Kirsten Marcia, the chief executive officer of DEEP, says the decades of experience in subsurface drilling and design that Houston-based Schlumberger (or SLB) brings to the table will help equity investors feel more comfortable participating.SHAWN FULTON/The Globe and Mail
Saskatchewan geothermal company DEEP Earth Energy Production Corp. has partnered with oil services giant Schlumberger Ltd. SLB-N to drive the development of a geothermal project located in the southeast of the Prairie province.
DEEP aims to build Canada’s first geothermal power plant, generating low-emission electricity by tapping into steamy underground reservoirs and pumping fluid to the surface. It’s one of a handful of companies across the country pursuing geothermal energy, bolstered by government cash injections and a growing global push for net-zero emissions.
The focus right now is on construction financing. Kirsten Marcia, the chief executive officer of DEEP, says the decades of experience in subsurface drilling and design that Houston-based Schlumberger (or SLB) brings to the table will help equity investors feel more comfortable participating.
“They’ve got this major, global, household name that is involved in every aspect of the project,” she said in an interview this week.
SLB will provide engineering design and integrated well construction services for the early phases of the geothermal project in Torquay, Sask., including the development of two production and two injection wells in phase one, and up to 18 wells in phase two.
Interest in geothermal energy has grown over recent years, in pace with the world’s demand for electricity at a time when countries are looking to reduce greenhouse gas emissions.
Because conventional geothermal energy production draws fluids from deep and hot underground reservoirs, using the resulting steam to drive turbines that generate power, it is seen as a potential boon to replacing coal or natural gas. Unlike wind or solar, which feed intermittent power to the grid, geothermal can reliably and continuously keep turbines firing.
The relatively high cost of geothermal, however, has made it a less attractive prospect than other renewables. But increased interest is slowly leading to reduced prices and more effective technology.
And while governments in fossil fuel-fired economies such as Alberta have recently snubbed renewables, geothermal’s integral ties to the conventional oil drilling sector make it a more attractive prospect.
After all, Ms. Garcia explained, geothermal is essentially the same as drilling for oil and gas – but looking for heat, rather than fossil fuels.
“The conventional energy sector is a strong supporter of geothermal, because we’re using all of their same services, supplies and technology,” she said.
“These companies aren’t interested in wind and solar – there’s no crossover in skills and technology. But geothermal, there’s plenty.”
Indeed, SLB says the collaboration with DEEP reflects its commitment to broadening the adoption of geothermal by reducing project risk and accelerating timelines.
Calgary-based companies Eavor Technologies Inc. and E2E Energy Solutions are also riding the geothermal wave.
Eavor’s markedly different technology uses a sealed-off, closed-loop system that doesn’t require a permeable aquifer. Eavorloop, as it’s called, acts like a vehicle radiator, which circulates fluid in a closed loop to remove heat from a gasoline engine. That means it can be placed almost anywhere, making it more scalable. It also eliminates much of the risk associated with relying on aquifers by essentially creating a huge, predictable radiator below the ground that extracts heat.
E2E, meanwhile, is spearheading a project to repurpose Alberta’s oil and gas infrastructure for geothermal power generation. Like Eavor, it is taking advantage of a recent $50-million commitment by the Alberta government to the Alberta Drilling Accelerator.
The proposed open-access facility – funded through a public-private partnership – would be Canada’s first technology-agnostic, industry-led test site where companies could develop new geothermal drilling techniques and other clean energy innovations.
The first phase of the DEEP project, which is set to generate about five megawatts of power – enough for about 1,250 homes – is planned for full commissioning by 2026. A staged build aims to increase production to approximately 180 megawatts of renewable power generation.