For Alberta greenhouse operators, reliable heat is essential to year-round cultivation. It also creates exposure to energy-market changes that can complicate long-term planning.
Future-proofing does not mean assuming natural gas will become unaffordable. Nor does it mean expecting a new heating option to beat today’s gas prices. It means understanding your energy needs, improving efficiency and assessing ways to manage future price risk.
One emerging possibility is heat-only geothermal energy from repurposed out-of-service oil and gas wells. Algar Geothermal is working toward a southern Alberta pilot planned for 2026. It remains pre-commercial, with no active project yet. Any future system would need site-specific study, funding and industry support.
Start with the risk, not the fuel switch
Energy demand depends on your greenhouse design, crops, climate controls and production schedule. As a result, two operations may face very different heating costs and risks.
The Alberta greenhouse energy guide recommends that growers first review fuel and electricity bills, then track daily and seasonal energy use. That baseline can help identify where heat goes and when demand peaks.
Meanwhile, Alberta’s energy outlook shows why long-term planning matters. The Alberta Energy Regulator reported an average AECO-C natural gas price of C$1.74 per gigajoule in 2025. Its 2026 outlook forecasts an average of C$2.73/GJ in 2026, rising gradually to C$3.99/GJ by 2035.
These are market benchmarks and forecasts, not greenhouse customer rates or guaranteed future prices. Actual bills may also include delivery charges and other costs. Still, the outlook reinforces a practical point: future prices can differ from current ones.
Understand what you can control
Before considering a new heat source, review your present system and operating data. The AGGA-hosted Alberta greenhouse energy guide recommends steps such as maintenance, climate control and reducing heat loss.
For example, it reports that a well-designed, maintained natural-gas furnace or boiler may deliver 80–85% of fuel energy as useful heat. A modern condensing furnace can exceed 90% efficiency. Those figures describe equipment performance, not guaranteed savings for every greenhouse.
Start by assessing:
- Heating equipment condition and operating efficiency.
- Daily and seasonal heat demand.
- Heat loss through covers, leaks and ventilation.
- Opportunities to improve climate controls.
- How energy use connects with crop yield and production plans.
Therefore, efficiency upgrades and energy diversification need not compete. Better heat management could reduce demand, while a future heat source could help address the energy that remains.
Geothermal heat could offer a hedge
Heat-only geothermal uses heat from below ground. Algar’s approach is to investigate whether some out-of-service oil and gas wells could be repurposed to supply heat to nearby users, including greenhouses.
This is not electricity generation. The intended use is direct heat for applications such as greenhouse heating, commercial buildings or district heating. If a suitable well and heat user align, a future system could provide another source of heat alongside existing equipment.
The potential value is not a promise of lower costs than natural gas today. Instead, geothermal heat could help diversify an operation’s energy supply and reduce exposure to future price swings. The actual economics would depend on the well, required equipment, heat demand, connection distance, financing and operating arrangements.
What operators should ask before joining a project
A geothermal assessment would need to test whether the resource and the greenhouse’s needs match. Key questions could include:
- Is there a candidate well close enough to serve the greenhouse?
- Can the well safely and technically support heat recovery?
- What heat output and temperature could a system provide?
- How does that output match the greenhouse’s demand across seasons?
- What connections, backup systems and controls would be needed?
- How would project costs and risks be shared among partners?
In addition, the greenhouse’s existing heating system would matter. A new source might complement current equipment rather than replace it. A feasibility study could compare options and identify limits before any investment decision.
Build a practical plan in stages
Future-proofing can begin before a geothermal project is ready. Operators can prepare by gathering information and identifying where a new heat source might fit.
- Establish a clear baseline. Collect fuel bills, energy-use records, equipment details and seasonal demand profiles. Include delivery costs when estimating total heat expenses.
- Reduce avoidable demand. Review maintenance, climate controls, leaks and other heat-loss factors. The Alberta guide identifies these as useful areas to assess.
- Model several future scenarios. Test different energy-price assumptions and demand levels. Treat forecasts as planning tools, not predictions of your specific bill.
- Screen possible sites and partnerships. Consider well proximity, greenhouse heat demand, utilities, access and the potential role of a well owner or engineering partner.
- Request feasibility work before committing. Technical, environmental, commercial and regulatory questions all require review.
- Plan for reliable backup. A future geothermal system would need to fit a greenhouse’s operating requirements and heat profile.
This staged approach can help operators make informed decisions without betting their business on one forecast or one technology.
Learn from operating heat networks
Alberta would not be the first region to explore geothermal heat for greenhouse operations. In the Netherlands, the Trias Westland project supplies geothermal heat to greenhouse growers and other participants. It offers a useful example of growers sharing heat infrastructure and working together on a regional system.
However, a Dutch project does not prove that an Alberta well will work. Local geology, well condition, heat demand and project economics all differ. The lesson is that collaboration can matter as much as the heat source itself.
Carbon costs require careful interpretation
Carbon policy can also affect long-term planning, but it is important to use the right rules. The federal consumer fuel charge was set to zero effective April 1, 2025. Separately, Alberta’s TIER program sets requirements for certain industrial facilities. It does not mean every greenhouse pays a carbon charge on every unit of natural gas.
Because a greenhouse’s obligations depend on its circumstances, operators should confirm how current rules apply to their facility. Check official information from Environment and Climate Change Canada and Alberta’s TIER program.
Algar’s planned pilot: an opportunity to learn
Algar Geothermal aims to develop a southern Alberta greenhouse heat pilot in 2026. As of October 2026, the effort remains pre-commercial, and Algar has no active project. A pilot would depend on government and industry support, a suitable well, a heat user and successful feasibility work.
The proposed pilot could help test how out-of-service well infrastructure might serve a local heat customer. It could also create a practical role for Alberta’s oil and gas workforce, whose expertise may support well assessment and energy development.
For greenhouse operators, early discussion does not require a commitment to adopt geothermal. It can help identify heat needs, possible sites and the evidence needed to assess a future project. Read more about why Alberta needs a geothermal greenhouse pilot.
A stronger energy plan starts with a conversation
Sustainable heating for greenhouses in Alberta is not a single technology or a guaranteed cost reduction. It is a disciplined approach to managing energy risk: measure demand, improve efficiency, and assess options that could add resilience over time.
Geothermal heating for year-round cultivation may become one part of that mix where a suitable well and heat user can be matched. For Alberta, repurposing some out-of-service wells could also connect agricultural growth with local energy expertise and economic diversification.
If you operate a greenhouse, consider what information would help you assess a future heat source. You can contact Algar Geothermal to discuss your operation’s heat needs or potential project participation.