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Geothermal

Thursday
19 Oct 2023

Kitselas Geothermal Receives $3.6 Million Funding for BC, Canada Project

19 Oct 2023  by thinkgeoenergy   

Announcement of funding for Kitselas Geothermal from the Pacific Economic Development Agency of Canada (source: Government of Canada)
Kitselas Geothermal is set to receive funding of over $3.6 million from the Pacific Economic Development Agency of Canada (PacifiCan) as announced by the Honourable Harjit S. Sajjan, Minister of Emergency Preparedness. The new funding boost will aid in the progress of the geothermal project being developed by Kitselas Geothermal at the M’Deek Reservoir, Lakelse Lake in British Columbia, Canada.

Kitselas Geothermal Inc is working on the Fuel for Reconciliation geothermal project at the M’Deek Reservoir which aims to harness the geothermal energy located under the traditional territory of the Kitselas First Nation. The project is designed to replace 270,000 GJ per year of natural gas, reducing greenhouse gas emissions by over 13,000 tonnes per year.

The company is majority owned by Kitselas Development Corp. with Borealis GeoPower as partner. Kitselas translates to “People of the Canyon.”

The funding comes from the Jobs and Growth Fund which aims to help job creators and the organizations that support them to future-proof their businesses. This includes building resiliency and growth by transitioning to a green economy, fostering an inclusive recovery, enhancing competitiveness and creating jobs across British Columbia.

Development history

Back in 2020, we reported on the Kitselas Geothermal completing a major exploration milestone with the drilling of four exploration wells in Lakelse Lake, three of which were deemed successful. Additional core drilling was then conducted in 2021.

Calls for funding and partnerships began in earnest. The project received $500,000 from the First Nations Clean Energy Business Fund (FNCEBF) in early 2022, and a joint development agreement was signed with Shell Canada Energy later the same year.

Towards a transition to clean energy

With funding through PacifiCan’s Jobs and Growth Fund, Kitselas Geothermal will drill production wells to harness geothermal energy. This project is expected to generate over 170 new jobs, including for Indigenous workers, creating lasting economic benefits for the region.

PacifiCan supports innovation, business growth and community economic development in British Columbia. Through targeted funding programs, PacifiCan makes strategic investments in growing companies poised to strengthen B.C.’s position as a domestic and international leader in sectors such as clean technology, life sciences, and digital industries.

“PacifiCan will continue working with Indigenous communities in B.C. to create lasting economic development that advances reconciliation,” said the Honourable Harjit S. Sajjan.

“Development of the ‘Fuel for Reconciliation’ geothermal energy project is a significant step towards Kitselas First Nation’s economic independence. The project also contributes to B.C.’s and Canada’s transition towards clean energy by demonstrating technology, training highly qualified professionals, and providing a proving ground for regulatory reform that will benefit both future project phases and other geothermal projects elsewhere in the country,” added Alison Thompson, Director of Kitselas Geothermal Inc

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