Deep geothermal power, generating electricity from hot rock and water kilometres underground, is still in its early days in Canada. Unlike the United States, Mexico, Iceland or New Zealand, Canada has no large, stand-alone geothermal power plants running today, though several projects in Saskatchewan, Alberta and British Columbia are working toward commercial operation. Oil and gas drilling expertise, new closed-loop technology and Indigenous-led projects are what's driving the current wave.
Key takeaways
- Deep geothermal makes electricity from underground heat and can run around the clock, unlike wind or solar.
- Canada's best resources are in western Canada: the sedimentary basin under Alberta and Saskatchewan, and volcanic areas in BC and Yukon.
- Leading projects include DEEP in southeast Saskatchewan, Tu Deh-Kah in northeast BC, and closed-loop technology from Alberta's Eavor.
- High drilling costs and exploration risk have been the main barriers.
- Deep geothermal power is different from the ground-source heat pumps used to heat homes.
How deep geothermal power works
The earth gets hotter as you go down, roughly 25–30°C per kilometre on average, and faster in some places. Geothermal power plants drill deep wells to reach hot water or rock, bring the heat to the surface, and use it to spin a turbine.
There are three main approaches:
- Conventional hydrothermal: Tap naturally hot, permeable reservoirs of water or steam. This is how most of the world's geothermal power is produced, usually in volcanic regions.
- Hot sedimentary aquifers: Pump hot brine from deep, porous sedimentary rock (like those under the Prairies), extract the heat with a "binary" plant, and reinject the cooled water. This is the approach DEEP is taking in Saskatchewan.
- Closed-loop and enhanced systems: Circulate fluid through sealed wells or engineered fractures in hot rock, extracting heat without relying on natural reservoirs.
Because temperatures in most Canadian sedimentary basins are moderate, typically somewhere around 100–150°C at accessible depths, projects use binary-cycle plants that pass the heat to a second fluid with a lower boiling point.
Why Canada has lagged
Canada has significant geothermal potential but has been slow to develop it:
- Cheap alternatives: Abundant hydro, coal and natural gas made geothermal hard to justify economically for decades.
- Moderate temperatures: Many resources are lower-temperature than in volcanic regions, reducing output per well.
- Exploration risk: Wells cost millions of dollars, and you don't know exactly what you'll find until you drill.
- Regulation: Until recently, several provinces lacked clear rules for geothermal rights and licensing. Alberta passed dedicated geothermal legislation in 2021, and other jurisdictions have been updating their frameworks.
Projects to watch
| Project | Location | Approach | Status at last public update |
|---|---|---|---|
| DEEP Earth Energy Production | Near Estevan, SK | Hot sedimentary aquifer, binary plant | Wells drilled; partnered with SLB in 2025; first phase of roughly 5 MW targeted around 2026, scaling over time; financing a key step |
| Tu Deh-Kah (Fort Nelson First Nation) | Clarke Lake gas field, BC | Repurposing a depleted gas field | Assessments complete; 2025 updates targeted operation around 2027 pending final investment decision |
| Eavor closed-loop technology | Alberta (demonstration near Rocky Mountain House) | Sealed closed-loop wells | Demonstrated in Alberta and at commercial scale in Germany; in July 2026, Alberta funding supported further drilling technology work |
| Co-produced geothermal | Alberta oil and gas fields | Using hot water from existing wells | Hybrid facilities have produced power alongside natural gas |
Timelines in geothermal often slip, so treat target dates as aspirations rather than guarantees.
Indigenous leadership
Tu Deh-Kah is notable as a First Nation-led project that aims to turn a depleted gas field on its territory into a long-term clean energy source. Several other Indigenous communities in Alberta, Saskatchewan and BC are exploring geothermal for power, heat and greenhouses, building on the broader trend of community ownership we describe in our post on hydro and Indigenous communities.
Oil and gas skills meet clean energy
Western Canada has a huge advantage: one of the world's most experienced drilling workforces and detailed geological data from decades of oil and gas exploration. Geothermal developers can use horizontal drilling, existing well data and, in some cases, abandoned wells. This makes geothermal one of the most natural transition opportunities for energy workers in Alberta and Saskatchewan. Our Alberta guide and Saskatchewan guide cover each province's broader energy picture.
Direct-use heat: the quieter opportunity
Not every geothermal resource is hot enough to make electricity economically. Lower-temperature heat can still be used directly for greenhouses, district heating, aquaculture, drying lumber or grain, and industrial processes. Several Canadian projects pair power and direct heat, improving the economics. Learn more about how geothermal fits into Canada's mix on our geothermal page and our future of energy page.
Deep geothermal vs. geothermal heat pumps
These often get confused:
- Deep geothermal power: wells often 2–5 km deep, high temperatures, produces electricity at utility scale.
- Ground-source heat pumps: loops a few metres to roughly 150 metres deep, mild ground temperatures, heats and cools individual buildings using electricity.
If you're thinking about geothermal for your own home, our post on ground-source heat pump costs and payback is the place to start.
Frequently asked questions
Does Canada have any geothermal power plants?
Canada does not yet have a large, stand-alone geothermal power plant in commercial operation, though some hybrid facilities in Alberta have generated power from hot water produced alongside natural gas. Projects in Saskatchewan and BC are aiming to be among the country's first dedicated geothermal plants.
Where is the best geothermal potential in Canada?
The strongest potential is in western Canada, including the Western Canada Sedimentary Basin under Alberta and Saskatchewan and volcanic regions in BC and Yukon. Parts of the Northwest Territories also show promise.
Is geothermal power renewable?
Yes, when managed well. The earth's heat is effectively inexhaustible on human timescales, though individual reservoirs can cool if heat is extracted faster than it's replenished, so careful reservoir management matters.
The bottom line
Deep geothermal power in Canada is moving from studies to steel in the ground, led by projects in Saskatchewan, BC and Alberta. It won't replace hydro, wind or solar, but its ability to run around the clock and use oil and gas skills gives it a valuable role. Expect slow, steady progress, and some setbacks, over the rest of the decade.
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