A diagram shows how heating and cooling through geo-exchange systems underground will operate at the Minto Communities Oakvillage project.Supplied by Minto Communities
Canada is in an ideal position to pioneer the next generation of geothermal technology.
While the United States and peer Scandinavian countries have adopted the technology on a wider scale, Canada lacks any projects in operation that produce pure geothermal power. The FutEra initiative in Alberta is the only one that produces both clean energy and natural gas, though that is expected to change soon.
“Our electricity is fairly inexpensive, so there really hasn’t been an economic driver to do something like geothermal,” says Jeff Messner, the president and co-founder of Novus Earth Energy Operations Inc.
Geothermal power and heat generation have historically relied on underground aquifers – naturally occurring pools of hot water that can be brought to the surface – which only exist in small pockets of Western Canada. Companies such as Novus Earth are pioneering a new kind of location-agnostic geothermal technology known as Advanced Geothermal Systems (AGS).
“We’re essentially building a radiator underground,” Mr. Messner says, explaining that AGS puts water underground, rather than tapping an existing underground aquifer. “Using oil and gas technology, we build a bunch of wells together, and we circulate water through those wells, so you’re using hot rock to heat the water and bring it back up to the surface.”
Novus Earth, which was founded in Calgary in 2021 and employs a team of 12 former oil and gas professionals, is in the process of applying AGS to heat Latitude 53, a 20-acre greenhouse in Hinton, Alta.
“We can provide that thermal energy at a much lower cost than it would be for them to get natural gas to heat their greenhouse,” says Mr. Messner. Drilling for Latitude 53 will begin in early 2025, and it is projected to pay for itself within three-and-a-half years, but the plan is for it to operate for at least 30.
Canada may lag behind its global peers in the push to develop geothermal technology, but the country’s expertise in deep well drilling and cold climates – which enhances the need for sustainable heating sources – offers a prime opportunity to emerge as a leader.
“We’re lagging the others as far as investment is concerned, but it’s improving, and the global view of geothermal is quite strong,” says Domenico Daprocida, president and CEO of E2E Energy Solutions. “The similarities between geothermal and oil and gas are enormous – they use all the same skill sets, same techniques, same people – so it’s a really easy transition, especially for the oil companies.”
Mr. Daprocida, who began his career in the oil and gas industry, founded E2E Energy solutions in Calgary in 2020, after developing an Enhanced Geothermal Reservoir Recovery System, or EGRRS. The patented geothermal power system converts former oil and gas reservoirs for clean energy generation.
The Minto team breaks ground at their Oakvillage residential project in Oakville, Ont., the GTA's first community to use geo-exchange systems to serve multiple towers.Supplied by Minto Communities
“We can produce this along the site, without impacting oil and gas production,” he says. “As oil and gas demand drops off, and the demand for renewables increases, it’s easy to scale and transition.”
E2E Energy Solutions is currently helping the Alberta town of Rainbow Lake, a former oil and gas hub, become the first in Canada to be powered entirely by geothermal energy. “They’re trying to find a new path forward, and geothermal seems to be what they’re hanging their hat on to revive the town,” Mr. Daprocida says.
It’s not just greenhouse operations and former oil and gas towns that stand to benefit from advances in geothermal technology. Regions in Scandinavia have been using a similar technology known as geothermal exchange to heat and cool buildings for decades.
“They’ve been doing this for 30, 40 years, and we’re now seeing a big uptake here in Ontario and Canada,” says Carl Pawlowski, senior manager of sustainability for Minto Communities Canada. In 2022, the Ottawa-based developer initiated a five-tower residential project in Oakville, Ont., that will implement the GTA’s first community geo-exchange system for heating and cooling. Rather than serving one tower, it will serve them all.
Mr. Pawlowski says pulling heat from underground into in-unit heat pumps can reduce the project’s emissions by nearly 70 per cent at the same cost for residents as gas-powered alternatives.
“The base assumption for Minto moving forward is that buildings like this will include geo-exchange systems, unless, for some reason, it doesn’t make sense with the soil conditions or something else,” he says. “I can see it growing significantly, especially as certain technologies advance and resources shift from oil and gas drilling into geothermal drilling, which should help bring costs down.”
Editor’s note: A previous version of this article stated incorrectly that Minto initiated a five-tower residential project in Oakville, Ont., that will soon become the province’s first residence to leverage geo-exchange for heating and cooling. The project will implement the GTA's first community geo-exchange system for heating and cooling, which will serve all five towers. This version has been updated.