From www.canadiangeographic.ca

INDUSTRY

Canada’s new geothermal energy industry

Pioneers of geothermal energy in Canada are cropping up in unusual places
By Amy Smart

For residents of Fort Liard in the Northwest Territories, getting your hands on a tomato can be complicated. The temperature and acidic muskeg soil mean vegetable gardens are a no-go. And produce shipped north arrives expensive and often overripe. You could drive two hours to the nearest town — but after paying for gas, is that tomato worth it?

Beginning in 2013, fresh, inexpensive produce may finally become a reality for the hamlet’s more than 600 inhabitants. A new energy generator, powered by geothermal heat from deep within the Earth, is slated to light up their community. And using its excess heat, greenhouses may soon offer valuable food security to the remote population. Yet this is just one benefit Fort Liard’s residents will see if they’re approved to become Canada’s first community powered by geothermal energy.

If you haven’t heard of geothermal power it might be because its production in Canada lags behind 24 other countries; not a single megawatt has been created here. But the potential is immense, says the Canadian Geothermal Energy Association (CanGEA), which conservatively estimates that Canada could produce more than 5,000 megawatts of geothermal electricity. That’s enough to power Nova Scotia, Prince Edward Island, New Brunswick and all three territories, says CanGEA chair Alison Thompson, a professional engineer and M.B.A. with more than a decade of experience in business development. If Fort Liard’s pilot project runs smoothly, neighbouring communities may follow suit.

So how does it work? Put simply, geothermal power uses the naturally high temperatures below the Earth’s surface to produce energy. There are many ways to access that heat, but it commonly involves drilling about one to three kilometres into the Earth. At that depth, temperatures can reach up to 250 degrees Celsius. Cold water is then injected onto the hot porous rocks below and the resulting steam turns a turbine to generate electricity.

Most power plants also generate electricity by heating water to spin a turbine, but they rely on combustion and other processes that produce harmful by-products, such as carbon dioxide. By drilling below the surface to access geothermal heat, electricity can be produced simply and cleanly.

“It isn’t a complement to other power sources,” says Thompson. “It’s a substitute.” And it’s also the most cost-effective. Despite having large upfront capital costs — drilling to the right depth in Fort Liard will cost around $10 million — geothermal energy has the lowest long-term cost per megawatt of any energy source, including coal.

“The positive thing is that our power bills will be lowered and eventually our reliance on diesel will cease to exist,” says Brad Giroux, who has lived in Fort Liard for 11 years and is CEO of ADK Corporate Group, the company overseeing construction of the project.

The social advantages, he says, will be huge. “Construction will create many new jobs in Fort Liard. Once the power generator is set up, residual heat could be used in a traditional sweat lodge or greenhouse.” And someday, the community hopes to pipe heat to every home in the hamlet.

Energy independence is especially valuable to the Acho Dene Koe First Nation, who account for a majority of the town’s population, since they’re working to establish a land claim. “The way I look at it,” says Giroux, “is that, as they move toward self-government, a project like this will help maintain their self-sufficiency.”

And the potential is great for Canada as a whole, says CanGEA. Tapping into all 5,000 megawatts of geothermal energy potential would mean a reduction of 25 megatons of carbon dioxide emissions; a large chunk of Canada’s offset liability. It would also create up to 9,000 permanent jobs, as well as 30,000 manufacturing and construction jobs nationwide.

So why isn’t geothermal energy being used as a power source in Canada? For one, although geothermal is the cheapest power source in the long-term, the initial capital costs are intimidating. Tapping 5,000 megawatts across the country would run to approximately $20 billion — no small amount. And given that projects in Canada are in their infancy, calculating risk is difficult, making many investors wary.

Thompson says a lack of awareness and general policy support are among the main obstacles. “One of the big problems right now is that we have an abundance of resources in Canada, so people think ‘why bother?’” she says. With government support, that could change.

There is also a lot of red tape. In British Columbia, for example, there has only been one government-regulated land sale open to geothermal companies since 2004. Compare that with monthly land auctions of petroleum and natural gas tenures.

In the meantime, Canadian companies and expertise are moving elsewhere. In fact, Thompson says, Canadians are responsible for 20 percent of the world’s geothermal power generation. They just happen to be doing it in other countries.

But independent projects like the one at Fort Liard show that, with the right partnerships, communities can move to sustainable long-term energy production. “We’re trying to see what we can do to make our community greener,” says Giroux, “so that it’s cleaner for future generations.”

 Geothermal energy uses