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Geothermal power facility makes progress in Saskatchewan


April 25, 2022
By DEEP Earth Energy Production Corp

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A 35-Megawatt (MW) geothermal power facility in southeastern Saskatchewan is slated for full commissioning by early 2025.

According to the company, DEEP Earth Energy Production Corp. (DEEP), the project is a four-stage build that aims to produce approximately 140 MW of geothermal power generation in 35-MW increments.

Phase 1 development plans include one ~35 MW gross geothermal power facility. Negotiations are ongoing with SaskPower to increase the 5 MW Power Purchase Agreement, secured in 2017, to align with phase 1 development that averages ~35 MW annually of baseload geothermal power.

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Upon completion of phases 1 through 4, approximately 140 MW of geothermal baseload power is planned to be produced in four ~35 MW blocks. 35 MW is roughly equivalent to the power required to supply 35,000 households.

Some recent highlights include:

  • Completed successful Feasibility Engineering in September;
  • Design Basis Memorandum (DBM) engineering currently underway by Calgary-based SCOVAN Engineering;
  • Negotiations on-going for enhanced SaskPower Power Purchase Agreement (PPA);
  • Secured 80 acres of land under an 18 month offer to purchase for the surface area requirements for the first planned ~35 MW geothermal facility;
  • Resolved critical engineering challenges such as corrosion mitigation and reducing parasitic pumping power;
  • Reviewing optimization strategies to build low emission Natural Gas (NG) power generation with Carbon Capture and Storage (CCS) for parasitic power requirements (primarily brine pumping). This aligns with the Federal Government’s recent unveiling of a 50% tax credit aimed at spurring investment in carbon capture and storage technologies;
  • Engaging SaskPower and SaskEnergy on use of natural gas and CCS technologies to help address parasitic loads and related issues;
  • Completed Canada’s first large volume 53-day production and injection geothermal pump test;
  • Entered a strategic partnership with Prairie Lithium to exchange subsurface mineral permits and establish an Area of Mutual Interest (AMI) to explore future lithium opportunities;
  • Actively engaged with stakeholders, including local communities. A meet and greet in Torquay was well received by local officials and residents;
  • Drilled and tested the Border-06 stratigraphic step out well to demonstrate lateral geological continuity of the geothermal reservoir properties. Production and injection testing demonstrated excellent productivity.

DEEP’s government subsurface lease for geothermal power is a contiguous 39,120 hectare (99,667 acre) block. In addition to geothermal power production, and with proper regulatory approvals, separate stratigraphic intervals within this subsurface lease could also be used for CO2 storage. DEEP is exploring strategic CO2 storage opportunities to develop a major multi-use CO2 storage field.

A final investment decision strategy is expected this fall along with the SaskPower PPA. DEEP is actively pursuing strategic partnerships and options to secure debt and equity, aligning with the full project financing set to commence later this year.

Subsurface engineering will be 3rd party reviewed by GeothermEx (a Schlumberger Company). GeothermEx due diligence has resulted in more than USD$14 billion in project investments and 8.5 GW of power, more than half of the world’s operating geothermal capacity today. The GeothermEx Report is the gold standard for geothermal investments.

Source: DEEP