A $2.5 million geothermal training grant for Unalaska sits 3 percent spent

A federal grant to train Unalaska residents for geothermal jobs is nearly halfway through its five-year term and 3 percent spent. The Department of Energy revised it eight days ago without saying how.

Federal records retrieved Aug. 29, 2026, show $2.5 million obligated to the Qawalangin Tribe of Unalaska, with $75,105.65 spent, 3 percent of the award. The grant runs through April 14, 2029. It is meant to educate, hire and train disadvantaged and displaced populations in all aspects of the geothermal industry for the Makushin Geothermal Project. The award's narrative cites a grid stretched to capacity, fishing companies generating their own power, and power costs that deter other industry. No record opened for this article establishes that any training took place, that anyone enrolled, or whether the award can continue in support of broader geothermal exploration or development in Unalaska.

The federal award was not closed. Cumulative outlay held at $75,106 through all four reported quarters of fiscal 2026. It carries two transactions: the original obligation and modification 0001, dated Aug. 21, 2026, a zero-dollar revision whose content is not stated. The record was last modified Aug. 25, 2026. No record carries a word from DOE's Golden Field Office, from the tribe, or from anyone trained under the grant.

The Department of Energy signed the award April 10, 2024, thirty-three days after the city announced on March 8, 2024 that its council would not extend or renegotiate the power purchase agreement. The 2020 agreement had expired Dec. 10, 2023, for lack of financing, and the city was the plant's only prospective buyer. The same release said the city, the tribe and Ounalashka Corporation remained committed to moving from diesel to renewable power, "including wind and geothermal."

Thirteen months after the grant was signed, on May 13, 2025, the council adopted Resolution 2025-32, deeming capital project EL22B abandoned for its intended purpose. The city had budgeted $5.87 million, spent about $1.39 million, and returned about $4.48 million to its 1% Fund. Minutes record no council discussion and a unanimous yes vote.

City Manager William Homka wrote in February 2024 that grid investment deferred in anticipation of the geothermal interconnection worsened power surges and outages that fishing season. The city's March 2024 release put the project cost at $250 million against a $5 million state commitment, with the developer seeking $0.22 per kilowatt-hour, up from $0.16. The resource was never confirmed. A 1980s well, ST1, was found insufficient and never retested, and the developer resisted testing estimated at about $25 million. David Matthews, program manager for developer OCCP, called undisclosed demands to borrow more and hire expensive contractors "a complete disservice to the residents of Unalaska."

The same night, the council adopted its FY26-35 capital plan, redirecting the returned money to subtransmission upgrades. The plan also created a new city project to drill for the resource. The city's Jan. 20, 2026 capital update carries Makushin Geothermal Testing as a $1 million city allocation matched by $1 million from Ounalashka Corporation, for three exploratory wells and possibly a fourth. Nothing had been spent, and agreements with the corporation were still listed as work to be done. In February 2025 the city submitted a DOE concept paper seeking $25.3 million. Its status is not established.