South Meager Geothermal Project
Project History
Project History
Since the late 1970s, the geothermal resource potential of the South Meager area has been investigated using various exploration techniques including geology, geochemistry, geophysics, and the drilling of numerous temperature gradient wells (slim-diameter wells used to measure subsurface temperature), deep slim wells and several full-diameter wells. During one flow test, one of the full-diameter wells – drilled by B.C. Hydro - was used to supply a 20 kW pilot geothermal power facility.
The results of the exploration work completed to date strongly indicates the presence of a geothermal reservoir with an areal extent of 4.5 to 7.5 km⊃2;, and an average temperature of 220 to 240°C with a maximum measured temperature of 275° C. These attributes identify the South Meager field as a “high temperature” field (defined as one with 200°C or higher temperature) and a major geothermal site (defined as a site with 100 MW or more of potential development capacity).
GeothermEx Inc. of Richmond, California, an internationally recognized authority on geothermal energy, has concluded the South Meager Geothermal Project has the potential to support up to a 100 MW power plant (sufficient to supply electricity to 80,000 households). For economic reasons, most geothermal resources are evaluated commercially relative to potential lifetimes of 20 to 30 years. There are geothermal fields, however, that have been in production for more than 50 years and longer lifetimes are forecast.
It is anticipated that power from the South Meager Geothermal Project will be sold in western Canada and possibly in the western United States. The Company will seek to negotiate a long-term power sales contract in the course of confirming over-all project feasibility and will take advantage of the stated policy of the B.C. Government and B.C. Hydro that 50% of new power over the next 10 years be sustainable “green” power. The power will be wheeled through the transmission systems of the B.C. Transmission Corp.
The Company currently is proceeding with a resource confirmation program in which three production-size test wells were drilled in 2004-2005 to confirm the potential for commercial geothermal production; initial testing was carried out in 2005-2006 and further testing is planned for the 2007 fall season.
The Company also is proceeding with environmental and other studies relevant to completion of a Feasibility Study and preparation of an Application for an Environmental Assessment Certificate (Application) under B.C.’s Environmental Assessment Act.
Project Facilities
The project involves the design, construction and operation of physical facilities comprising production and injection wells, a gathering and injection system and a power generation plant at the plant site and a transmission line and inter-tie. A general description of the nature of these facilities follows.
Production and Injection Wells
Production wells will be constructed by directional drilling from a small number of drill pads (as few as three depending on the size of the reservoir), thus reducing both project costs and potential environmental impacts. Dry production holes also can be used to inject process water back into the reservoir. Anticipated well depths are 2,500 meters or less. Wells will be drilled using established technology similar to that employed in the oil and gas industry.
Fluid Gathering and Injection Systems
The assumed gathering system consists of pipelines and vessels that transport the steam from the wellheads to the power plant. The injection system handles two streams of injection fluids: 1) hot water remaining after flash in low-pressure separators; and 2) excess cooling water derived from steam condensation. Non-condensable gases are treated for H2S abatement (if required), yielding a sulphur by-product that often is used for fertilizer. This type of configuration has been employed successfully at several geothermal fields, including the Coso field in California that has been operating since 1987.
Power Plant
It is envisaged that the South Meager Project will utilize dual-flash turbine technology with two standard 55 MW (gross) generating units. This type of plant installation has been used at many geothermal projects worldwide.
Transmission Line
A 230 kV line tying in to the B.C. Transmission Corp. system will be required. Preliminary studies have identified two potential routes utilizing existing transportation corridors - the Pemberton Valley to tie-in at Pemberton; and the Birkenhead Valley to tie-in at Poole Creek.
Land Use Setting
The South Meager geothermal lease is located within Area C of the Squamish-Lillooet Regional District and within the Squamish Forest District of the Coast Forest Region.
The lease is located within the Sea-to-Sky Land and Resource Management Plan (LRMP) study area. Suggested land use guidelines for this LRMP currently are being drafted for submission.
The project area is within the traditional territory claimed by the Lil’wat Nation (Mount Currie Band) but the Band is not currently engaged in a treaty negotiation process. On December 8, 2003 the Lil’Wat Nation filed a writ of summons in B.C. Supreme Court assuming the Nation’s territorial claims to all of the Whistler, Pemberton and Mount Currie area. The Company has established a positive relationship with the Lil’Wat Nation and its development company, Creekside Resources Inc., and is engaged in continuing consultation on all aspects of the geothermal project.
The geothermal project’s primary works – wellheads, extraction system and generating plant - would be located on undeveloped Crown land previously utilized for timber cutting operations. Transmission line corridors identified to date are on Crown land with the exception of one private property on the Pemberton Valley option. Potential sites for a substation have not been determined.
Meager Creek Hot Springs is located 8 km southeast of the project area and is administered by the B.C. Ministry of Forests. The hot springs historically have been utilized by the public during summer months. Access to the hot springs currently is curtailed as a result of the destruction of an access bridge during a high water event on Meager Creek in October 2003.
All geothermal project facilities will be closed and reclaimed at the end of the project life. All buildings, pipelines, machinery and ancillary facilities will be removed and all areas re-vegetated.
South Meager Geothermal Project
ENVIRONMENTAL AND SOCIO-ECONOMIC
Environmental
The Company has commissioned a number of environmental studies for inclusion in its Application for an Environmental Assessment Certificate. Environmental consultants commissioned to conduct environmental studies include: Ecodomain Consulting, LGL Limited, Geostream Environmental Consulting and Fuller Consulting.
Environmental assessments will be conducted as two separate studies – one for the Meager Creek watershed where the geothermal wells and generating plant will be located and one for the transmission line corridor.
Assessments of the biophysical environment will include: Geophysical environment: Topography, soils and geology, hydrogeology and groundwater and natural hazards. Atmospheric environment: Climate, air quality, precipitation Aquatic environment: Aquatic habitats, surface hydrology, water quality. Terrestrial environment: Biophysical mapping, vegetation , wildlife, threatened or endangered species
Socio-economic
A key public concern related to energy development in the Squamish-Lillooet Regional District is the potential visual/aesthetic impact of transmission lines as this relates to both permanent residents and tourists. This applies particularly to views from the Pemberton Valley.
A socio-economic assessment also will consider the potential economic and social impacts of both the construction and operational phases on the Regional District and the Village of Pemberton. Local companies already are being contracted for timber cutting operations, road building and maintenance, wildlife monitoring, site preparation and site reclamation activities. Where feasible, equipment and supplies are being purchased locally.
Lil’Wat Nation
As noted, the project area is within the territorial claim filed by the Lil’Wat Nation. The Company consulted with the Mount Currie Band Council and individual members regarding traditional uses in the area of the resource confirmation program and commisioned an Archaeological Overview Assessment.
The Company proposes to consult further with the Band and the Environmental Assessment Office on requirements for a more detailed archaeological assessment of the both primary plant area and the transmission line corridor; and on the commissioning of an Aboriginal Interest and Use Study.
Creekside Resources Ltd., the Lil’Wat Nation’s development company, and other companies operated by Band members currently are contracted for timber cutting, road building and wildlife monitoring services. It is expected that similar opportunities will be available during the construction and operational phases of the project.
The Company also is commissioning a study of potential spin-off projects such as aquaculture or greenhouse operations utilizing the generating plant’s process steam and hot water. The Company’s objective is to identify a business opportunity for the Lil’Wat Nation and the concept has been discussed with the Band Council.
Project Benefits
Green Energy
As a sustainable “green” source of electrical energy, the South Meager Geothermal Project responds to the United Nations Framework Convention on Climate Change and the associated Kyoto Protocol and supports the related objectives and policies of the Canadian federal government and B.C. Government.
Energy Supplies
In the wake of British Columbia’s changed status to a net importer of electricity, the BC Government has mandated that future generation should come from Independent Power Producers, with up to 50% of that from “green” sources. BC Hydro has stated that capacity must be increased by 1,200 MW over the next decade to meet projected demand. The South Meager Geothermal Project may be capable of supplying 100 MW of green power.
Employment
The Company’s head office currently employs 10 staff. The resource confirmation program has employed 10 persons from the Pemberton area on timber cutting, road building and site preparation. Some 10-20 persons from the Pemberton area have been employed in support roles during the confirmation drilling program. Approximately 55 experienced workers and professional staff from other jurisdictions also were employed on the drill crews and drilling support services and in supervisory or professional roles.
The construction of a geothermal generating plant and associated transmission line, substation and other facilities would employ some 250-350 personnel over a two-year construction period. Once in operation, the geothermal plant and transmission facilities would employ some 30-45 persons full-time and work related to road and transmission route maintenance and similar services would be sub-contracted locally, with employment varying on a seasonal basis.
Expenditures
The capital cost of a 100 MW generating plant and associated facilities is estimated at $341 million over the two-year construction period.
The project will generate substantial payroll and tax revenues. Significant spin-off employment and business opportunities are expected with respect to the purchase of equipment, supplies and services from local and area sources.
Downstream Benefits
Geothermal projects in other jurisdictions have generated significant spin-off opportunities by providing energy for residential and commercial heating systems, greenhouses, land-based fish farms and spas – referred to as “downstream benefits.”
The Company is negotiating with the Centre for Environmental Research in Minerals, Metals and Materials (CERM3) at the University of B.C. on a collaborative research program to determine potential downstream benefits from the South Meager Geothermal Project. Also, as noted, the Company’s objective is to identify a potential business opportunity for the Lil’Wat Nation.
Recreational Development
Outdoor recreational potential in the project area may include hiking and camping, fishing and hunting, skiing, snowmobiling and hot springs facilities. This potential presently is limited by the remote location, difficult access, difficult terrain, lack of infrastructure and facilities and restrictions on entering wildlife habitat.
CONTACT
Head Office Western GeoPower Corp.409 Granville Street, Suite 1351 Vancouver, BCCanada V6C 1T2 Ph: 604-662-3338 Fax: 604-646-6603 Toll Free: 1-866-662-3332email:info@geopower.ca
www.geopower.ca