Existing resources. New possibilities.
Alberta and British Columbia have built strong communities around energy, industry, and resource development. That history created valuable infrastructure, skilled workforces, and deep technical knowledge.
However, some wells and mines now sit out of service. These assets may still carry environmental, economic, and community costs. At the same time, farms, businesses, and municipalities need reliable heat.
Algar Geothermal sees an opportunity.
We are developing three project pathways that could turn legacy energy infrastructure into productive clean-energy assets. Each pathway focuses on geothermal heat, not electricity generation. Each could support local businesses, create meaningful work, and strengthen Canada’s energy security.
Project 1 is our near-term priority. Projects 2 and 3 represent future-facing development opportunities.
Together, they offer one practical path forward: use what we already have to build what communities need next.
Why Legacy Infrastructure Deserves a New Purpose
Canada’s energy transition does not need to begin from zero.
Our regions already have:
- Deep wells and subsurface data
- Existing roads, leases, and industrial sites
- Experienced drilling and engineering crews
- Communities with established energy needs
- Oil and gas companies with knowledge of well management
- Mine sites with underground workings and stored water
Repurposing this infrastructure could reduce development barriers. It could also create new economic opportunities in regions that understand resource projects well.
The opportunity is especially clear for heat. Greenhouses, agri-tech facilities, commercial buildings, campuses, and district heating systems all require dependable thermal energy.
Geothermal systems could provide that heat from below the ground. They could also operate locally, helping businesses manage energy costs and reduce dependence on fossil fuels.
Research from the Pembina Institute and the University of Calgary’s Geothermal Energy Lab highlights the potential for geothermal heat and repurposed wells in Western Canada.
The next step is practical validation. What can work in a specific Alberta setting? What does it cost? How should teams design, install, monitor, and operate the system?
That is where the three-project portfolio begins.
Project 1: Out-of-Service Oil and Gas Wells for Geothermal Heat
The near-term demonstration
Algar Geothermal’s first project pathway focuses on repurposing out-of-service oil and gas wells for geothermal heat.
The concept is straightforward. Existing wells could provide access to underground heat. A properly designed system could then deliver that heat to nearby users.
Potential applications include:
- Greenhouses and controlled-environment agriculture
- Agri-tech facilities
- Commercial buildings
- Space-heating systems
- District heating networks
For Alberta growers, this could support more stable year-round production. It could also help local farms increase food output while managing energy costs.
This project is planned as a pre-commercial demonstration and technology validation project. No active Algar Geothermal project exists yet. Government and industry support could help us complete field testing in southern Alberta in 2026.
The demonstration could generate the operating data needed to answer important questions:
- How much usable heat can the well provide?
- How consistently can the system operate?
- What equipment and controls does the site require?
- How should the heat connect with a greenhouse or other user?
- What performance data will support future commercial deployment?
Project 1 at a glance
| Category | Project 1 |
|---|---|
| Relative complexity | Low |
| Capital requirement | Lowest of the three |
| Key partners | Well owner, government, engineering team, heat user |
| Primary market | Greenhouses, agri-tech, space and district heating |
| Revenue pathway | Technology licensing, project development, heat sales |
| Current status | Pre-commercial demonstration planned |
| Geographic priority | Southern Alberta pilot planned for 2026 |
The development pathway is also clear:
Identify site → Secure funding → Engineering and installation → Field test → Validate technology
This sequence represents Algar’s Implementation Highway. Public funding could help reduce early project risk. Oil and gas companies could contribute well access, technical knowledge, and infrastructure. Heat users could provide a reliable local market.
As a result, the demonstration could create a win-win outcome for government, industry, farmers, and communities.
Project 2: CO₂ Sequestration and Geothermal Heat Recovery
Multiple technologies. Multiple value streams.
The second pathway combines carbon management with geothermal heat recovery.
A future project could connect a suitable CO₂ source with an appropriate geological formation. At the same time, the project could recover geothermal heat for industrial use.
That combination may create several value streams from one integrated development:
- Capture CO₂ from an industrial source
- Transport and store CO₂ in a suitable geological formation
- Recover geothermal heat
- Supply heat to an industrial user
- Potentially support carbon-related revenues
- Potentially support enhanced oil recovery where appropriate and permitted
This pathway is more complex than Project 1. It would require detailed reservoir studies, regulatory approvals, engineering design, and strong coordination among multiple partners.
Project 2 at a glance
| Category | Project 2 |
|---|---|
| Relative complexity | High |
| Capital requirement | Higher |
| Key partners | CO₂ source, well owner, engineering team, regulators, heat user |
| Primary market | Industrial heat, carbon management, potentially enhanced oil recovery |
| Revenue pathway | Project development, heat sales, carbon-related revenues |
| Current status | Future-facing development pathway |
The development pathway could follow this sequence:
CO₂ source and reservoir → Feasibility → Regulatory approval → Partners and engineering → Pilot → Commercial project
This is not an active Algar project today. Instead, it represents a longer-term opportunity that could build on Canada’s experience in subsurface engineering, carbon management, and resource development.
The value proposition is practical. One project could address emissions management while supplying useful heat. Therefore, it may help industrial operators improve efficiency without building entirely new infrastructure.
Project 3: Out-of-Service Coal Mines for Geothermal Energy
Transforming historical liabilities into community assets
The third pathway looks beyond oil and gas wells.
Flooded and out-of-service coal mines may contain warm water that could support geothermal heating. In suitable locations, mine-water systems could provide heat for districts, campuses, and industrial facilities.
This pathway is especially relevant to communities with mining histories. These communities understand the value of resource work. They also understand the long-term challenges that can follow mine closure.
A geothermal heating project could give former mine sites a new purpose. It could also support local economic diversification and create a productive use for existing underground infrastructure.
Potential applications include:
- District heating
- Campus heating
- Industrial space heating
- Community facilities
- Potential carbon management opportunities
Project 3 at a glance
| Category | Project 3 |
|---|---|
| Relative complexity | High |
| Capital requirement | Higher |
| Key partners | Mine or land owner, engineering team, municipality, heat user, regulators |
| Primary market | District, campus, and industrial heating |
| Revenue pathway | Project development, heat sales, potential carbon-related revenues |
| Current status | Future-facing development pathway |
| Geographic focus | Potential opportunities in British Columbia and Canada |
The potential development pathway is:
Mine resource → Access and ownership → Feasibility → Regulatory approval → Partners and engineering → Pilot → Commercial project
Project 3 remains a future development concept. It would require careful study of mine conditions, water chemistry, ownership, access, heat demand, and environmental safeguards.
However, the principle is strong: a historical liability could become a long-term community asset.
One Portfolio, Different Timelines
These three projects do not have the same complexity or schedule.
Project 1 offers the fastest path to field validation. It could establish a practical model for using inactive oil and gas wells to deliver heat.
Project 2 could follow as a larger integrated opportunity. It would combine geothermal heat with carbon management and industrial demand.
Project 3 could provide a pathway for communities seeking new uses for former coal mines and related infrastructure.
The portfolio approach matters because each project can build knowledge for the next. Field data, engineering experience, regulatory learning, and workforce development could support future deployments.
Meanwhile, oil and gas crews could apply their existing skills to geothermal work. These roles may include:
- Well assessment and intervention
- Drilling and completion services
- Surface construction
- Heat-network installation
- Monitoring and maintenance
- Environmental management
- Project operations
This transition could provide more than employment. It could offer meaningful work, professional pride, and a direct connection to community well-being.
The Implementation Highway Starts with Project 1
Algar Geothermal’s immediate focus is the planned 2026 southern Alberta pilot.
To move forward, we need coordinated support from:
- The Government of Alberta
- Canada’s federal government
- Oil and gas companies
- Engineering and technical partners
- Environmental stakeholders
- Greenhouse and agri-tech operators
- Local communities and heat users
The Government of Canada’s geothermal co-production work demonstrates the importance of public-private collaboration in advancing geothermal solutions.
Our first project could help establish the evidence needed for broader commercial deployment. It could show how inactive wells can deliver clean, reliable heat. It could also demonstrate how government funding can de-risk a practical project with local benefits.
The long-term vision is not to abandon Alberta’s energy strengths. It is to build on them.
A Stronger Tomorrow Builds on Yesterday
Legacy infrastructure does not need to define the future only as a liability.
With the right feasibility work, partnerships, funding, and safeguards, it could support:
- Cleaner heat
- Lower emissions
- Stronger communities
- New economic opportunities
- Productive use of existing infrastructure
- Meaningful work for skilled energy professionals
- More resilient local agriculture and food production
Our three projects offer different routes to the same goal: converting yesterday’s energy infrastructure into tomorrow’s productive assets.
Project 1 gives us the near-term path. Projects 2 and 3 expand the opportunity.
The next step is to identify the right site, bring the right partners together, and validate what geothermal heat can deliver. Could your organization help build that path forward?
Learn more about Algar Geothermal at algargeothermal.com.