Project Updates.
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Kitselas Geothermal is a majority owned First Nations company that has been advancing the project for over 10 years with exploration and permitting support from Borealis Geothermal. Using results from recently completed field work, the project is now moving towards development. This will be a first of its kind project for Canada and is modelled after a Maori approach to geothermal energy development in New Zealand.
We believe that Industrial Decarbonization is possible using renewable, geothermal heat that can be connected to customers via a hot water line. Geothermal energy can replace fossil fuels that are burned to create heat. The use of geothermal energy would lower greenhouse gas emissions and improve regional air quality by reducing air pollutants such as Particulate Matter (PM), Nitrogen Oxides (NOx), and Sulphur Oxides (SOx) that are released into the airshed when hydrocarbons are combusted.
We believe that Industrial Decarbonization is possible using renewable, geothermal heat that can be connected to customers via a hot water line. Geothermal energy can replace fossil fuels that are burned to create heat. The use of geothermal energy would lower greenhouse gas emissions and improve regional air quality by reducing air pollutants such as Particulate Matter (PM), Nitrogen Oxides (NOx), and Sulphur Oxides (SOx) that are released into the airshed when hydrocarbons are combusted.
Frequently Asked Questions. (FAQs)
FAQs under development, please check back regularly for updates.
1. Why build the Fuel for Reconciliation pROJECT?
The Fuel for Reconciliation project is, at its heart, a fuel substitution project, switching out natural gas for geothermal heat.
This will have a dramatic effect on the local airshed and, in its first instance, is essentially equivalent to growing >15 square kilometres of mature western hemlock – over night! This would take Mother Nature generations to grow.
This positive impact will last for generations.
We believe it is the most environmentally positive project ever proposed for the Terrace region.
The Project will also deliver strategically low energy costs to commercial operations in the area, providing a long-term basis for competitive advantage, in a region that has been economically struggling.
This will protect current, and potentially create more, full-time employment opportunities in Terrace and the surrounding area.
This will have a dramatic effect on the local airshed and, in its first instance, is essentially equivalent to growing >15 square kilometres of mature western hemlock – over night! This would take Mother Nature generations to grow.
This positive impact will last for generations.
We believe it is the most environmentally positive project ever proposed for the Terrace region.
The Project will also deliver strategically low energy costs to commercial operations in the area, providing a long-term basis for competitive advantage, in a region that has been economically struggling.
This will protect current, and potentially create more, full-time employment opportunities in Terrace and the surrounding area.
2. Why is this project called Fuel for Reconciliation?
The heat from renewable, geothermal energy can be used as a substitute for heat produced from the combustion of fossil fuels. The potential sale of heat from the Crown geothermal resources will create own-source revenue for the Kitselas First Nation. This revenue contributes to economic reconciliation.
Further, the project has this name for many good reasons.
While a play on words, as it relates to energy (“fuel”), it also makes an important point, namely – that without fundamental economic activity, First Nations will never be truly financially independent. In some ways, this project, and other related projects, are “fuel” for the upcoming treaties. This project is critically important to the Kitselas First Nation.
In parallel, there is the rather important land issue. As most are aware, there are large, unsettled land claims between First Nations and the Crown in BC. Projects such as this reconnect Indigenous Peoples to the land in positive and meaningful ways.
There is an environmental element. The project embodies the “Seven Generations” view of making lasting positive environmental impacts, that will survive the test of time.
Further, the project has this name for many good reasons.
While a play on words, as it relates to energy (“fuel”), it also makes an important point, namely – that without fundamental economic activity, First Nations will never be truly financially independent. In some ways, this project, and other related projects, are “fuel” for the upcoming treaties. This project is critically important to the Kitselas First Nation.
In parallel, there is the rather important land issue. As most are aware, there are large, unsettled land claims between First Nations and the Crown in BC. Projects such as this reconnect Indigenous Peoples to the land in positive and meaningful ways.
There is an environmental element. The project embodies the “Seven Generations” view of making lasting positive environmental impacts, that will survive the test of time.
3. WHY DID WE CHOOSE THIS AREA FOR THE PROJECT?
In fact, we didn’t choose the area – it is where the geology led us. Our study of the geothermal reservoir suggests that it emerges from a fracture within the Area of Interest identified in our Consultation Letter. As such, there are no other viable locations.
4. WHAT ARE OUR PROPOSED ACTIVITIES?
We intend to explore and delineate the M’deek geothermal reservoir that underlies the Lakelse hot springs. To that end, we propose to drill up to 10 shallow temperature gradient holes and up to 4 larger geothermal exploration wells. Further, we intend to perform a testing program to evaluate the M’deek geothermal reservoir.
None of these wells will be “fracked.”
None of these wells will be “fracked.”
5. CAN KGI JUST COME ON MY LAND?
No. Surface and subsurface rights holders are required to work together to agree the terms, conditions, and compensation related to surface access. These take the form of Temporary Access Agreements for the temperature gradient holes, or Surface Lease Agreements for the deeper geothermal wells. Until these are agreed, we cannot access anyone’s land.
6. WHEN WILL THE PROPOSED ACTIVITIES OCCUR?
We cannot provide a definitive timeline as we must have received the relevant Well Authorizations from the BC Energy Regulator for the activities to occur. However, our plan is to avoid critical recreational and environmental windows. Generally, we expect to proceed in the Fall of 2023.
7. WHAT ARE THE EXPECTED IMPACTS?
TEMPERATURE GRADIENT WELLS: The expected impacts will be minimal. These are temporary holes, which will be abandoned and the site completely remediated, subject to vegetation regrowth, within a couples of months of their drilling. Please refer to page 18 of the Open House presentation on our website.
GEOTHERMAL WELLS: We are also working to strongly minimize the impacts of these wells. While they require much more time to drill and will be a 24/7 operation, both noise and light are to be mitigated through the use of mufflers, electric motors, and directional lighting.
Noise will be controlled according to the BC Noise Control Best Practices Guideline. Under this guideline, nighttime noise levels will be limited to 40-50 decibels at the homes surrounding the activity. This is about as loud as a refrigerator. During the daytime, operations may be 10 decibels louder.
We intend for our operations to be industry leading in terms of minimizing their environmental impact. Please refer to page 20 of the Open House presentation.
Generally, as an environmentally conscious company, we intend to meet, or exceed, the highest possible standards of site remediation, as we have with our previous drilling campaigns.
GEOTHERMAL WELLS: We are also working to strongly minimize the impacts of these wells. While they require much more time to drill and will be a 24/7 operation, both noise and light are to be mitigated through the use of mufflers, electric motors, and directional lighting.
Noise will be controlled according to the BC Noise Control Best Practices Guideline. Under this guideline, nighttime noise levels will be limited to 40-50 decibels at the homes surrounding the activity. This is about as loud as a refrigerator. During the daytime, operations may be 10 decibels louder.
We intend for our operations to be industry leading in terms of minimizing their environmental impact. Please refer to page 20 of the Open House presentation.
Generally, as an environmentally conscious company, we intend to meet, or exceed, the highest possible standards of site remediation, as we have with our previous drilling campaigns.
8. Is there a risk of the geothermal project causing earthquakes?
No.
Induced earthquakes that have been reported in the media are typically caused by high temperature power plant operations in unconventional geothermal resources, i.e., operations that stimulate the geothermal reservoir by enhancing pre-existing fracture systems or creating new fractures (e.g., Basel, Switzerland and Pohang, South Korea). These operations intentionally inject fluid at pressures high enough to cause the rock to fail. Unfortunately, these fluid pressures can also be high enough to trigger failure on nearby faults, resulting in an earthquake.
The M’deek Geothermal Resource is a conventional resource, whereby geothermal brine is naturally flowing up pre-existing faults/fractures to the surface. We intend to tap into these fractures to extract the fluid, therefore no additional reservoir stimulation is required or expected.
Also, as this is a heat project, the volumes of fluid and thus the flow rate that the Fuel for Reconciliation project will use are significantly lower than for typical geothermal power projects. Therefore, the Fuel for Reconciliation project is not expected to create a large pressure perturbation in the subsurface that would be necessary to cause a significant “felt” earthquake. However, as an environmentally conscious company and custodians of the project, we have performed a seismic risk assessment of the planned operations in an effort to understand the limits within which we can sustainably operate to mitigate any potential impacts.
Induced earthquakes that have been reported in the media are typically caused by high temperature power plant operations in unconventional geothermal resources, i.e., operations that stimulate the geothermal reservoir by enhancing pre-existing fracture systems or creating new fractures (e.g., Basel, Switzerland and Pohang, South Korea). These operations intentionally inject fluid at pressures high enough to cause the rock to fail. Unfortunately, these fluid pressures can also be high enough to trigger failure on nearby faults, resulting in an earthquake.
The M’deek Geothermal Resource is a conventional resource, whereby geothermal brine is naturally flowing up pre-existing faults/fractures to the surface. We intend to tap into these fractures to extract the fluid, therefore no additional reservoir stimulation is required or expected.
Also, as this is a heat project, the volumes of fluid and thus the flow rate that the Fuel for Reconciliation project will use are significantly lower than for typical geothermal power projects. Therefore, the Fuel for Reconciliation project is not expected to create a large pressure perturbation in the subsurface that would be necessary to cause a significant “felt” earthquake. However, as an environmentally conscious company and custodians of the project, we have performed a seismic risk assessment of the planned operations in an effort to understand the limits within which we can sustainably operate to mitigate any potential impacts.
9. WILL OUR GEOTHERMAL DRILLING INCREASE LANDSLIDE RISK?
No. Our proposed operations do not increase landslide susceptibility within the project area.
We have reviewed the work of Dr. Geertsema, who has published a 2018 study on landslides caused by “sensitive clays” in and around Lakelse Lake. A landslide susceptibility assessment was performed for the Lakelse Lake area based on this body of work, as well as a landslide susceptibility study for similar “sensitive clays” in eastern Canada. The assessment has been submitted to the BC Energy Regulator.
We have reviewed the work of Dr. Geertsema, who has published a 2018 study on landslides caused by “sensitive clays” in and around Lakelse Lake. A landslide susceptibility assessment was performed for the Lakelse Lake area based on this body of work, as well as a landslide susceptibility study for similar “sensitive clays” in eastern Canada. The assessment has been submitted to the BC Energy Regulator.
10. WILL OUR GEOTHERMAL DRILLING AFFECT NEAR SURFACE AQUIFERS AND LOCAL WATER WELLS?
No – our geothermal wells will not affect near surface aquifers or wells that draw from them. Individual wells will operate as per normal and our operations will not produce any subsurface pollution.
We are required by the BC Energy Regulator to use drilling techniques, for both the temperature gradient wells and the deeper geothermal wells, that will ensure we have no impact on local aquifers.
We are required by the BC Energy Regulator to use drilling techniques, for both the temperature gradient wells and the deeper geothermal wells, that will ensure we have no impact on local aquifers.
11. WILL OUR GEOTHERMAL DRILLING LOWER OR DRAIN LAKELSE LAKE?
The maximum daily water withdrawal for the proposed activities is approximately 0.003% of Lakelse Lake’s total volume. Put another way, if the lake was made of 100,000 lego blocks, we would require only 3 lego blocks per day.
Also, any water used during the proposed exploration program will undergo testing, and if tests are positive the water will be returned to the lake.
Therefore, the proposed activities will neither lower, nor drain, Lakelse Lake. Similarly, it will not affect streams or rivers flowing into or out of Lakelse Lake.
Ecofish, an independent environmental consulting firm located in Terrace, BC, performed an environmental flow needs assessment for Lakelse Lake and Lakelse River based on the proposed activities. A summary of their assessment can be found below.
Also, any water used during the proposed exploration program will undergo testing, and if tests are positive the water will be returned to the lake.
Therefore, the proposed activities will neither lower, nor drain, Lakelse Lake. Similarly, it will not affect streams or rivers flowing into or out of Lakelse Lake.
Ecofish, an independent environmental consulting firm located in Terrace, BC, performed an environmental flow needs assessment for Lakelse Lake and Lakelse River based on the proposed activities. A summary of their assessment can be found below.
| Ecofish - Drilling Program EFN Summary Memo - 20230417.pdf |
12. WILL THE DRILLING AFFECT THE HOT SPRINGS?
We do not intend for the drilling activities to affect the hot springs. If permitted by the private owners, we would like to use sensors to monitor the hot springs during the proposed activities.
13. WILL WE BE BUILDING A POWER PLANT, OR OTHER TYPE OF PLANT, AT LAKELSE LAKE?
The short answer is no. Long term, we intend to produce hot water for direct geothermal heat application, which entails a pump will be set deep in the well (perhaps as deep as 400 – 500m), which is effectively silent at surface.
At most, we might have to construct a building the size of a 2-car garage, to protect the well head. Having said that, it is premature to speculate on the final form of any surface facilities, as these very much depend on reservoir attributes that have yet to be determined.
At most, we might have to construct a building the size of a 2-car garage, to protect the well head. Having said that, it is premature to speculate on the final form of any surface facilities, as these very much depend on reservoir attributes that have yet to be determined.
14. HOW WILL THE PUBLIC KNOW THAT KGI HAS FOLLOWED THE RULES?
Our work is overseen by the BC Energy Regulator and the various ministries that they interface with (notably Water, Forests, Environment and Technical Safety BC). All of these have the right, at any time, to inspect our operations, audit our records, and perform independent testing to ensure our compliance.
It is our expectation that the BC Energy Regulator will have on site personnel during critical drilling operations.
As such, the public should be confident that we will comply or exceed compliance with required permit regulations and conditions.
It is our expectation that the BC Energy Regulator will have on site personnel during critical drilling operations.
As such, the public should be confident that we will comply or exceed compliance with required permit regulations and conditions.
15. WHAT’S NEXT?
If the reservoir evaluation is successful, we would have to develop a surface facilities design to harness the geothermal energy. We would obtain community input on design preferences to ensure the best possible fit between project development and local input.
16. Where can I access the presentation from the Open Houses on March 16, 2023?
