Geothermal Energy for Ponca City  Speaker's Bureau What We & You Can Do Now Ponca City Development Authority
What is Geothermal Energy?
A Renewable Resource
<ul><ul><li>An Unlimited Energy Source from the Earth: </li></ul></ul>Small Yard Space =  Large Heat Source Lots of Energy...
Source of Geothermal Energy:
… one method for capturing geothermal energy is through the use of  Geothermal Heat Pumps…
Geothermal Heat Pumps…
<ul><li>  … transfer this stored energy & use temperature differences above & below the earth’s surface to heat & cool bui...
Geothermal Heat Pumps are one of the Most Effective & Deployable Methods of Energy Transfer According to the EPA (1993), g...
Heat Pumps Are All Around Us… Air conditioners & air-source heat pumps transfer heat from inside houses to the air outside...
Basic Geothermal Operation:
… using Heat Pump Technology A geothermal heat pump circulates water through a sealed underground piping loop where it is ...
The Earth is the Source of Heat in Winter… Outdoor air  design temperature: -5°F 72°F 60°F A geothermal heat pump transfer...
… and an Efficient Place to Reject or Store Heat in Summer… Outdoor air  design temperature: 95°F 75°F 60°F A geothermal h...
Geothermal Energy & Heat Pumps:   <ul><li>History </li></ul><ul><ul><li>Rapid growth in 80’s & early 90’s </li></ul></ul><...
Geothermal Heat Pump  Historical ARI GSHP Shipments 1983 - 2007 50,000 25,000 0 1983  2007 3 2 2004
Market Growth Drivers: <ul><li>High Cost of Energy </li></ul><ul><ul><li>Fuel switching (propane to electric) </li></ul></...
Consumer Concerns: <ul><li>Rising fossil fuel costs </li></ul><ul><ul><li>Environmental concerns </li></ul></ul><ul><ul><l...
Geothermal Heat Pumps Major Market Barriers: <ul><li>Lack of Awareness – both consumers & institutions </li></ul><ul><li>P...
Major GHP Improvements: <ul><li>No defrost cycle with GHP making system more dependable & energy efficient </li></ul><ul><...
Energy Issues:
Geothermal Heat Pump Industry Opportunity: Significantly Lower U.S. Energy Demand
“ Built Environment” HVAC: = 70% of all electric energy consumed Idaho Energy National Lab  Residential + Commercial + Ins...
Residential Energy Usage: <ul><li>Heating & air conditioning </li></ul><ul><li>Lighting </li></ul><ul><li>Domestic hot wat...
HVAC Energy Use Comparisons Reduces energy consumption by 50%: Conventional HVAC - Home Geothermal HVAC - Home
Geothermal Heat Pump Efficiency: 1 unit of energy  from the grid Plus: 3-5 units of  “free” energy from the earth Yields: ...
Geothermal System Components:   <ul><li>Heat Pump </li></ul><ul><li>Ground Loop </li></ul><ul><ul><li>Deep (150’-250’) Ver...
Total Geothermal System:
Incentives
http://www.dsireusa.org/Index.cfm?RE=1&EE=1
Geothermal Heat Pump Residential Tax Incentives: <ul><li>Federal Income Tax Credit: </li></ul><ul><ul><li>30% of total GHP...
Geothermal Heat Pump Business Tax Incentives: <ul><li>Federal Income Tax Credit: </li></ul><ul><ul><li>10% of total GHP sy...
Geothermal Heat Pump Other Stimulus Incentives: <ul><li>Small Business: </li></ul><ul><ul><li>$250,000 in Section 179 expe...
Value of Residential  Incentives in Ponca City: Element $/ton capacity Ground Source Heat Pump Installation ~$6,000 30% Fe...
Who Benefits? Win-Win for All Involved: <ul><li>You </li></ul><ul><ul><li>Through reduced monthly electricity cost,  ~50% ...
Items Requiring Consideration: <ul><li>Locating wells or loops </li></ul><ul><li>Location of existing utilities </li></ul>...
Geothermal Heat Pump  Take Aways: <ul><li>Most efficient way to heat & cool  </li></ul><ul><li>Classified as “renewable en...
What You Can Do Now? <ul><li>Obtain a design with “Manual J” load calculation & cost estimate: </li></ul><ul><ul><li>Stolh...
PCDA Geothermal Presentation
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PCDA Geothermal Presentation

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Innovative technology that can reduce your facility heating and cooling costs immensely. Though this slide show discusses residential application, it also can be extremely beneficial for manufacturing or commercial facilities.

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  • 4
  • 8 Everyone here has at least one heat pump in their home right now…the fridge. You cannot make cold, all you can do is remove heat. They take heat inside and near zero and pump it to heat exchange coils on bottom or in the back that are much warmer than the temperature inside it AC is also same technology
  • 8 We typically use a closed sealed piping loop to circulate water, or in cold climates a water/anti-freeze mixure, to extract heat from the earth We use heat pump technology to move the heat and elevate its temperature
  • 8 Why should we utilize high quality fossil fuels that are a mobile fuel capable of burning at thousands degree just to heat a building to a low temperature barely above that in the earth right below it? This is like making electrical wire out of silver instead of copper… it works great but is a waste of a precious resource Compare the earth temperature to the outside air temperature
  • 8 Compare outside air to earth temperature and note how much higher cooling efficiencies can be when you are not working to pump the heat to a hot place
  • 8 Growth of industry over years since we began keeping records. Drop in early 80s due to loss of the original tax credit that launched our industry. Estimated 20,000 jobs exist today in GHP because we had that tax incentive that birthed our industry. Without it, I doubt GHP would exist today, surely not at this scale Growth from mid 80s to mid 90s due to utility demand side management and energy efficiency program support of GHPs and Clinton/Gore funding of GHP market transformation program Utilities dropped demand side activities due to deregulation in mid 90s… energy was still cheap and we fell on hard times as an industry Post 911 and Katrina with gas cost spike, GHP sales have doubled in just a few years. BIG POINT: In 2007 one of every 70 new SF homes built in the US installed a GHP. There is no other renewable even close… and we have huge potential to get the other 69 of 70 still ahead of us
  • 8
  • PCDA Geothermal Presentation

    1. 1. Geothermal Energy for Ponca City Speaker's Bureau What We & You Can Do Now Ponca City Development Authority
    2. 2. What is Geothermal Energy?
    3. 3. A Renewable Resource
    4. 4. <ul><ul><li>An Unlimited Energy Source from the Earth: </li></ul></ul>Small Yard Space = Large Heat Source Lots of Energy Available 40 BTUs Per Cubic Foot 150 ft. or more 100 ft. 40 ft.
    5. 5. Source of Geothermal Energy:
    6. 6. … one method for capturing geothermal energy is through the use of Geothermal Heat Pumps…
    7. 7.
    8. 8. Geothermal Heat Pumps…
    9. 9. <ul><li> … transfer this stored energy & use temperature differences above & below the earth’s surface to heat & cool buildings… </li></ul>
    10. 10. Geothermal Heat Pumps are one of the Most Effective & Deployable Methods of Energy Transfer According to the EPA (1993), geothermal heat pumps produce the lowest CO 2 emissions, including all source effects, of all available space-conditioning technologies.
    11. 11. Heat Pumps Are All Around Us… Air conditioners & air-source heat pumps transfer heat from inside houses to the air outside Refrigerators transfer heat from food into the kitchen HEAT HEAT
    12. 12. Basic Geothermal Operation:
    13. 13. … using Heat Pump Technology A geothermal heat pump circulates water through a sealed underground piping loop where it is naturally warmed (or cooled) by the earth
    14. 14. The Earth is the Source of Heat in Winter… Outdoor air design temperature: -5°F 72°F 60°F A geothermal heat pump transfers underground heat into the building to provide heating
    15. 15. … and an Efficient Place to Reject or Store Heat in Summer… Outdoor air design temperature: 95°F 75°F 60°F A geothermal heat pump transfers heat from the building into the ground to provide cooling
    16. 16. Geothermal Energy & Heat Pumps: <ul><li>History </li></ul><ul><ul><li>Rapid growth in 80’s & early 90’s </li></ul></ul><ul><ul><ul><li>Energy costs declined </li></ul></ul></ul><ul><ul><ul><li>Utility de-regulation </li></ul></ul></ul><ul><li>Current </li></ul><ul><ul><li>Return to rapid growth </li></ul></ul><ul><ul><ul><li>Energy cost/availability issues </li></ul></ul></ul><ul><ul><ul><li>Environmental concerns </li></ul></ul></ul>
    17. 17. Geothermal Heat Pump Historical ARI GSHP Shipments 1983 - 2007 50,000 25,000 0 1983 2007 3 2 2004
    18. 18. Market Growth Drivers: <ul><li>High Cost of Energy </li></ul><ul><ul><li>Fuel switching (propane to electric) </li></ul></ul><ul><ul><li>50% increase in electric costs </li></ul></ul><ul><ul><li>Increased demand </li></ul></ul><ul><li>Environmental Concerns </li></ul><ul><ul><li>Global warming/climate change </li></ul></ul><ul><ul><li>Air quality </li></ul></ul><ul><ul><li>Limits on new generation </li></ul></ul>
    19. 19. Consumer Concerns: <ul><li>Rising fossil fuel costs </li></ul><ul><ul><li>Environmental concerns </li></ul></ul><ul><ul><li>Limited energy supplies </li></ul></ul><ul><ul><li>National security </li></ul></ul><ul><ul><li>(Both Fossil Fuel & Electric) </li></ul></ul>
    20. 20. Geothermal Heat Pumps Major Market Barriers: <ul><li>Lack of Awareness – both consumers & institutions </li></ul><ul><li>Perceived initial cost premium </li></ul><ul><li>Loop installation & infrastructure development </li></ul><ul><li>Retrofitting current systems </li></ul><ul><li>Perceived reliability issues </li></ul>
    21. 21. Major GHP Improvements: <ul><li>No defrost cycle with GHP making system more dependable & energy efficient </li></ul><ul><li>410a refrigerant provides warmer air temps during heating mode in the home </li></ul><ul><li>410a refrigerant transfers heat better than R22 keeping compressor cooler & lengthening equipment life </li></ul><ul><li>Quieter than conventional systems </li></ul>
    22. 22. Energy Issues:
    23. 23. Geothermal Heat Pump Industry Opportunity: Significantly Lower U.S. Energy Demand
    24. 24. “ Built Environment” HVAC: = 70% of all electric energy consumed Idaho Energy National Lab Residential + Commercial + Institutional
    25. 25. Residential Energy Usage: <ul><li>Heating & air conditioning </li></ul><ul><li>Lighting </li></ul><ul><li>Domestic hot water </li></ul>
    26. 26. HVAC Energy Use Comparisons Reduces energy consumption by 50%: Conventional HVAC - Home Geothermal HVAC - Home
    27. 27. Geothermal Heat Pump Efficiency: 1 unit of energy from the grid Plus: 3-5 units of “free” energy from the earth Yields: 4-6 units of energy for the building 400 - 600% Efficient
    28. 28. Geothermal System Components: <ul><li>Heat Pump </li></ul><ul><li>Ground Loop </li></ul><ul><ul><li>Deep (150’-250’) Vertical Loop or </li></ul></ul><ul><ul><li>Shallow (6’-8’ deep) Horizontal Loop </li></ul></ul><ul><li>Hot Water Heater </li></ul>
    29. 29. Total Geothermal System:
    30. 30. Incentives
    31. 31. http://www.dsireusa.org/Index.cfm?RE=1&EE=1
    32. 32. Geothermal Heat Pump Residential Tax Incentives: <ul><li>Federal Income Tax Credit: </li></ul><ul><ul><li>30% of total GHP system cost </li></ul></ul><ul><ul><li>Credit capped at $2000 for 2008 </li></ul></ul><ul><ul><li>Credit unlimited for 2009 thru 2016 </li></ul></ul><ul><ul><li>Can be used to offset AMT tax </li></ul></ul><ul><ul><li>Can be combined with solar & wind tax credits </li></ul></ul><ul><ul><li>Can be used in more than 1 year – carry forward </li></ul></ul><ul><li>Eligibility: </li></ul><ul><ul><li>Home must be located in U.S. </li></ul></ul><ul><ul><li>Includes houses, cooperatives, condos, mobile homes </li></ul></ul><ul><ul><li>Does not have to be main home </li></ul></ul><ul><ul><li>GHP must meet Energy Star requirements </li></ul></ul><ul><ul><li>Placed in service between 1/1/2008 & 12/31/2016 </li></ul></ul>
    33. 33. Geothermal Heat Pump Business Tax Incentives: <ul><li>Federal Income Tax Credit: </li></ul><ul><ul><li>10% of total GHP system cost </li></ul></ul><ul><ul><li>Credit not limited </li></ul></ul><ul><ul><li>Can be used to offset AMT tax </li></ul></ul><ul><ul><li>Can be used in combination with subsidized financing </li></ul></ul><ul><ul><li>Can be used in more than 1 year </li></ul></ul><ul><li>Accelerated Depreciation: </li></ul><ul><ul><li>5-yr MACR depreciation for entire GHP system </li></ul></ul><ul><ul><li>Eligible for bonus depreciation in 2009 (50% writeoff 1 st yr) </li></ul></ul><ul><li>Eligibility: </li></ul><ul><ul><li>Building located in U.S. </li></ul></ul><ul><ul><li>Original use begins with taxpayer </li></ul></ul><ul><ul><li>Does not have to be your main home </li></ul></ul><ul><ul><li>GHP must meet Energy Star requirements </li></ul></ul><ul><ul><li>Installed between 10/3/2008 & 12/31/2016 </li></ul></ul><ul><ul><li>Can be used by utilities </li></ul></ul>
    34. 34. Geothermal Heat Pump Other Stimulus Incentives: <ul><li>Small Business: </li></ul><ul><ul><li>$250,000 in Section 179 expensing for 2009 </li></ul></ul><ul><ul><li>5-yr NOL carry back for business under $15 million in sales </li></ul></ul><ul><li>Schools: </li></ul><ul><ul><li>$22 billion in tax-exempt construction bonds </li></ul></ul><ul><ul><li>$39.5 billion in additional funding to local school districts </li></ul></ul><ul><li>Energy: </li></ul><ul><ul><li>30% tax credit ($1500/yr cap) - home efficiency upgrades in 09-10 </li></ul></ul><ul><ul><li>$2,000 energy efficient home tax credit for builders </li></ul></ul><ul><ul><li>$1.80/ft 2 energy efficient commercial building tax credit </li></ul></ul><ul><ul><li>$6.3 billion - energy efficiency & conservation grants </li></ul></ul><ul><ul><li>$5.0 billion - weatherization assistance </li></ul></ul><ul><ul><li>$4.5 billion - upgrade Federal building energy efficiency </li></ul></ul><ul><ul><li>$6.5 billion - military bases to modernize & improve efficiency </li></ul></ul><ul><ul><li>$4.0 billion - improve public housing & upgrade efficiency </li></ul></ul>
    35. 35. Value of Residential Incentives in Ponca City: Element $/ton capacity Ground Source Heat Pump Installation ~$6,000 30% Federal Tax Credit ($1,800) PUCA/OMPA W.I.S.E. Rebate ($800) PCUA/OMPA OK Comfort Program ($1000) Climate Master Discount (5-10%) estimate ($300) Total Reductions $ % ($3900) 65% Your Cost $ % $2100 35% Typical Energy Bill Reduction 50%
    36. 36. Who Benefits? Win-Win for All Involved: <ul><li>You </li></ul><ul><ul><li>Through reduced monthly electricity cost, ~50% </li></ul></ul><ul><ul><li>3 – 5 year payback </li></ul></ul><ul><li>PCUA/OMPA </li></ul><ul><ul><li>Increased winter demand & improved load factor </li></ul></ul><ul><ul><li>Decreased expensive summer peak demand </li></ul></ul><ul><li>Better utilization of existing generation assets </li></ul><ul><li>Environment </li></ul><ul><ul><li>Reduced overall electricity demand </li></ul></ul><ul><ul><li>Reduced CO 2 /GHG emissions </li></ul></ul>
    37. 37. Items Requiring Consideration: <ul><li>Locating wells or loops </li></ul><ul><li>Location of existing utilities </li></ul><ul><li>Property boundaries </li></ul><ul><li>Utility setbacks or covenants </li></ul><ul><li>Service upgrade </li></ul><ul><li>Backup power </li></ul><ul><li>Water heating </li></ul>
    38. 38. Geothermal Heat Pump Take Aways: <ul><li>Most efficient way to heat & cool </li></ul><ul><li>Classified as “renewable energy resource” </li></ul><ul><li>Reduce electricity consumption & cost ~50% </li></ul><ul><li>Win-Win for all involved </li></ul><ul><li>Outstanding incentives available now </li></ul><ul><li>Reduced CO2/GHG emissions </li></ul><ul><li>Environmentally & economically friendly </li></ul><ul><li>Comfortable </li></ul>
    39. 39. What You Can Do Now? <ul><li>Obtain a design with “Manual J” load calculation & cost estimate: </li></ul><ul><ul><li>Stolhand </li></ul></ul><ul><ul><li>Ward’s </li></ul></ul><ul><ul><li>Hutchinson </li></ul></ul><ul><li>Submit rebate application to PC Energy </li></ul><ul><li>Investigate loan options: </li></ul><ul><ul><li>Local banks & CUs </li></ul></ul><ul><ul><li>ClimateMaster </li></ul></ul>

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