Shell Canada Energy and Kitselas Geothermal Inc. have Entered into a Joint Development Agreement to Develop the M’deek Geothermal Reservoir Near Terrace, BC
Kitselas Geothermal Inc. (Kitselas Geothermal), a majority owned Indigenous company between Kitselas Development and Borealis Geothermal (Borealis), is pleased to announce that a Joint Development Agreement (JDA) with Shell Canada Energy (Shell Canada) takes effect on July 29, 2022. The JDA supports de-risking and appraisal of the geothermal resource in the Terrace, British Columbia area, after which each party will take a decision on further development. Through entering into this agreement, Kitselas Geothermal and Shell Canada hope to build greater understanding of the potential for geothermal energy and support development of renewable green energy in Northwest BC, including ‘direct-use’ of the heat.
Kitselas Geothermal’s vision is to supply renewable, industrial heating alternatives in the Terrace area. Economic self-determination for Kitselas First Nation via long-term heat purchase agreements is a goal of the project.
Kitselas Geothermal’s chair, Dr. David Try, PhD, says, “First Nations, for thousands of years, made use of ‘direct’ geothermal energy in this region. Exploring the potential for commercial energy - clean, sustainable, responsible, and reliable is a natural step.”
Kitselas Geothermal’s CEO, Alison Thompson, says, “The opportunity to continue this project, to test, derisk and progress the geothermal heat potential in the Terrace region under this JDA is a key milestone. We are proud of the significant sub-surface, regulatory and stakeholder relations contributions that Borealis has made as the project’s development and exploration technology partner in Western and Northern Canada’s unique geologic setting. Today marks the point in the project where Kitselas Geothermal and Shell Canada will begin to work and learn together in this project.”
Shell Canada’s Geothermal Business Opportunity Manager, Sarah Kassam, says, “Globally, Shell is investing in renewable energy as part of our Powering Progress strategy, which includes a target to become a net-zero energy business by 2050. Through signing the JDA with Kitselas Geothermal, Shell Canada hopes to build a greater understanding of the potential for geothermal energy and to support renewable energy development with Kitselas Geothermal in the Terrace, BC region.”
About Kitselas Geothermal: Kitselas Geothermal is controlled by Kitselas Development Corporation, the economic arm of the Kitselas First Nation. Kitselas First Nation, through Kitselas Geothermal, is proudly positioned to provide near-term clean energy solutions into the Terrace region. Borealis Geothermal is their technology partner and minority shareholder: www.kitselasgeo.ca
About Borealis Geothermal: Borealis is Canada’s leading expert in fault-controlled geothermal energy and provides development support to projects in this and other geologic settings in Canada: www.borealisgeothermal.ca
About Shell Canada: Shell Canada is an integrated energy company in Canada with all of Shell’s global businesses represented, including Upstream, Integrated Gas, Downstream, and Renewables and Energy Solutions. That means we do everything from exploration, gas production, refining and manufacturing, to providing fuels and developing low-carbon energy solutions for our customers: www.shell.ca
Written by Rod Link. Published January 15th, 2022, by the Terrace Standard:
Geoscience work on the potential to pump super hot subsurface water from near Lakelse Lake so that heat extracted could replace fossil fuels as an energy source in the area continues thanks to a $500,000 grant from the provincial government.
Announced Jan. 13, the money furthers what is approaching seven years of probing by Kitselas First Nation-owned Kitselas Geothermal and Borealis GeoPower of Calgary of the potential for an income producing industry.
When brought to the surface, the superheated water’s steam can be used to turn electricity-generating turbines or pumped to clients who use the heat from the hot water as needed.
“Basically just like a hot water radiator heating system in a house, the hot water is piped to where [the heat] is needed,” explained David Try, the chair of Kitselas Geothermal. “The cooled water returns to the heat source/geothermal system.”
The $500,000 from the provincial government’s First Nations Clean Energy Business Fund is the maximum amount that the program can provide.
It’s also viewed as something that can prompt further investment by other agencies or investors, acknowledged Borealis president Alison Thompson.
Both Kitselas Geothermal and Borealis have emphasized the prospect of clean energy alternatives to fossil fuels to help meet the province’s overall emissions reductions effort as well as local employment and economic spinoffs.
Some of the ongoing field work to better map out where the superheated water is located involved seismic testing using a technology that did not require clearing trees.
The Lakelse Lake area has long been regarded as having the potential for a viable geothermal project, something Kitselas Geothermal and Borealis began exploring more in depth in 2014 with drilling following in 2018 on the west side of Lakelse Lake across from the Mount Layton Hotsprings location.
Should an eventual project be feasible, Kitselas Geothermal and Borealis already have a potential customer in Skeena BioEnergy’s pellet plant.
It sees value in an eventual pipeline from a geothermal hub to its plant so that heat from the water would replace natural gas in drying fibre before being turned into pellets and so reduce its carbon emissions.
The City of Terrace was also attracted to the potential and last summer provided support letters for applications by Kitselas and Borealis for additional government grants through the provincial government’s CleanBC Industry Fund.
“We view this as a positive step forward in an exciting and promising project for Skeena,” said Roger Keery, the president of Skeena Sawmills Ltd, about the $500,000 grant.
Kitselas Geothermal and Borealis are expected to hear if their application is successful within several months.
Geothermal industry news website, ThinkGeoEnergy, has featured KGI in an article about the First Nations Clean Energy Business Fund (FNCEBF) grant.
The article delves into describing the FNCEBF and quoting KGI Chair David Try.
We’re grateful to @ThinkGeoEnergy for featuring us on their site.
Read the article here.