Geothermal Applications in the Hospitality Industry

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1 Mike Lemmon WaterFurnace International Inc. (260) Geothermal Applications in the Hospitality Industry Institutional Applications

2 Learning Objectives HVAC Challenges in the Hospitality Industry Opportunities for Geothermal Systems Charmant Hotel, La Crosse, WI Where are the sweet spots Jump starting a project 2

3 Acknowledgements Weber Holdings Owner Kubala Washatko Architect CD Smith General Contractor Matrix Engineering Mechanical Engineer Focus On Energy Sustainability Partner Winona Heating Mechanical Contractor 3

4 Outline/Agenda 1. Trends in Hospitality 2. Opportunities in the Hospitality Industry for Geothermal 3. The Charmant Hotel La Crosse WI 4. Focus on Energy Verification of Delivered Results of the Geothermal System 4

5 Hotel Industry in US 5 Billion Square Feet in US $7.5 Billion Energy Bill / Yr 47,000 Hotels Energy Accounts for 6% of Operating Costs 5

6 Trends in Hotel Operation LEED v4 - Standards for Hotel Ratings LED Lights - Grown in Use 300% in 4 Years Clean Simple Elegant Spaces Drive Hotel Design Increasing Hybrid Use Hotel/Theatre Hotel / Gallery Mobile Meeting and Officing Facilities More of Guest Experience on Guest s Smartphone Balancing Generational Concerns: Millennials vs Boomer Needs Systematic Savings Room Key Cards, Hotel Management Systems Destination Experience, Unique Spaces 6

7 Drivers Toward Sustainability Cost savings. Bottom line financial return from implementation of sustainable business practices is strongest motivating factor Fiscal and economic incentives Regulatory affairs Stabilized utility prices and availability 7

8 Fiscal and Economic Incentives Tax credits (Historic, Energy) Waiver of development fees Cash incentives for achieving certification Public investment in new or improved infrastructure Grants to cover the soft costs associated with green design Low interest loans Expedited plan review by building departments Permissions for additional density 8

9 What is the Opportunity for Geothermal In this Environment? 9

10 The Charmant Hotel La Crosse WI Funke Candy Company Historical Renovation Charmant Hotel Sep 2015

11 Opportunities for Geothermal La Crosse is a City Along the Mississippi Clean Up of Rivers and Water Ways in US Reorientation of River Towns Surrounded by Bluffs and the River Abundance of Water Increased Boomer Regional Destination Travel Increasing Customer Desire for Unique Properties Sustainable Operating Strategies for Successful Hotels Cooperation between Government and Private Sector 11

12 Home of La Crosse the American Indian Game 12

13 Rivers Became the Back Door of River Towns With Change in the U.S. Economy and the Clean Water Act.. 13

14 River Towns are Turning Around 14

15 An Abundance of Water.. 15

16 Historical Renovation Favors Geothermal 16

17 Building Summary 17

18 Geothermal Strategy 18

19 Strategy Cont. Available Monthly Condenser Heat (Ton-Hours) 19

20 Geothermal Solution Indirect ground water system One supply well 400 GPM, 120 ft Three 50 ton water water heat pump units; High Efficiency Condenser Boilers in Emergency Heating Role Discharge city storm (50 yards from river) Geo water to water plant serves four pipe fan coils in rooms and common spaces Provide simultaneous heating and cooling 20

21 Geothermal Solution Cont. Heat recovery from sustained 20 ton internal cooling load Serves all DHW requirements Serves ERV system for cooling and heating Provide condenser discharge for restaurant and bar areas refrigeration Geothermal drives snowmelt system for perimeter walkway and valet drop off areas Provide condenser water to city cistern in park for fountain and water sculpture 21

22 Historical Tax Credits 22

23 Geothermal Indirect Ground Water Well 23

24 Snow Melt 24

25 Verified Energy Savings 25

26 Conclusion Geothermal: A Proven Technology for Hospitality All electric solution that can be powered by source or site energy. Renewable energy component extracting solar energy stored in the earth. High efficiency system due to the earth s relatively constant temperatures as a source or sink for heat energy. Versatile as a retrofit system with compact distributed systems and central plant configurations. Can be integrated with other renewable systems (Solar DHW) Backbone for heat energy recovery for building or campus HVAC systems Long system life and low cost maintenance requirements; significantly reducing life cycle cost Some of the lowest demand profiles of any HVAC system 26

27 Questions? Mike Lemmon 27

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