Geothermal gamble pays off for casino
RENO — A Reno casino has hit the jackpot: An underground geothermal water source just north of one of its new 17-story hotel towers that will generate enough heat and hot water for all 2.1 million square feet of the resort’s space.
The Peppermill Resort Spa casino recently gambled on an $8 million project to drill a deep hole on their property in search of the hot water, which hovers around 170 degrees.
“The Peppermill, they really did hit a nice temperature of water,” said Lowell Price, oil, gas and geothermal manager for Nevada’s Division of Minerals, which oversees the permitting process of geothermal wells on private property.
“It is really not hot enough for the big players … for the generation of electricity, but what they are trying to do, they have a real nice find there, very nice,” Price told the Reno Gazette-Journal.
The new green-energy system is scheduled to go online in January. It will be used to heat all restaurants, casino floors, the expansive spa, plus every shower and sink in 1,600-plus hotel rooms year-round.
The move will save $1 million a year in energy costs, resort officials said, adding project expenses should be recovered through those savings in eight years.
“Through the course of the drilling, we were all concerned about if there was going to be enough water down there and if it was hot,” said Alan Bailey, geologist and drilling engineer with Geothermal Resource Group, Inc. “Only in the final stages was it real clear that they had an excellent well here.”
The Peppermill’s discovery comes at a time when the city of Reno and the state of Nevada are trying to raise awareness about the area’s geothermal potential, as well as stepping up efforts to encourage geothermal companies to locate here.
“Last year, we had a banner year and we had 130 permits, which was the highest ever,” Price said. “We are already up to 162 permits this year, so it is really taking off.”