Canadian Geothermal Energy Poised for Takeoff

Abstract

Canada's high temperature geothermal resource areas are predominantly in the western part of the country, principally in British Columbia and Yukon, on the tectonically active Pacific margin. Canada, however, has lagged behind other Pacific Rim countries in the development of high temperature geothermal power. This inertia is attributed to a combination of factors including traditionally low energy prices, especially cheap hydro and natural gas in the west - but the mood has been changing since the turn of the Millennium. Increasing energy prices and commitment to greenhouse gas reduction has given considerable momentum to the Canadian geothermal power industry.
New MT survey and core drilling in the South Meager Creek area has led to the discovery of both heat and permeability on the slopes of Mt Pylon. Deep rotary drilling and reservoir evaluation will be completed in late 2004 and early 2005. The first phase of commercial production of 100 MWe is planned to be online by mid-2007. Another advanced high temperature prospect in the Pebble Creek area (North side of the Meager Creek complex) is expected to follow the same route and bring an additional 200 to 300 MWe geothermal power online before the end of the decade.
Low and medium-temperature geothermal resources are present throughout Canada and growing interest in these opportunities holds promise for a bright future. Geothermal heat pumps are now in use in all Canadian Provinces, most notably in Manitoba and Ontario, where a creative financing environment has helped investors pay-back the up-front capital expenditures from substantial savings in operating costs. The geothermal heat pump market has been growing in Canada at the rate of 10 to 15% per annum since the turn of the Millennium. With about 600 million kWh of energy savings, Canadian geothermal heat pump users presently contribute about 200,000 tonnes to the reduction in greenhouse gas emissions per year. Direct use applications (limited to hot-spring resorts) are estimated at about 100 million kWh of geothermal heat per year.