Think Big, Hot, and Electricity
Think "Big G"
Think about the scale of any geothermal heat pump project in Canada, now add an exponent to the energy potential and the capital costs of that project. You are now in the realm of "Big G", using the earth's heat energy for the production of electricity. When the word "geothermal" is used, most Canadians think heat pumps and pipes for residential heating (a credit to the heat pump industry), but this is only part of the earth heat spectrum. The potential for this energy resource is immense, but moving forward with development comes with its share of challenges.
High temperature geothermal resources (>800C) are created by the massive amount of heat at the earth's core and tectonic forces. Tapping these resources requires drilling into permeable zones of super-heated water trapped in rock reservoirs. Once tapped, these underground reservoirs can provide hot water and steam for turbine plants to generate electricity. As with heat pump applications, high temperature geothermal energy is a clean (zero emissions), quiet, and virtually inexhaustible source of energy thanks to our planet's billions of years of heat generation.
To think of heat pump projects as "little g" this is not related to the overall potential for energy savings, as the heat pump industry has a cost effective energy source virtually worldwide. The "Big G" "little g" nicknames have everything do with the scope of the individual projects. Water temperatures above 1000C, 1-3km deep wells, kilometers of power lines and capital costs to the tune of 3-4 million per MW are all part of "Big G" project development.
According to a MIT (Massachusetts Institute of Technology) research project completed in 2007, with improved drilling technology high temperature geothermal energy would be able to meet the world's annual electricity needs many times over with little impact on the climate or the environment.
Worldwide there is already over 8,200 MW of power production and in many countries like Italy, Iceland, Philippines and the USA geothermal energy is already emerging as a reliable and affordable alternative to fossil fuels. So with such a great energy resource, why is Canada the only Pacific Ring country that has yet to produce a single MW of electricity from geothermal?
There are a few fundamental problems to the development of high temperature geothermal projects in Canada. The need for education and awareness about high temperature geothermal resources, the lack of strong government policy for research and development, and the large upfront project capital costs are all impediments to industry maturation in Canada.
To start, the average Canadian has nearly no exposure to the idea that high temperature geothermal resources can be used to produce electricity. It becomes extremely difficult to build grassroots support for an energy source that is not well understood. Organizations like CanGEA (Canadian Geothermal Energy Association) have worked to acquire media attention through regional newspapers (Vancouver Sun, Toronto Star) and national news (CBC, CTV), but there are still many myths about geothermal and an overall lack of awareness. It may take years to get the message out about the overall energy potential and to build the necessary momentum for significant change.
As of February 2008, British Columbia is the only province with policy in place for the production of electricity from geothermal resources and the majority of federal funding for geothermal research was cut in the early 1980s. BC's geothermal lease rights currently go up for competitive bid after being nominated by individual companies, this system can actually discourage geothermal exploration. CanGEA is currently working with NRCan and BC Energy and Mines to develop improved regulations to encourage geothermal research and development. The goal is to develop a strong policy program for geothermal in BC and use this program guideline in other Canadian provinces.
Changing energy policy can be a long and tedious road and requires government support on many levels, this is not something that is accomplished in a matter of weeks, but months and years.
One of the biggest obstacles to producing electricity from geothermal resources is the sheer size and capital costs associated with the projects. In the US market, every MW of produced power (enough power for 800 homes) costs approximately $3-4 million. This includes geological research and exploration, drilling costs, permitting and construction of turbine production plants to convert the high temperature water into electricity. With an average geothermal production plant of 30 MW, overall capital investment is over $100 million; the vast majority of this investment occurs prior to any electricity revenue stream and projects can take between 3-5 years to go from exploration to production. Although these renewable energy projects have the potential to run indefinitely, potential investors with understanding of the long term potential and the required patience can be few and far between.
Our planet is supplying us with a massive supply of renewable heat energy and "little g" projects offer Canadians an amazing long term solution for our heating and cooling needs. Public awareness, policy changes and investor education are current obstacles to the development of this amazing resource, but high temperature geothermal energy resources have the potential to offer an alternative for electricity production. So the challenge begins, to change how Canadians think about geothermal energy and to bring "BIG G" into the mainstream energy market in Canada.
