Marmott Energies bets on geothermal energy

It was after noting that the main barrier to the progress of geothermal energy in Quebec was the high cost of installation that Nathalie Tremblay created Marmott Énergies in 2010. The company in the Town of Mount Royal becomes the owner of the geothermal systems that it agrees to maintain in exchange for long-term recurring revenue. A winning formula, as evidenced by the turnover that should reach $500 in 000.

Marmott Energies is approaching the real estate operating model, according to which the value of assets can be higher than the revenues generated. "We are in a balanced position and we are banking on future revenue prospects, which are very good." Employing eight employees, the company in the Town of Mount Royal plans to double its payroll by the end of the year. "With the Paris agreements, we see that citizen awareness is advancing exponentially."

Choosing geothermal energy to heat and cool your home, but without having to assume the initial investment of up to $45: this is the bet of Marmott Energies. It takes care of all the work and offers its customers a fixed-price, non-scalable subscription.

Nathalie Tremblay, a former environment manager at the Fonds de Solidarité FTQ, created Marmott in 2010. "I have always had a sensitivity for the field of energy. I wondered why a technology as efficient as geothermal energy, which can provide up to 70% of the energy consumed by a household, was not used more."

"In 90% of cases, customers do not have to make any investment. This represents savings in dollars on their bill, but also the certainty that prices will not increase with inflation, as we often see with energy."

If the house is resold, two options are available: the buyer chooses to either keep the system or have it removed. In the latter case, the seller is required to pay a penalty for breach of contract, which decreases over time. To develop the concept, the founder solicited the Banque de développement (BDC) and the Banque Nationale in the form of bank loans, as well as Anges Québec for capital in addition to investing funds. "The total investment is $1 million. We constantly need funds to develop. But the advantage is that we produce goods that generate predictable recurring revenue over a long period," adds the founder, who believes that her business model has no direct competitors.

A strategy of small steps

Since installing its first pilot systems in 2012, nearly 150 Marmott Énergies systems have been in service in Quebec. “We formed a partnership with the Master group in Boucherville, a flagship in air conditioning, heating and geothermal energy, which referred us to the best installers in the industry,” says Nathalie Tremblay, who points out that the idea was not to reinvent the wheel, but to take advantage of existing skills. Partnerships were formed with the Institut national de la recherche scientifique (INRS) in Quebec City on a project to identify soil conductivity in the St. Lawrence Valley and with Polytechnique Montréal on the development of software to simulate the life of geothermal loops.

In 2016, the company aims to continue its development in the St. Lawrence Valley (Greater Montreal and the Quebec City region), by implementing projects in some thirty municipalities. "In 2017, we have the ambition to carry out several hundred projects," says Ms. Tremblay. In its sights? Canadian and North American households, particularly single-family homes.

"There are still 300 households heated by oil in Quebec and 000 million in the Northeastern United States." Nathalie Tremblay participated in a mission in Alberta. She is also examining Ontario and the Northeastern United States thanks to the presence of a partner manufacturer.

A complementary technology

While geothermal energy can be used almost everywhere in Quebec depending on the nature of the soil, it can provide up to 70% of a household's energy demand. In addition, it can be combined with other renewable energy sources, such as hydroelectricity.

"In other areas, we could consider combinations with solar panels or natural gas," says Nathalie Tremblay, who specifies that the remaining 30% is due to the need to power a pump and a compressor to operate the system. "There are sometimes certain specific limitations, which make places more expensive to drill."

With an estimated lifespan of 75 to 100 years for geothermal loops and 20 to 25 years for heat pumps, Nathalie Tremblay points out that geothermal energy can also "replace exterior heat pumps that are reaching the end of their life, which are frequent sources of arguments with neighbors."

About Marmott Energies

Founded in Mont-Royal in 2010 by Nathalie H. Tremblay, Marmott Énergies is democratizing access to geothermal energy. Its innovative “Energy-as-a-Service” business model allows its customers to access geothermal energy in exchange for a fixed monthly payment, without having to pay for the installation. Marmott Énergies is thus breaking down the barriers to the mass installation of geothermal energy and offering a doubly beneficial solution for citizens, businesses, the community and the planet. By the end of 2017, Marmott will have exceeded one hundred customers. It is already established in more than twenty municipalities in Quebec.