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Geothermal Power Potential in Canada’s North​: Techno-Economic Model for EGS in the Yukon​

Yukon / 2024 / Geothermal Consulting

Enhanced Geothermal Systems (EGS) are experiencing a resurgence, driven by recent innovations and successful pilots. In this context, a private advisory firm in Alberta sought Sproule’s expertise to explore these advancements and assess their viability in the Yukon region. Our team developed a comprehensive techno-economic model for EGS, enabling the client to analyze the economic implications of key technical parameters. We conducted a site-specific study for a potential EGS project in Northern Canada, providing critical insights into the historical and current challenges associated with EGS development, thus contextualizing high-enthalpy geothermal electricity projects.

Project Highlights

  • Build an informative Techno-Economic Model for EGS
  • Identify and Rank Key Challenges for EGS
  • Link Subsurface Challenges with a Healthy Economic Outlook
  • Provide Context and Perspective on Geothermal Electricity Projects

Challenge

Novel EGS Concept: EGS has been explored for over four decades worldwide though, the recent success with a novel EGS approach in Nevada and Utah is not yet well understood.

Balancing Project Economics: EGS aims to harvest high temperature heat, which typically means drilling deeper wells and potentially higher costs. This project required a careful balance between optimal technical design and commercial viability.

Universal and Site-Specific Model: The client required a techno-economic model that was universally applicable while effectively addressing local subsurface and surface variations.

Solution

Technical and Economic Expertise: Sproule leveraged the extensive knowledge of our subject-matter experts to develop an interactive techno-economic model that effectively illustrates the economic impact of key technical parameters.

User-friendly Model: Although the model is complex, it was designed to be intuitive, ensuring users can easily navigate and interpret the results.

Context and Perspective: In addition to the model, Sproule provided essential context regarding the potential of EGS and its long-term techno-economic feasibility for future geothermal electricity initiatives.

Value

Key Project Parameters Application: The client gained a clearer understanding of how key variables in an EGS project influence its project outlook and economics (e.g., thermal decline curve, LCOE, NPV, and IRR), facilitating the identification of the optimal technical subsurface design.

Improved Understanding of EGS Potential: Sproule’s techno-economic tool enabled the client to efficiently assess site-specific EGS potential based on local techno-economic characteristics in Yukon and beyond.

Trusted Partnership: The firm continues to rely on Sproule’s advisory expertise as they advance their efforts to explore the potential of EGS across Canada.




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