Geothermal Heat Pumps: Harnessing On-Site Renewable Energy to Meet Energy-Efficiency and Climate Change Goals Daniel Ellis President ClimateMaster, Inc. Oklahoma City dellis@climatemaster.com www.climatemaster.com Buildings Dominate U.S. Energy Use and Carbon Emissions (with Heating, Cooling, and Water Heating being the Largest Contributors) 43% of U.S. Carbon Emissions 39% of U.S. Primary Energy Consumption Industry 377 MMTC (25%) Transportation 482 MMTC (32%) Buildings 658 MMTC (43%) 71% of U.S. Electricity Global Pressures 53% of U.S. Natural Gas 1970-2020 (Exxon Mobile Projection) 1
Geothermal Heat Pump Systems are the most energy-efficient, environmentally clean, and cost-effective space-conditioning system produce the lowest carbon dioxide emissions, including all source effects, of all available space-conditioning technologies (EPA, 1993) Geothermal Heat Pumps are one of the Most Effective Ways to the Reduce Energy Consumption and Environmental Footprint of our Building Stock Geothermal Heat Pump Basic Principles 2
Earth is a Vast Solar Collector 100% 17% reflected by clouds. 6% reflected by surface. 19% absorbed by water vapor, dust 4% absorbed by clouds. 46% absorbed by ground Earth Solar energy maintains a nearly constant temperature throughout the year just below ground U.S. Underground Temperatures 3
The Earth is a Source of Heat in Winter 72 F Outdoor air design temperature: -5 F 50 F Geothermal heat pumps transfer underground heat into buildings to provide heating and an Efficient Place to Reject Heat in Summer 74 F Outdoor air design temperature: 95 F 50 F Geothermal heat pumps transfer heat from buildings into the ground to provide cooling 4
using Heat Pump Technology Geothermal heat pumps circulate water through a sealed underground piping loop where it is naturally warmed (or cooled) by the Earth Geothermal Heat Pumps Transfer Heat Efficiently 1 kwh of energy from the grid Yields: 4-6 kwh of energy for the building Plus: 3-5 kwh of energy from the earth 400-600% Efficient 5
Geothermal Heat Pumps Exchange Heat between Air and Water $1 Worth of Electricity to Operate the Compressor and Fan Air Out 100 F $5 Water Water In Out 45 F 40 F Fan Pu mp $4 Moves $4 Worth of Heat from the Water Air Coil Expans ion Valve Water Coil Delivering $5 Worth of Heat into the Air Heating Mode Shown Heat can be pumped uphill meaning delivered at a higher temperature than the source Air In 70 F Reversing Valve $1 Compressor Geothermal Heat Pumps also Produce Hot Water Air Out 58 F Water In 75 F Water Out 85 F Fan Operates on the Same Principle as a Refrigerator Air Coil Expans ion Valve Water Coil Cooling Mode Shown Hot water is produced whenever the unit is operating Air In 80 F Revers ing Valve Compressor HW In 90 F HW Out 120 F 160F 6
Heat Pumps Are All Around Us Air conditioners and airsource heat pumps transfer heat from inside houses to the air outside HEAT HEAT B BB B Refrigerators transfer heat from food into the kitchen Geothermal Heat Pumps S lf t i Self-contained heating, cooling and hot water that operates with standard thermostat and duct system 7
Residential Site Energy Conventional System Over 70% of the energy consumed by a typical home is used to meet thermal loads Residential Site Energy Geothermal Heat Pump System Total site energy consumption is cut in half 8
Geothermal Heat Pumps are the Most Efficient way to convert Green Energy into Heating, Cooling and Water Heating Making the most effective use of this precious resource Geothermal Heat Pump Installation Methods 9
Vertical Closed-Loop A pair of pipes with a special U-bend assembly at the bottom is placed into bore holes from 100 to 400 feet deep Horizontal Closed-Loop A piping array is installed in trenches cut 3 to 5 feet deep and hundreds of feet in length 10
Surface Water Closed-Loop A piping array is submerged in a pond or lake at least 8 feet deep Ground Water Open-Loop Well water from an underground aquifer is pumped through the geothermal heat pump and then returned to the aquifer or discharged to the surface 11
Vertical Closed-Loop Installation Drilling Pipe Loop Insertion Heat Fusing Inside Connection Geothermal Heat Pumps Are a Scalable Technology 12
Geothermal Heat Pumps 1300 Sq. Ft. Low Energy Habitat for Humanity Homes Habitat for Humanity Low Energy Home Construction Details Geothermal Heat Pump / Foam Insulation / Low-E Glass / CFL Lighting / Energy Star Appliances 13
Habitat for Humanity Site Energy Consumption by End Use Std and Low Energy Homes 100 95 Std Home - GAS LE Home - GHP Std Home - GHP LE Home - GHP + PV 80 55% to 80% Reduction in Total Energy Use 60 MMBtu / year 40 42 30 45 20 0 19 9 18 10 6 6 7 7 5 5 6 6 4 4 2 2 16 15 12 12 0 0 0-20 Total Heating Cooling Hot Water Lighting Appliance Solar PV -11 Habitat for Humanity Total Energy Consumption and Carbon Emissions 250 25,460 Site Energy Source Energy Carbon Emissions 30,000 200 24,000 174 21,432 MMBtu / year 150 100 95 140 102 15,562 9,825 18,000 12,000 CO 2 Emissions lbs / year 64 50 42 6,000 30 19 0 Std Home - GAS Std Home - GHP LE Home - GHP LE Home - GHP + PV 0 14
Geothermal Heat Pumps Commercial Buildings The Oklahoma State Capitol uses over 600 geothermal heat pumps 15
Garrett Office Buildings Edmond, Oklahoma One is Geothermal and the Other is Conventional VAV Garrett Office Buildings Actual Metered Annual Energy Use 2006-2007 90 47% Site Energy Savings 80 70 60 kbtu per Square Foot 50 40 30 Total Electricity Gas 20 10 - VAV System Geothermal 16
Garrett Office Buildings Annual CO 2 Emissions 2006-2007 50 28% Carbon Emissions Reduction 45 bs. CO 2 Equivalent per Square Foot 40 35 30 Gas Ele ctr icity L 25 20 VAV System Geothermal Garrett Office Buildings Monthly Peak Demand 6.0 5.5 35% Peak Demand Reduction 5.0 Watts per Square Foot 4.5 4.0 3.5 VAV System Geothermal 3.0 25 2.5 2.0 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 17
Geothermal Heat Pump Retrofits in Existing Homes Example of Annual Energy and Carbon Savings Potential CO 2 8.4 MMT Summer Peak 1.2 GW Winter Peak 0.8 GW Electric 6.3 Billion kwh Primary 0.12 quad Btu Geo Units 0.6 million Cost - $6 to $8 billion Savings - $1.6 billion / yr CO 2 10.0 MMT Summer Peak 1.9 GW Winter Peak 0.3 GW Electric 6.8 Billion kwh Primary 0.14 quad Btu Geo Units 1.0 million Cost - $10 to $14 billion Savings - $2.7 billion / yr Assumed Segment Penetration: 25% of homes without access to natural gas CO 2 14.4 MMT Summer Peak 3.1 GW Winter Peak 9.7 GW Electric 25.4 Billion kwh Primary 0.21 quad Btu Geo Units 1.5 million Cost - $15 to $21 billion Savings - $3.3 billion / yr LEED Buildings: Leadership in Energy and Environmental Design g The LEED green building rating system is the national benchmark for high performance green buildings from the U.S. Green Building Council (USGBC) Geothermal systems can provide many of the required points to achieve LEED certification 18
Geothermal Heat Pump Market Perspective Historical Geothermal Industry Shipments 50,000 45,000 Single Family Residential - 63% of Total New Homes 75% Existing Homes 25% 40,000 35,000 30,000 25,000 Commercial 37% of Total Schools and Universities Public and Government Religious Buildings Multi-family Housing Office Buildings Retail 20,000 15,000 10,000 5,000 0 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 19
20 Geographic Geothermal Shipments - 2006 281 318 372 247 264 439 83 246 21 550 199 372 549 240 19 346 1 1299 396 1231 372 2207 533 2286 2872 470 2722 2937 2701 1386 998 85 170 555 414 603 2603 271 2191 175 2200 87 3087 140 548 440 1149 0 1 256 1389 Industry-Trained Geothermal Installers 159 137 79 79 244 22 32 277 36 68 108 17 12 285 25 150 77 506 168 82 88 244 259 225 93 179 211 357 209 141 134 333 197 389 238 45 264 48 738 43 5 376 112 366 158 393 6 1 37 17 134 147 333
Geothermal Heat Pump Legislative Talking Points This is NOT geothermal steam power generation Lots of confusion on this point 50 State technology Unlike solar, wind, and hot rocks geothermal Uniquely addresses one of the largest components of US energy consumption Thermal loads of heating, cooling, hot water in buildings Increment cost is the underground loop Can t be imported from China Local skilled job creation Why we need tax incentives EPACT 2005 left GHPs off the list Creates consumer awareness and pull demand Foundation for investment in industry capacity increase Drilling rigs and trained operators are expensive Need to see that market will really grow to commit resources Geothermal Heat Pump Federal Legislation Status HR 2990 Sponsors are Doggett (TX) and Gordon (TN) 30% of system cost homeowner investment credit - $2000 cap 10% of system cost business investment credit no cap 41 cosponsors and list is growing S. 2314 Sponsor is Salazar (CO) Mirrors HR 2290 adds accelerated depreciation 19 cosponsors and list is growing 21
Geothermal Heat Pump Market Barriers Awareness First Cost Infrastructure Development No Builder Incentive to Invest in Energy Saving Realty, Lending, Appraisal Transformation Needed The Leading Manufacturer of Geothermal Heat Pumps ClimateMaster Plant Oklahoma City, OK 425,000 Sq. Ft. 700 Employees A Subsidiary of LSB Industries, Inc (AMEX LXU) 22
ClimateMaster, Inc. 7300 S.W. 44th St. Oklahoma City, OK 73179 phone 405-745-6000 fax 405-745-6058 www.climatemaster.com A subsidiary of LSB Industries, Inc. AMEX symbol: LXU 23