A Vancouver-based company has won the right to explore geothermal energy potential on the central coast with what it considers a low-ball bid, a signal that there's little interest from investors in this renewable energy source in B.C.
The provincial government announced yesterday that Sierra Geothermal Power Corp. bid on and won an exploration permit on a parcel of 8, 074 hectares in the Knight Inlet. The company paid $24, 963.89 for the one-year permit.
"We were very surprised to see we were the ones who got the land," said Anthony Srdanovic, Sierra's manager of marketing and investor relations. "So there isn't a lot of interest from other people in developing here."
In a press release, Energy Minster Blair Lekstrom said British Columbia has "significant geothermal energy potential and continues towards advancing geothermal energy generation in this province."
"We will put this resource to work for our economy, generating new jobs and new wealth for rural B.C. communities, while lowering greenhouse gas emissions," stated Lekstrom.
A ministry spokesperson there are two other geothermal exploration permits issued in the province, one at North Meagre Creek and one in the Valemount area.
Most of the Knight Inlet parcel falls in the Da'naxda'xw/Awaetlala Nation's territory. According to a Sierra press release, the company signed a memorandum of understanding with the nation to explore geothermal resources there, and could transmit electricity on a high voltage power line being built for run of river projects underway in the area, including the Bute Inlet project.
"The geothermal rights from the Crown coupled with our earlier memorandum of understanding with the Da'naxda'xw/Awaetlala Nation provides the ideal combination to move a project forward," stated Gary Thompson, Sierra's president and CEO in a press release. "We are excited to have won the bid for the Knight Inlet lands."
Srdanovic said while the province is taking a step in the right direction by issuing the permit, both the provincial and federal governments could do more to encourage geothermal development in B.C, by introducing a feed-in tariff or tax incentives.
"In British Columbia, we live on a major fault, on the ring of fire, with major volcanoes. We could get a lot of megawatts out of British Columbia, that's a lot more sustainable and unobtrusive than hydro is."
Geothermal heat is stored deep below the earth's surface. Accessing this heat requires deep drill wells and pipes that capture this heat and convert it to steam, which drives turbines and produces electricity.
Sierra has 16 geothermal projects in the U.S., most in Nevada. Srdanovic said south of the border, they can access to incentives, grants, loan guarantees and investment tax credits.
"Our focus is on the U.S.," Srdanovic said.
Colleen Kimmett reports for The Tyee.
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freebear
2 years ago
I like passive geothermal for homes
Perhaps large scale geothermal requires more capital than other renewable?
Colleen K
2 years ago
Geothermal director on capital costs
Geothermal Energy Association director Karl Gawell said in a Scientific American article
"In general, there is financing out there for geothermal, but it's difficult to get and it's expensive. . . You have to have a really premium project to get even credit card interest rates."
According to this article the per kilowatt hour cost to produce geothermal is the least expensive.
.Luke.
2 years ago
South Meager Creek Geothermal...
During the 1970's BC Hydro did extensive investigation into the geothermal energy source in the South Meager Creek area north of Pemberton.
It's probably the most commercially viable geothermal source in BC.
An application to the BC Environmental Assessment Office was made back in 2004 but, for whatever reason, South Meager Creek seems to be at a standstill.
If BC is ever going to have geothermal energy on a large scale, it's likely to be South Meager Creek.
http://www.ram-power.com/Projects/Project-Overview/default.aspx
Sask Resident
2 years ago
I too like passive geothermal for homes/buildings
Freebear: I agree with you, passive geothermal for heat and cooling has good potential but is used little. The main problem is the confusing rules and regulations by the province, as Nelson, BC is finding out (they want to use deep water in the lake). Anyone with a yard or parking lot should be able to use passive geothermal like Walmart does as standard idea on new stores.
However, everyone should be tired of subsidizing power companies to produce high cost electricity. Feed in is still a subsidy.
mariner
2 years ago
Geothermal power generation
If used properly, geothermal resources can be a big bonus to an area. However, with the current provincial government under the rudderless leadership of Gordon Campbell, I doubt that proper management will ever be achieved.
Some of the geothermal power stations have experienced greatly reduced steam production (Wairakei in NZ, California in US) mostly from excessive use of the free steam. Some success has been acheived by injecting water back underground to replace that lost is steam production.
There are about eight - possibly more, geothermal electrical producing areas in the world - Italy, Japan, NZ,US , Russia and others and from what I have learned, approximately half have found the steam production to be finite and must be carefully managed.
Thank you
mariner