Energy
Making Alberta a geothermal energy leader
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Eavor announces it’s the #1 geothermal energy startup company in the world – January 2024
Alberta is creating Canada’s first geothermal test site to advance drilling innovation, reduce emissions and create jobs.
Geothermal energy uses naturally occurring heat within the earth to heat water and buildings and generate power, with few emissions or environmental impacts. Alberta has vast pockets of heat below ground, making the province Canada’s geothermal leader, but testing and developing new technologies can be a barrier for many companies. Unlike the United States, Japan and other countries, Canada does not currently have an open-access test site to help spur innovation.
Alberta is taking the first steps to create a new Alberta Drilling Accelerator. This groundbreaking facility would be the first of its kind in Canada, establishing Alberta as a global hub for geothermal technology. This will drive new innovations in geothermal and other clean energy projects that can reduce emissions and power communities around the world.
To kick-start the project, the Alberta government is investing $750,000 to conduct a feasibility study led by Calgary-based Eavor Technologies and other stakeholders. The study is the first step in assessing the proposed facility. It will include identifying a site, business planning, research on the governance model, an economic impact analysis and stakeholder engagement that will lay the groundwork for the initial planning stages of the project.
“Alberta has been a global energy leader for more than a century, renowned for our skilled workforce, innovation and one of the largest oil and gas reserves on the planet. The proposed Alberta Drilling Accelerator presents enormous potential to help our province lead the next wave of energy projects here at home and around the world that reduce emissions, create jobs and enhance energy security.”
The Alberta Drilling Accelerator would help companies test out and develop new geothermal drilling techniques or technologies to reduce emissions and drive growth across the clean energy sector. It would be an open-access, technology-agnostic drilling test facility capable of drilling in challenging environments, including deep depths, high temperatures and different rock types.
The accelerator also would help speed up the development of carbon capture, utilization and storage; helium; critical minerals; and other clean technologies and commodities that rely on Alberta’s drilling sector. All of this helps attract investment and bring new technologies to scale in Canada.
“With cumulative geothermal investment poised to reach $1 trillion by 2050, a geothermal arms race is very much underway to commercialize novel drilling techniques that accelerate geothermal development – exhibited by testing facilities in the United States, China and Iceland. As Canada’s first geothermal test bed, the Alberta Drilling Accelerator will help bring geothermal technologies to scale, supporting companies like Eavor. We commend the Government of Alberta for this bold initiative.”
“We are proud to witness Eavor, a CDL-Rockies alumni company, create new opportunities for innovators like themselves to advance the adoption of energy transition technologies like geothermal. The Alberta Drilling Accelerator will further solidify Alberta’s position as a leader in the global sustainable energy landscape.”
If the feasibility study shows the facility is economically and environmentally viable, and if the project is approved by the Alberta government, the facility will start taking shape at the selected site and drilling could start as early as 2025.
“Canada is home to the most advanced drilling technology in the world. Not only do our members support the responsible development of oil and gas, but we are integral in the extraction of new energy resources like geothermal and critical minerals. Our workers are at the epicentre of Canada’s energy transformation. Our people, technology and processes are leading the way towards a more diverse energy future. The Alberta Drilling Accelerator is a government-enabled policy approach to expand Alberta’s drilling capacity and reach its full potential as the world’s most diverse and technologically advanced producer and exporter of sustainable energy and critical minerals.”
“The Alberta Drilling Accelerator is a testament to Alberta’s innovative and entrepreneurial spirit. Leveraging our oil and gas sector expertise, Alberta is poised to become the global leader in developing new geothermal technologies that will play an integral role in reducing emissions while supporting job creation.”
Quick facts
- The Canadian Association of Energy Contractors estimates that one active drilling rig, whether drilling for natural gas or geothermal, creates approximately 220 direct and indirect jobs and
$1 million in tax revenue. - In 2019, Eavor received $2 million in provincial funding through Emissions Reduction Alberta and Alberta Innovates for the world’s first closed-loop geothermal system.
Related information
Energy
Federal Government Suddenly Reverses on Critical Minerals – Over Three Years Too Late – MP Greg McLean
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From Energy Now
By Calgary MP Greg McLean
Government in Full Reverse
Canada-U.S. Trade Relations is obviously the most pressing issue facing Canadians today.
It’s important to remember how we arrived at this point, but also to question the sincerity of the Liberal Ministers and leadership contenders who are now posing solutions, such as:
- We need to diversify our resource trade
- We need to build pipelines and infrastructure to get our exports to tidewater
- We need to streamline our regulatory burden that stands in the way of development
- We need to halt the escalating carbon tax
- We need to reverse the capital gains tax increase
The Liberals are turning themselves inside out on the policy choices they have made over nine years, and put Canada in a precarious economic position vis-à-vis our trade position.
If you believe what they are saying now, these Liberal Ministers and leadership contenders are saying that Canada needs EXACTLY THE OPPOSITE of what they have delivered over these past nine years.
I can’t comment on whether these NEW Liberal policy positions completely lack sincerity, or whether they are the result of a ‘deathbed conversion’, but nine years of moving in the exact opposite direction to their new words has led Canada to where it is today – and that is nine lost years for Canadians, our prosperity, and our role in a complex world.
Below is another example of a specific morphing of a Liberal policy – to the one I helped put forth – 3 ½ years ago – regarding Canada’s policy on critical minerals.
Minister Late to Critical Mineral Strategy
Here’s a gem of wisdom from December’s Fall Economic Statement:
Canada will work with the United States and other likeminded partners to address the impacts of non-market policies and practices that unduly distort critical mineral prices. This includes ensuring that market participants recognize the value of critical minerals produced responsibly, with due regard for high environmental standards and labour practices.
Then, on January 16th, the following from Canada’s Natural Resource Minister, Jonathan Wilkinson:
During a panel discussion in Washington on Wednesday, Natural Resources Minister Jonathan Wilkinson proposed that enforcing a floor on metals prices could be “one of the centerpieces of the conversations we would then be having at the G7” summit later this year.
Western nations have long warned that China’s dominance in everything from nickel to lithium has let the country’s producers flood the market with supply, thereby keeping prices artificially low for competitors. Wilkinson has touted price floors as a way to combat that market control.
What a great idea!
Here’s the relevant excerpt from June, 2021, from a dissenting report on the Natural Resources Committee, when I served as my party’s critic, in contrast to the government’s critical minerals approach at that time:
Recommendation 4: Coordinate with our allies to establish a dedicated supply stock of critical minerals, possibly through a physical storage and floor pricing mechanism for visibility and pricing purposes.
Excerpt: Canada is too small of a market to undertake this effort on its own, but it can play a key role with its longstanding leadership as the mining jurisdiction of choice in the world. Canada’s pre-eminent role as a financing jurisdiction for international mining is well understood. Although we are at the early stages of losing this historical leadership to Australia, acting quickly to solidify Canada’s leadership will be a strong signal. Australia and Europe have already established critical mineral strategies to offset the dominance of the market that China has exerted. At the very least, Canada’s coordination needs to include the United States, and probably Mexico (through CUSMA), as the ongoing funding of a critical mineral supply may require backstopping developments with a price amelioration mechanism. In essence, a floor price to ensure the protection of critical mineral developments from manipulating price volatility – and which has held back developments, or caused the insolvency of several of these developments, due to non-transparent world market pricing mechanisms. … Establishing a steady supply of these critical minerals will lead to more value-added opportunities, in conjunction with our trade partners.
Conservative Dissenting Recommendations
My question to the Minister: ‘What took you so long?’
This approach was presented three and a half years ago – and the Government chose to ignore it then.
No surprise now, perhaps, as we’ve seen this Minister flip-flop on so many of the nonsense policies he’s put forth or acquiesced in at Cabinet:
- The Clean Electricity Regulations (still opaque)
- Canada’ role in shipping hydrocarbons to the world
- Building energy infrastructure
To say nothing of the various Cabinet decisions he has been a part of that have led to Canada’s current weak negotiating position with our allies. We effectively have not had a Minister of Natural Resources under his tenure.
Nothing topped it off more succinctly than his speech at the World Petroleum Show, held in Calgary in September 2023, when his remarks on behalf of the Government of Canada left industry participants around the world questioning whether the Minister was ‘tone-deaf’ or if, in fact, he knew anything about natural resources.
It seems his move to the position I promoted – three and a half years ago – shows that he’s finally listening and learning (or un-learning his previous narratives, perhaps)– but it’s quite late in the day. Time and our future have been wasted.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
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