Kitselas Geothermal Receives $2.6MM Funding

Federal economic development agency Pacific Economic Development Agency of Canada (PacifiCan) has announced over $2.61 million (CAD 3.6 million) in funding to help Kitselas Geothermal in British Columbia harness geothermal energy for commercial use.

Kitselas Geothermal, co-owned by Kitselas Development Corporation and Borealis Geothermal, operates on the traditional territory of the people of the Gits’llaasu First Nation. The geothermal project, located at the M’Deek reservoir in British Columbia, is targeted to decarbonize the local industry. The project’s first phase, named Fuel for Reconciliation, is designed to replace 270,000 gigajoules per year of natural gas, reducing greenhouse gas emissions by over 13,000 metric tons per year. In 2020, four pilot core holes broadly confirmed the commercial viability of the geothermal reservoir, while in 2021, additional research and development drilling of three core holes was completed, according to the project website.

Through the funding of PacifiCan’s Jobs and Growth Fund, Kitselas Geothermal will drill production wells to harness geothermal energy. This project is expected to generate over 170 new jobs, including for Indigenous workers, creating lasting economic benefits for the region, PacifiCan said in a news release.

Exploration wells have been drilled in British Columbia to explore the province’s geothermal energy potential, PacifiCan said, adding that high-potential sites have been identified in every region of the province.

“This announcement on World Geothermal Energy Day reflects the Government of Canada’s commitment to building a net-zero future”, Minister of Emergency Preparedness Harjit Sajjan said. “By harnessing the power of geothermal energy in Northern B.C., Kitselas Geothermal brings us one step closer to that future. PacifiCan will continue working with Indigenous communities in B.C. to create lasting economic development that advances reconciliation”. Sajjan is also the minister responsible for PacifiCan, according to the release.

“Development of the ‘Fuel for Reconciliation’ geothermal energy project is a significant step towards Kitselas First Nation’s economic independence”, Kitselas Geothermal Director Alison Thompson said. “The project also contributes to B.C.’s and Canada’s transition towards clean energy by demonstrating technology, training highly qualified professionals, and providing a proving ground for regulatory reform that will benefit both future project phases and other geothermal projects elsewhere in the country”.

PacifiCan’s Jobs and Growth Fund “helps job creators, and the organizations that support them, to future-proof their businesses”, the agency said. “This includes building resiliency and growth by transitioning to a green economy, fostering an inclusive recovery, enhancing competitiveness, and creating jobs across British Columbia”, the agency added. Through the fund, PacifiCan said it has invested $61.82 million (CAD 85.4 million) in British Columbia businesses.

USA Also Focuses on Geothermal

The USA has also been focused on supporting geothermal initiatives. Earlier, the U.S. Department of Energy (DOE) announced an award of $264 million in funding for 29 projects to develop solutions for specific scientific challenges outlined in its Energy Earthshots initiative to advance clean energy technologies within the decade. Specifically, the DOE’s Enhanced Geothermal Shot focuses on reducing the cost of enhanced geothermal systems by 90 percent to $45 per megawatt-hour (MWh) by 2035.

In September, leaders from several industries and agencies including federal, state, and local government came together to celebrate the groundbreaking of the Cape Modern Geothermal Exploration Project in Beaver County, Utah.

The Cape Modern Project, which will employ advanced hydraulic stimulation and drilling techniques, aims to generate 50 to 150 megawatts (MW) of power per month. The project has anticipated contributions amounting to nearly $1.1 billion throughout its construction and operational phases, according to the Bureau of Land Management under the U.S. Department of the Interior.

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