Can Geothermal Heat Projects and Systems help stimulate economic development in rural and small-town Alberta?

Abstract

Small towns and rural communities in Alberta are being “hollowed out” due to the decades-long trend of farm consolidation and decreasing oil and gas demand. This paper examines whether geothermal heat projects and systems can help small towns and rural communities of less than 10,000 people stimulate economic development. Eleven industry advocates, geothermal and geo-exchange service providers, academics, and policy and regulatory experts were interviewed in the fall of 2022 to help understand what opportunities and benefits exist and what obstacles are faced by those who want to capitalize on those opportunities and benefits. The study indicates several opportunities to develop and leverage geothermal heat projects across rural and small-town Alberta. Smaller geo-exchange energy systems have a limited impact on the local economy but can be developed and installed in communities across the province. Although more limited by location, larger geothermal district energy projects have the opportunity to provide a litany of ancillary benefits that can have long-lasting economic impacts on local communities. To leverage these ancillary benefits, communities must shift their mindset from exporting resources to attracting people to live in and visit the community. The findings also suggest that although governments have done some work, more can and should be done to support the industry through policy and financing mechanisms, which are its two most significant obstacles. The research suggests that although Alberta is on the right path to using geothermal heat systems and projects as a tool to help stimulate rural economic development, there is much work to be done by the industry and governments.

Faculty Mentor: Dr. Evandro Bocatto