This article was published by the Canada Energy Regulator on May 31, 2023.
Geothermal energy has a small environmental footprint and is one of the few renewable energy sources that is always available, has low greenhouse gas (GHG) emissions, can operate at high capacity factors, and requires minimal land and fresh water.(1) However, resource exploration risk and capital costs for geothermal plants are high.(2) In 2021, the capacity cost for a geothermal power plant was estimated between US$4,500 to $6,050(3) per kilowatt (kW) of capacity, higher than most solar applications, coal, and natural gas, but lower than nuclear. In terms of the levelized cost of energy, geothermal energy costs US$56 to $93(4) per megawatt hour (MWh), which is competitive with coal, nuclear, and some solar applications.(5)
Almost all current geothermal applications in the country provide heating for hot springs, buildings, agriculture, or industry. The only commercial geothermal power plant in operation in Canada is the Swan Hills Geothermal Power Project in Alberta, commissioned in January 2023.(6)(7) Several other proposed geothermal power projects in British Columbia, Alberta, and Saskatchewan(8) could follow later in the decade (Table 1).
Table 1: Current and proposed Canadian geothermal power projects
| Name | Start | Capacity (MW) | Location | Proponents | Notes |
|---|---|---|---|---|---|
| Deek Riddell Eavor-Lite Demonstration Facility | December 2019 | Information not available | Near Rocky Mountain House, AB | Eavor Technologies Inc | Pilot (technology demonstrator) project |
| Swan Hills Geothermal Power Project | January 2023 | 6 | Swan Hills, AB | FutEra Power Corp (subsidiary Razor Energy Corp) | Coproduced geothermal power plant with 21 MW capacity (30 per cent geothermal, 70 per cent natural gas). |
| Latitude 53 project | Information not available | 3 | Near Hinton, AB | Novus Earth, Mitacs National Research Organization | Natural Resources Canada announced a $5 million investment in June 2022 for feasibility and pre-front-end engineering design (FEED) studies under the Smart Renewables and Electrification (SREPs) program. Drilling expected in Q3 2023. |
| Alberta No. 1 Geothermal Project | Information not available | 10 | South of Grande Prairie, AB | Terrapin Geothermics | |
| Tu Deh-Kah Geothermal | Early 2026 | 7 – 10 | South of Fort Nelson, BC | Fort Nelson First Nation (FNFN) | Formerly Lake Clarke Geothermal Project. |
| DEEP | Summer 2024 | 5 | Torquay, SK | DEEP Earth Energy Production Corp | Will be built in two phases, the first with 5 MW, followed by 20 MW. The site could support multiple facilities up to 200 MW. |
| Kitselas Geothermal | Information not available | Information not available | Near Terrace, BC | Borealis Geothermal, Gits’llaasu First Nation | First stage provides direct heating. Previously planned with 15 MW capacity. |
| Meager Creek Geothermal Project | Information not available | Information not available | Approximately 70 km northwest of Pemberton, BC | Meager Creek Development Corp | High temperature (>200°C) resource with a potential power capacity over 100 MW. |
Sources: GLJ, Think Geoenergy, DOB, Razor Energy (FutEra), Borealis Geothermal, Terrapin, DEEP Corp, NovusEarth, Kitselas Geothermal, Meager Creek Development Corp
The federal government is providing support for geothermal energy under several programs like Natural Resource Canada’s Smart Renewables and Electrification Pathways (SREPs) program and Canada’s Emerging Renewable Power Program, in addition to geoscience research programs. Alberta,(9)(10) British Columbia,(11) and Nova Scotia(12) created regulatory frameworks for geothermal energy development, with Yukon actively developing regulations.(13) Saskatchewan works within existing regulations to regulate geothermal development while is providing support to the DEEP geothermal demonstration project through the Innovation Saskatchewan Advantage Innovation Fund.
Where is Canada’s geothermal potential located?
In Canada, most geothermal resources are in western Canada, but a small amount exists in eastern Canada. Outside major volcanic belts in the west, the Canadian CordilleraDefinition* shows large variability in heat flow from the Earth, indicating great potential for geothermal resources. Abundant thermal springs signify areas with good geothermal potential. In addition, Canada is covered by extensive sedimentary basins containing a great deal of warm to hot fluid in porous rocks. In regions of northeastern British Columbia, northern Alberta, and southern Northwest Territories, temperatures that exceed 150°C are known at depths as shallow as three kilometres, which have the potential for electric generation.(14)
What is geothermal energy?
Geothermal energy is heat generated from the Earth’s crust, stored in the rock and fluids that fill the fractures and pores within the Earth’s subsurface.(15)(16) Geothermal energy can be used in areas with high-temperature geothermal resources. These are generally located alongside the edges of tectonic platesDefinition* or in regions where hot rock is relatively close to the Earth’s surface or in volcanic regions. Geothermal energy can be used to provide hot water and heating (direct use) or for power generation(17) (Figure 1).
Figure 1: Geothermal energy and its uses
Source and Description
Source: US Department of Energy, “Geovision: Harnessing the Heat Beneath our Feet,” Chapter 2, Figure 2-7. Adapted by the CER.
Description: The diagram shows the different uses of geothermal energy, broken down by direct use for heating (space heating, agriculture, and industrial facilities) and power generation. Temperatures are reported in Celsius and Fahrenheit degrees.
History of geothermal applications and current global use
Geothermal energy from hot springs has been used for centuries to heat public baths and buildings. In 1913, it was used to generate electricity in the first commercial geothermal plant in Larderello, Italy.(18) The world’s geothermal energy capacity in 2021 was 15,854 megawatts (MW), equivalent to 11 per cent of Canada’s total electricity capacity. The United States accounts for 3,794 MW, followed by Indonesia, the Philippines, Turkey, New Zealand, Mexico, and 18 other countries.(19) (Figure 2).
Figure 2: The top ten countries using geothermal energy in 2021
Description: The bar chart (left) shows the top ten countries in 2021 with geothermal power by installed geothermal capacity in megawatts (MW).
Footnotes
- Enbridge, “Geothermal Energy – What is it, where is it, and how do we capture it?”
- IEA, “Renewable Energy Essentials: Geothermal.”
- CAD $6,120 to $8,227 as of 24 May 2023 with 1 CAD = 0.735564005 USD exchange rate.
- CAD $76 to $96 as of 24 May 2023 with 1 CAD = 0.735564005 USD exchange rate.
- Lazard, “LAZARD’S LEVELIZED COST OF ENERGY ANALYSIS — VERSION 15.0”, October 2021.
- The Swan Hills Geothermal Power project has a natural gas unit (15 MW) and a geothermal unit (6 MW). The natural gas unit and geothermal facility were in service in September 2022 and January 2023, respectively.
- Razor Energy, “Canada first co-produced geothermal power project is operational”, March 22, 2023.
- Geothermal Canada, “Geothermal 101 – Current geothermal projects underway in Western Canada Sedimentary Basin, that will generate electricity and thermal energy”.
- Alberta, “Geothermal Resource Development.”
- Alberta Energy Regulator (AER), “Geothermal Resource Development.”
- BC Energy Regulator, “Geothermal.”
- Government of Nova Scotia, “Bill No. 149: Mineral Resources Act”, May 2016.
- Government of Yukon, “Geothermal resources legislation engagement 2022”.
- S.E. Grasby, at all “Geothermal Energy Resource Potential of Canada”, Geological Survey of Canada, NRCan, 2012, pages VIII to X and Figure 2, page IX.
- GLJ, “What is Geothermal Energy, What is Canada’s Potential”, GLJ.
- Enbridge, “Geothermal Energy – What is it, where is it, and how do we capture it?”
- Geothermal power generation requires temperatures ranging from 100°C (212°F) to 250°C (482°F) to operate. A. Zoet, J. Bowyer, S. Bratkovich, M. Frank and K. Fernholtz, “Geothermal 101: The Basics and Applications of Geothermal Energy”, page 3, Dovetail Partners Inc, 12 September 2011.
- LDI Training, “The First Geothermal Plants Around The World”.
- A. Richter, “ThinkGeoEnergy’s Top 10 Geothermal Countries 2022 – Power Generation Capacity (MW)”, Think Geoenergy, 10 January 2023.
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