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.
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.