Next week hundreds
of energy experts from around the world will gather in Vancouver to
discuss one of the least understood, but potentially the most
powerful forms of clean energy. They will be attending the Third
Annual Conference and Trade Show of the Canadian Geothermal Energy
Association (CanGEA).

Geothermal means earth-heat. Its origins stem from the very
formation of our planet, in particular from the radioactive decay
of minerals and from solar energy absorbed at the surface. In use
for bathing since Paleolithic times and for space heating since
ancient Roman times, geothermal energy is now better known for
generating electricity.

Around the world it is estimated that over 10,715 megawatts (MW)
of geothermal power capacity is online in 24 countries. It is
expected 67,246 gigawatts (GWh) of electricity will be generated
from geothermal sources in 2010.

A gigawatt - equal to one billion watts - is the energy measure
used for large power plants or power grids. For example, in 2009,
the installed capacity of wind power in Germany was 25 GW.

Theoretically the Earth’s geothermal resources are more than
adequate to supply humanity’s energy needs, but only a very small
fraction may be profitably exploited, largely because drilling and
exploration for deep energy resources is very expensive.

Low-temperature, near-surface geothermal power is a renewable
energy source available across Canada that can be used for heating
and cooling almost any type of building. More than 35,000 “earth
energy” or “geo-exchange” systems are already in use. Experts
expect that many thousands more will be installed in the near
future.

There have been some medium-temperature geothermal resources
used for space heating in British Columbia and Nova Scotia, but
deeper, higher-temperature geothermal resources that could produce
electricity are found mainly in British Columbia. There are no
geothermal electric projects operating in Canada at present, but
one B.C. project is under development.

Next week’s conference will not cover low or medium temperature
geothermal applications. Rather it will focus on harness the vast
potential of deep high temperature geothermal resources. 

Canada is the only country along the Pacific Rim of Fire that
has not developed this base load producing resource and the CanGEA
event will seek to highlight the fact that technology is rapidly
changing the cost structure of harnessing this resource.

The reliability of geothermal electric power delivery to the
grid exceeds 90% on average, making it a suitable substitute for
other base-load power producers such as coal.

Yet, despite the abundance of geothermal power potential, it’s a
renewable energy source that few fully understand, for example when
compared to energy from a windmill or from a hydroelectric dam.

The reliability of geothermal
electric power delivery to the grid exceeds 90% on average, making
it a suitable substitute for other base-load power producers such
as coal.

In its simplest terms, geothermal energy uses the escaping heat
from Earth’s core as a means to heat water and produce electricity.
By drilling deep into the earth we find temperatures suitably high
to produce electricity. Therein is the problem. Drilling that deep
is expensive and the upfront costs to produce heat from a
geothermal unit whether for a single home or for an energy utility
can be a major deterrent.

That is one of the many issues that will be discussed at the
CanGEA gathering, which will look at Canada’s geothermal resource
potential and market opportunities. Also on the agenda will be
issues pertaining to standards of reporting, emerging technologies
to better harness geothermal heat, the availability of investment
financing, and how to improve standards of geothermal system
installations and maintenance.

Ross Beaty, Chairman and CEO Magma Energy Corp., a
Vancouver-based global geothermal power company with properties
throughout the western United States, Iceland and Latin America,
will discuss Magma’s reserves, resources and exploration results
according to the Geothermal Reporting Code.

The Geothermal Code for Public Reporting proposed by CanGEA
provides a minimum set of requirements for the public reporting of
exploration results, geothermal resources and geothermal reserves.
The Code provides a basis for transparency, consistency and
confidence in the public reporting of geothermal information, which
is vital for promoting investment financing.

Doug Tingey, a Partner with Borden Ladner Gervais LLP., one of
the conference sponsors, will discuss the carbon credit markets and
the potential for geothermal.

CanGEA is actively engaged in a number of initiatives to
facilitate the responsible and sustainable growth of high
temperature geothermal energy in Canada, which, which has the
potential to provide competitive, emissions free, renewable,
base-load energy to Canadians and for the export market.

One of the key initiatives is to work with federal and
provincial authorities to develop regulations based on global
geothermal best practices and standards.

CanGEA is also pursuing policies to promote financing for
geothermal exploration and research, better tax treatment,
renewable portfolio standards and feed-in tariffs related to
geothermal power.

Also high on the agenda are public education programs to develop
a better public awareness of geothermal resources and the positive
economic, environmental and social impacts of geothermal
energy.

Magma Energy and other members of CanGEA are encouraged that
awareness is growing for geothermal energy.  There is a great
deal of potential all around the world, including our own backyard
here in B.C. 

Canada is the only country along
the Pacific Rim of Fire that has not developed this base load
producing resource and the CanGEA event will seek to highlight the
fact that technology is rapidly changing the cost structure of
harnessing this resource.

However, access to land tenure is practically non-existent in
Canada versus other countries where the value of this form of
renewable energy is more widely recognized.  Once that
changes, Canada could take on a higher profile on the geothermal
world stage.

In particular, as more Canadian and U.S. utilities respond to
policy requirements for larger shares of electricity from ‘green
energy’ sources, power from stable and reliable geothermal sources
will become more in demand.

With this increased demand will come more jobs, which is an
attractive bonus for government policy makers. CanGEA estimates
that every 1,000 megawatts of geothermal energy capacity added to
the power supply generates 6,000 person years of manufacturing and
construction employment and 1,800 permanent jobs.

There are at least 5,000 megawatts of high temperature
hydrothermal potential currently available in BC, Alberta and the
Yukon alone. The development of Engineered Geothermal Systems (EGS)
and offshore geothermal projects would greatly increase this
potential, as would co-production of power from hot water used in
mining and petroleum applications.

The energy from within the earth is definitely a power source
that has come of age, and the results of next week’s conference
will be worth watching.