Calgary, Alta.- The federal government is chipping in $6.7 million to support an innovative approach to geothermal energy production.

The funds will go to Eavor Technologies Inc., a Calgary-based company, developing a prototype for a closed-loop geothermal system that will create renewable energy using the earth’s natural heat.

The federal comes will come from Natural Resources Canada’s Clean Growth Program and Sustainable Development Technology Canada and will help will build geothermal demonstration facility.

The Eavor-Lite facility, a collaborative effort with Precision Drilling, Shell New Energies and a number of other key partners will be built near Rocky Mountain House, Alta. The project will allow the company to research and develop its closed-loop technology.

“This innovative project demonstrates that we can build upon, and transfer, expertise from the oil and gas sector to supply cleaner forms of energy, leading to potential new export markets for Canada,” said Amarjeet Sohi, minister of natural resources, in a press release. “The Government of Canada will continue to make smart investments in research and innovation to develop new clean energy technologies, meet our climate goals and create economic growth that benefits everyone.”

The facility is scheduled to be completed this summer.

“We look forward to the construction and completion of the demonstration facility right here in Alberta this summer,” said John Redfern, president and CEO of Eavor, in a press release. “The demonstration of our technology and solution will provide the validation needed to unlock Eavor’s already-identified commercial opportunities at home and around the world.”