Direct-use Geothermal Resources in British Columbia REPORT 2016-07 (Section A) CONTRACT 2015-22 Direct-use Geothermal Resources in British Columbia TUYA TERRA GEO CORP. & Fairmont Hot Springs GEOTHERMAL MANAGEMENT COMPANY INC. 5/5/2016 REPORT 2016‐07 SECTION A SUMMARY OF FINDINGS By Tuya Terra Geo Corp 4194 Maywood Street, Suite 1503 Burnaby, British Columbia V5H 4E9 [email protected] +1 604 435‐9644 / +1 604 761‐5573 (cell) and Geothermal Management Company, Inc. 737 Ten Mile Drive, #205 Frisco, Colorado, USA, 80443 [email protected] (970) 389‐6175 For Geoscience BC Contract 2015‐22 Suite 1101 ‐ 750 West Pender Street Vancouver, B.C., Canada V6C 2T7 May 5, 2016 TABLE OF CONTENTS List of Terms and Abbreviations ................................................................................................................... 1 Executive Summary ....................................................................................................................................... 2 Results ........................................................................................................................................................... 3 Deliverable Documents ................................................................................................................................. 3 Conclusions ................................................................................................................................................... 4 Recommendations ........................................................................................................................................ 6 Introduction .................................................................................................................................................. 9 Methodology and Results ........................................................................................................................... 18 Phase 1: ....................................................................................................................................................... 18 Phase 2: ....................................................................................................................................................... 19 Phase 3: ....................................................................................................................................................... 20 Research Methods ...................................................................................................................................... 23 Phase 1: ....................................................................................................................................................... 23 Phase 2: ....................................................................................................................................................... 23 Phase 3: ....................................................................................................................................................... 29 Geothermal Development Decision Matrix ................................................................................................ 30 Transmission ....................................................................................................................................... 30 Finance and Regulations ..................................................................................................................... 30 Environmental ..................................................................................................................................... 31 Community .......................................................................................................................................... 31 Resource .............................................................................................................................................. 31 Roading Access & Constructability ...................................................................................................... 32 Outcomes .................................................................................................................................................... 32 Carbon Credits Proposal ............................................................................................................................. 33 The Proposal ............................................................................................................................................... 34 Recommendations ...................................................................................................................................... 34 Other Parameters ....................................................................................................................................... 36 Research ethics and Tri‐Council policy statement ...................................................................................... 36 Project Funding ........................................................................................................................................... 36 References .................................................................................................................................................. 37 APPENDIX A: .............................................................................................................................................. A‐1 Information Package and Questionnaire ........................................................................................................ APPENDIX B: ............................................................................................................................................... B‐1 List of Communities Contacted ....................................................................................................................... APPENDIX C: ............................................................................................................................................... C‐1 Expanded Geothermal Development Decision Matrix Section H – Community ............................................ APPENDIX D: .............................................................................................................................................. D‐1 Completed Geothermal Development Decision Matrix ................................................................................. APPENDIX E: ............................................................................................................................................... E‐1 Summary of Community Survey Responses ................................................................................................... APPENDIX F: ............................................................................................................................................... F‐1 Geochemistry of Hot Springs .......................................................................................................................... APPENDIX G: ............................................................................................................................................. G‐1 Project Team Members .................................................................................................................................. NOTE REGARDING APPENDICES: Personal contact information was obtained for the purpose of this project and presented in Appendices B and E. Due to this private content, these appendices are not included in full as part of the published report but will be on file with Geoscience BC. COVER: View looking east at the Fairmont Hot Springs’ pools (site visit Lund, 2003). Figure 1: This updated British Columbia heat‐flow map uses new data (Dr. J. Majorowicz, personal communication, 2015), as well as results from Lewis (1991) and Majorowicz and Grasby (2010a). It provides a rough guide to regions with potential Direct‐use resources. Also shown are the 18 sites evaluated by Kerr Wood Leidal and GeothermEx (2015) for electrical generation, which were also evaluated for their Direct‐use potential. ...................................................................................................... 8 Figure 2: Some of the difficulties faced by developers when dealing with geothermal electrical‐ generation projects (Sussman and Tucker, 2009) are highlighted in this diagram showing years from discovery of a resource to exploitation. The barriers for direct use are much lower and projects are often completed in less than five years. ................................................................................................................. 9 Figure 3: The communities included in this study are shown associated with known hot springs (Woodsworth and Woodsworth, 2014) ..................................................................................................... 10 LIST OF TERMS AND ABBREVIATIONS BC Province of British Columbia CIHR Canadian Institutes of Health Research Direct‐use also referred to as, Direct‐use geothermal energy, Direct‐use applications, geothermal Direct‐use, Direct‐use geothermal resources, Direct‐use geothermal developments FNCEBF First Nations Clean Energy Business Fund GDDM Geothermal Development Decision Matrix GHGE Green House Gas Emissions GMC Geothermal Management Company Inc. ICE Fund Innovative Clean Energy Fund of British Columbia KWL Kerr Wood Leidal Associates Ltd. Mt. Mount (i.e.