The Role of Ground Source Heat Pumps for a Canadian Sustainable Energy Strategy
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1 The Role of Ground Source Heat Pumps for a Canadian Sustainable Energy Strategy Denis Tanguay President & CEO denis.tanguay@geoexchange.ca (514) ext. 24 Standing Senate Committee on Energy, the Environment and Natural Resources February 8, 2011 Ted Kantrowitz Vice President ted.kantrowitz@geoexchange.ca (514) ext. 34 1
2 There are essentially two types of geothermal energy 1. High temperature geothermal which uses dry steam and hot water from deep earth to produce electricity or heat. Currently there is no production associated with this type of energy in Canada. 2. Low temperature geothermal which uses the constant temperature of the shallow ground or water to heat and cool buildings. Currently, the Canadian GeoExchange Coalition (CGC), Canada s national industry association for ground source heat pump (GSHP) technology estimates that there are more than 80,000 such systems installed throughout Canada. In the example above, the GSHP uses one unit of electrical energy to extract from the ground the equivalent of three units of energy. Under these assumptions, the heat delivered to the building is four units, three of them provided free from the ground below. 2
3 Uranium Hydro Canada s Energy Flow 2003 (Exajoules) Imports Distributed Electricity Transmission Losses Electric Power Office of Energy Research and Development Bureau de recherche et développement énergétiques Energy Equivalents In terms of energy equivalencies, 1 Exajoule (EJ) is equal to: ~ 160 million barrels of oil ~ energy consumed annually by 15 million average Canadian single detached homes ~ energy produced annually by 14 Pickering-sized nuclear stations operating at nominal capacity. ~ the energy produced annually by over 1400 square kilometres of state-of-the-art solar cells operating under nominal conditions, enough to cover the entire Toronto urbanized area. Electrical System Energy Losses Residentiel/ Commercial Lost Energy Natural Gas 7.693, , Imports Industrial 4.141,4 Biomass & Other Useful Energy Coal 1.473, Imports Pipelines Petroleum 5.963, Transportation Imports Non-Fuel Version 1 August 2006 Sources: 1) NRCan Energy Handbook ) Canadian Wind Energy Association 3) Calculated Value 4) Statistics Canada 5) Natural Resources Canada Areas of energy savings and displacements are identified by the red dotted circles on the chart. From the 2.64 exajoules of energy used in the residential and commercial sector, 0.77 is lost in the distribution or in the combustion process. GSHP contribute to the reduction of the remaining 1.87 exajoules of useful energy but also the reduction of part of the 0.77 in lost energy. The free energy from the ground does not appear in Canada s energy flow chart because GSHP technology is at the end of the supply chain, at the consumer level. GSHP is therefore a unique renewable energy, a conservation and an energy efficiency technology. By reducing the level of energy used in buildings, GSHP displace traditional energy supply (electricity, natural gas and heating oil) and contribute to the reduction of pressure on existing energy transport and delivery infrastructures as well as energy lost in the transport and delivery process. 3
4 GHG savings potential in Canada compared with different geothermal heat pump market penetration scenarios, considering replacement of actual heating systems Market penetration* Electric baseboard GHG savings (tons CO 2 eq.) Natural gas GHG savings (tons CO 2 eq.) Oil GHG savings (tons CO 2 eq.) Total GHG savings (tons CO 2 eq.) Equivalent number of cars *There are single detached houses in Canada (OEE 2006b) 2% 4% 8% 16% GSHP is the most efficient heating technology in GHG emissions terms, in almost every province and territory. Environmental performance will vary from one province to the other according to the electricity production mix within each province. GSHP are GHG-efficient in all parts of Canada, even in areas where natural gas is the dominant source of energy for heating purposes. To illustrate the GHG reduction potential of GSHP, if we were to retrofit 4 % of the existing residential building stock in Canada, this would be the equivalent of reducing emissions by more than 800 megatons or removing close to 250,000 cars from our roads,. At this time, the CGC estimates that existing GSHP systems provide less than 0.5 % of Canada s building heating and cooling. This table is taken from the CGC s study Comparative Analysis of Greenhouse Gas Emissions of Various Residential Heating Systems in the Canadian Provinces. 4
5 Geothermal Heat Pump Units (2002 = 100) 15,643 units Canada United States Switzerland France Units in all four countries were indexed to 100 in 2002 for ease of comparison 442 units ATTEMPT TO ADOPT THE US MODEL ( ) CGC MARKET TRANSFORMATION INITIATIVE ( ) This chart shows the growth in GSHP installations in Canada since 1996 and compares this growth with the United States, Switzerland and France. In 1998, only 442 GSHP units were installed in Canada. In 2009, more than 15,500 units were installed, the fastest growing industry in the world. This growth is largely due to a market transformation initiative developed with Government of Canada support and deployed by the CGC starting in This is a true Canadian renewable energy success story! The Canadian GSHP industry grew by more than 40 % in 2005 followed by three successive years of annual growth over 60 %. Market stabilized in 2009 largely due to the economic situation. In total, there are more than 80,000 GSHP units installed in Canada. 5
6 A Sustainable Energy Solution Everywhere in Canada GSHP are installed across Canada, including cities such as Whitehorse and Yellowknife. In terms of units installed in the past four years, leading provinces are Ontario, Québec and Saskatchewan followed by Manitoba, British Columbia and New Brunswick. Together, Ontario and Québec account for about 80 % of these installations while Saskatchewan and Manitoba have slightly less than 5 % each. 6
7 Over 91 % of GSHP system value is generated here in Canada by Canadian industry stakeholders 91 % Less than 9 % of a GSHP system value is imported, mostly from the United States 9 % Most of the heat pumps sold in Canada are imported from the US. In Canada, ground source heat pumps are manufactured or assembled in New Brunswick, Québec, Ontario, Manitoba and British Columbia. The market share of Canadian manufacturers is about 10 %. At the border, the price of a typical heat pump is approximately $2,500. The average GSHP system (which includes labour, drilling, design and installation cost) is about $28,000. This means Canadian industry stakeholders here in Canada are responsible for more than 90 % of this economic activity. This also means that more than 90 % of a GSHP value is money spent on Canadian products and services and this economic activity remains in Canada in every single town across Canada. This economic activity (drilling, design and installation) cannot be relocated to countries paying lower wages. GSHP create jobs where the energy is produced and consumed: in every single town across Canada. 7
8 Market Transformation and Capacity Building Initiative CGC Program Results (as of 02/02/2011) CGC-certified residential geoexchange systems trained individuals 660 accredited installers 487 accredited residential designers 451 qualified companies 272 members 17 college partners 15 board members 13 professional staff members 10 provincial caucuses 8 fully developed training courses 1 strong and representative national association! The CGC has been certifying GSHP systems for the ecoenergy Retrofit Homes program since 2007 and we anticipate that by the end of the program in March, more than 14,000 home owners will have benefited from this program. The CGC will continue to certify systems for provincial and municipal programs. Through its market transformation initiative, the CGC has built strong Canadian industry capacity. Accredited professionals and qualified companies are active everywhere in Canada, creating and maintaining jobs. These professionals (estimated at more than 1,500) are collectively the backbone of the Canadian GSHP industry. They deliver energy savings and GHG reductions in all regions of Canada. 8
9 CGC Education and Training Network Northern Lights College (Dawson Creek) Southern Alberta Institute of Technology (Calgary) Lakeland College (Lakeland) Sault College (Sault Ste. Marie) Cambrian College (Sudbury) Cégep de Sherbrooke (Sherbrooke) New Brunswick Community College (7 campuses across the province) British Columbia Institute of Technology (Burnaby) Vancouver Island University (Nanaimo) Nova Scotia Community College (All campuses throughout the province) November 8, 2010 Okanagan College (Kelowna) Conestoga College (5 campuses) Mohawk College (Hamilton) Centennial College (Toronto) Collège Communautaire du Nouveau Brunswick (5 campuses across the province) St. Lawrence College (Kingston) Durham College (Oshawa) The industry and CGC can rely on a strong and growing network to educate the next generation of GSHP installers and designers, technicians and engineers. This college network is unique and distinguishes Canada as a world leader in training and accreditation of ground source heat pump professionals, significantly ahead of countries such as the United States. CGC s goal is to work with all stakeholders to continue to mainstream the use of renewable, efficient GSHP technology everywhere in Canada, and to develop Canadian export capability. 9
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