R&D/innovation

Alberta Proposes To Build Canada’s First Drilling Technology Test Site by 2026

The proposed facility would be used to accelerate innovations in lithium extraction, carbon storage, and geothermal energy in addition to oil and gas technologies.

Drilling rig.
Source: Getty Images

Despite its reputation as a leader in upstream innovation, Canada lacks a dedicated test site where operators and developers can trial emerging technologies.

That may soon change, as Alberta’s government recently proposed earmarking $50 million from an industry-funded program to establish the country’s first open-access test well site, called the Alberta Drilling Accelerator.

Officials emphasized that such test sites, which have proven successful in the US and other countries, are needed to advance Canadian drilling technologies. The proposed site aims to support not only oil and gas initiatives but also new technologies aimed at lithium extraction, helium production, carbon storage, and geothermal energy.

“The Alberta Drilling Accelerator means big things for oil and gas exploration in our province, but also for industries that will be vital for achieving our goal of carbon neutrality by 2050. We are setting the stage for innovation and prosperity, pushing Alberta’s drilling expertise to places it’s never been before,” Danielle Smith, premier of Alberta, said in a statement.

Canadian research group Cascade Institute issued a strong endorsement of the proposal, comparing it to the US-based Frontier Observatory for Research in Geothermal Energy, or FORGE, a public/private project advancing enhanced geothermal technologies. The group noted that the Alberta Drilling Accelerator could also build on the success of the Alberta Oil Sands Technology and Research Authority (AOSTRA).

“AOSTRA played a defining role in establishing Alberta’s oil and gas sector. By de-risking steam-assisted gravity drainage—the technology behind in situ oil sands production—AOSTRA sparked an industrial revolution that continues to generate benefits today,” the Cascade Institute said.

The organization also noted that Alberta’s oil sands sector is nearing $1 trillion in cumulative capital spending, a milestone it said represents “the perfect backdrop to launch the next wave of Alberta-driven innovation.”

Alberta’s government initially committed $750,000 in April to launch the project with a feasibility study led by Eavor Technologies, a Calgary-based developer of closed-loop geothermal systems. The study, which assessed a proposed facility location, business plan, and governance model, suggested an industry-led drilling test site would be both economically and environmentally sustainable.

Along with Eavor, larger companies Tourmaline Oil and Halliburton have expressed interest in becoming anchor tenants at the site. No contracts have been signed, but the government said it believes the project could attract tens of millions of dollars in private-sector funding.

“Halliburton has 70 years of experience in geothermal and a strong legacy of innovation in drilling technology. We are very proud to support the Alberta Drilling Accelerator because we believe the best, most innovative solutions come through collaboration,” John Gorman, area vice president of Canada for Halliburton, said in a statement.

The CEO of Tourmaline, Earl McKinnon, added that the production company is “pleased to support the Alberta Drilling Accelerator in further advancing the province’s leadership in responsible natural resource production.”