Construction to commence on the first co-produced geothermal power project in Alberta and Canada

  • May 04, 2021
  • Boe Report

CALGARY, Alberta – FutEra Power Corp. (“FutEra”), a subsidiary of Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) which is a publicly-traded Alberta-based junior oil and gas company, is pleased to announce it is entering the project execution stage of its co-produced Geothermal Power Project in Swan Hills, Alberta (the “Project”).

For further investor information please contact the undersigned at [email protected]

This Project begins with field construction activities, with financial and in-kind support from Razor (“Stage Gate 1”). FutEra has partnered with our provincial and federal governments to invigorate the emerging geothermal industry. Provincially, Alberta Innovates (“AI”) and Emissions Reduction Alberta (“ERA”), and federally, Natural Resources Canada (“NRCan”), have provided grants to complete funding. With an estimated cost to complete of $20 million, Stage Gate 1 will produce up to 3 MW of green geothermal electricity.   The planned second phase of the Project (“Stage Gate 2”), adding a natural gas turbine and optimizing the geothermal power efficiency, is estimated to cost an additional $10 million. With both Stage Gate 1 and 2 of the Project complete, the total nameplate electricity output will be 21 MW.

For further project information please visit the FutEra website at www.futerapower.com

“This project is one of the many examples of the amazing innovation happening in Alberta. This cutting-edge technology is using existing assets to generate clean power, putting Alberta on the map as a world leader in geothermal energy.” 

Doug Schweitzer, Minister of Jobs, Economy and Innovation

“Razor Energy and FutEra Power have developed an innovative approach to tap into Alberta’s existing oil and gas assets for greener electricity production, making use of both natural gas and geothermal energy. This first-of-its-kind project can help accelerate geothermal co-production and hybrid projects at other high-potential oil and gas sites across the province. ERA is pleased to have worked closely with our Trusted Partners, Alberta Innovates and Natural Resources Canada, to support this clean technology solution that will reduce emissions, lower costs, attract investment, and create jobs in Alberta.”

Steve MacDonald, CEO, ERA

“Geothermal clean technology is a natural and growing fit for Alberta. This project is paving the way for commercial geothermal co-production use across Western Canada. The expertise and experience gained will also open opportunities for Alberta-based know-how around the world.”

Laura Kilcrease, CEO, AI

“Razor and FutEra have committed to facing the challenges of producing energy with increasingly sustainable methods through novel and innovative solutions. This Project is the first of many engagements planned between our two companies. We deeply appreciate our public partners AI, ERA and NRCan and commend their vision. Together, we will build better outcomes for Albertans and our stakeholders.”

Doug Bailey, President & CEO at Razor and Executive Director of FutEra

“When you visit the field and lay your hand on pipe that is too hot to hold, your whole paradigm shifts. That heat is earth heat, and renewable. Innovation is just a matter of working the challenge, building on traditional best practices and adding the twist to harvest earth heat. In addition, we have been collaborating with all the regulatory agencies to forge a new path for industry. There are endless possibilities as we build FutEra into a leading sustainable energy company.”

Lisa Mueller, President & CEO of FutEra

Background

Razor produces and injects large volumes of very hot water, a renewable form of geothermal energy, daily as part of its ongoing conventional oil and gas operations and waterflood activities. This hot water provides FutEra with the opportunity to capture geothermal heat energy and generate power with zero Greenhouse Gas emissions. Co-production means no new surface land footprint is required as the Project utilizes existing assets such as processing infrastructure, producing wells, produced water reinjection system and an operating gathering and distribution system. Using existing assets yields cumulative and substantive effects of reducing typical geothermal project capital outlay, reducing supply risk and improving economic returns. In addition, our co-production approach aligns Alberta’s fledgling geothermal industry to develop alongside Alberta’s well respected, world class oil and gas operations, safety standards and regulatory best practices. Geothermal power is baseload and solves the intermittent challenge of other renewable energy sources. FutEra’s Project stands out as a demonstration of creative and practical co-produced geothermal energy production for the future energy complex, by re-purposing and transitioning existing oil and gas assets to a cleaner future.

The University of Alberta (“U of A”), as a research partner in this Project, is conducting modelling on the heat potential of the Western Canada Sedimentary Basin. The U of A endeavors to validate model theory with actual field data from our Project to ensure that the emerging geothermal industry can harness the expertise and data that exists in today’s Alberta resource industry.