ERA Funds Geothermal Heating Alternative with the Potential for Residential, Commercial, and Industrial Use

Known as GeoSUSTAIN, the project is focused on finding cheaper ways to heat and cool buildings by using geothermal energy from medium depths underground, without the need for deep drilling. By pairing a geoexchange loop with a heat pump and thermal energy storage, the system can deliver both heating and cooling to the building depending on the time of year. The total cost of the project is just under $1 million.

This project qualified for the Clean Energy Transition Partnership’s (CETPartnership) Joint Call 2024, with ERA contributing up to $3 million. ERA joined the CETPartnership in January 2022 and has participated in joint calls each year. ERA is also participating in Joint Call 2025 and is currently accepting applications until October 9, 2025.

“The innovative integration of geothermal technology, energy storage, and advanced AI-based systems offers one of the cleanest and most reliable renewable options for both heating and electricity generation. This funding also connects academic and industry expertise across countries and continents, allowing us to share solutions, scale faster, and make real progress on worldwide challenges.”

Justin Riemer, CEO, ERA

“This generous support from the Government of Alberta and ERA will accelerate the advancement of next-generation sustainable geothermal systems. The project will focus on optimizing medium-depth borehole heat exchangers, integrating them with medium to high-temperature heat pumps and solid thermal energy storage media. This investment will also foster cross-continental collaboration, driving innovation in geothermal technologies both locally and globally.”

Aggrey Mwesigye, Ph.D., P.Eng., Associate Professor, Department of Mechanical and Manufacturing Engineering, University of Calgary

CETP Joint Call projects require a project consortium consisting of at least three eligible applicants from at least three separate countries or regions participating in CETPartnership. The GeoSUSTAIN project is also supported by Norway, Sweden, the Netherlands, and Austria.

The University of Calgary’s primary role is to complete a techno-economic analysis of the project with the goal of having a fully developed, validated, and tested system ready for installation and demonstration in Canada by August 2028.

CETPartnership brings together public and private stakeholders focused on research and innovation, from European and non-European countries and regions. The initiative enables 50 national and regional RTDI funding partners from 30 countries to align on priorities, pool budgets, and implement annual calls until 2027. ERA joined CETP in January 2022.

For more information, contact:  

Neil Wedin
Marketing and Communications, Emissions Reduction Alberta
nwedin@eralberta.ca
(403)973-1015

ABOUT EMISSIONS REDUCTION ALBERTA (ERA): 

For 16 years, ERA has invested revenues from the carbon price paid by large emitters to accelerate the development and adoption of innovative clean technology solutions. Since its establishment in 2009, ERA has committed nearly $1 billion toward 323 projects valued at $10.6 billion, which are helping to reduce emissions, create competitive industries, and lead to new business opportunities in Alberta. These projects are estimated to deliver cumulative reductions of 33.3 million tonnes of CO₂e by 2030 and 92.6 million tonnes of CO₂e by 2050.

ABOUT TECHNOLOGY INNOVATION AND EMISSIONS REDUCTION (TIER) FUNDING:

The Technology Innovation and Emissions Reduction (TIER) Regulation is at the core of emissions management in Alberta. The TIER system implements Alberta’s industrial carbon pricing and emissions trading system. TIER helps industrial facilities find innovative ways to reduce emissions and invest in clean technology to stay competitive and save money.