Alaska Augustine Island competitive geothermal lease sale
Augustine Volcano, Alaska (source: Coombs, M. L. / Alaska Volcano Observatory / U.S. Geological Survey)
Alexander Richter
17 Mar 2025
The Alaska Department of Natural Resources will hold a competitive geothermal lease sale for 55,771 acres on Augustine Island April 3-16, 2025.
The Alaska Department of Natural Resources (DNR), Division of Oil and Gas (DO&G), has announced a competitive geothermal lease sale for 55,771 acres of state-owned land on Augustine Island, located in Lower Cook Inlet. We previously reported on the planned auction, which is now taking place. The auction, scheduled for April 2025, offers developers the opportunity to explore and develop geothermal energy resources in one of Alaska’s active volcanic regions.
Key details of the Lease Sale
- Bidding Timeline (All times Anchorage local time):
- April 3, 2025 – Bidding opens via EnergyNet’s online system.
- April 16, 2025 (4:00 p.m.) – Deadline for bid submissions.
- April 22, 2025 (9:00 a.m.) – Results published on the DO&G website.
Lease sale location:
- Augustine Island, Kamishak Bay – 68 miles southwest of Homer, 170 miles southwest of Anchorage.
- The lease area falls within the Kenai Peninsula Borough.
Lease Sale terms & conditions
- Bidding Method: Sealed bid (cash bonus, fixed royalty).
- Minimum Bid: $1.00 per acre.
- Royalty Rate: years 1–10: 1.75% fixed, year 11 and beyond: 3.5% fixed
- Primary Lease Term: 10 years.
- Annual Rental Rate: $3.00 per acre.
Why Augustine Island?
- Geothermal Potential – Augustine Island is a volcanically active area, making it a promising site for geothermal development.
Alaska’s Renewable Energy Push – The lease sale aligns with the state’s goal of diversifying its energy mix and reducing dependence on fossil fuels.
Long-Term Investment Opportunity – The sale provides exploration and development rights under Alaska’s geothermal leasing framework.
How to participate
Interested bidders must register and submit bids through EnergyNet’s Government Listings site (EnergyNet.com). Full details, including sale documents, tract maps, and best interest findings, are available on the Alaska DO&G website: https://dog.dnr.alaska.gov/Services/Geothermal (To access, go to “Current Lease Sales”, then “Augustine Island Geothermal Sales”, then “2025” then you get access to all details.
Source: Notice of Lease Sale (pdf)
Disclaimer: We take no responsibility on the accuracy of above announcement, for full details see the official Lease Sale Notice linked to above.
