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Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
Michigan Energy Forum - March 7, 2013
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Michigan Energy Forum - March 7, 2013

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Michigan has had success recently with district and campus-scale installations of ground source heat pumps for facility heating and cooling. While still considered nascent compared to other sources of …

Michigan has had success recently with district and campus-scale installations of ground source heat pumps for facility heating and cooling. While still considered nascent compared to other sources of renewable energy, geothermal energy has significant potential, and market adoption of this technology could accelerate if policy, education and technical training headwinds are addressed. Come listen to three interesting and diverse perspectives of these issues from panelists who are in the trenches.

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Transcript

  • 1. Michigan Energy Forum:Drawing Energy from theNetherworld - Geothermal March 7, 2013 © Ann Arbor SPARK
  • 2. Road to Economic HealthGeoUtilityRenewable & EfficientEconomically SoundEases the Path to Net Zero
  • 3. The Economics of Geo• $$$ • Saves 60-70% Energy Cost • Maintenance drops by 60-80%• Environmental • Global warming emissions down by 70% • Solar and wind needs drop by 60-70% making Net Zero a real possibility
  • 4. Utility District-wideNotice the Scalability Systems:A Sample District Geothermal System Start with one here! Perhaps another one here!
  • 5. Geo-Thermal Utilities District-wide Systems:A Sample District Geothermal System As homes sign up! Geothermal system grows!
  • 6. Geo-Thermal UtilitDistrict-wide Systems:A Sample District Geothermal System Full distributed system over time!
  • 7. Geo-Thermal Utilities & District-wide Systems:A Sample District Geothermal System
  • 8. LONG TERMCost per unit goes downDistributed loads are highly cost effective
  • 9. Why Install a Utility System• The DOE strongly advises Towns and Cities to install GeoUtilities.• Makes Geo available at low cost to all• Lowers operational cost for business and residential.• Gas, oil and coal dollars stay and build the community.
  • 10. DETROITLet’s Look at a City – the Potential Impact
  • 11. Background Information * PotentialOccupied Homes: 336,428Probable energy bills (HVAC, DHW), annually per home $ 600Total residential annual cost $ 201,856,800Commercial, Institutional, etc $ 250,000,000Total energy dollars leaving the City each year $ 402,000,000Sixty percent of those monies should stay in Detroit with GeoThat represents a lower cost of living, several thousand higher paying jobs, anda big step toward full energy independence.Cost: potentially zero with revenue private funding, An investment of Billions
  • 12. XXXX Corporate Center Geothermal Utility Supporting: Heating cooling system Domestic hot water
  • 13. Costs to ConsiderGeothermal Savings The GeoUtility field  No gas piping has an added cost  Roof penetrations and flue pipes largely Geothermal bldg disappear equipment is similar  Avoids a central in cost to domestic hot water conventional system and related gas/electric maintenance  GeoUtility income is There are offsetting separate income stream incentives from  Installation costs government agencies recovered by system and from utilities owner
  • 14. Areas to be includedSpace categories: Common Spaces: Small business center  First floor lobby Large business center  1st floor common area Health Plex  2nd floor common area Bldg Mgmt office  3rd floor common area XX Units size A  4th floor common area XX Units size B XX Units size C  5th floor common area XX Units size D  6th floor common area XX Units size E
  • 15. InclusionsGeothermal field designand installationMechanical heating,cooling, DHW system withrelated: 1. Controls 2. Piping 3. Hot water tanks 4. Electrical wiring from local disconnects by others 5. Permits 6. As built prints 7. Installation management 8. Performance warranties
  • 16. XXXX Corporate Center Geothermal Utility Pro Forma (Preliminary estimate)Assumptions: Cardio 1140 Sq Ft 1 Business Center 2470 Sq Ft 1 Office 2470 Sq Ft 1 Events 3610 Sq Ft 1 Units, avg 1392 Sq Ft 92 Commons area 56832 Sq Ft Total area 194,586 Sq FtGeothermal field tonnage 194.6Geothermal system cost $ 813,369Each average unit HVAC tons 2.0GeoUtility billing / ton / month: residential units Residential units 2.0 tons $ 27.50 $ 55.00 Cardio 1.5 tons $ 27.50 $ 41.25 Bus Center 2.5 tons $ 27.50 $ 68.75 Office 2.5 tons $ 27.50 $ 68.75 Events 7.5 tons $ 27.50 $ 206.25 Commons 30.0 tons $ 27.50 $ 825.00Total annual revenue $ 75,240 Each buyer gets a one time tax credit of: $ 3,600 Each buyer gets a DTE credit of: TBDSystem Owner: Gross invest cost (less reduced construction cost) $ 813,369 Connection fee per owner $ 1,900 First year connection fees $ 174,800 Net investment cost $ 638,569 Annual gross revenue, yr one $ 75,240 Annual maintenance cost $ 11,286 Net first year revenue $ 63,954 Add Tax ded, energy tax credits, etc
  • 17. XXXX Corporate Center - GeoUtility System Ten Year Pro FormaRevenue Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 10 Yr TotGross $ 75,240 $ 76,745 $ 78,280 $ 79,845 $ 81,442 $ 83,071 $ 84,732 $ 86,427 $ 88,156 $ 89,919Maint $ 11,286 $ 11,512 $ 11,742 $ 11,977 $ 12,216 $ 12,461 $ 12,710 $ 12,964 $ 13,223 $ 13,488Net $ 63,954 $ 65,233 $ 66,538 $ 67,868 $ 69,226 $ 70,610 $ 72,023 $ 73,463 $ 74,932 $ 76,431 $700,278Cummulative $ 63,954 $129,187 $195,725 $263,593 $332,819 $403,430 $475,452 $548,915 $623,848 $700,278 Rate inflation 2.00% Annual depreciation assuming 20 year straight line $ 40,668 Tax credit estimated at 10%, first year only $ 81,337 If apts, much higher Each condo buyer receives approx tax credit of $ 4,000
  • 18. Why ? ?• Supports grants and incentives• The GeoUtility becomes a separate revenue center• The facility is a green energy complex• LEED points if desired• Lower purchase cost for buyers or tenants• Lower utility bills• Very low maintenance costs
  • 19. Michigan Business andIndustriesIncredibly, Michigan is poised to be America’s foremostTechnology provider: Geothermal Innovations – Jim Hardin; jhardin@geoii.com – Lilli Hardin; lhardin@geoii.comGeo Net Zero for training and installation certification – lawrence@geonetzero.comUS Farathane heat exchange material development andmanufacture in partnership with Geo InnovationsJaanTechnologies, automated installation equipment. – sbaird@jaantek.com
  • 20. GEOTHERMAL ACCREDITED INSTALLER TRAINING & APPRENTICESHIP PROGRAM• New level of reliable installations• International Ground Source Heat Pump (IGSHPA) -Accredited Installer -HDPE Fusion Hands-On Procedures -IGSHPA Membership -Required for many public projects• DOL Apprenticeship Program (Pending in Washington, DC Office) -Michigan ? ? -Gii4 Heat Exchanger exclusive training -Potential Employer Benefits using Apprentices
  • 21. Manufacturing • Made in the USA • Material: PE-100 (HDPE) • Manufactured: 20- foot lengths • End Cap and Header • Assembly joined using traditional heat fusion process (IGSHPA and ASTM standards)
  • 22. Happenings• In the NE USA a 650 unit complex using a central geo field• In Ohio the second large Citywide GeoUtilityTM is moving forward• In MI a 17 story residential system with GeoUtilityTM is progressing• In MI the largest ever geo system is in fast track analysis stage• In Ohio a University is looking at a campus wide GeoUtilityTM• In the NE USA a 3000 unit complex is now in review stage
  • 23. Strategic Energy Solutions Presents: Kevin Bouchey, CGD, LEED AP Proven Track Record: At Strategic Energy Solutions, we have two of only nine Certified Geothermal Designers (CGDs) in the State of Michigan. We have been designing & implementing geoexchange HVAC systems since 1998, and have successfully completed numerous projects. • Designed 52 Projects • Installed 34 Projects • Performed 45 Feasibility Studies
  • 24. The Economics of Good Design • Payback is in the hands of the engineer • Very competitive first cost • Minimize annual operating costs • Fees paid to qualified engineers and consultants can easily pay for themselves in reduced construction cost and operating costs
  • 25. Geothermal Economics – Simple PaybackExample Project: 60,000 Sq. Ft. Commercial Office Space• Premium Cost GHX = $6.00/SF• Energy Savings = $0.60/SF/YearPayback:• 10 Years Energy Savings Only• 6.2 Years 10% Federal Tax Credit• 5.8 Years EPAct Tax Deduction @ $0.60/SF (up to $1.80/SF)• 1-3 Years 5-Year MACRS Depreciation
  • 26. Thank You If you have any questions or comments, please feel free to contact Kevin at: KBouchey@sesnet.com 248-399-1900 x211
  • 27. Next Michigan Energy Forum: Energy Policy April 4, 2013 © Ann Arbor SPARK

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