Geothermal Energy raetur_jardhita

Why a Small Alberta Oil and Gas Town is Pursuing Geothermal Power

Like many towns across Alberta, the landscape around Hinton is a pincushion of oil wells. At the bottom of some of the deeper wells, temperatures can reach upwards of 120 degrees Celsius, and that geothermal heat could be about to spur the town on to its next energy windfall.

A plan is underway to pump water up from deep underground, capture the heat it brings to the surface, then re-inject that water into the ground. The captured heat could warm a dozen municipal buildings or even eventually provide electricity.

“That’s attainable, that’s not a huge technical challenge. The question is at what cost,” Jonathan Banks, a research associate in geoscience at the University of Alberta, told DeSmog Canada.

The town recently got $1.2 million in federal and provincial grants to explore the feasibility of the project, known as a Front-End Engineering and Design, or FEED, study. That should be complete by the end of the summer.

“If the FEED study shows that the project is viable…we could start building the system in the fall of 2018,” Banks says, cautioning that there are a number of unknowns, such as an uncertain regulatory process.

Like many Canadian jurisdictions, Alberta currently has no regulatory framework for geothermal power.

The project would be a first for Canada. That has led to apprehension among residents, who tend to be conservative in their approach to energy.

“There’s always insecurity when you’re building something for the first time,” explains newly elected town councillor Dewly Nelson.

Nelson himself started as a critic of the project. Working for the Chamber of Commerce — some of whose members were concerned about the town wasting money — he set about trying to research the project.

“I came up with a little different of an answer than I think people were hoping for,” he says. He now chairs a committee on alternative energy in the community.

“I’m a bit of an evangelist,” he laughs.

A 2016 preliminary study suggested that the cost of a geothermal heating system for the town could be recouped in about 16 years against business-as-usual heating costs.

Nelson concedes the number “could be a little optimistic” at $10.2 million due to the number of hurdles associated with it being the first of its kind.

But he maintains that the benefits of the project extend beyond the lifetime cost (despite insisting that, as a municipal project, for it to be recouping any revenue at all is a plus). He says the spinoff benefits could be in new businesses setting up shop in Hinton due to the cheap, long-term heating contracts the town would be able to provide.

“I think we’ll be surprised at some of the different uses that other people think of,” he says, offering as an example a greenhouse for the fledgling cannabis market. He also points to Boise, Idaho, which uses its similar system to heat an alligator farm.

In Klamath Falls, Oregon, a brewery makes use of the heat. The town’s partner in the project, Calgary-based Epoch Energy, has visited some of those sites to survey their systems.

“Seeing it as a tool for diversifying our economy, that’s the biggest winner for it,” Nelson says.

Two hours away on the other side of the B.C. border, Valemount is also looking at building a “geothermal industrial park” that would make use of a relatively accessible pocket of heat they suspect to be just underneath the town. That could produce electricity, heat water for a brewery, warm a greenhouse and even keep the sidewalks ice-free.

Nelson explains that the American projects also have other lessons to offer Hinton: they charge differently for the use of the power. In Klamath Falls, users are charged directly for the heat. In Boise, users are charged by the volume of water they use, encouraging innovation around efficiency.

Winning over skeptical residents, both Nelson and Banks agree, has been a process of continual engagement and education.

“It doesn’t take a lot to connect with people, and just plant that seed,” Nelson says.

A big part of why Nelson thinks the oil-friendly residents should welcome geothermal to town? It all runs on the same infrastructure and knowledge as the oil and gas industry, making it an excellent way to make use of existing oilfields and some of the workers who have been hit by low oil prices.

“If it ever really takes off on a large scale in Canada, it will be because of oil and gas,” he says.

New title

You’ve read all the way to the bottom of this article. That makes you some serious Narwhal material.

And since you’re here, we have a favour to ask. Our independent, ad-free journalism is made possible because the people who value our work also support it (did we mention our stories are free for all to read, not just those who can afford to pay?).

As a non-profit, reader-funded news organization, our goal isn’t to sell advertising or to please corporate bigwigs — it’s to bring evidence-based news and analysis to the surface for all Canadians. And at a time when most news organizations have been laying off reporters, we’ve hired five journalists over the past year.

Not only are we filling a void in environment coverage, but we’re also telling stories differently — by centring Indigenous voices, by building community and by doing it all as a people-powered, non-profit outlet supported by more than 3,500 members

The truth is we wouldn’t be here without you. Every single one of you who reads and shares our articles is a crucial part of building a new model for Canadian journalism that puts people before profit.

We know that these days the world’s problems can feel a *touch* overwhelming. It’s easy to feel like what we do doesn’t make any difference, but becoming a member of The Narwhal is one small way you truly can make a difference.

If you believe news organizations should report to their readers, not advertisers or shareholders, please become a monthly member of The Narwhal today for any amount you can afford.

In search of Haida Gwaii’s forest-dwelling hawk, one of the most endangered species on the planet

A dense fog rolls in from the ocean on a cool, wet summer morning in Gaw Old Masset, a small village at the north end...

Continue reading

Recent Posts

Help power our ad-free, non‑profit journalism
Get The Narwhal in your inbox!

People always tell us they love our newsletter. Find out yourself with a weekly dose of our ad‑free, independent journalism