The Installed Cost of Natural Gas is Higher than Geothermal; The Facts
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1 Presenter Company Logo Jay Egg, CMC EggGeothermal Consulting The Installed Cost of Natural Gas is Higher than Geothermal; The Facts Residential - HT5 - Breckenridge (04:00 pm) Tuesday, March 14, 2017
2 Learning Objectives Costs of Geothermal Exchangers are High by Some Standards Costs of Natural Gas Pipelines: Are They Less? Same? Higher? Efforts in North America to Prove Out Geothermal Energy Utilities; Unusual Partners Coming In To Play 2
3 Acknowledgements Special thanks to the following IGSHPA NY-GEO GEO HRAI OGA NYSERDA 3
4 Outline/Agenda A short history of Geothermal HPs Geothermal HVAC systems provide all electric heating and cooling Fossil fuel prices fluctuate NG cost is low right now Difficult to compete when using heating ROI Gas pipelines are expensive Are they as expensive as geothermal? What is The Installed Cost of Natural Gas? 4
5 A Quick History of Geothermal Heat Pump Manufacturers; the Beginning Organized Geothermal HVAC started back in 1982 Published in thenews Dan Ellis, the contractor David Hatherton, the driller WaterFurnace is organized thenews; Watch for a Geothermal Special on April 4,
6 Growth in the Industry Geothermal industry grows steadily More manufacturers involved Dan goes to ClimateMaster David distributes WaterFurnace 6
7 NIBE Purchases GHP Manufacturers WaterFurnace, ClimateMaster and Enertech purchased by NIBE NIBE gets involved in IGSHPA and GEO Sunset of Tax Credits NIBE Provides Boost to GEO Senator Tom Reed has resurrected the geothermal effort 7
8 A Tale of Two Cities -actually two international neighbors New York State Ontario, Canada 8
9 In New York City, and NY State NYC institutes the 80X50 plan NYSERDA create a position for Geothermal Heating and Cooling: Director of Renewable Heating & Cooling, Donovan Gordon Geothermal Technical Committee $15 million toward incentivizing geothermal 9
10 NYSERDA Advisory Commitee 10
11 Remember Keynotes from Last Year? New York s Efforts Patricia Acompora, NYS PSC William Varley, American Water 11
12 NY Middle School on a Water Main 12
13 In NY, Gas Utilities Encouraged to Become Geothermal Energy Utilities 13
14 Workforce Development for Professionals Providing CEU s for AIA and PDH Curriculum and Training for CEUs Expanded Areas of Study 14
15 Meanwhile, In Ontario Canada Gas utility applied for funding pipelines for 64 communities HRAI and OGA questioned costs of pipelines vs/ geothermal loops 15
16 Ontario Government Got Behind Geothermal 16
17 HRAI and OGA Formed the Geofication Team The Geofication team consisted of: Geothermal Expert David Hatherton Geothermal Driller Stanley Reitsma Energy Lawyer Jay Shepherd Supported by HRAI, OGA 17
18 Government Inquiries Months of records research Countless pages of testimony Hundreds of millions of dollars requested by NG Utility Purpose: to provide gas to 68 communities without NG 18
19 Results of the Geofication study Study proved that NG connections costs are higher than geothermal loops $25,600 on average per residence for NG ~$15,000 average per geothermal loop Details in REW 19
20 Presented a logical comparison matrix NG and geothermal both use pipes to deliver energy One is consumed, the other is renewable One creates GHG emissions, the other does not One provides heating, the other provides heating and cooling 20
21 Results of government study: Help to provide geothermal to a million homes, for a start NG utility is getting into the geothermal utility business Consumers will have a utility style geothermal loop structure Canada will meet it s goals for GHG reductions 21
22 In Vancouver City of Vancouver has committed to Net Zero GHG Emissions Southeast False Creek Neighborhood Energy Utility Wastewater Thermal Energy Recovery Eliminates 60% of the greenhouse gas pollution associated with heating 4.3 Million square-feet of buildings 22
23 Geothermal: Gets HVAC out of the Sewer One company has gone public with this effort IWS (here today) does this on a large scale worldwide A key factor in sustainable GHG emissions reduction 23
24 The Climate Change Action Plan Some facts and figures 24
25 Let s Work the Problem Houston, we have a problem Let s Work the Problem 25
26 This is a typical Green family They install solar panels They buy an electric car They re pleased with their new green-life They don t even know about the GHG emissions in their home 26
27 Fire and Combustion aren t bad to them For millennia, society has been telling fire-side stories Society does not think fire is bad; they don t even know their furnace uses a flame to make heat. Furnaces are Out of sight, out of mind 27
28 Government and Energy Utility Involvement They attend a town meeting They learn about the Climate Action Plan They hear that their NG bill will go up (carbon tax) They realize NG is not the best choice anymore 28
29 They realize that most homes and businesses use fire, combustion to heat They become concerned about combustion in their home They don t want to make more greenhouse gasses All their neighbors are talking about GHG emissions What can they do? 29
30 They discover that an all-electric home is greenest-of-all After hearing the experts, they learn that an all electric home wins the contest All electric is safe, dependable and green They want to be safe and green like their neighbors 30
31 They learn that a geothermal ground loop is pricey Like other permanent home features, a ground-loop is expensive Too expensive for them They would have to cut costs somewhere They re not happy that it costs so much to go-green 31
32 They get good news from their energy utility The local energy utility is offering free geothermal loop hook-ups, with a monthly service charges The government is offering incentives for the geothermal heat pump inside the home 32
33 They now have choices They pick the best choice to meet their needs and their bank account They save money each month Their geothermal heat pump heats and cools their home better than ever It heats the hot water tank, too 33
34 They have no longer have GHG emissions from their home 34
35 Take-A-Ways Utility Involvement is Good (provides validation and funding) Public Education at a Simple, yet High-Level (combustion heating = GHG emissions) Combustion Heating is Being Phased Out World-Wide Geothermal is the New Energy Utility Geothermal Systems are Masterpieces of HVAC 35
36 Questions? Jay Egg Presenter Company Logo 36
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