geothermal

Razor Energy Receives Funding for Geothermal Power Project

0
Razor Energy, based in Alberta, Canada, and its partners, the federal government, through Natural Resources Canada (“NRCan”) and Alberta Innovates, have announced funding of a co-produced geothermal electricity project utilizing an active oil and gas operation in Alberta.
Razor Energy Receives Funding for Geothermal Power Project

A $5 million contribution from NRCan’s Clean Growth Program, and a $2 million contribution from Alberta Innovates, demonstrates a commitment to cleaner energy creation. Under the terms of the contribution agreements, NRCan and Alberta Innovates will assist Razor’s development of a technically viable and commercially sustainable solution to recover geothermal waste heat.

The company expects the capital cost of the Project to be $15 million to $20 million generating between 3 and 5 MW of electricity. The balance of the funding will be sourced internally and from new private investors within the renewable energy investment market.

Large quantities of earth heat entrained in produced water surface every day, as part of Razor normal operations, offering capture of clean and renewable energy to reduce the overall emissions of the operation and to add power revenues to Razor. The project will allow Razor to repurpose its hydrocarbon assets to add economic renewable energy development.  Utilizing existing operations, such as drilled and producing wells, a produced water reinjection system, and an operating gathering/process system, has a substantive effect on reducing typical geothermal project capital outlay. In addition, the co-production approach allows geothermal to develop under the current Alberta framework of world class oil and gas operations and regulatory best practices. 

“Our Government is committed to a clean energy future that guarantees good middle-class jobs for generations to come,” said Amarjeet Sohi, Canada’s Minister of Natural Resources. “That’s why we will continue to invest in innovative projects, such as those in the geothermal industry, that help fight climate change and strengthen our economy.”

In association with the Project, the University of Alberta continues to conduct geothermal research on the heat potential of the Western Canada Sedimentary Basin.  Sophisticated modeling will be substantiated with actual field data to ensure the emerging geothermal industry can harness the expertise and data that exists in today’s Alberta resource industry.

Razor has collaborated in the project with the various governing regulatory bodies to use the current exemplary regulatory framework, and to work on long term policy to enhance the development of a geothermal industry and renewable energy.

Add a comment