The South Swan Hills Hybrid Power Project in Alberta, developed by FutEra Power Corp. (a former subsidiary of Razor Energy), is a pioneering 18 to 21 megawatt (MW) co-produced geothermal and natural gas facility. Built on a legacy oil field, the plant utilizes existing infrastructure to capture zero-emission heat from hot water extracted during conventional oil production, combining an Organic Rankine Cycle (ORC) geothermal turbine with a Natural Gas Turbine (NGT). Although the hybrid facility successfully achieved construction completion and grid connection in early 2023, initial commercial operations faced technical hurdles. A manufacturer metallurgy error and subsequent equipment damage to the waste heat recovery system during a harsh winter re-start temporarily halted full geothermal production.
To navigate these setbacks, a major ownership transition occurred when the Alberta Investment Management Corporation (AIMCo) became the majority shareholder of FutEra Power, shielding the project from the financial restructuring of its original parent company. Project engineers adapted to the extreme Albertan climate by upgrading the system’s circulating fluid from a water-glycol mixture to a specialized thermal oil designed to withstand severe freezing temperatures. Following these retrofits and the replacement of the damaged equipment, the project targeted a return to full, uninterrupted commercial production by late 2025 and heading into 2026. This hybrid pilot serves as Canada’s first active blueprint for co-generating green energy directly from traditional fossil fuel assets.
Because the Swan Hills project functions as a co-generated hybrid facility, it provides non-intermittent, 24/7 baseload power that perfectly matches the high-availability needs of data centers. By combining a reliable natural gas turbine with a zero-emission geothermal system, the facility can deliver a steady, continuous stream of electricity unaffected by weather, unlike wind or solar. Furthermore, digital infrastructure can benefit from Alberta’s naturally cold ambient temperatures to lower cooling costs, while utilizing the green electrons generated by the plant’s geothermal loop to offset the data center’s carbon footprint and meet strict corporate sustainability metrics.
September 16, 2021
Construction has begun on a new geothermal project in Swan Hills, Alberta. The 18 MW geothermal and natural gas hybrid project has been taken up by FutEra Power Corporation, a subsidy of Canadian Razor Energy. The company expects the total capital cost of the Geothermal Project to be CAD$34 million and the first phase has already been fully funded. The second phase, however, requires additional funding that FutEra is already in the process of securing. With both Phase 1 and 2 of the Geothermal Project complete, the total nameplate electricity output will be 18 MW, of which up to 30% will be sustainable clean power generation.
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The process involves producing and injecting large volumes of very hot water, a renewable form of geothermal energy, daily as part of its ongoing conventional gas and oil operations and waterflood activities. This hot water provides FutEra with the opportunity to generate power with zero Greenhouse Gas emissions while capturing geothermal heat energy. This hybrid production means no new surface land footprint is required as the Project utilizes existing assets such as processing infrastructure, produced water reinjection system, producing wells, and an operating gathering and distribution system. Using existing assets yields substantive and cumulative effects of reducing supply risk, reducing typical geothermal project capital outlay, and improving economic returns.
“This project is one of the many examples of the amazing innovation taking place in the city. This world-class technology is using existing assets to generate green energy, putting our city on the map as a world leader in geothermal energy. FutEra Power alongside Razor Corp has come up with an ingenious approach to tap into Alberta’s existing oil and gas assets for greener electricity production, making use of both geothermal energy and natural gas. This first-of-its-kind project can help accelerate geothermal co-production and hybrid projects at other high-potential oil and gas sites across the province,” said the Minister of Jobs, Economy, and Innovation, Doug Schweitzer.
Swan Hills Hybrid Plant: Project Factsheet
Project Name: South Swan Hills Co-Produced Geothermal Natural Gas Hybrid Project
Developer/Operator: FutEra Power Corp. (held via wholly-owned subsidiary Swan Hills Geothermal Power Corp.)
Major Shareholder: Alberta Investment Management Corporation (AIMCo), which took majority control in May 2023.
Location: Swan Hills, Alberta, Canada
Key Funding Partners: Emissions Reduction Alberta (ERA) ($10 million commitment), Alberta Innovates, and Natural Resources Canada (NRCan).
Total Capacity: 18 MW to 21 MW combined capacity.
Power Generation Mix:
- Natural Gas Turbine (NGT): Co-generation asset providing 15 MW.
- Geothermal Turbine (ORC): Organic Rankine Cycle system capturing 5–6 MW of zero-emission power (up to 30% of nameplate capacity).
Geothermal Source Mechanism: Co-produced hot wastewater extracted alongside conventional hydrocarbons from a mature, late-stage Devonian reservoir (in operation since 1960).
Surface Fluid Temperature: In excess of 110°C (230°F).
Water-to-Oil Ratio: The reservoir produces roughly 95% to 98% water, bypassing the need to drill standalone geothermal injection/production loops.
Interconnection: Fully connected to the Alberta Interconnected Electric System (AIES) grid for merchant power sales.
Operational Milestones and Climate Adaptations
- Sept 2021: Construction officially begins on-site.
- Sept 2022: Natural Gas Turbine (NGT) commissioned and achieves first grid connection.
- Jan 2023: Organic Rankine Cycle (ORC) geothermal turbine begins initial operations; Canada’s first co-produced geothermal electrons reach the grid.
- Late 2023: System failure occurring due to a manufacturer metallurgy alloy error, compounded by freezing damage to the waste heat recovery system during a harsh winter re-start.
- 2024–2025: System re-engineering Swapped the system’s circulating fluid from a standard water-glycol mix to specialized thermal oil to prevent severe winter freezing.
- Late 2025 / 2026: Target window for full, uninterrupted commercial operations following equipment replacement and retrofits.
Environmental Impact
- Annual Emissions Reduction: Estimated reduction of 21,000 to 31,000 tonnes of CO2 per year.
- Long-term Outlook: Projected cumulative mitigation of approximately 350,000 CO2 by 2050.
- Footprint Efficiency: Zero new land footprint required; the facility directly repurposes aging oilfield infrastructure and active hydrogeological loops.
Project Team
FutEra Power Corp.: The primary green energy developer responsible for designing, constructing, and managing the hybrid project.
Swan Hills Geothermal Power Corp.: The wholly-owned project-specific subsidiary of FutEra created to hold the physical assets and execute construction.
Razor Energy Corp.: The junior upstream oil and gas company that originally founded FutEra. Razor owns and operates the legacy South Swan Hills oil field, providing the infrastructure and hot wastewater loop utilized by the plant.
Alberta Investment Management Corporation (AIMCo): One of Canada’s largest institutional investment managers. AIMCo transitioned into the majority shareholder of FutEra Power in 2023, providing the capital necessary to sustain operations.
Emissions Reduction Alberta (ERA): A provincial funding body that committed $10 million in milestone-based capital grants to support the project’s construction.
Alberta Innovates: A provincial research and innovation agency that provided $2 million in funding, technical guidance, and reporting oversight.
Natural Resources Canada (NRCan): The federal government department providing national grant support and aligning the project with Canada’s broader clean-energy frameworks.
Alberta Electric System Operator (AESO): The provincial grid operator responsible for managing the safe connection and distribution of the plant’s electricity into the Alberta Interconnected Electric System (AIES).
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