Geothermal Energy in Canada: Overview, Developments, Exploration Areas, and Leading Companies

Harnessing Earth’s Heat for a Sustainable Future

Geothermal energy, the heat derived from the Earth’s internal core, offers a renewable and reliable source of power and heating. Unlike more intermittent sources like solar and wind, geothermal energy provides a constant supply, making it a highly attractive option for regions with suitable resources. In Canada—a country renowned for its vast geography, abundant natural resources, and cold climate—the exploration and development of geothermal energy has gained significant momentum in recent years.

Get the Latest Canadian Focused Energy News Delivered to You! It’s FREE: Quick Sign-Up Here

What Is Geothermal Energy in the Canadian Context?

Geothermal energy harnesses the natural heat stored beneath the Earth’s surface. In Canada, this energy can be tapped for both electricity generation and direct use applications, such as district heating, greenhouse agriculture, and industrial processes.

There are two primary types of geothermal systems:

High-temperature geothermal systems—typically found in regions with volcanic or tectonic activity—are used for electricity generation, producing steam or hot water that drives turbines.
Low-temperature or shallow geothermal systems—widely distributed and accessible across Canada—are mainly used for heating and cooling through ground-source heat pumps.

While shallow geothermal (ground-source heat pumps) have been used in Canada for decades, particularly in residential and commercial heating, large-scale geothermal electricity generation has historically lagged behind due to geological constraints, abundant hydroelectric resources, and relatively cheap electricity. However, with increasing focus on decarbonization, energy diversification, and remote community energy solutions, geothermal is emerging as a vital component of Canada’s sustainable energy future.

Recent Developments in Geothermal Technology

The past decade has seen remarkable advances in geothermal technology globally, with Canada actively participating in research, pilot projects, and commercial deployment. Some of the recent developments include:

1. Enhanced Geothermal Systems (EGS)

EGS technology enables extraction of geothermal energy from hot dry rock formations that lack natural water or permeability. By artificially fracturing the rock and circulating water, energy can be harnessed from a much wider array of geological settings. In Canada, EGS research is underway in several universities and research institutions, with demonstration projects planned in places like British Columbia and Alberta.

2. Binary Cycle Power Plants

Traditional geothermal plants require high temperatures, but binary cycle technology allows for efficient electricity generation from lower-temperature resources. In this system, geothermal fluid heats a secondary liquid with a lower boiling point, producing vapor that drives turbines. This innovation opens up vast regions of Canada, which may not have high-temperature reservoirs but do possess significant moderate-temperature resources.

3. Direct Use Applications and District Heating

Instead of converting geothermal heat to electricity, direct use systems deliver thermal energy directly for heating buildings, greenhouses, aquaculture, and industrial processes. Canada’s cold climate and many remote communities make these applications particularly attractive. Cities like Winnipeg and communities in the Yukon and Northwest Territories have piloted or implemented geothermal district heating systems, reducing reliance on diesel and natural gas.

4. Integration with Oil & Gas Infrastructure

Canada’s mature oil and gas industry provides legacy wells, drilling technology, and subsurface expertise that can be repurposed for geothermal development. Several companies are evaluating the conversion of abandoned or marginal oil wells into geothermal wells, leveraging existing infrastructure and workforce.

5. Policy and Regulatory Support

The federal and provincial governments are increasingly supporting geothermal through funding, incentives, and streamlined permitting. Natural Resources Canada (NRCan) and provincial agencies have launched mapping programs, feasibility studies, and grants to accelerate project development.

Areas in Canada Where Geothermal Is Being Explored

Canada’s geothermal potential is distributed unevenly, with the most promising regions generally found in the western provinces and northern territories. Key areas of exploration include:

1. British Columbia

British Columbia (BC) boasts some of the highest geothermal potential in Canada, notably along the Coast Mountains and in the Northern Interior. The Mount Meager area is considered the most promising, with high temperatures and historical geothermal gradient studies. Several companies and government agencies have conducted drilling and resource assessments in the area.

Other regions in BC, such as the Lower Mainland and Vancouver Island, are also being evaluated for both electricity generation and direct use projects.

2. Alberta

Alberta’s deep sedimentary basins offer moderate-temperature resources suitable for both power generation (with binary cycle technology) and direct heating. The presence of extensive oil and gas infrastructure makes it a prime region for geothermal repurposing projects. The southern and central parts of Alberta are seeing the majority of exploration activity.

3. Saskatchewan and Manitoba

Saskatchewan and Manitoba have modest geothermal potential, especially for direct use and district heating applications. Pilot projects are underway to assess the feasibility of heating communities and commercial greenhouses with geothermal resources.

4. Yukon and Northwest Territories

The northern territories face high energy costs and logistical challenges due to remoteness and harsh climates. Geothermal offers a sustainable, local alternative to diesel power. Exploration and demonstration projects are ongoing near Whitehorse (Yukon) and in several communities in the Northwest Territories.

5. Atlantic Canada

While the geothermal gradient in Atlantic Canada is generally lower, there is growing interest in shallow geothermal (ground-source heat pumps) for residential and commercial heating. Research is ongoing to determine the feasibility of direct use and industrial applications.

6. Remote and Indigenous Communities

Many Indigenous and remote communities across Canada are exploring geothermal energy as a means to achieve energy independence, reduce costs, and support sustainable development. Partnerships between Indigenous organizations, government, and industry are central to these efforts.

Most Prominent Companies Involved in Geothermal in Canada

The Canadian geothermal sector is relatively young compared to countries like Iceland or the United States, but several companies are leading the charge in exploration, development, and technology innovation. Some of the most prominent include:

1. DEEP Earth Energy Production Corp.

Based in Saskatchewan, DEEP Earth Energy is developing Canada’s first commercial-scale geothermal power facility near Estevan. The project plans to use binary cycle technology to generate up to 20 MW of electricity, providing a template for future projects in sedimentary basins across the country.

2. Eavor Technologies

Headquartered in Calgary, Alberta, Eavor has pioneered the “Eavor-Loop™,” a closed-loop geothermal system that circulates fluid through an underground well system without the need for reservoirs or fracking. Eavor’s pilot project near Rocky Mountain House, Alberta, is attracting international attention and investment.

3. Borealis GeoPower

Borealis GeoPower, based in Calgary, focuses on developing geothermal resources in British Columbia and Alberta. Their Canoe Reach and Lakelse Lake projects aim to supply renewable heat and power to local communities and industries.

4. Terrapin Geothermics

Also based in Alberta, Terrapin Geothermics develops geothermal district heating and power projects, working closely with municipalities and industrial clients. The company is active in feasibility studies and pilot projects throughout Western Canada.

5. Geothermal Canada (formerly Canadian Geothermal Energy Association)

As the national industry organization, Geothermal Canada provides advocacy, research, and networking for the geothermal community, supporting both established companies and innovative startups.

6. Other Notable Organizations

SNC-Lavalin—A major engineering firm involved in geothermal feasibility studies and project development.
Altarock Energy—A company involved in demonstration projects and partnerships with Canadian organizations.
Several Indigenous-owned enterprises—Partnering with private and public stakeholders to explore and develop local geothermal resources.

Challenges and Opportunities

Despite promising advancements, geothermal energy in Canada faces several challenges:

Geological uncertainty—High upfront costs and the risk associated with resource characterization can deter investment.
Competition from low-cost hydroelectricity and natural gas—Particularly in provinces like British Columbia and Quebec.
Regulatory and permitting processes—Geothermal resources often fall into regulatory “grey areas” not covered by traditional oil and gas or renewable energy frameworks.

However, the opportunities are equally significant:

Decarbonization—Geothermal offers zero-emission, baseload power and heat, crucial for meeting climate targets.
Remote community energy—Reducing diesel dependence and improving energy security for remote and Indigenous populations.
Economic diversification—Repurposing oil and gas expertise and infrastructure creates new economic opportunities.

Geothermal energy in Canada is transitioning from a niche technology to a viable, sustainable solution for power and heating, thanks to technological innovation, policy support, and the efforts of pioneering companies. With continued investment, research, and collaboration among industry, government, and Indigenous communities, geothermal could play a pivotal role in Canada’s clean energy future—providing reliable heat and power while reducing greenhouse gas emissions. As projects move from exploration to commercial operation, Canada stands poised to become a leader in harnessing the Earth’s heat for generations to come.

Up Next

The Kamloops Hoax Is Costing Taxpayers Billions

Don't Miss

New Calgary plant to produce luxury vinyl flooring with Alberta oil and gas

Todayville

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Landmark 2025 Study Says Near-Death Experiences Can’t Be Explained Away

Focal Points / 14 hours ago

STUDY: TikTok, Instagram, and YouTube Shorts Induce Measurable “Brain Rot”

Health / 19 hours ago

Tens of thousands are dying on waiting lists following decades of media reluctance to debate healthcare

Carbon Tax

Carney fails to undo Trudeau’s devastating energy policies

Published on November 23, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Elmira Aliakbari

On the campaign trail and after he became prime minister, Mark Carney has repeatedly promised to make Canada an “energy superpower.” But, as evidenced by its first budget, the Carney government has simply reaffirmed the failed plans of the past decade and embraced the damaging energy policies of the Trudeau government.

First, consider the Trudeau government’s policy legacy. There’s Bill C-69 (the “no pipelines act”), the new electricity regulations (which aim to phase out natural gas as a power source starting this year), Bill C-48 (which bans large oil tankers off British Columbia’s northern coast and limit Canadian exports to international markets), the cap on emissions only from the oil and gas sector (even though greenhouse gas emissions have the same effect on the environment regardless of the source), stricter regulations for methane emissions (again, impacting the oil and gas sector), and numerous “net-zero” policies.

According to a recent analysis, fully implementing these measures under Trudeau government’s emissions reduction plan would result in 164,000 job losses and shrink Canada’s economic output by 6.2 per cent by the end of the decade compared to a scenario where we don’t have these policies in effect. For Canadian workers, this will mean losing $6,700 (annually, on average) by 2030.

Unfortunately, the Carney government’s budget offers no retreat from these damaging policies. While Carney scrapped the consumer carbon tax, he plans to “strengthen” the carbon tax on industrial emitters and the cost will be passed along to everyday Canadians—so the carbon tax will still cost you, it just won’t be visible.

There’s also been a lot of buzz over the possible removal of the oil and gas emissions cap. But to be clear, the budget reads: “Effective carbon markets, enhanced oil and gas methane regulations, and the deployment at scale of technologies such as carbon capture and storage would create the circumstances whereby the oil and gas emissions cap would no longer be required as it would have marginal value in reducing emissions.” Put simply, the cap remains in place, and based on the budget, the government has no real plans to remove it.

Again, the cap singles out one source (the oil and gas sector) of carbon emissions, even when reducing emissions in other sectors may come at a lower cost. For example, suppose it costs $100 to reduce a tonne of emissions from the oil and gas sector, but in another sector, it costs only $25 a tonne. Why force emissions reductions in a single sector that may come at a higher cost? An emission is an emission regardless of were it comes from. Moreover, like all these policies, the cap will likely shrink the Canadian economy. According to a 2024 Deloitte study, from 2030 to 2040, the cap will shrink the Canadian economy (measured by inflation-adjusted GDP) by $280 billion, and result in lower wages, job losses and a decline in tax revenue.

At the same time, the Carney government plans to continue to throw money at a range of “green” spending and tax initiatives. But since 2014, the combined spending and forgone revenue (due to tax credits, etc.) by Ottawa and provincial governments in Ontario, Quebec, British Columbia and Alberta totals at least $158 billion to promote the so-called “green economy.” Yet despite this massive spending, the green sector’s contribution to Canada’s economy has barely changed, from 3.1 per cent of Canada’s economic output in 2014 to 3.6 per cent in 2023.

In his first budget, Prime Minister Carney largely stuck to the Trudeau government playbook on energy and climate policy. Ottawa will continue to funnel taxpayer dollars to the “green economy” while restricting the oil and gas sector and hamstringing Canada’s economic potential. So much for becoming an energy superpower.

Business

Large-scale energy investments remain a pipe dream

Published on November 22, 2025

Todayville

William’s Substack

I view the recent announcements by the Government of Canada as window dressing, and not addressing the fundamental issue which is that projects are drowning in bureaucratic red tape and regulatory overburden. We don’t need them picking winners and losers, a fool’s errand in my opinion, but rather make it easier to do business within Canada and stop the hemorrhaging of Foreign Direct Investment from this country.

Thanks for reading William’s Substack!

Subscribe for free to receive new posts and support my work.

Pledge your support

Changes are afoot—reportedly, carve-outs and tweaks to federal regulations that would help attract investment in a new oil pipeline from Alberta. But any private proponent to come out of this deal will presumably be handpicked to advance through the narrow Bill C-5 window, aided by one-off fixes and exemptions.

That approach can only move us so far. It doesn’t address the underlying problem.

Anyone in the investment world will tell you a patchwork of adjustments is nowhere near enough to unlock the large-scale energy investment this country needs. And from that investor’s perspective, the horizon stretches far beyond a single political cycle. Even if this government promises clarity today in the much-anticipated memorandum of understanding (MOU), who knows whether it will be around by the time any major proposal actually moves forward.

With all of the talk of “nation-building” projects, I have often been asked what my thoughts are about what we must see from the federal government.

The energy sector is the file the feds have to get right. It is by far the largest component of Canadian exports, with oil accounting for $147 billion in 2024 (20 percent of all exports), and energy as a whole accounting for $227 billion of exports (30 percent of all exports).

A bar chart sponsored by Transport Canada showing Canada's top 10 traded goods in 2024.

Furthermore, we are home to some of the largest resource reserves in the world, including oil (third-largest in proven reserves) and natural gas (ninth-largest). Canada needs to wholeheartedly embrace that. Natural resource exceptionalism is exactly what Canada is, and we should be proud of it.

One of the most important factors that drives investment is commodity prices. But that is set by market forces.

Beyond that, I have always said that the two most important things one considers before looking at a project are the rule of law and regulatory certainty.

The Liberal government has been obtuse when it comes to whether it will continue the West Coast tanker ban (Bill C-48) or lift it to make way for a pipeline. But nobody will propose a pipeline without the regulatory and legal certainty that they will not be seriously hindered should they propose to build one.

Meanwhile, the proposed emissions cap is something that sets an incredibly negative tone, a sentiment that is the most influential factor in ensuring funds flow. Finally, the Impact Assessment Act, often referred to as the “no more pipelines bill” (Bill C-69), has started to blur the lines between provincial and federal authority.

All three are supposedly on the table for tweaks or carve-outs. But that may not be enough.

It is interesting that Norway—a country that built its wealth on oil and natural gas—has adopted the mantra that as long as oil is a part of the global economy, it will be the last producer standing. It does so while marrying conventional energy with lower-carbon standards. We should be more like Norway.

Rather than constantly speaking down to the sector, the Canadian government should embrace the wealth that this represents and adopt a similar narrative.

The sector isn’t looking for handouts. Rather, it is looking for certainty, and a government proud of the work that they do and is willing to say so to Canada and the rest of the world. Foreign direct investment outflows have been a huge issue for Canada, and one of the bigger drags on our economy.

Almost all of the major project announcements Prime Minister Mark Carney has made to date have been about existing projects, often decades in the making, which are not really “additive” to the economy and are reflective of the regulatory overburden that industry faces en masse.

I have always said governments are about setting the rules of the game, while it is up to businesses to decide whether they wish to participate or to pick up the ball and look elsewhere.

Capital is mobile and will pursue the best risk-adjusted returns it can find. But the flow of capital from our country proves that Canada is viewed as just too risky for investors.

The government’s job is not to try to pick winners and losers. History has shown that governments are horrible at that. Rather, it should create a risk-appropriate environment with stable and capital-attractive rules in place, and then get out of the way and see where the chips fall.

Link to The Hub article: Large-scale energy investments remain a pipe dream

Formerly the head of institutional equity research at FirstEnergy Capital Corp and ATB Capital Markets. I have been involved in the energy sector in either the sell side or corporately for over 25 years

Thanks for reading William’s Substack!

Subscribe for free to receive new posts and support my work.

Pledge your support