December 15, 2025 - For decades, Dallas Robinson’s family excavation company developed coal mines and power plants in the rugged, fossil-fuel-rich region of northwest Colorado. It was a good business to be in, one that helped hamlets like Hayden grow from outposts to bustling mountain towns — and kept families like Robinson’s rooted in place for generations.
“This area, with the exception of agriculture, was built on oil and gas and coal,” said Robinson, a former town councilor for Hayden.
But that era is coming to a close. Across the United States, bad economics and even worse environmental impacts are driving coal companies out of business. The 441-megawatt coal-burning power plant just outside Hayden is no exception: It’s shutting down by the end of 2028. The Twentymile mine that feeds it is expected to follow.
Coal closures can gut communities like Hayden, a town of about 2,000 people. That story has been playing out for decades, particularly in Appalachia, where coal regions with depressed economies have seen populations decline as people strike out for better opportunities elsewhere. Robinson, a friendly, gregarious guy, fears the same could happen in Hayden.
“I grew up here, so I know everyone,” he said. ?“It’s hard to see people lose their jobs and have to move away. … These are families that sweat and bled and been through the good and the bad times in small towns like this.”
Struggling American coal towns need an economic rebirth as the fossil-fuel industry fades. Hayden has a vision that, at first, doesn’t sound all that unusual. The town is developing a 58-acre business and industrial park to attract a diverse array of new employers.
The innovative part: companies that move in will get cheap energy bills at a time of surging utility costs. The town is installing tech that’s still uncommon but gaining traction — a geothermal heating-and-cooling system, which will draw energy from 1,000 feet underground.
In short, Hayden is tapping abundant renewable energy to help invigorate its economy. That’s a playbook that could serve other communities looking to rise from the coal dust.
At an all-day event hosted by geothermal drilling startup Bedrock Energy this summer, I saw the ambitious project in progress. Under a blazing sun, a Bedrock drilling rig chewed methodically into the region’s ochre dirt. Once it finished this borehole — one of about 150 — it would feed in a massive spool of black pipe to transfer heat.
Bedrock will complete the project, providing 2 megawatts of thermal energy, in phases, with roughly half the district done in 2026 and the whole job finished by 2028. Along the way, constructed buildings will be able to connect with portions of the district as they’re ready.
“We see it as a long-term bet,” Mathew Mendisco, city manager of Hayden, later told me, describing the town as full of grit and good people. Geothermal energy ?“is literally so sustainable — like, you could generate those megawatts forever. You’re never going to have to be reliant on the delivery of coal or natural gas. … You drill it on-site, the heat comes out.”
“We disagree on the urgency of addressing climate change, [but] this is something that Chris Wright and I agree on,” Colorado Senator John Hickenlooper (D), a trained geologist, told a packed conference-room crowd on the day of the event. ?“Geothermal energy has … unbelievable potential to, at scale, create clean energy.”
Bedrock Energy’s drilling rig digs a 1,000-foot borehole as part of a geothermal network that’ll keep energy costs low for companies that move into a new Hayden business park. (Alison F. Takemura/Canary Media)
Charting a post-coal economy
The eventual closure of the Hayden Station coal plant, which has operated for more than half a century, has loomed over the town since Xcel Energy announced an early shutdown in 2021.
The power plant and the mine employ about 240 people. Property taxes from those businesses have historically provided more than half the funding for the town’s fire management and school districts — though that fraction is shrinking thanks to recent efforts to diversify Hayden’s economy, Mendisco said.
Taking into account the other businesses that serve the coal industry and its workers, according to Mendisco, the economic fallout from the closures is projected to be a whopping $319 million per year.
“Really, the highest-paying jobs, the most stable jobs, with the best benefits [and] the best retirement, are in coal and coal-fired power plants,” Robinson said.
Hayden aims for its business park to help the town weather this transition. With 15 lots to be available for purchase, the development is designed to provide more than 70 jobs and help offset a portion of the tax losses from Hayden Station’s closure, according to Mendisco.
“We are not going to sit on our hands and wait for something to come save us,” Mayor Ryan Banks told me at the event.
Companies that move into the business park won’t have a gas bill. They’ll be insulated from fossil-fuel price spikes, like those that occurred in December 2022, when gas prices leapt in the West and customers’ bills skyrocketed by 75% on average from December 2021.
In the Hayden development, businesses will be charged for their energy use by the electric utility and by a geothermal municipal utility that Hayden is forming to oversee the thermal energy network. Rather than forcing customers to pay for the infrastructure upfront, the town will spread out those costs on energy bills over time — like investor-owned utilities do. Unlike a private utility, though, Hayden will take no profit. Mendisco said he expects the geothermal district to cut energy costs by roughly 40%, compared with other heating systems.
The setup will deliver such massive savings because geothermal appliances, which draw energy from the always-temperate Earth, are the most efficient space-conditioning tech you can get. They pump out the same amount of heat as a fossil-fuel-fired furnace while using just one-sixth to one-quarter of the energy.
A diagram of a geothermal network, which is able to soak up the earth’s constant heat via ground loops of flexible pipe and deliver it to connected buildings. (Eversource)
Municipally owned geothermal districts are rare in the U.S., but the approach has legs. Pagosa Springs, Colorado, has run its geothermal network since the early 1980s, when it scrambled to combat fuel scarcity during the 1970s oil embargo. New Haven, Connecticut, recently broke ground on a geothermal project for its train station and a new public housing complex. And Ann Arbor, Michigan, has plans to build a geothermal district to help make one neighborhood carbon-neutral.
Hayden’s infrastructure investment is already attracting business owners. An industrial painting company has bought a plot, and so has a regional alcohol distributor, Mendisco said.
One couple is particularly excited to be a part of the town’s clean energy venture. Nate and Steph Yarbrough own DIY off-grid-electrical startup Explorist.Life; renewable power is in the company’s DNA. The Yarbroughs teach people how to put solar panels and batteries on camper vans, boats, and cabins to fuel their outdoor adventures, and Explorist.Life sells the necessary gear.
“When we bought that property, it was largely because of the whole geothermal concept,” Nate Yarbrough told me. ?“We thought it made a whole bunch of sense with what we do.”
Reducing reliance on hydrocarbons, he noted, is “a good thing for society overall.”
Geothermal tech heats up
The geothermal network that could transform Hayden’s future is mostly invisible from aboveground. Besides the drilling rig and a trench, the most prominent features I spotted were flexible tubes jutting from the earth like bunny ears.
Those ends of buried U-shaped pipes will eventually connect to a main distribution loop for businesses to hook up to. Throughout the network, pipes will ferry a nontoxic mix of water and glycol — a heat-carrying fluid that electric heat pumps can tap to keep buildings toasty in the winter and chilled in the summer.
As part of Hayden’s geothermal network, a loop of U-shaped pipe will collect constant heat from the earth, no matter how bitter the winter. Its two ends — the only parts visible — will connect to a distribution loop. (Alison F. Takemura/Canary Media)
Despite their superior efficiency, these heat pumps are far less common than the kind that pull from the ambient air, largely due to project cost. Because you have to drill to install a ground-source heat pump, the systems are typically about twice as expensive as air-source heat pumps.
But the underground infrastructure lasts 50 years or more, and the systems pay for themselves in fuel-cost savings more quickly in places that endure frostier temperatures, including Rocky Mountain municipalities like Hayden. Those long-term cost benefits were too attractive to ignore, Mendisco said.
Hayden’s project ?“is 100% replicable today,” Mendisco told attendees at the event, which included leaders of other mountain towns. Geothermal tech is ready; the money is out there, he added: “You can do this.”
Colorado certainly believes that — and it’s giving first-mover communities a boost.
In October, the state energy office announced $7.3 million in merit-based tax-credit awards for four geothermal projects. Vail is getting nearly $1.8 million for a network, into which the ice arena can dump heat and the library can soak it up. Colorado Springs will use its $5 million award to keep a downtown high school comfortable year-round. Steamboat Springs and a Denver neighborhood will share the rest of the funding.
At least one other northwest Colorado coal community is also getting on board with geothermal. In the prior round of state awards, the energy office granted $58,000 to the town of Craig’s Memorial Regional Health to explore a project for its medical campus.
With dozens of communities warming to the notion, “it’s an exciting time for geothermal in Colorado,” said Bryce Carter, geothermal program manager at the state energy office.
So far, the state has pumped $30.5 million into geothermal developments — with over $27 million going toward heating-and-cooling projects specifically — through its grant and tax-credit programs. The larger tax-credit incentive still has about $13.8 million left in its coffers.
Hayden, for its part, is also taking advantage of the federal tax credits to save up to 50% on the cost of its geothermal district. That includes a 10% bonus credit that the community qualifies for because of its coal legacy. After also accounting for a bonanza of state incentives, the $14-million project will only be $2.2 million, Mendisco said.
Tech innovation could further improve geothermal’s prospects, even in areas with less generous inducements than Colorado’s. Bedrock Energy, for one, aims to drive down costs by using advanced sensing technology that allows it to see the subsurface and make computationally guided decisions while drilling.
“In Hayden, we have gone from about 25 hours for a 1,000-foot bore to about nine hours for a 1,000-foot bore — in just the last couple of months,” Joselyn Lai, Bedrock’s co-founder and CEO, told me at the event. Overall, the firm’s subsurface construction costs from the first quarter of 2025 to the second quarter fell by about 16%, she noted.
When drilling, Bedrock Energy harnesses a constant stream of data to navigate underground obstacles from boulders to fractures. (Alison F. Takemura/Canary Media)
Hayden is likely just at the start of its geothermal journey. If all goes well with the business park, the town aims to retrofit its municipal buildings with these systems to comply with the state’s climate-pollution limits on big buildings, Mendisco said. Hayden’s community center could be the first to get a geothermal makeover starting in 2027, he added.
Robinson, despite coal’s salience in the region and his family’s legacy in its extraction, believes in Hayden’s vision: Geothermal could be a winner in a post-coal economy. In fact, he’s interested in investing in the geothermal industry and installing a system in a new house he’s building, he said.
“I’ve lived a lot of my life making a living by exploiting natural resources. I understand the value of that — as well as lessening our impact and being able to find new and better,” Robinson said. “This is the next step, right?”
