First Nation appeals to province to help cover $6.3M shortfall on $100M geothermal project

The Fort Nelson First Nation in northeasternB.C. is calling on the provincial government for help with a $6.3-million shortfall on a $100-million geothermal energy project.

Chief Sharleen Gale says if the money is not secured by March31, 2021, $40 million of fundsfrom the federal governmentwill disappear.

"We're in a time crunch," Gale told CBC's What On Earthlate last week.

The Clarke Lake Geothermal Projectwill use existing infrastructure like roads, well pads and the occasional wellfrom the Clarke Lake gas field located near the Fort Nelson First Nation. It's estimated it willcreate enough renewable energy to power 5,000 to 11,000 homes.

Most of the project's $100-million cost has been secured through commercial financing, plus the $40 million from the federal government. The $6.3-million shortfall is for the initial phase of the project, called the proof of concept period, which will trigger the investments.

The shortfall was recognized about six months ago as the project costs solidified.

Gale says the project is "shovel ready" and would help the economically depressed northeastern region of the province, especially during the pandemic.

She also emphasizedthe project will help shift the region from its dependence on fossil fuels.

"If B.C. and Canada are serious about achieving net-zero emissions targets, projects like Clarke Lake must be shown significant support," she said.

"And, in our case, so we can show support for the inclusion of Indigenous communities in the economic mainstream of Canada by harnessing green energy."

Permit issued in January

The planned geothermal project will create power bymoving warm liquid from about 2.5 kilometres below groundto the surface. Heat from the liquid a mix of water and minerals is passed through a heat exchanger and transferred to a fluid that boils at a low temperature. Steam from that process is used to spin a turbine and create electricity.

The province granted the Clarke Lake project a permit January 2020,recognizingit would decrease northeastern B.C.'s reliance on fossil fuels.

The region isn't currently connected to the BC Hydro's electricity grid,according to a government statement. Power for the area is generated from fossil fuels or imported from Alberta.

TheEnergy, Mines and Low Carbon Innovation Ministry said it's working with the Fort Nelson First Nation and helped extendthe federal government deadline from Dec. 31 so the nation could seek additional funding.

So far, the province has contributed $430,000 to the $100-million project.

Gale says the province has been very supportive of the project so far. She hopes that support can be extended so the project can get started.

She said COVID-19 has made it more difficult to navigate and troubleshootthe $6.3-million shortfall with her community members, many of whom don't have internet connections or the ability to meet online.

"We don't make big decisions over Zoom," she said.