “People have to start looking beyond coal,” one resident told Colorado Public Radio, echoing a sentiment felt in places like Hayden.
Nationally, geothermal energy — including both shallow ground-source systems like Hayden’s and deeper enhanced geothermal systems (EGS) — is gaining attention as a firm, low-carbon energy resource. While wind and solar dominate renewable discourse, geothermal’s ability to provide continuous heat or power gives it a unique value in energy portfolios. Bloomberg has reported that new drilling technologies and supportive federal tax incentives are helping geothermal projects edge closer to cost competitiveness with traditional fuels and intermittent renewables.
Geothermal proponents include companies like Calgary-based Eavor Technologies, whose proprietary closed-loop systems are designed to deliver scalable, dispatchable geothermal heat and power without relying on naturally occurring hotspots — potentially broadening geothermal’s applicability well beyond volcanic regions.
Geothermal as part of post-coal economic strategy
Analysts say geothermal and other renewables could play a meaningful role in diversifying economies that have long depended on fossil fuels. Geothermal heat pumps, for example, are noted for efficiency and environmental benefits; NPR reporting underscores their climate friendliness and energy savings compared with conventional furnaces or boilers in residential and commercial applications.
In Hayden, drilling has already begun on about half the district’s geothermal loops, with completion slated by 2028. Officials say the system’s low operational cost and sustainability could make the town an example for other communities facing similar transitions.
“Geothermal’s here to stay and its workforce is going to get bigger,” Bryce Carter, geothermal programme manager at the state energy office, underscoring how local capacity building could support long-term clean energy deployment, told the Colorado Sun.
Experts say the success of projects like Hayden’s — and eventual advances in deeper geothermal electricity generation — will depend on continued investment, improved drilling technologies, and supportive policy frameworks at state and federal levels. But for now, a former coal town is demonstrating that heat from beneath the earth can offer a viable path toward economic revival and energy resilience that resonates well beyond its mountain borders.
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