The problem: Orphan and inactive wells

While the fossil fuel industry is a critical part of the Canadian economy, because of the boom and bust of the energy commodity cycle, this industry is volatile. We have seen how international markets and the changing investment environment directly and indirectly impacts lives of millions of Canadians. The energy sector is investing heavily in new lower-carbon technologies for exploration, cleaner extraction and reduced long-term environmental impacts. Furthermore, whether active or not, there are hundreds of thousands of existing oil and gas wells that each have an economic, social and environmentally effect on us all.

Lack of tenant revenue for landowners

Significant savings on reclamation costs to help with the removal of inactive wells from the oil & gas companies liabilities

Rapid increase in O&G liabilities

More than 170,000 inactive leases in Alberta on more than 340,000 acres causing O&G companies to become insolvent or incur large reclamation charges

Potential Burden on Alberta tax payers

Rural Municipalities of Alberta report more than $268 million in unpaid property taxes meaning tax payers foot-the-bill

The opportunity: Large scale solar projects are struggling to deploy

Large-scale solar developers are currently facing a myriad of challenges that hinder efficient project deployment. These include stringent regulatory constraints, prolonged lead times for approvals, and intricate coordination with utilities and transmission companies. These roadblocks not only delay projects but also escalate costs, creating an urgent need for alternative approaches to keep the momentum of sustainable energy development.

The solution: Re-purpose abandoned infrastructure for solar

Utilizing existing leases, roads, and powerlines for solar provides several benefits. It offers stable and secure power costs, with a rate of $50/MWh including transmission. This not only reduces production costs by approximately $2 per barrel but also generates GHG offsets of $18/MWh. Additionally, it decreases abandonment costs by more than 50% and saves 25% on solar installations. By repurposing abandoned infrastructure for solar, it defers reclamation costs of over $10,000 per lease, resulting in a total savings of $205 million.

Assuming solar installed on 10% of inactive leases

In terms of market potential, there are over 31,000 acres available for solar development in Western Canada. The total cost of abandonment is estimated to be over $1.5 billion, while solar construction costs are projected to be over $11 billion. These figures demonstrate the significant opportunity for repurposing abandoned infrastructure for solar energy development.

Benefits for many parties

Contact Us to learn more about our solution