Bill 36: Geothermal Resource Development Act

When existing oil and gas infrastructure is used for geothermal projects, CanGEA is concerned about
how the Act will address responsibility and the transfer of liability to a geothermal developer.
Specifically, there are two types of geothermal applications, Direct Use of Geothermal Heat (30°C –
150°C) and Geothermal Electricity (typically > 120°C).

Direct Use

One practice of direct-use operations is drilling to a specific depth and then bringing geothermal
fluids to the surface to harvest heat. Following heat extraction, the lower-temperature liquid is
injected back into the earth through a well so that it can be warmed up and used once more.

Under the direct use category, there are subcategories such as industrial, commercial, and direct
heat. A few examples of applications in this category are the manufacturing of ethanol and biofuels,
refrigeration and ice production, lumber drying, cement and aggregate drying, and others.

Geothermal Electricity

Little geothermal power plants are more expensive per kilowatt of energy (kWe) than larger ones.24
It's also crucial to take into account the expenses related to running a geothermal plant; these
expenses can change based on the cost of electricity in the area. This is similar to direct use of heat
projects. Due to the risks and expenses involved in determining the feasibility of the geothermal
resource, geothermal power plants initially cost more than fossil fuel-powered plants.

Directive G060

Directive G060 is tailored for geothermal power or heat projects.

Geothermal heat as a valuable heat product

Geothermal energy sources provide a renewable source of energy that can be used for power
production as well as direct-use heating and cooling. Almost every industrial or commercial process
that requires heat can be powered by geothermal energy.

A similar approach may be implemented to promote the co-production of geothermal energy, just as
AER Directive 060 has pushed industry to harness flare gas. Many oil and gas wells produce more
than 90% water and less than 10% hydrocarbons (co-produced).

Nearly usually hot enough for direct use heating is the co-produced effluent from oil and gas
activities. Co-produced water with a temperature as low as 20°C may theoretically be used to
efficiently warm a greenhouse.

Environmental Assessment

One of the amendments is a portion of the Environmental Protection and Enhancement Act. It
establishes the legislative authority to oversee the proper environmental conditions and geothermal
resource recovery and utilization.