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LIIDLII KUE/FORT SIMPSON - If a group of residents and business people in Fort Simpson have their way, the village will be free of its dependency on diesel-generated electricity within two years.

Together with some business people from Alberta, a small group of residents is working to promote a geothermal project for the village.

Kirby Groat reviews a draft of the pre-feasibility study for a geothermal project for Fort Simpson. - Roxanna Thompson/NNSL photo

"It's quite exciting actually," said Kirby Groat, a member of the group.

"We're talking about geothermal energy to provide power and heat, enough for a small city."

The envisioned project would include three holes drilled to a depth of two to three kilometres. At that depth it's expected the holes would intercept water above boiling temperatures, from 110 to 150 C.

The water would be brought to the surface where the extracted heat would drive electric turbines to produce electricity. The remaining heat could be used in a district heating system, said Groat.

The water would then be put back into the ground so the process can repeat continuously.

The benefits of geothermal power generation would include moderating and bringing stability to the price of electricity as well as reducing greenhouse gas emissions.

"It's cheaper and it's better," said Groat.

"It's 100 per cent green."

The idea for the project originated with Azad Merani, who worked as a consultant for the Village of Fort Simpson during the rate hearings with the Northwest Territories Power Corporation.

Merani said geothermal energy is a viable option for the village and submitted a proposal to the village in November 2007. The idea was revived when Groat learned about the proposal this summer and contacted the authors.

"I've always loved alternative energy," said Groat about his interest in the project.

Groat wasn't alone.

"Right off the bat there was a core of people who wanted to be involved," he said.

Together the group has brought the project to the pre-feasibility stage. The group commissioned a report by Dr. Mory Ghomshei, a professor at the University of British Columbia and an international consultant in the field of geothermal energy.

In the report, which is still in a draft stage, Ghomshei states Fort Simpson is located in an area with high temperature gradients which means there should be viable heat sources at a reasonable depth. A feasibility study is the next step to prove the presence of the heat.

"You've got to drill now," said Groat.

The feasibility study, with an estimated cost of $485,000, would involve drilling 10 test holes 200 metres deep. Funding will be a critical factor for both the study and the final project, which has an estimated price tag of $40 million, said Raj Retnanandan, one of the business people from Alberta involved in the project.

The group hopes a large part of the funding will come from various levels of government including municipal, territorial and federal. There is a lot of interest from governments to promote projects like this, he said. Some private investors are also expected to be interested in the project.

"Renewable energy is the buzz word nowadays," said Retnanandan.

There's a potential for selling the carbon credits from the project to investors because the greenhouse gases presently created from diesel generation will be offset, he said.

Retnanandan said the group is also hoping to include the Village of Fort Simpson as a partner in the project.

At the village council meeting on Dec. 15, Mayor Duncan Canvin said the village needs more information on the project before making any commitments.

Retnanandan plans to visit Fort Simpson in early January to speak with council and look at drilling locations for test wells. The three-month feasibility study could be started as early as February or March. If results are positive, the rest of the project would take approximately two years, said Retnanandan.

The possibilities this could bring to Fort Simpson are just too good to pass up, said Kirby Groat.

"Everyone in the community should be involved in this."