Geothermal Heat Pumps

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• Geothermal Heat Pumps

A Proven Renewable Energy Technology
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While Earth travels through Space
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47 of the solar energy falling on our planet is
absorbed by the Earths surface
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maintaining a nearly constant temperature
throughout the year just below ground
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US Deep Ground Temperatures
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Geothermal Heat Pump Systems capture Solar
Energy stored in the Earth
to create the most energy-efficient,
environmentally clean, and cost-effective
space-conditioning system (according to U.S.
EPA 1993)
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Geothermal Heat Pump Basic Principles
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The Earth is the Source of Heat in Winter
Outdoor air design temperature -5F
72F
50F
A geothermal heat pump transfers underground
heat into the building to provide heating
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and an Efficient Place to Reject Heat in Summer
Outdoor air design temperature 95F
74F
50F
A geothermal heat pump transfers heat from the
building into the ground to provide cooling
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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
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Geothermal Heat Pump Efficiency
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 (COP of 4-6)
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Geothermal Heat Pumps Exchange Heat between Air
and Water
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1 Worth of Electricity to Operate the Compressor
and Fan Moves 4 Worth of Heat from the
Water Delivering 5 Worth of Heat into the
Air Heating Mode Shown
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Heat can be pumped uphill meaning delivered at
a higher temperature than the source
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Geothermal Heat PumpsHeat or Cool on Demand and
also Produce Hot Water
Operates on the Same Principle as a
Refrigerator Cooling Mode Shown
Hot water is produced whenever the unit is
operating
160F
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Heat Pumps Are All Around Us
Air conditioners and air-source heat pumps
transfer heat from inside houses to the air
outside
B
B
B
Refrigerators transfer heat from food into the
kitchen
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Geothermal Heat Pumps
Self-contained heating, cooling and hot water
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Residential Site Energy Conventional System
Over 70 of the energy consumed by a typical home
is used to meet thermal loads
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Residential Site Energy Geothermal Heat Pump
System
Total site energy consumption is cut in half
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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
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Geothermal Systems can be Classified
as Solar Geothermal Renewable Alternative Demand
-Side Conservation Energy-Efficiency Zero-Ozone
Depleting Environmentally Responsible
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Geothermal Heat Pump Installation Methods
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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
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Horizontal Closed-Loop A piping array is
installed in trenches cut 3 to 5 feet deep and
hundreds of feet in length
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Surface Water Closed-Loop A piping array is
submerged in a pond or lake at least 8 feet deep
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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
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Geothermal Heat Pumps Are a Scalable Technology
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Geothermal Heat Pumps
1300 Square Foot Habitat for Humanity Home
Widely used in Homes
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Habitat for Humanity Average of 16 Homes - Total
Site Energy Use in 2007
47 Site Energy Savings
50 Site Energy Savings
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Geothermal Heat Pumps
and in Commercial Buildings
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The Oklahoma State Capitol uses over 600
geothermal heat pumps
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Garrett Office Buildings Edmond, Oklahoma
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Garrett Office Buildings Annual Energy Use
2006-2007
47 Site Energy Savings
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Garrett Office Buildings Annual CO2 Emissions
2006-2007
28 Carbon Emissions Reduction
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Garrett Office Buildings Monthly Peak Demand
35 Peak Demand Reduction
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Government Perspective
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LEED BuildingsLeadership in Energy and
Environmental Design
The LEED green building rating systemis the
national benchmark for high performance green
buildings from theU.S. Green Building Council
(USGBC)
Geothermal systems can provide many of the
required points to achieve LEED certification
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Importance of Buildings Sector
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Why Geothermal?

• Energy Security
• Electric Grid Restructuring
• Clean Air Water
• Climate Change
• Economic Competitiveness

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Geothermal Resource Map
Geothermal Potential 3 kilometer depth (1.9
miles)
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Natural Gas Consumption


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Natural Gas Supply

• More or less steady decline in production in
  spite of very high drilling numbers mature gas
  fields are overtaxed
• Demand for natural gas in the U.S. has more than
  doubled over the past two decades, while supply
  has stagnated
• Current rig count is near an all-time high, but
  wells are being depleted at an ever-increasing
  rate
• Gaining access to public lands, where most of the
  promising gas fields are has become increasingly
  difficult

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Natural Gas Imports
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55 LNG Tankers are Now Under Construction 133
are Already Operating
Minus 125o Celsius
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Natural Gas
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Natural Gas
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World Energy Resources
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Geothermal Heat Pump Market Perspective
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Geothermal Heat Pump Historical ARI GHP Shipments
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Geothermal Heat Pump Geographic Shipment
Distribution - 2006
281
83
247
21
264
318
439
246
372
372
533
3087
440
1
2207
87
140
2286
2200
199
1299
2701
548
2722
549
2937
175
550
346
271
396
2603
2191
2872
1386
603
998
240
1231
19
470
414
170
555
85
1149
256
0
1389
1
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Geothermal Heat PumpShipment Estimates by Market
Segment - 2006

• Single Family Residential - 63 of Total
• New Homes 75
• Existing Homes 25
• Commercial 37 of Total
• Schools and Universities
• Public and Government Buildings
• Religious Buildings
• Multi-family Housing
• Office Buildings
• Retail

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Geothermal Heat PumpCurrent Incentives

• 12 States have Existing Incentives
• Most are very new
• Sales tax, property tax, income tax, grants
• Federal Incentives
• No significant tax incentives since 1981
• Utility Incentives
• Disappeared with deregulation in mid 90s
• Making a comeback now

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Geothermal Heat PumpFederal Legislation Status

• HR 2990
• Sponsors are Doggett (TX) and Gordon (TN)
• 30 of system cost homeowner credit - 2000 cap
• 10 of system cost business credit no cap
• Over 30 cosponsors and growing
• S. 2314
• Sponsor is Salazar (CO)
• Mirrors HR 2290 adds accelerated depreciation
• 8 cosponsors and growing
• HR 5351
• Renewable Energy and Energy Conservation Tax Act
  of 2008
• Contains residential GHP tax credit from HR 2990
• Passed in House
• Pending in Senate

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Geothermal Heat PumpLegislative Talking Points

• This is NOT geothermal steam power generation
• Lots of confusion on this point on the Hill
• 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
• Cant 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

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Geothermal Heat PumpMajor Market Barriers

• Awareness
• First Cost Premium
• Infrastructure Development
• No Builder / Developer Incentive to Save Energy

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The payback on Geothermal Systems is many times
faster than solar PV
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Our Planet Is Under Assault From Many Forces
Our Planet is under Assault from many Forces
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There Are Many Solutions
There are Many Solutions
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Geothermal Heat Pumps are one of the Most
Effective and Deployable
producing the lowest carbon dioxide emissions,
including all source effects, of all available
space-conditioning technologies(EPA, 1993)
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Using a Single Geothermal Heat Pump is
Equivalent to Planting an Acre of Trees
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Since their introduction in the 1980s, nearly 1
million Geothermal Heat Pumps have been
installed in the United States
This is the equivalent to planting 1 million
acres of trees, and of taking Two Million cars
off the road
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Using A Single Geothermal Heat Pump Is
Equivalent to Taking Two Cars off the Road
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Thank You!
John Dibble
P.O. Box 1613 Sandpoint, Idaho 83864 Ph.
208-255-7660 Fax [phone] John_dibble_at_msn.com
www.geothermalsupplynw.com
ClimateMaster, Inc.7300 S.W. 44th St.Oklahoma
City, OK 73179 A subsidiary of LSB Industries,
Inc.AMEX symbol LXU www.climatemaster.com