The basics of Algar Geothermal’s Technology

In this Algar Geothermal technology overview, we look at why Algar has developed unique enhancements to extract low grade heat energy from an out of service oil or gas well, or a purpose drilled well for our solution.

Algar’s process uses a single wellbore that is plugged at the bottom, and is totally isolated from the external geological formation of the surrounding earth. An inner pipe with an open bottom is inserted into the wellbore. Fluid is circulated down the annulus to the bottom of the well where it is heated by geothermal heat energy. The fluid then returns up the centre of the inner tube and is passed through a heat exchanger to heat the facility. The cooled water is reinjected into the well to complete the closed loop fluid flow. The inner pipe is insulated in order to retain the heat that the fluid gained at the bottom of the well.

The illustration to the left is a simplified drawing of a single, coaxial well bore. The well is cased and sealed at the bottom. This prevents any inflow of formation gases or fluids, or any outflow of the carrier fluid. Because the well is sealed, the wellbore and any equipment is completely isolated from the rock formation and any fluids or contaminants outside of the well. This means that wells can be drilled in any location, and specifically where there is an absence of hydrocarbons.


Enhancing existing technology

This concept is not new, and past experiments and installations have demonstrated that heat energy can be extracted. However, the amount of extracted heat has not been high enough for practical use.

Since 2017, Algar Geothermal is using SLB’s (formerly Schlumberger) Olga dynamic multiphase flow simulator, the industry-standard tool for dynamic multiphase flow simulation, to determine the maximum heat extraction potential from a typical oil or gas well. Our seven years of research has lead to the development of four innovations that maximize heat extraction from a well.

Farmer holding chicken in front of red barn

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Benefits to Society

One example of the socioeconomic potential of Algar’s technology is its ability to reduce food insecurity in Northern Rural Communities.

Food insecurity in Northern Communities has severe consequences on health and well‑being; it has been linked to malnutrition, infections, chronic diseases, obesity, distress, social exclusion, depression and suicidal ideation.

The study Heating demand and economic feasibility analysis for year-round vegetable production in Canadian Prairies greenhouses by Md Shamim Ahamed a, Huiqing Guo b,*, Lisa Taylor c, Karen Tanino c, shows that a greenhouse operation in a northern community could be profitable and provide good job opportunities. (Click here to go to our Benefits page.)


Contact Algar Geothermal to get involved

Investors – join the movement that will bring inexpensive geothermal heat to those that need it the most.

Technical partners – add Algar Geothermal to your portfolio of services (Engineering firms, Drilling companies, Well service companies, geothermal companies, housing co-ops)

Industry Clients that need our technology to lower costs and greenhouse gas emissions – Farmers and Greenhouse operators, home developers for district heating applications, municipalities, northern communities, First Nations communities

Partners for a test site. Turn a research project into a low cost source of eternally available heat for your facility.

Funding – it’s just $2.25mm CDN ($1.67 mm US, 1.5 mm Euro) for a pilot test. We have a detailed project plan to support our cost estimate, that covers everything from FEED to commissioning.

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