By: Jose Caceres
The ‘holy grail’ of a low-carbon economic scheme is one in which energy, and specifically electricity generation, is produced in complete absence of fossil fuels and therefore without greenhouse gas emissions.
Geothermal power or in other words, the ‘heat of the earth’, is a clean and renewable source of energy available anywhere under the surface of the planet. The potential for harnessing this heat for power in the form of electricity, depends on the presence of high enough temperatures to allow the production of steam and consequently drive steam-powered turbines. These temperatures can be encountered in shallow depths of few meters in the proximity to volcanic hotspots and tectonically active areas (such as Iceland or California) to depths of 3000 meters or more in broader expanses of land, such as of the Western Canadian Sedimentary basin.
Note that away from tectonic active boundaries the average geothermal gradient is 25 – 30°C per km of depth. In Alberta, the northwest quadrant has the highest geothermal favourability rating. Within this area gradient temperatures of above 30°C per km of depth have been identified (1).
Even-though the main requisite for the feasibility of electricity production from geothermal energy might be the sub-surface temperature, there are other important considerations to bear in mind when thinking about this alternative. These considerations range from the presence of in-situ formation water bearing this heat (brine), to perhaps the most important, which is the economic feasibility.
To some of the most relevant considerations such as ‘in-situ’ presence of formation water and ‘high enough’ temperatures, exist technologic advances that can allow unlocking the geothermal potential even in absence of brine, by injecting water to the ‘hot rocks’ underground and circulating this heated water back in the form of steam (enhanced geothermal system (EGS)); or in absence of ‘high enough’ temperature, by transferring the heat from the formation water to a separate liquid with a lower boiling temperature and thus producing steam that can drive a turbine (binary system).
An article released in February this year by the Association of Power Producers of Ontario provides an idea of the extent of the use of geothermal in the global context (2): “worldwide, more than 13,200 MW of power generation is driven by geothermal energy, and this amount is growing quickly. 3600 MW are located in the US and more than 900 MW are in Mexico”
The Alberta context
It is worth noting that there is not in existence one single geothermal operation to this day in the province. The obvious justification to this is the abundance of fossil fuels and the capability of these resources for coping with the energy necessities of the province while at the same time providing a substantial monetary influx to the economy by selling their products. The use of renewables (until now) has been relegated to only a small fraction of the total production of electricity and accounts for about 9% (AUC – Dec. 2015)
Electricity generation in Alberta as of December 2015
Source: Alberta Utilities Commission (AUC)
The current energy, economic and political landscape of the province is favouring the promotion of alternatives other than fossil fuels. In fact, the Climate Leadership plan of the province envisions the assertive inclusion of renewable sources of energy and technologies. This vision aims on substantially revamp the economy by diversifying it while at the same time being aligned with the commitments for mitigating climate change by reducing greenhouse gas emissions. In this context, for geothermal to take-off, it is necessary that energy leaders and entrepreneurs diligently act together in order to create the grounds for its jump-start and eventual positioning in the energy mix.
A challenge but also an unparalleled opportunity
Whether you are ‘pro’ or ‘against’ climate action initiatives, in light of the oil industry downturn currently affecting the oil-rich / oil-dependent economy of Alberta, it is imperative to pursuit economic diversification. Achieving this will only occur in a framework of cooperation among the government, private entities, financial institutions and the public.
The ‘oil sands’ provides an example of a resource that once was seen as a product of little economic value and that given the analytical and entrepreneurial eye of some ‘mavericks’ proved to be a major driver of the economy of the province for a number of years, and arguably continues to be. What made it feasible was the harmonious cooperation of some of the brightest geoscientists and engineers of the province, the support of the government and investors as well as the premise that the oil prices would always (or for a long time) would be in their favour.
In a similar context, shale oil and ‘fracking’ wouldn’t have had the success they had, by significantly increasing the oil production of the US, to the extent of actually (and ironically) providing a major catalyst for the oil-price drop and consequently oil-industry downturn, without the ingenuity and cooperation of the various parties that believed it was possible to make it work.
Geothermal power is a resource that is literally under our feet and there is probably not one jurisdiction the size of Alberta (or comparable) on the face of the planet that has the wealth of underground detailed information that Alberta has. This amount of very valuable data is indeed existent thanks to the extensive and intensive hydrocarbon prospection, exploration, drilling and development provided by the oil & gas industry. That already is a big plus.
Benefits and advantages:
- Once untapped geothermal can provide with reliable 24/7/365 clean energy.
- Depending of its size, it can complement (or supplement) other renewable sources of energy which are intermittent by nature (such as solar and wind) for a net-zero emissions balance.
- Geothermal could represent a partial substitute to natural gas for electricity generation. Note that the ‘Climate Leadership plan’ contemplates the cogeneration of renewable energy and natural gas in order to phase-out coal-fired power plants by 2030. *Nearly half of the electricity generation in the province comes from coal-fired plants.
- Given its operational similarities with the upstream portion of the oil & gas industry, that is prospection, exploration and drilling; geothermal has the enormous potential to utilize the unemployed (or sub-employed) workforce affected by the downturn and without the need of any significant re-training. The same applies for idle drilling and petro-physical evaluation equipment, etc. Needless to say the province accounts with world-class petroleum geoscientists and engineers who can transfer their skills towards geothermal and thus guaranteeing the best of results.
- Taking into account the above point, the somehow apprehensive attitude of a fraction of provincial leaders and energy champions (and also the public) towards the stimulus of renewable energy in the context of shrinking markets and low prices for oil & gas, could be shifted with the geothermal alternative as it represents a smoother transition from one industry to another.
- In addition to the favourable points above described, organizations exists such as CanGea, which is the national body that governs the initiatives to push geothermal forward, as well as companies such as Alberta based Borealis Geopower, which provides technical and scientific expertise to this emerging industry; that are diligently committed to communicate the benefits, advantages and feasibility of the implementation of geothermal energy in Canada.
- Opportunity also exists in micro-generation and interconnection by using already drilled and abandoned oil & gas wells. Micro-generation could also be feasible in coproduction with producing oil & gas wells.
- Another often-overlooked benefit of geothermal is heat production. There is a lot of opportunity by harnessing the heat inherent in a geothermal operation, especially in a northern climate like ours. The heat energy can be used for multiple purposes, such as greenhouses, district heating, spas, material drying, pasteurization, etc.
Disadvantages:
We could argue that the high costs of implementing a geothermal project might be its main disadvantage. The physical facilities required for a geothermal power plant include production and injection wells, a gathering and injection system, a power generation plant and transmission lines. Intensive capital costs are required for the construction of such facilities, which adds to the costs of activities of prospection and exploration of the resource to be exploited.
The economics of renewable energy projects improve as carbon taxes and other fees on large carbon-emitting facilities (such as coal-fired power plants) are implemented.
For some perspective, according to Todd Hirsch, chief economist with ATB Financial, in an interview for CBC news released in July this year (3), geothermal power plants cost more than natural gas facilities. He pointed out as an example: “The Neal Hot Springs plant in Oregon that was constructed in 2012 for $139 million for 22 megawatts of production.
The Shepard natural gas power plant in Calgary began operating this year with a total cost of $1.4 billion for 800 megawatts of electricity. In this comparison, the geothermal facility costs three times as much per megawatt of power.
Enbridge, a part-owner of the Neal Hot Springs plant, has said the plant saves about 159,000 tonnes per year of carbon dioxide emissions compared to a similar-sized natural gas facility, and about more than 340,000 tonnes per year compared to a coal power plant”.
Geothermal potential of Alberta:
The following is an excerpt of an interview to Alison Thompson, co-founder of Borealis Geopower published in ‘The Daily Oil bulletin’ released in April this year (4), which illustrates the geothermal potential of Alberta:
“CanGea estimates the geothermal measured resource from oil and gas wells alone would amount to about 5,000 MW of widely distributed power. In total, Alberta currently has about 16,000 megawatts of installed generating capacity, over half of which is coal generated”.
Even-though the Western provinces of Alberta and British Columbia, as well as the Northern territories present the best geothermal potential in Canada; CanGea, in a more generalized statement, as it is relevant for the whole country (and not just Alberta), quotes (5):
“By 2025, geothermal power plants with a capacity of 5,000 MW could be installed and would provide up to 41,000 GWh/yr of competitively priced, renewable, base-load power to the Canadian and U.S. markets. This would provide at least 15,000 MW (equaling 475 PJ/year) of power plant by-product heat for direct uses. Using reliable technology, geothermal energy could power 5 million households; generate the equivalent amount of power as the entire coal-fired power plant fleet in Alberta (39,000 GWh/yr) or roughly 70% of British Columbia’s hydropower generation (59,000 GWh/yr). If fossil fuels are substituted with geothermal energy, Canada’s CO2 emissions could be reduced by up to 25 million tonnes per year. Simultaneously, this development could create up to 39,000 part-time and full-time jobs. Additionally, geothermal energy can help to reduce high electricity and heating costs, which are prevalent in remote communities in the Canadian North – fostering energy security, economic growth and sustainable development”.
Insight and conclusions
Geothermal energy is a renewable option that has the potential to make re-think the sustainable future plans of Alberta. Often overlooked, or simply ignored, it is a real option and should be considered when discussing alternatives that can provide clean, renewable and reliable sources of energy for electricity generation and heat production.
The ‘Albertan advantage’ is a motto that was coined over the years owed to the solid expansion of the oil & gas industry. Despite the fossil fuel richness of the province, the current economic circumstances owed to the low prices of these commodities might make one wonder if that advantage is still there. Well, I think that yes, the resourcefulness of its inhabitants probably accounts for the first advantage, but the vast amount of natural resources and energy potential possibilities different than fossil fuels adds greatly to the list of opportunities and ‘advantages’. One of these has the particularity that like oil & gas comes from under the surface. In some sort of colloquial expression, we could even call geothermal a ‘cousin’ of oil & gas. Like these, it is reached underground by drilling methods, though unlike geothermal in which the energy in the form of heat is at its fullest force when encountered, oil & gas has yet to be burnt to release its true power.
I believe that geothermal deserves serious consideration. A legal framework and policies for its implementation should complement the terms established already with other resources. The advantages outlined in this article and in many others, as well as the efforts of many scientifically knowledgeable professionals that believe that geothermal is feasible in Alberta, should be heard. The heat of the Earth is right under us… waiting, let’s put it to work!
Sources:
(1) Alberta Geothermal Resources Favourability Maps – Final Report. Downloaded from CanGEA website – www.cangea.ca
(2) http://magazine.appro.org/index.php?option=com_content&task=view&id=4318&Itemid=44
(3) http://www.cbc.ca/news/business/geothermal-pitched-as-alberta-s-next-big-energy-source-1.3132416
