Chena Power Spins Off Alaska Geothermal Partners for Energy Planning Services
Photo Credit: Chena Hot Springs Resort
From the ashes of a geothermal energy project in Unalaska rises a new venture to promote the technology. Fairbanks-based Chena Power, which had been developing the Makushin project with Ounalashka Corporation and the Qawalanging Tribe of Unalaska, is forming a wholly owned subsidiary called Alaska Geothermal Partners (AGP).
Drawing upon the Makushin development experience and the nineteen years that Chena Power has generated electricity from the hot springs northeast of Fairbanks, AGP is offering geothermal energy planning, designing, and building services while helping communities explore geothermal potential with the goal of harnessing the Earth’s internal heat to reduce energy costs and diversify economic opportunities.
Post Project, Partners Persist
Chena Power CEO Bernie Karl formed AGP with science consultant John Ziagos and David Matthews, who takes the role of business and contracts lead. Matthews says the three partners had been working together for years on the Makushin project.
“When that project was put on hold, we decided to form a new company to reach out to communities or regions about their geothermal potential and to share our expertise with greater Alaska as a whole,” says Matthews.
Matthews, former vice president and general manager of Anchorage-based energy transmission services company Price Gregory, brings decades of experience in construction management to the team. Karl, as AGP development and operations lead, brings years of geothermal experience. As the owner of Chena Hot Springs Resort, Karl started the first geothermal plant in Alaska, which is noteworthy for utilizing 165°F water, the lowest temperature of any geothermal resource in the world. And Ziagos, who has worked with the US Department of Energy on resource assessment, takes the role of AGP chief scientist.
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AGP is currently working on a bid for a geothermal well at Fort Wainwright and has put in a solicitation of interest for a hot springs development in northern California. The company welcomes more Alaska communities to explore the technology for municipal light and power, for industrial processes, or for exporting energy as fuel.
“There is so much potential with geothermal power in Alaska compared to the rest of the world,” says Matthews, noting that most resources are remote and hard to access. “It can be used in anything from food production to hot springs tourism, to energy production, or as a stranded resource to produce methanol or hydrogen fuels.”
According to Straits Research, the global geothermal power market size was valued at $8.8 billion in 2024 and is estimated to reach $12.7 billion by 2033.
“Geothermal energy-driven electrical power plants are getting more and more efficient every year,” says Matthews. He notes that the United States has more developed geothermal resources than anywhere else in the world, but most of the new developments are taking place overseas.
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“Italy was one of the first countries to build geothermal plants more than 100 years ago, and Ormat Technologies out of Israel is now a dominant force in the geothermal world. Kaishan, out of China, has made very good inroads in geothermal technology in the United States, Indonesia, and Africa,” says Matthews.
Alaska is a prime target for tapping geothermal reservoirs because of its vast volcanic arcs with high geothermal gradients. Matthews adds that the US Department of Energy has a growing interest in enhanced geothermal systems, which circulates high-pressure water through an injection well rather than tapping heat through a traditional pumped or artesian well.
Geothermal Synergy
If a region or community is in proximity to a geothermal source and has a controlling interest in that area, AGP will provide a free desktop study to determine the potential of small or large-scale development. “If the synergy is there and we see potential, we can help develop a plan for clients, providing boots-on-the-ground type of research,” says Matthews.
While it can be difficult to get such projects off the ground due to high startup costs and capital investment, Matthews says the lifecycle cost once the resource is tapped is very competitive to other types of fuel, especially diesel generation.
“I’m very optimistic about using geothermal energy in Alaska, on both a large and small scale; as the technology improves and we redirect our attention to geothermal as a viable alternative energy, it’s got great growth potential,” he says, noting that possible resources include Augustine Volcano west of Homer, the western Susitna Valley, and the Aleutian Islands, where the majority of the resource is found. “There is a good future for geothermal here.”
The Makushin project is not finished, either. In 2024, an access road was being built, a drill rig had been purchased, and Ormat had been identified for a construction contract. Although the City of Unalaska declined to renew a thirty-year power purchase agreement with the developers, it chose to continue pursuing the project with Ounalashka Corp. and the Qawalanging Tribe. Matthews notes that Chena Power continues to hold a minority partnership in the venture, unless and until Karl is bought out.
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