The very first geothermal generator is set to open south of Regina with the potential to power over 20,000 households. For a first of its kind in Canada, this is a pretty big deal and likely to have a significant positive impact on the province’s economy.
All this at a time when Saskatchewan’s economy is exploding.
If you’re an investor looking for a quick return, we can’t stress enough how rapidly the economy in this proivince is developing across a broad spectrum of diverse industries.
This article is the second in a series on the industries and economy of Saskatchewan to give would-be investors more insight into why this province is the perfect place to grow an investment.
But before we delve into the province, let’s first answer:
Geothermal Energy is a means of energy production that leverages the Earth’s (Geo) naturally hot core (thermal).
Deep below the Earth’s surface, the temperature of the planet is both very hot and very consistent. This means the water deposits deep underground are reliably heated to very consistent temperatures.
By drilling wells into these hot water reservoirs, the hot water and steam can be syphoned up to the surface where the heat is extracted for energy production.
If this sounds a little familiar, it’s because it is.
Oil production uses many of the same strategies to drill wells for oil. That’s why this discovery is particularly exciting for Saskatchewanians from Regina to Saskatoon.
Not only does geothermal rely on the same tools as the oil and gas industry, but also the same skilled labour, which makes Saskatchewan extremely prepared to quickly ramp up production.
In fact, if it weren’t for the skilled labourers in the oil patch, this recent discovery would have never been made.
But before we get into that, let’s first look at the history of geothermal.
The use of hot springs by people for heat dates back millennia—as far back as the stone age in fact. But it’s modern use for electricity production dates back to 1904 in Larderello, Italy.
Although the hot springs in the area were used industrially for over a century at that point, they were only used for the extraction of boric acid from the volcanic mud.
It wasn’t until the turn of the century when the demand for electricity began to escalate significantly that Prince Piero Ginori Conti tested using the excess heat for power generation — successfully lighting four light bulbs.
Over the 20th century, the technology spread across the world as it became more and more efficient.
By 2010, the International Geothermal Association (IGA) reported geothermal to be generating over 67,000 GWh of electricity, a 20% increase since 2005 (And quite the increase since Prince Piero Ginori Conti’s four light bulbs!)
In short, geothermal power generation is very well established having been refined over a century with innovation that’s only accelerating.
So now that you’re caught up, let’s get back to Saskatchewan.
It should come as no surprise, Saskatchewan is not a hotbed of volcanic activity. So the discovery of geothermal in the province came almost by chance.
It started with Kirsten Marcia, founder, CEO and president of DEEP, the saskatoon-based company developing Canada’s first Geothermal power generator in the province.
Kirsten knew she needed two ingredients for power generation. First, porous rocks that allow the hot water to run through them, and second, very hot water.
As a geologist trained at the University of Saskatchewan in Saskatoon, she had no problem finding the first of these two ingredients, but the second took a bit of sleuthing.
Interestingly, Saskatchewan’s oil sector keeps comprehensive records of underground water temperatures across the province as they use the data to calibrate their machinery. Kirsten and her team were able to leverage those publicly available records to find the perfect place to start drilling.
The perfect place turned out to be near the town of Estevan, south of Regina.
The first most obvious benefit of Geothermal Energy is that it doesn’t emit carbon into the atmosphere, in other words, it doesn’t create greenhouse gas emissions.
However what makes Geothermal stand out from other green technologies is it’s extreme reliability.
As mentioned earlier, Geothermal is very well established technology on the global stage with over a century of development — but on top of that, it’s also capable of producing a baseload power supply, meaning after it’s set up, it can run all day, everyday to produce a consistent supply of electricity.
As Kirsten Marcia says, “As long as the centre of the Earth is hot, we’ve got an inexhaustible, clean, baseload power supply”.
As the world shifts away from oil, Geothermal creates an excellent opportunity to leverage the existing talent pool found in Western Canada’s oil patch.
But the other interesting benefit of Geothermal is the fact not all the water needs to be used for energy generation. Excess water can be used for leisure, which will likely create an additional boom for winter tourism in the area.
Let’s look to Iceland, which has been using Geothermal for heat as far back as the 1920’s. After using the hot water for power generation, they pour any excess water into hot pools for people to swim.
Since the water comes from deep below the Earth, it’s rich in minerals said to have a myriad of benefits for your skin and overall well being.
Being in the south of Saskatchewan, the potential to lure American tourists into the area is too big to ignore. Even a hot spring as remote as Iceland’s Blue Lagoon received an estimated 1.3 million visitors in 2017.
To have something akin to Blue Lagoon in the middle of North America, it’s a safe bet the industry will take off with the right investment.
We’ve long stated that Saskatchewan is one of the most innovative provinces in Canada, and this recent geothermal discover only confirms that.
Simply put, now is the time to invest in Saskatchewan. But that said, you’ll probably want to see the province before you invest your capital.
Just make sure when you book your trip to Regina or Saskatoon, you don’t book accommodation that leaves you restless.
You need a fully-furnished short term rental from OBASA / Six Three Suites.
Unlike traditional hotel rooms, with their uncomfortable beds, poor lighting, lackluster entertainment systems and terrible ventilation, our spacious and private short term rental suites provide you with all the comforts of home with all the perks of a hotel.
You’ll get:
Short term rentals from OBASA / Six Three Suites are simply the most comfortable way to travel to Saskatoon or Regina. Best of all, your pets can come too!
--
Stop wasting your money on hotel rooms.
If you travel to Saskatoon and Regina often, you can take advantage of our Smart CAP program for personalized payment plans on your short term rental.
Get in touch with us to learn how you can have a trip that’s as comfortable as the accommodation is affordable.
