Drilling on one of DEEP’s exploratory wells in 2021. Photo by Brian Zinchuk
SASKATOON – DEEP Earth Energy Production Corp. (DEEP) announced on Jan. 29 a strategic collaboration with global energy technology company SLB (NYSE: SLB) to drive the development of Canada’s first next-generation geothermal project, located in southeast Saskatchewan. With the feasibility phase now complete, the project is poised to produce up to approximately 30 MW of emissions-free, baseload power on completion of its initial two phases — marking a major milestone for geothermal energy in Canada.
SLB, formerly Schlumberger, has been actively increasing its geothermal portfolio, Marcia told Pipeline Online. In recent years it purchased Geothermix, which has been a significant player in geothermal development for decades.
Despite Canada’s vast geothermal potential, the resource has remained largely untapped due to economic and technical challenges tied to conventional extraction methods, DEEP said. DEEP’s geothermal project, located south of Torquay, will leverage proven approaches from conventional field development in oil & gas, to deploy advanced horizontal drilling techniques to access some of the most productive zones in the formation, as well as production enhancement technologies to optimize output of geothermal energy generation. This cutting-edge methodology, supported by SLB’s global expertise in geothermal technology, integrated well construction, and extensive regional drilling experience, represents a first-of-its-kind application for geothermal development in Canada.
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“We are thrilled to welcome SLB as a key partner in this transformative project, which also includes Ormat as part of an integrated geothermal asset development model,” said Kirsten Marcia, president and chief executive officer for DEEP. “By joining forces, we are developing our asset in a streamlined fashion, combining the best of subsurface and surface technologies, while maximizing efficiencies, operations, and ultimately, power output. With this approach, we hope to establish a blueprint for the development of additional commercial geothermal projects in Canada. This project is not only a major step forward for our company, but also should represent a meaningful contribution to Canada’s goals to reduce emissions and secure local energy resources.”
Marcia said SLB will be a paid contractor.
As a part of the collaboration between DEEP and SLB on this project, SLB will provide engineering design and integrated well construction services for phases one and two of the project, including the development of two production and two injection wells in phase one and up to 18 wells in phase two. The innovative approach will leverage the natural permeability of the sedimentary rock formation and enable the reliable, cost-efficient, and more sustainable production of geothermal energy.
“This collaboration with DEEP reflects our commitment to broadening the adoption of geothermal by reducing project risk and accelerating the time to first power,” said Irlan Amir, vice president of Renewables and Energy Efficiency, SLB. “The project’s innovative engineering design and integrated asset development model brings together developers, technology providers and infrastructure partners to open new frontiers for geothermal power generation in Canada and beyond.”
DEEP said, “By creatively addressing the perceived barriers to geothermal development in Canada, DEEP’s project is set to establish a new benchmark for the renewable energy sector. The collaboration between DEEP and SLB on this project signals a shared commitment to unlocking geothermal energy’s full potential, paving the way for a cleaner, more sustainable energy future.”
Marcia did not provide any timelines, but said that the next step is attaining construction financing for Phase 1.
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