Canada has the potential to lead the world in the burgeoning geothermal sector, with the newly-announced Alberta Drilling Accelerator (ADA) serving as a crucial step toward industry growth, high-tech job creation, as well as global technology export, says John Redfern, president and chief executive officer, Eavor Technologies Inc.
“People are finally waking up to the fact that geothermal is scalable,” he said, adding geothermal energy represents an opportunity to create and maintain high-quality careers for Albertans and Canadians, while also developing a sector of importance to energy security and environmental sustainability.
“It can be scalable to the same order and magnitude as oil and gas. There’s a massive prize here. People want to ensure they’re on the cutting edge of that.”
Fortunately for domestic geothermal proponents, Alberta aims to innovate drilling techniques, reduce emissions and boost employment through the creation of the ADA — Canada’s first geothermal test site. The provincial government is investing $750,000 in a feasibility study, led by Eavor, to assess viability, site selection and economic impacts.
“It’s just about doing the paperwork and doing the research before something like this goes forward,” Redfern told DOB Energy. “We’ll be able to draw on a lot of examples [of similar geothermal facilities] worldwide because there has been a bit of an arms race between the different jurisdictions.”
Stakeholders will develop innovative drilling methods for the geothermal and clean energy sectors through the site, facilitating emissions reduction and industry growth. The open-access facility will be able to operate across challenging environments, accelerating development of clean technologies such as carbon capture and critical mineral exploration.
Development of the ADA aligns with the province’s Emissions Reduction and Energy Development Plan, which includes key commitments such as positioning Alberta as an international geothermal hub by engaging with industry, academia, Indigenous communities, and other stakeholders to advance geothermal technology and promote its adoption at a global scale, as well as enhancing energy and community resiliency for Indigenous and remote communities.
In general, the ADA presents “enormous potential” for helping Alberta — an energy leader renowned for a skilled workforce and energy innovation — to lead the “next wave” of energy projects, suggested Rebecca Schulz, Alberta Minister of Environment and Protected Areas.
Geothermal world leader
Renewable energy sources such as wind and solar are increasingly used in Western Canada, which is great, noted Redfern. However, the technology for these sources is typically developed and owned by parties outside of Canada.
Within the realm of geothermal energy, where Canada is still a leader, there is an opportunity to capitalize on early technology development through initiatives such as the ADA, Eavor’s CEO pointed out. This can lead to Canada being the one that exports its technology internationally for geothermal energy projects.
For its part, the Eavor-Loop system is a closed system circulating a proprietary working fluid, similar to a vehicle radiator, to efficiently remove heat without using reservoir fluids. Also, the Derek Riddell Eavor-Lite Demonstration Facility near Rocky Mountain House is a full-scale prototype of the Eavor technology suite, initiated in August 2019. The Eavor-Lite system includes two vertical wells connected by two multilateral legs and linked by a surface pipeline.
With the ADA, Alberta joins global jurisdictions with similar test sites for drilling techniques and technologies, such as the Utah Frontier Observatory for Research in Geothermal Energy in the U.S., Germany’s Continental Deep Drilling Program, and the Iceland Deep Drilling Project, which research and develop geothermal technologies.
Redfern anticipates a lot of private investment coming into the ADA, aligning with the technology readiness level (TRL) requirements of geothermal sector proponents. Groups such as the Canadian Geothermal Energy Association (CanGEA) view the ADA as a testament to Alberta innovation, leveraging its expertise in the oil and gas sector to set up Alberta as a global leader in developing new geothermal technologies, reducing emissions, and creating jobs.
Opportunities for drillers
According to Redfern, the geothermal market has grown substantially in recent years, with organizations such as Wood Mackenzie Ltd. foreseeing the industry garnering investments of about $1 trillion worldwide by 2050, marking substantial opportunities for drilling firms and the oilfield services sector in Canada, especially as proponents promote the sector’s technological growth through the ADA.
Mark Scholz, president and CEO of the Canadian Association of Energy Contractors (CAOEC), stated that the ADA approach expands the province’s drilling capacity and enables it to reach the globally recognized full potential as a diverse and technologically advanced producer and exporter of sustainable energy and critical minerals. He noted that CAOEC members are integral in the extraction of new energy resources such as geothermal and critical minerals.
The CAOEC estimates one active drilling rig, whether drilling for natural gas or geothermal, creates approximately 220 direct and indirect jobs and $1 million in tax revenue.
For its part, Redfern noted, the intent is for ADA feasibility study completion likely by year-end, with actual ADA operations beginning in 2025, supporting Alberta in becoming an energy technology and sustainability global leader.
Redfern anticipates a substantial amount of interest from firms such as Eavor in utilizing the facility, whose ultimate location will be based not only on geology but also on factors such as customer access and positive local impacts.
“We’re doing a lot of stuff you’d expect to have happening — a lot of consultation with interested parties, review with similar initiatives elsewhere internationally, what the different governance models are and economic models are that run those types of initiatives, and just making sure everyone who’s a potential user of the facility or impacted by that, let’s say those in the community, are consulted.”