The Saskatchewan government is providing 175 thousand dollars to Deep Earth Energy Production corporation to set up a geothermal power demonstration plant in southern Saskatchewan near Estevan.
The funds will be provided over 2 years for the purchase of equipment to build the infrastructure to show the feasibility of geothermal power, an energy source of 120 degrees aquifer buried deep underground.
It has the potential to generate constant energy with no carbon emissions.
The company estimates hot geothermal water in the region near Estevan may support the generation of up to 500 megawatts of power.
A power purchase agreement with SaskPower allows for an initial 5 megawatts to the provincial grid.
Drilling the 34 hundred metre deep well will begin next month.
The facility will be Canada’s first geothermal power plant and will help SaskPower reach a goal to reduce greenhouse gas emissions by 40 percent from 2005 levels by the year 2030.
SaskPower hopes to have renewable power generation capacity as much as 50 percent.
The company was founded in 2010 by professional geoscientists.