2023.
In February 2023, a new geothermal resources permit was granted to Kitselas Geothermal Inc. It is on these permit lands that we plan to drill.
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2022.
In January 2022, the geothermal permit was extended for 1 additional year to accommodate project planning and then the original permit was retired in January 2023.
2012-2021.
Geothermal power project status.
Kitselas Geothermal began project plans in 2012 with strategic planning, desktop work, and relationship building. By 2014, Kitselas Geothermal’s predecessor, Lakelse Lake Geothermal, successfully acquired a BC Geothermal Resources Act Permit via a sealed bid public competition during a Geothermal Tenure sales process. A geothermal permit grants the holder an exclusive right to undertake the investigation of the potential geothermal resource.
Field exploration and reservoir model development followed the granting of the geothermal permit. In 2016, the geothermal permit was transferred to Kitselas Geothermal. The project was initially envisioned as a 15 MW base-load electricity plant that would be tied into the BC Hydro grid and under contract with their Standing Offer Program. When BC Hydro indefinitely suspended their Standing Offer Program in 2019,[1] the project pivoted to a direct-use of heat opportunity.
Kitselas Geothermal is not currently pursuing an electricity project. The business reasons are described below. From a technical perspective, it is not anticipated that geothermal reservoir temperatures will be high enough to produce electricity economically.
In the 2021 Integrated Resource Plan (IRP), BC Hydro noted plans to “acquire new energy resources starting with 810 GWh in fiscal 2031, then [shift] to primarily capacity resources starting with 160 MW in fiscal 2038,” with an emphasis on new clean or renewable energy resources.[2]
As part of the Contingency Resource Plan of their IRP, BC Hydro outlines their plans for the electrification of the North Coast region of BC with renewables such as geothermal energy[3], and the steps to implement this electrification on a timely basis if the need arises, i.e. LNG projects and mining industry electricity needs are higher than the BC Hydro IRP reference case.[4]
BC Hydro notes that in the past it has entered into electricity purchase agreements (EPAs) with independent power producers using bilateral negotiations for “complex or unique transactions where customized negotiations and contracts are necessary.”[5]
BC Hydro also cites other non-electricity-related benefits arise for participants of EPAs. BC Hydro recognizes the United Nations Declaration of the Rights of Indigenous Peoples Act (UNDRIP). This Act creates a roadmap for the Government to work cooperatively with Indigenous Peoples, while offering a framework for reconciliation, healing, and peace.[6]
[1] BC Hydro, Standing Offer Program, last modified: March 20 2019.
[2] BC Hydro, 2021 Integrated Resource Plan, December 21 2021, p. 1-4, line 17-22.
[3] BC Hydro, 2021 Integrated Resource Plan, December 21 2021, Appendix E-1, pp. 116-118 of 213.
[4] BC Hydro, 2021 Integrated Resource Plan, December 21 2021, p. 1-5
[5] BC Hydro, 2021 Integrated Resource Plan, December 21 2021, pp. 7-31-32.
[6] Government of Canada, Implementing the United Nations Declaration of the Rights of Indigenous Peoples Act.
Field exploration and reservoir model development followed the granting of the geothermal permit. In 2016, the geothermal permit was transferred to Kitselas Geothermal. The project was initially envisioned as a 15 MW base-load electricity plant that would be tied into the BC Hydro grid and under contract with their Standing Offer Program. When BC Hydro indefinitely suspended their Standing Offer Program in 2019,[1] the project pivoted to a direct-use of heat opportunity.
Kitselas Geothermal is not currently pursuing an electricity project. The business reasons are described below. From a technical perspective, it is not anticipated that geothermal reservoir temperatures will be high enough to produce electricity economically.
In the 2021 Integrated Resource Plan (IRP), BC Hydro noted plans to “acquire new energy resources starting with 810 GWh in fiscal 2031, then [shift] to primarily capacity resources starting with 160 MW in fiscal 2038,” with an emphasis on new clean or renewable energy resources.[2]
As part of the Contingency Resource Plan of their IRP, BC Hydro outlines their plans for the electrification of the North Coast region of BC with renewables such as geothermal energy[3], and the steps to implement this electrification on a timely basis if the need arises, i.e. LNG projects and mining industry electricity needs are higher than the BC Hydro IRP reference case.[4]
BC Hydro notes that in the past it has entered into electricity purchase agreements (EPAs) with independent power producers using bilateral negotiations for “complex or unique transactions where customized negotiations and contracts are necessary.”[5]
BC Hydro also cites other non-electricity-related benefits arise for participants of EPAs. BC Hydro recognizes the United Nations Declaration of the Rights of Indigenous Peoples Act (UNDRIP). This Act creates a roadmap for the Government to work cooperatively with Indigenous Peoples, while offering a framework for reconciliation, healing, and peace.[6]
[1] BC Hydro, Standing Offer Program, last modified: March 20 2019.
[2] BC Hydro, 2021 Integrated Resource Plan, December 21 2021, p. 1-4, line 17-22.
[3] BC Hydro, 2021 Integrated Resource Plan, December 21 2021, Appendix E-1, pp. 116-118 of 213.
[4] BC Hydro, 2021 Integrated Resource Plan, December 21 2021, p. 1-5
[5] BC Hydro, 2021 Integrated Resource Plan, December 21 2021, pp. 7-31-32.
[6] Government of Canada, Implementing the United Nations Declaration of the Rights of Indigenous Peoples Act.
