The Federal government recently released its CANADA’S MID-CENTURY LONG-TERM LOW-GREENHOUSE GAS DEVELOPMENT STRATEGY. In the document geothermal is explicitly mentioned in two important capacities.
“Other renewable energies offer potential in the mid to-long term. For example, generating zero-emitting electricity with geothermal power is possible using hot subsurface water or steam coming from underneath the earth’s surface. Standard well drilling technology can provide access to high temperature sources and power to turbines that offer reliable electricity.” CanGEA is happy to see our messaging that Canada’s existing oil and gas drilling expertise can develop geothermal is being taken up by the Federal government. Also, the recognition that geothermal delivers reliable power is another pillar of CanGEA’s messaging that we are pleased to see recognized. CanGEA does contest that geothermal is a mid-range solution, as there are multiple member projects poised to build once the tax and regulatory environment is fair, but that is why we need all our members to keep telling their elected leaders that Canada wants geothermal today. The development strategy also recognizes the need for electricity and heat to displace diesel generation for remote communities “Other potential non-emitting energy alternatives to diesel generation include hydro, tidal, geothermal, small modular nuclear reactors, and biomass. Diesel is also used to provide home heating in northern and remote communities. There may be opportunities to further displace diesel with lower emitting technologies.” Again, Northern renewable heat and power is a major messaging point CanGEA has been pushing forward and we happy to see it recognized. There is no geothermal power in Canada yet but with ongoing positive messaging from CanGEA, made possible by support by our members, we are getting closer. A recent article on the website theECOreport highlights CanGEA member Borealis's plans to begin British Columbia's first geothermal power project. Once operational, this geothermal industrial park will start by supplying the village of Valemont, BC with carbon free heat. As operations continue, it is anticipated that GeoPower will also supply the area with electricity.
CanGEA’s goal is to advocate for our members so that they are able to grow the Canadian geothermal industry. In CanGEA, the Policy Manager is responsible for translating policy priorities/gaps/opportunities identified by the Policy Manager, the CanGEA Board and CanGEA’s greater membership into clear, concise and actionable government engagement. The Policy Manager is the bridge between CanGEA members and policy makers. This means that the successful applicant will also be able to effectively communicate government developments, programs, stakeholder engagements etc. to the CanGEA membership as they are released.
The Policy Manager duties include but are not limited to:
The successful applicant will also be responsible for supporting other CanGEA activities which include but are not limited to:
The ideal candidate has a professional attitude and experience in both technical and policy fields through a mixture of education and industry experience. The position is open to a diverse candidate pool and experience in geology is not required, previous Policy Mangers have had such backgrounds as Political Science, Law, and Biogeography. The candidate must be comfortable working in low structure environment which includes being able to self-identify work priorities and operate independently. The position is based out of Calgary and some travel will be required. Please send a cover letter and your LinkedIn profile, or your resume to info@cangea.ca. The hours may be part-time or full time, up to 37.5 hours a week in our peak times. Starts: Immediately Ends: TBA To be ELIGIBLE for this opportunity, the candidate must meet the following requirements:
The March 22nd federal budget announcement on geothermal was the culmination of several years of work by CanGEA and the benefits to the industry will be immediate. The budget announced that: “Geothermal energy is one renewable energy source with the potential to reliably meet a portion of Canada's heating and electricity generation needs, including in northern and remote communities, where reliance on fossil fuels remains high. To encourage greater use of geothermal energy, Budget 2017 proposes to: Extend accelerated capital cost allowance [ACCA] to a broader range of geothermal projects and expenses. Expand the range of geothermal energy project expenses that are eligible as Canadian renewable and conservation expenses [CRCE], which can be fully deducted in the year incurred.” Today, I will be discussing the implications of this decision, as outlined by the above text, and the budget supplementary document.
Before March 22nd, for geothermal to qualify as a "renewable energy source" under the Canadian Renewable Conservation Expense (CRCE) and the Accelerated Capital Cost Allowance Class 43.1/43.2 (ACCA), all production had to be allocated for electrical generation. The expansion of the CRCE and ACCA to include geothermal heat seems small, but it is the exclusion of heat that has proven a huge challenge to the Canadian geothermal industry. Other Canadian subsurface resource developers enjoy exploration de-risking through the Canadian Exploration Expense (CEE) and require it to gain financing. The exploration expenses of a CEE qualifying project are tax deductible. These tax deductions reduce the risk of exploration and is one part of what is often talked about as fossil fuel subsidies; renewable energy qualifies for the CEE by being eligible for the CRCE. Geothermal requires the same exploration de-risking to secure financing, because the energy is several kilometres below the surface, but before March 22nd geothermal did not have assured access to the CEE (via the CRCE). The asymmetry in risk due to different levels of government industry support has made it functionally impossible to finance a geothermal development because capital has rationally favoured better secured investments. By making all geothermal projects (heat, power and co‑generation) eligible for exploration de-risking geothermal projects have a much better investment prospect. Furthermore, and related to CRCE and CEE geothermal developers can now offer investors flow through shares(FTS). The FTS work by allowing tax deductions earned by an eligible corporation to pass to its investors. FTS are extremely important to the Canadian sub-surface resource development industries and now geothermal can offer its backers access to these attractive investments, further improving the investment potential for geothermal. Lastly, it is just good news that Canada has recognized the value of geothermal heat and will allow geothermal to heat district heating systems. Geothermal supplied district heating systems are used around the world to provide affordable heat and offset fossil fuel use but until March 22nd, such systems that used geothermal did not qualify as eligible renewable energy projects for favourable tax status in Canada. CanGEA was able to accomplish the geothermal policy change in the budget through the financial support of our members. We would also like to thank all the persons in the Government of Canada, including elected officials and ministerial employees, who took the time to listen to the geothermal industry and learn how the Government of Canada could support the development of renewable heat and/or power from geothermal. Sincerely, Alex Kent, MSc Policy Manager, CanGEA CanGEA Director Alison Thompson met with Cumberland-Colchester MP Bill Casey this past week to discuss the geothermal industry. The Springhill area has great geothermal potential and is currently being mapped by the Cumberland Energy Authority. Casey is optimistic about the project and CanGEA is happy to have Cumberland Energy Authority as a member, as well as government support from MPs like Casey.
Read the article here April 6, 2017 Katie Huang |
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