GEOTHERMAL HEAT PUMPS THE PLAYBOOK. Jack DiEnna Executive Director The Geothermal National & International Initiative (GEO-NII)

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1 GEOTHERMAL HEAT PUMPS THE PLAYBOOK Jack DiEnna Executive Director The Geothermal National & International Initiative (GEO-NII)

2

3 EVEN THOUGHT WE ARE ALL COMPETITORS WE SHOULD ALL BE ON THE SAME TEAM AND AS A TEAM WE SHOULD HAVE A PLAYBOOK Speaking from it, Quoting it.

4 HOUSEKEEPING What do we call it Geothermal, Ground Source, GeoExchange. The feds call it geothermal heat pumps. They are ground loops, boreholes not WELLS (unless you are doing an open system)

5 QUESTION HOW OLD IS GEOTHERMAL HEAT PUMP TECHNOLOGY??? Answer: It is a 60 year old technology!

6 FACT GHP s were first written up in the October 25 th 1948 issue of Life magazine. In 1954, 3 professors from the University of Wisconsin, determined that a cubic foot of ordinary soil has a heat capacity of 40 btu s (when cooled 1 degree F) and that the ground was a heat source that was present everywhere.

7 QUESTION???? What % of Primary Energy does the DOE state that building Lighting, appliances, space conditioning and water heating account for

8 ANSWER 36% And 40% of the total energy used in those buildings is for space conditioning and water heating. This is much more than the total energy used in the transportation Industry.. So then why are we talking about CARS!!!!

9 Question: How much energy is saved per ton of capacity installed. Answer. According to a study done by NREL, there is a reduction of. 55 to.88 Kw reduced per ton of installed capacity.

10 The ENERGY UNDER OUR FEET A four ton system extracts an equivalent of 8.94 Kilowatts of energy per hour from the ground. (NREL) That equates to 30,510 BTUs being extracted every hour, 24 / 7, 365 days a year. (one Kilowatt equals 3413 BTUs)

11 QUESTION: What is the % of Green house gas emissions do GHPs reduce according to the EPA. ANSWER: Forty (40) Percent

12 Question: How many JOBS does this technology account for??? Until we have a better answer, for every Commercial project there are 22 job classifications either created or retained. (12 manufacturing, 10 field)

13 QUESTION. How much can I SAVE!!!! Answer Savings from 10% to 40% have been achieved with GHP technology. TRY NOT TO OVER PROMISE.

14 One of the problems of our industry is that we continually talk about PRICE, We have to change that to. VALUE.

15 Question? What is the PAYBACK??? Answer.. 2 years, 4 years, immediate?? What would you say.

16 Question.. Are GHP s RENEWABLE? Answer: According to the latest description by DOE, a Geothermal heat pump is a highly efficient RENEWABLE energy technology.

17 Argument This is where the ARGUMENT, starts: it can t be renewable because it uses electricity! if that is renewable then an air source is renewable! BLAH, BLAH, BLAH, BLAH,BLAH.

18 Argument Rather than argue about whether it is renewable or not, let s just call it; DIRECT USE GEOTHERMAL

19 Argument By DOE s definition, Direct-use systems typically include three components: Production facility, usually a well (or bore hole) to bring the hot water to the surface. Mechanical system piping, heat exchanger, controls, (or heat pump / chiller) to deliver the heat to the space or process Disposal system, injection well or storage pond,(or the return loop) to receive the cooled geothermal fluid.

20 FACT DOE has funded geothermal projects, including direct use geo from 1979 until the present. Annual funding for that initiative has been in or around Twenty three ($23) million annually. That accounts for approximately $759,000,000 of OUR $$$$. BUT

21 FACT According to the latest DOE report for the 2013 Budget review, there is currently over 3,000 MW of geothermal installed capacity in the US. That adds up to approximately $253,000 per MegaWatt (MW) and it is only in SIX States

22

23

24 Avoided Power

25

26

27 The real problem we have is: SEMANTICS Dependency on fossil fuels, increased emissions, transmission congestion, job creation. These are all the problems renewable technologies are supposed to SOLVE.

28 Even the opponents of GHPs agree that they work and that work is 24/7, 365 days a year. We all agree that installation is the key, we all agree that there are applications that do not work BUT they do save energy, reduce emissions and create JOBS.

29 What are the BARRIERS to this technology The primary barrier and some think the ONLY barrier is FIRST COST. One of the ways to remove this barrier is to have the loop taken out of the equation. We are currently working on having the loop become part of the Renewable Portfolio Standard and have it be a RATE Recoverable Technology for Utilities to OWN.

30 This is why GHP s are important, as a renewable to Utilities 1- They are a demand reduction technology which does not have to have backup generation. A equivalent megawatt of installed ghp capacity, reduces that amount from the grid. 2- They work 24/7, 365, never needing the sun to shine or the wind to blow.

31 This is why GHP s are important, as a renewable to Utilities 3- It is a permanent (50 year) demand reduction, one that does not need any notification. 4- It can become a new business unit (Loop leasing or collection of REC benefits). 5- It is using energy already owned by the consumer but delivered by the Utility.

32 One Million Units: Has an annual savings of over 8 Billion kwh and a reduction of electric demand by over 2.6 million Kw.

33 The Road to 30% With 30% of the (residential & commercial) HVAC market there would be a savings of 177,239,835 kwh and a demand reduction of 36,564,000 kw or 36,564 mw. This would increase dramatically if we included the institutional market.

34 The Road to 30% This would mean carbon would be reduced by 35,486,053 metric tons and CO2 would be reduced by 130,115,529 metric tons. This is the equivalence of removing approximately 29 million cars off the road or planting over 8 billion trees.

35 The Road to 30% It would mean the creation or retention of over 5 MILLION jobs. (Jobs may or may not be mutually exclusive. Individual jobs may be performed by the same individual in a particular classification or position.)

36 In a recent report by EurObserv ER there have been over 1 million installations in the European Union In fact, in January of this year, Mimer Energy signed a joint venture with West Warwick, RI to provide GHPs to all the business and municipal buildings in the Center of Town.

37 What should we do. This will not happen without YOUR involvement and it will come through STATE initiatives. Does your State have an Renewable Portfolio Standard (RPS) mandate and if so Can we promote having GHPs recognized as a renewable resource, emulating Maryland & New Hampshire.

38 REMEMBER Geothermal Heat Pumps go beyond being a GREEN Technology They are a GOLD technology.

39 Geothermal Heat Pumps deliver Triple E Solutions: Energy Independence & Security Environmental Stability Economic Prosperity

40 We cannot solve our problems with the same thinking we used when we created them. - Albert Einstein

41 If you have any questions or need further information please contact me at or me at

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