Canada needs geothermal test centres to build an industry

The Cascade Institute’s Peter Massie says shared testing infrastructure could help Canadian companies prove their technology and supply growing electricity demand.

Canada should establish geothermal test centres to help turn its drilling expertise into commercial electricity projects, says Peter Massie, director of the Cascade Institute’s Geothermal Energy Office.

In an interview with Energi Media, Massie argued that a coordinated industrial strategy could help developers overcome the expense and uncertainty of testing technologies underground. That would support an industry capable of supplying reliable power while creating opportunities to export Canadian equipment and expertise.

“I think right now the key barrier in the space is that subsurface risk,” he said, describing the challenge of confirming a resource and adapting technology to work within it.

Massie said geothermal could serve growing industrial electricity demand, including LNG facilities and data centres. It could also supply heat directly, helping reduce future pressure on the electricity system as building heating becomes increasingly electrified.

Shared infrastructure could reduce barriers

The cost of drilling makes innovation difficult for small geothermal companies, Massie said. A relatively inexpensive device can require access to costly underground infrastructure before its developer can establish whether it works.

His proposed network of test centres would provide that infrastructure, allowing companies to test emerging technologies while improving knowledge of the surrounding geology. Better resource information could also support nearby commercial development.

“Test centres have a very long established track record of driving energy innovation,” he said.

Massie pointed to Utah FORGE, an American geothermal field laboratory, as an example of government bringing researchers and industry together to advance technology. He also cited Alberta’s earlier public research effort to develop technologies for oil sands resources too deep to mine.

The Canadian Deep Geothermal Coalition is developing a roadmap to identify the policies needed to build the sector across the country, he said. Its priorities include addressing exploration risk and supporting innovation so Canadian companies can maintain their technological advantages.

Different technologies require different tests

The interview distinguished between enhanced geothermal systems and closed-loop designs. Enhanced systems circulate fluid through fractures in hot rock. Closed-loop systems, such as those developed by Canadian company Eavor, circulate fluid through underground wellbores to absorb heat without relying on a naturally permeable reservoir.

Massie said these approaches could expand the locations where geothermal is commercially useful. Their performance and economics still need to be demonstrated in different geological settings.

He argued that repeated drilling offers an important route to lower costs. Developers can apply lessons from one well to the next, improving efficiency as projects expand.

For electricity buyers, he said, the relevant comparison is the cost of alternative new generation, especially sources able to supply firm power. Existing electricity rates do not necessarily reflect what new capacity will cost.

Looking ahead, Massie identified Western Canada as a region to watch, particularly the high-temperature resources around Mount Meager in British Columbia. He also highlighted opportunities for companies supplying drilling tools and other enabling technologies.

His prescription is to build evidence through projects and testing. Canada’s underground expertise provides a foundation, he argued, but deliberate public support is needed to help companies turn that capability into a competitive geothermal industry.

Watch the full interview

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