GEOTHERMAL HEAT PUMP OVERVIEW Presentation to REGBEE/ACORE

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1 GEOTHERMAL HEAT PUMP OVERVIEW Presentation to REGBEE/ACORE

2 Geothermal Heat Pump Systems Geothermal Energy - Energy efficiency - Hot rocks geysers - Heating and cooling - Deep drilling to harness steam - Demand side renewable - Power generation -Also known as: geoexchange, ground source heat pumps, closed loop vertical geothermal, geothermal heating and cooling 1

3 The earth absorbs 50% of the sun s energy and stores it in the top surface layers in the form of constant, stable, moderate year-round temperature Geothermal heat pump (GHP) technology harnesses that constant, stable moderate temperature to heat and cool buildings It is an energy efficient way of heating and cooling buildings utilizing the constant temperature of the earth No Chillers or Boilers are used Ground is a heat source in the winter and heat sink in the summer Moves BTUs in and out of the ground. Demand side renewable Does not generate kilowatts Earth Heat Exchanger Replaces Chiller and Boiler 2

4 Power of GHP GHPs could avoid the need to build 91 to 105 GW of electricity generation capacity, or 42 to 48 percent of the 218 GW of net new capacity additions projected to be needed nationwide by 2030 $33 to $38 billion annually in reduced utility bills (at 2006 rates) could be achieved through aggressive deployment of GHPs GHPs have the potential to offset approximately 35 to 40 percent of the projected growth in building energy consumption between now and 2030 GHPs use the only renewable energy resource that is available at every building s point of use, on-demand, that cannot be depleted, and is affordable in all 50 states GHP infrastructure will outlive the building and many generations of heat pumps, and is similar to utility infrastructure poles, wires, underground natural gas piping, etc. Source: ORNL 3

5 Power of GHP U.S. EPA: Geothermal heat pumps can reduce energy consumption and corresponding emissions up to 44% compared to air-source heat pumps and up to 72% compared to electric resistance heating with standard airconditioning equipment The U.S. Department of Energy Office of Geothermal Technologies cite geothermal heat pumps are among the most energy-and cost-efficient heating and cooling systems available today The U.S. Department of Energy and the U.S. Environmental Protection Agency cite geothermal heat pumps as being ready today to effectively fight climate change, reduce air pollution and increase energy efficiency U.S. DOE: Up to 3-4 times more efficient than standard natural gas & electrical HVAC systems U.S. DOE: GHP can cut HVAC energy demand by 50% and overall energy demand by 35% 4

6 Mechanics/Principles GHP transfers heat in air from the building to the ground in summer & vice versa in winter Two Components Earth heat exchanger (EHX) is buried underground and located outside the building EHX acts much like a car s radiator Geothermal heat pump (GHP) located inside GHP controls air movement inside building to EHX Multiple GHPs may be used to decentralize & minimize heat/cooling losses The geothermal heat pump is easy to service and does not require specialized training Horizontal Units Vertical Units Console Units Vertical Stack Units 5

7 Mechanics/Principles % Efficient 6

8 Heating and Cooling 1 kwh of electricity consumed to transfer heat Energy provided to the building for each increment of 5 kwh required for heating (17 kbtu) Renewable Energy for Heating In Winter 1 kwh 4 kwh of heat 5 kwh of heat produced (17 kbtu) COP=5 4 kwh of heat (13.6 kbtu) free taken from the earth Renewable Energy used for the total comfort need of the building: 80% Renewable Energy for Cooling In Summer 1 kwh of electricity consumed to transfer heat 4.5 kwh of heat (1.3 ton-hour) are taken from the building to cool it 1 kwh 4.5 kwh of heat EER = 15 Renewable Energy used for the total comfort need of the building: 78% 7

9 Types of Systems Traditional HVAC System Generally 4 pipe chiller and boiler system Higher energy use, peak hours/pricing Utilizes fossil fuels Uses large amounts of water High maintenance, operating and replacement costs Generally highest single use of energy in most commercial or institutional buildings 8

10 Types of Systems Vertical Closed Loop Borefields usually near building Wells generally ft Wells usually spaced 20 x 30 Green area or parking lot or other open area usually above borefield Vertical loops typically used for commercial and institutional applications Few moving parts Lower chance of pipe damage versus horizontal Underground portion replaces Chillers and Boilers 9

11 Types of Systems Hybrid System A hybrid system replaces the boiler and chiller with ground loop and heat pumps, and augments ground loop with fluid cooler These often have better first cost economics than a pure GHP system in that they can significantly reduce the size of the EHX (borefield) Hybrids are most effectively employed in buildings with limited footprint for a borefield, severely cooling dominated loading characteristics (like Phoenix, Houston, etc), and high daytime peak power pricing During the day (high cost power time), the system runs off the EHX. Then at night, when the cost of power is usually cheaper and the heat exchange is more efficient, the fluid cooler is used to unload the EHX heat into the atmosphere 10

12 Benefits of GHP Significant reduction in energy use - up to 70% Significant reduction in water use can save hundreds of thousands of gallons per year in an average elementary school Lower maintenance, operating and replacement costs Reduces peak demand Biggest step toward - Zero Net Energy Buildings - LEED Certification Works the same everywhere - Sun doesn t have to shine - Wind doesn t have to blow 11

13 Benefits of GHP Uses no water or natural gas on site Indoor air quality is generally superior No on-site emissions Eliminates fossil fuel boiler No fossil fuel used on site; reduces risk of fire or explosion; eliminates carbon monoxide asphyxiation risk Eliminates or substantially reduces size of mechanical room; frees up additional space No cooling tower No cooling water usage No chemical treatment of cooling water; reduced potential environmental liability 12

14 Benefits of GHP Reduces health threats No fungus or mold in cooling towers Durable Product GHP indoors - not subject to weather & vandalism Lower delta-t and fewer moving parts enhance longevity ASHRAE-rated lifespan of 26 years for long-term energy savings benefits Base load, distributed energy Commercial and economic Renewable and sustainable Energy efficient and simple Transmission (electricity, fuel) not required Systems can often produce domestic hot water as added benefit 13

15 Benefits of GHP Negative cost of greenhouse gas removal Greenhouse gas legislation home run Versatile systems: Can work with any energy plan, including solar, wind, or conventional Significantly reduces power demand and makes renewable systems smaller The cost of adding solar, wind or other renewable is therefore reduced US Green Building Council s LEEDs certification points for: Energy Efficiency Refrigerant management Water Efficiency 14

16 Benefits of GHP Example of Energy Profile of Building Conventional HVAC Geothermal HVAC 15

17 Systems Work Well for Most Applications Commercial Buildings Statue of Liberty Gift Shop ASHRAE Headquarters - Atlanta, GA Galt House Hotel - Louisville, KY Black Point Inn - Prouts Neck, ME Alta Condos, Washington DC Harvard Library Cambridge, MA French Laundry Rest.- Napa, CA Whistler Village - BC, Canada Yale Art Bld. New Haven, CT Gaillardia Offices Okla. City California University of PA Hirschfeld Towers Denver, CO 16

18 Systems Work Well for Most Applications Institutional Buildings Sample EnLink Projects Santa Teresa Middle School, NM 100,000 sq. ft. El Paso Chamber of Commerce, TX 100,000 sq. ft. Canutillo High School, TX 242,000 sq. ft. Lubbock Christian University, TX 50,000 sq. ft. FT. Atkinson Middle School, WI 185,000 sq. ft. Northwest Tech Academy, NV 220,000 sq. ft. Veterans Tribute Tech Academy, NV 131,000 sq. ft. West Tech and Career Academy, NV 210,000 sq. ft. Mesa State College, CO 340,000 sq. ft. San Francisco City College, CA 110,000 sq. ft. American Canyon High School, CA 260,000 sq. ft. Mendota Fed Correction Facility, CA 34,000 sq. ft. 17

19 Calculating Savings: Case Study CCSF Case Study 18

20 Economics GHP systems generally have a higher first cost than conventional HVAC systems, but the energy, water, maintenance and replacement savings can result in paybacks as little as two years, depending upon several factors Incentives further enhance the economics of the systems GHP systems provide powerful hedge against fluctuations in energy prices as well as utility peak pricing schemes 19

21 Calculating Savings: Case Study CCSF Case Study SF City College Life Cycle Cost Estimate Assumptions: C02 is $100/ton, CA C02 electricity emissions factor is 0.8 lbs/kwh, real water inflation rate is 3%, real electricity inflation rate is 1%, real natural gas inflation rate is 4%, cooling load is 369 tons, heating load is 313 tons., average geothermal system efficiency is 17EER (GEER)/4.6 COP, conventional system efficiency is 12.5 SEER (cooling) and 90% (heating). Annual run time is 1548 hours (cooling) and 1274 hours (heating). Electricity is $0.11/kwh, natural gas is $1.50/therm and water/sewage is $0.0038/gallon 20

22 Calculating Savings: Case Study CCSF Case Study SF City College Life Cycle Cost Estimate Annual Costs Costs Over Life of Installation 300,000 14,000, ,000 12,000,000 10,000, , , ,000 Other Water CO2 Emissions Maintenance Energy 8,000,000 6,000,000 4,000,000 Other Water CO2 Emissions Maintenance Installation Energy 50,000 2,000,000 0 Geothermal Traditional HVAC 0 Geothermal Traditional HVAC 21

23 Incentives Depending on ownership of the systems, it may be possible to take advantage of the strong Federal, State and Local Incentives associated with GHPs Incentives alone could result in a 1-2 year payback Federal Incentives (GHPs are considered a renewable technology) 10% investment tax credit Depreciation deduction using MACRS with a first year bonus 100% depreciation $0.30-$1.80/ft 2 tax deduction State and Local Incentives Each state offers different incentives, but many offer rebates through utilities which can be applied to equipment or peak kwh saved, energy savings grants, sales tax exemption, and others. 22

24 Projects and Savings Mesa State College, CO - $200,000/yr Salamanca Middle/High School, NY - $81,000/yr Shaw Air Force Base Dormitory, SC 39% savings American Canyon High School, CA $130,000/yr PBS Facility Las Vegas, NV 45% savings El Paso Chamber of Commerce, TX - $120,000/yr Lubbock Christian University, TX 40% Ft. Atkinson Middle School, WI 21% Walgreens, IL 46% WalMart 60% Note: Base costs not available Note: EnLink Projects Mesa State College, Salamanca Middle/High School, Shaw Air Force Base, American Canyon High School, PBS Facility, El Paso Chamber of Commerce, Lubbock Christian University, Ft. Atkinson Middle School 23

25 Who is Using GHP Systems? Traditionally utilized in the U.S. by government and public institutions Military Schools Other public buildings More widespread use in Europe Private sector beginning to embrace GHP technology WalMart Walgreens IKEA JCI Headquarters 24

26 About EnLink 15 years experience in providing turn key geothermal systems Successfully installed projects throughout the U.S. New construction and retrofits All building types Most applications Most geological formations and climates Successful track record in marketplace Specialize in institutional, municipal and federal markets; expanding into commercial Work closely with geothermal designers, energy modelers, mechanical engineers as well as prime contractors/construction management Own outright all equipment; have own crew Demonstrated technological advantages Perform both THM and DLG work, ensuring quality and consistency throughout project Strong private equity backing 25

27 EnLink Geoenergy Services, Inc Homestead Place Rancho Dominguez, CA Richard Butler 26

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