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CanGEA releases new major report on geothermal alternative for BC

CanGEA releases new major report on geothermal alternative for BC Landscape close to Lilloet, British Columbia, Canada (source: flickr/ pentaboxes, creative commons)
Francisco Rojas 26 Nov 2014

Alison Thompson from CanGEA states that "geothermal has the potential to provide firm energy at a lower cost than Site C in a manner that benefits ratepayers, taxpayers, the economy and the environment"

Following the debate (See ThinkGeoEnergy) regarding an alternative to developing a hydro project in Site C in BC, Canada, the Canadian Geothermal Energy Association (CanGEA), has just announced the release of the “CanGEA Geothermal Report” covering the potential of geothermal as a viable alternative to the suggested project.

The following is the official press release by CanGEA.

Alison Thompson, Chair and Managing Director of the Canadian Geothermal Energy Association (CanGEA), released the CanGEA Geothermal Report. New information and analysis contained in the CanGEA Report demonstrates that geothermal energy is a low cost, clean, viable alternative to the proposed $8 Billion Site C Dam project (“Site C”).

CanGEA Chair Alison Thompson notes:

Geothermal has the potential to provide firm energy at a lower cost than Site C in a manner that benefits ratepayers, taxpayers, the economy and the environment, not to mention having a carbon footprint that is lower than Site C.

As the Joint Review Panel noted, new sources of energy are not required immediately, and likely not until 2028, and so there is time to complete proper due diligence, build geothermal plants and catch up to the rest of the world after 30 years of downplaying geothermal.

The new report is timely since the BC Cabinet is expected to decide whether or not to proceed with Site C before Christmas.

A.        Key Report Findings

1.British Columbia has enormous potential to produce geothermal power. There is a sufficient geothermal potential to meet all of the province’s future power needs, including the 1,100 MW of capacity and 5,100 gigawatt hours per year (GWh/yr) of energy that would come from Site C.  

2.CanGEA estimates that the geothermal unit energy cost (UEC) at plant gate of a portfolio of “favourable” projects is $73/MWh compared to BC Hydro’s estimate of $83/MWh for Site C. In our view, these plants can be built for approximately $3.3 billion, far less than the cost of Site C.

3.Geothermal Energy has 10 key advantages compared to Site C:

  1. Geothermal power has a lower UEC and capital cost.
  2. Geothermal heat is a valuable by-product.
  3. More permanent jobs are generated by geothermal operations than other alternatives.
  4. Costly BC Hydro system transmission upgrades are avoided or minimized.
  5. The power grid is strengthened through ancillary services, including geothermal energy’s unique base load and dispatchable capacity.
  6. Geothermal fluids create strategically significant mineral and rare earth elements recovery opportunities.
  7. Geothermal power plants can be built to meet demand and manage or reduce the risk of project cost overruns associated with large-scale projects.
  8. Geothermal offers increased food security and price stability.
  9. The physical and environmental footprint of geothermal is small.
  10. Geothermal offers a means to “green” oil & gas and mining operations.

B.        Geothermal: The Path Forward

CanGEA fully supports the need for independent verification of the CanGEA Report findings and urges the government to adopt a five point plan to become a world leader in geothermal:

  1. Implement a one year moratorium on the final investment decision on Site C to allow time for further due diligence on geothermal.
  1. Refer geothermal to the BC Utilities Commission (BCUC) for review and recommendations by November 2015 in accordance with section 5 of the Utilities Commission Act. This BCUC review would include review of our findings by independent international experts and a public hearing.
  1. Establish a public education program on geothermal energy production in BC.
  1. Form a taskforce to make recommendations on the policy and regulatory changes required to support cost effective and efficient development of a geothermal industry in BC by 2020.
  1. Hold a government and industry sponsored international symposium on geothermal energy production in Vancouver in 2016.

Full Backgrounder on CanGEA Geothermal Report available at  http://www.cangea.ca

To Contact Alison Thompson – 403-801-6805 or  778-866-2936.