For generations, Alberta has been the energy heartbeat of Canada. We know how to drill, we know how to produce, and we know how to keep the lights on. But as our province looks toward the future, particularly in the realm of food security and year-round agriculture, we are facing a systemic challenge that can’t be solved by legacy thinking that we have used in the oil and gas industry.
If you operate a greenhouse in Alberta, you know that heat isn’t just a utility: it is your most significant operational hurdle. Traditionally, natural gas has been the undisputed king of greenhouse heating. It was cheap, it was abundant, and the infrastructure was already there. However, as global markets shift and environmental regulations tighten, many producers are asking: Is there a more low-cost greenhouse heating solution in Alberta?
At Algar Geothermal, we believe the answer lies right beneath our feet. By comparing traditional natural gas with the potential of heat-only geothermal systems, we can see a path forward that stabilizes costs, secures our food supply, and puts our world-class oil and gas crews back to work.
The Systemic Challenge: Why Natural Gas is Getting Complicated
For a long time, natural gas was the “easy” choice. Alberta’s vast reserves meant that prices stayed low for decades. But “low” doesn’t mean “stable.” In recent years, we’ve seen price volatility that makes long-term budgeting nearly impossible for greenhouse operators. In some seasons, natural gas prices have spiked by over 100% year-over-year. When you’re trying to grow tomatoes or peppers in the dead of a -30°C January, a 30% jump in your monthly heating bill can be the difference between a profitable harvest and a massive loss.
Beyond the market price, we have to talk about the carbon levy. As federal and provincial policies evolve, the cost of burning fossil fuels for heat is only going in one direction: up. This creates a “carbon ceiling” for agricultural growth. To achieve truly sustainable heating for greenhouses in Alberta, we need a solution that isn’t tied to the fluctuations of the commodity market or the increasing costs of emissions.
The Geothermal Innovation: Turning Liabilities into Assets
This is where the “Alberta Advantage” 2.0 comes in. We have over 170,000 inactive or suspended wells across this province. For many, these are seen as a liability: a multi-billion dollar cleanup bill waiting to happen. But at Algar Geothermal, we see them as pre-drilled infrastructure.
The innovation we are championing isn’t about massive, multi-billion dollar power plants designed to generate electricity. We are focused on heat-only geothermal. By repurposing these existing wells, we could potentially tap into the Earth’s natural heat and bring it directly to the surface to warm a greenhouse.
Because the hole is already in the ground, the upfront capital cost: the biggest barrier to geothermal: is significantly reduced. We aren’t starting from scratch; we are finishing what the oil and gas industry started.
Geothermal Heat for Sustainable Agriculture: More Than Just Temperature
The benefits of switching to geothermal heat for sustainable agriculture extend beyond the balance sheet. In Alberta, we often talk about “diversification,” but what does that actually look like on the ground?
It looks like the Netherlands. Despite being a fraction of the size of Alberta, the Netherlands is the world’s second-largest exporter of food, largely due to their massive investment in high-tech greenhouses and geothermal energy.
If we can leverage our existing well infrastructure to provide low-cost, carbon-free heat, Alberta could become a global leader in year-round cultivation. We could grow our own produce regardless of the season, reducing our reliance on imports and ensuring our grocery shelves stay full even when global supply chains fail. This isn’t just an “environmental” goal; it’s a matter of provincial security and self-respect.
Putting Our People Back to Work
One of the most exciting aspects of this transition is the human element. We often hear about the “energy transition” as if it’s a threat to our oil and gas workers. We disagree.
The skills required to repurpose a well for geothermal are the exact skills our rig crews, pipefitters, and engineers already possess. By shifting our focus to geothermal heating, we aren’t asking these professionals to start over; we’re asking them to apply their expertise to a new, sustainable frontier. This could provide meaningful work for thousands of Albertans, keeping our rural communities vibrant and our technical expertise right here at home.
The Implementation Highway: What’s Next?
We know that geothermal in Alberta is still in its early stages. As of 2026, we are looking toward our first major pilot projects to prove this concept at scale. To get there, we are building what we call the “Implementation Highway.”
This involves working closely with the provincial government and industry partners to de-risk these projects. We are advocating for funding and regulatory frameworks that treat repurposed wells as the valuable assets they are. The goal is to create a streamlined process where a farmer or a community can look at a nearby inactive well and see a clear, affordable path to turning it into a heat source.
Is Geothermal Right for You?
While natural gas will likely remain a part of our energy mix for years to come, the era of relying on it as a sole source of heat is ending. The risks: both economic and regulatory: are simply becoming too high.
Geothermal energy could provide the stability, sustainability, and efficiency that Alberta’s greenhouse industry needs to thrive in the 21st century. It represents a win-win scenario: we solve the liability of inactive wells, we lower the operating costs for our farmers, and we keep our energy workers employed.
As we move toward our planned 2026 pilot, we invite you to think about the potential under your own land. Are you ready to stop worrying about the price of gas and start tapping into the heat of the Earth?
The future of Alberta agriculture is warm, it’s local, and it’s right beneath our boots.