The Canadian Government is set to extend funding support for a new geothermal power facility, which will be built near Estevan in south-east Saskatchewan.
Geothermal energy uses of heat from the Earth’s crust and converts it into electricity.
The funding announcement was made by Canada Prime Minister Justin Trudeau. The government has agreed to invest C$25.6m ($19.2m) in funding through Natural Resources Canada’s Emerging Renewable Power Programme.
Trudeau said: “Today’s announcement is an investment in the future of Saskatchewan and all our children. DEEP’s project has the potential to transform how the province and the country produce energy while creating good, middle-class jobs for Canadians.
“This is another example of how we’re taking action to fight climate change today while strengthening our communities for tomorrow.”
The 5MW facility is expected to generate enough energy for nearly 5,000 homes. It is equivalent to and eliminating emissions from 7,400 cars a year.
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Excess heat from the facility will be routed to a 45-acre greenhouse for commercial use.
DEEP Earth Energy Production company is leading the project, which is reported to be the first of its kind in Canada to use a new renewable energy resource.
During construction, the project is expected to create 100 new employment opportunities in the region. It will also provide the provincial power grid with clean, renewable energy, and create new business opportunities for local communities.
Earlier this month, Canada joined the International Renewable Energy Agency (IRENA), an intergovernmental organisation that supports countries in their transition to a sustainable energy future.