Canada has an energy conundrum in the north: geothermal energy is the answer

Northern territories and cities desperately need affordable energy. At the same time, Canada’s armed forces require a steady and inexpensive source of power to patrol and protect the North.

Nowhere is this more pronounced than Whitehorse. Canada’s largest city in the North faces a substantial increase in energy demand. Yukon Energy projects it needs 45 Megawatts of power to fully meet its winter demand by 2035. Last year winter peak demand hit a record 91 per cent of capacity,  leaving the grid exposed if a generator fails. The territory sources a growing share of its electricity from rented diesel generators.

But this is only a Band-Aid solution. Costs are rising due to global fuel bottlenecks, while weather challenges result in frequent power outages. On top of that, Whitehorse will need to find the energy needed to power a new Northern Operating and Support Hub being developed by the Department of Defence. 

Geothermal is the answer.  

By drilling deep into the Earth, it’s possible to convert heat from the core into power at the surface.  Geothermal energy provides a source of clean, abundant, and reliable heat and power that can be found anywhere on Earth. All that changes is the depth it’s available.

Geothermal is the “holy grail,” said Blair Hogan, who now leads the Yukon First Nation Chamber of Commerce. “Now we need to create the supply, create the demand, and build the policy pathway to connect them.”

Whitehorse sits atop a promising geothermal resource—maybe one of Canada’s best. If developed, it would provide reliable baseload power for a fraction of the price of diesel.  

Not only will geothermal lower emissions, but embracing this technology will allow Canada to decisively entrench itself across the northern territories. 

Currently, much of Canada’s North—including the Canadian Armed Forces—is dependent on diesel, which must be either flown or trucked in at a cost of $650 per Megawatt-hour or more. In contrast, the Cascade Institute estimates geothermal power in the North could cost under $200 per Megawatt-hour, and less with innovation.

By developing the geothermal resource in the Yukon, the CAF will be able to power its own operations at a much lower cost than it can using diesel, while creating aggregated geothermal demand from civilian architecture such as hospitals, ports, and airports to also capitalize on this wealth of available energy.

Before we can move Whitehorse, or Canada’s North, off its reliance on diesel, we need to dig in—literally.  

While studies indicate Whitehorse has a white-hot resource, what’s needed now is a test well to generate real-world data necessary to design a geothermal power project. The initial well could cost less than $15-million—an enormously affordable price tag, given Canada’s commitment to spending 1.5 per cent of its GDP on security-related infrastructure. Depending on the results additional research may be required to optimize next-generation technologies, which have been proven to work in ideal conditions.

But the obstacle is the way: if this country can make these technologies work in Whitehorse, it could make Canadian companies the leading developers in this industry.

The lower cost for heat and electricity, coupled with improved reliability, would open Whitehorse and surrounding areas up to increased development. Canada would be able to expand civil operations, which includes infrastructure, and launch more initiatives in the realms of scientific research and industry. The North is replete with in-demand critical minerals such as cobalt, lithium, and rare earth minerals, and having a built-in energy source to power extraction and processing would enable the rapid development of these much-needed materials. 

Increased activity is a benefit in and of itself. But there’s a greater game at play. Increased activity will firmly establish Canadian sovereignty when it’s needed most, and deter potential incursions on our northern territory.

Canada doesn’t have to go it alone. Developing geothermal energy would also strengthen our national security by strengthening relations with allies. Arctic nations Iceland, Norway, and Finland have all made strides in developing geothermal power, and Canada can fortify their ties with these countries in sharing knowledge.  

Geothermal power is a promising option for Canada’s North. Whitehorse is the place to start. 

Peter Massie is the director of the geothermal energy office at the Cascade Institute, a Canadian research centre that focuses on environmental, economic, political, and technological issues.

Jax Jacobsen is the communications leader for the geothermal energy office at the Cascade Institute. 

The Hill Times