AEG Geo Utility

8/3/2019 AEG Geo Utility

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Advanced Energy GroupAdvanced Energy GroupGeo Utility Presentation

Hardin Geothermal 2010 AEG 2010

AEG: An Integrated SolutionAEG: An Integrated Solution

New CenturyCareer Center


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Team BackgroundTeam Background

Advanced Energy Group (AEG):

Geo thermal/solar thermal assessment, engineering , design Experience in working with municipal/county processes Array of other renewable energy alternatives available Wide array of public/private financing options

Management/Reporting for Grants, Tax Credits & other Subsidies Training/workforce development capabilities Communications, evaluation, reporting abilities


Adaptive Renewable Energy SolutionsAdaptive Renewable Energy Solutions

Goal: Reduce current energy use before adding new energy sources

Ground source Geothermal is the foundation Supplemented by other solutions as called for (Weatherization, LED lighting)

Solar thermal (almost always a good companion to Geothermal) Other desired energy solutions then need to provide far less power

Photovoltaic solar Wind energy

Alternative Fuel Generators and/or Fuel Cells to take key buildings Off Grid, in emergencies, or when otherwise necessary

Highest overall performance, efficiency Energy efficiency rating of 500% 600% (EPA), compared to most efficient

conventional heating and cooling


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Hardin Geothermal 2010

WhatWhat WeWe Do!Do!We cool and heat as plants do it, by putting roots down into the earth

Solar Energy stored in the earths mantle, creates a near constant 51 temperature. Using a closed loop system, heat exchangers (piping) bring up 51 water from the earth. Using Heat Pumps, 51 water is much less costly for producing summer AC than 70100air.

And is also less costly to use as the base for winter Heat than 10 50 air.Once used, the earth loop returns the water to be recharged again at 51.

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HardinHardin SpecializesSpecializes In In TurnTurn Key DesignKey DesignWells Can Add To Capacity Lakes Can Store Cold Or Heat

Vertical System Horizontal (Lake System)

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GeothermalGeothermal vs. vs. ConventionalConventional

Geothermal Conventional(Underground) (Usable Square Footage)

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WhatWhat isis No Longer No Longer NeededNeeded

CONVENTIONAL MECHANICAL SYSTEMS

Cooling Towers

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Imagine How Much Can Be Imagine How Much Can Be SavedSaved In In CostCost AND SPACEAND SPACE

Also Not Needed :

CONVENTIONAL MECHANICAL SYSTEMS

Boiler Plant Chiller Plant

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Boreholes are drilled to create the well field

Drilling Drilling


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Installation Process and How it All Works

The InstallationThe Installation


Cost EfficiencyCost Efficiency

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2008 Oakridge National Lab Report for DOE2008 Oakridge National Lab Report for DOE

Given the need to rein in our nations energy consumption and carbon emissions, while at the same time stimulating our economy out of its most serious downturn since the Great Depression, the author recommends that federal policymakers seriously consider aggressively deploying Geothermal Heat Pumps nationwide, with

programs commencing as soon as possible.

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33 Significant Benefits with AEG and HardinSignificant Benefits with AEG and Hardin

1. Concentration on District wide GeoUtility systems: Harnesses tremendous economies of scale,

Creates jobs and community wealth,

Makes financing against future energy savings possible on a much broader scale, with lower interest

2. Hardins patented geothermal technology developments that reduce drilling costs (and time) by 4560% With other patented energy/cost saving technologies as well.

3. Hardin has many more years of district wide experience than others; started with college campus wide systems

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1.1. GeoGeo Thermal Utilities & DistrictThermal Utilities & District wide Systems:wide Systems:

A Sample

District

Geothermal

SystemA

Sample

District

Geothermal

System

This is the district-wide geothermalinstallation at Ball State University, the

largest US Geothermal installation.The geo-fields and bore holes neednot be near the buildings being served.


Solar Thermal Aids Geothermal for Solar Thermal Aids Geothermal for District HeatingDistrict Heating


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*Grey Represents Grout; the Light Blue is the Water in the Heat Exchange piping.*The thinner the annular grout space, the more efficient heat transfer

Cuts the Cost of Drilling and Installing the Geothermal field 4560%

Conventional UBend Pipe Hardin BiSec Heat Exchanger

2.2. The Biggest Hardin Technology DifferenceThe Biggest Hardin Technology DifferenceThe The BiSecBiSec 3.2 Heat Exchanger3.2 Heat Exchanger


Borehole Thermal Resistance of Different Heat Exchanger Designs Borehole Thermal Resistance of Different Heat Exchanger Designs


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The Hardin The Hardin BiSecBiSec AdvantageAdvantage

Fewer Bores, Smaller Footprint, Lower Cost


New HRX (New HRX (TriSecTriSec ) 4.5) 4.5 Heat ExchangerHeat Exchanger

Scientifically designed by Hardin and Univ. of Tennessee, the new HRX has several advantages over the BiSec.

Water held underground longer, more completely exchanges heat with the earth.

Kidney shaped lobes create even more circumference for heat exchange.

Unit is simply wider than the BiSec, allowing fewer feet of Exchanger to serve

the project.

Result: the size of the geo field is reduced

by at least 60% over UBend.

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Additional Hardin Technological AdvantagesAdditional Hardin Technological Advantages

Water Plus can use a citys domestic water supply to aid the geothermal field, with far less cost.

Hardin can use local water features (lakes, rivers) to even further reduce the cost of geothermal fields.

Hardin is now patenting new developments in Heat Exchangers, Drilling and Installation Technologies.

Local Heat Exchanger manufacturing saves transportation costs, nearly all others are manufactured in China.

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3.3. Hardin Geothermal InstallationsHardin Geothermal Installations

Crosswinds Community Detroit, MI

LaFontaine Cadillac /BPG Highland, MI

Crossroads of Michigan Detroit, MI

A3C Office Building Ann Arbor, MI

Wayne State University Detroit, MI

Lawrence Inst. of Tech. Southfield, MI

St. Josephs Hospital Superior Twp, MI

Murray State College Tishomingo, OK Laurel Island Township Laurel Island, GA

St. Marys Medical Center New York, NY

Eisenhower Medical Center El Centro, CA

Golden Gate Casino Las Vegas, NV


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The new Student Services

building demonstratesgeothermal at work. (88) 300 FT bores No boiler, furnace

or gas meter

Signage describes and

windows show the system

as designed and at work. Beginning a campus wide

geothermal system.

Local Case Study #1:Local Case Study #1:Lawrence Technological UniversityLawrence Technological University

Photo Credit: LTU

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Former building was 30,000 sq. ft. & heating/cooling $20,000 per month using traditional HVAC.

New building size is 62,000 sq. ft. This includes service bay areas, which have doors that are opening and closing continually.

Current bill: between $3,000 &

$5,000/month.

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*Savings of $180,000 to $ 204,000 per year*

Local Case Study #2:Local Case Study #2:LaFontaineLaFontaine Dealership, Highland, MIDealership, Highland, MI


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Most advanced multi use facility of its kind in US 90,400 SF ROI under 3 years Provides heating &

cooling with same equipment

42 bores, 300 feet deep under the arena space was a critical issue

Geothermal created enough extra room for womans soccer UT now planning campus wide (3 campus) system

Local Case Study #3: University of ToledoLocal Case Study #3: University of ToledoIndoor Practice FacilityIndoor Practice Facility

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What Is A GeoWhat Is A Geo Utility?Utility?

A city can levy utility payments from its residences or businesses It forms a utility district using geo thermal/solar thermal

Along with other alternative energy add ons

Other entities that can guarantee bill payment school system, condo complex, university or county campuses etc. can do the same

City (or other entity) signs a Letter of Intent (LOI); enters into a

Power Purchase Agreement (PPA) guaranteeing financing is paid out of energy savings Lays out the workings of this geo utility

Financing pays for complete installation AGAINST FUTURE ENERGY SAVINGS

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Savings Pay Back GeoSavings Pay Back Geo Utility FinancingUtility Financing

Residents and businesses get a 6070% reduced bill from their regular utility company, and a bill from the Geoutility covering the finance charges for: Installing the overall geothermal infrastructure

Individual hook ups for homes, businesses or other buildings

Operating fees (a small development fee can be added)

With the geo utility bill, a consumers combined saving may only be 2030%; 5060% when financing is paid off

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How the GeoHow the Geo Utility WorksUtility Works

The Geoutility provides service, maintenance, billing, etc. Individual cities/entities may want to play greater or lesser role.

All or part of geo system installation cost can be financed. Including the geo field infrastructure and home/building installation.

The home owner claims the 30% tax credit now. The business owner claims a 1030% tax credit now. Geo utility claims a 1030% tax credit for the infrastructure

portion of project (55%). This can be sold in advance to help reduce initial financing need.

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New Property Taxes/New Community WealthNew Property Taxes/New Community Wealth

Using Wyandottes $20 Million Phase 1 Project as the example $9 Million is the cost of home and building hook up $11 Million is the cost of the geo thermal field and pumps The Geo Field is a utility plant:

Its underground, using public rights of way And spread out around the city

But it is still a utility plant producing energy from solar energy trapped in the earth

This private plant (in Wyandotte), with a value of $11 Million, will

pay property

taxes

of

$450,000

per

year The final $200 Million citywide system will pay $4.5 Million/Yr.

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GeoThermalGeoThermal & Geo& Geo Utility BenefitsUtility Benefits Natural gas use vastly reduced Electric power consumption advantages:

Total power consumption is reduced (especially in summer) Load factors more closely match what can be provided by renewable production

Far less equipment needed, no cooling towers or boilers Create more usable space in a building by eliminating current equipment

Equipment longevity can be 3x longer; often much longer Greatly reduces process water treatment use

60 70% reduction in utility use; 2030% reduction in cost Significant long term Property Tax improvement and growth; as

Property Tax Assessment grows with each installation Jobs! Jobs! Good jobs! (about 110 jobs for each $20 Million Installation)


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ACTIVELY INTERESTED MUNICIPALITIES/DISTRICTS/COUNTIES: Wyandotte LOI, signed, PPA going to City Council, now Southfield LOI, signed Clinton Twp LOI, PPA being negotiated Pontiac LOI signed Highland Park LOI Signed Ann Arbor LOI, PPA being negotiated Toledo/Lucas County (OH) LOI Signed, Port Authority planning project Sandusky (OH) LOI Signed, PPA in progress Saginaw LOI Signed, NonProfit Development

Woodhaven Schools Contracted

Meeting with Detroit City Council Green Task Force on 14 planned projects. With Detroit Public Schools on new construction and renovation. With Mt. Clements, Harrison Twp, Warren, Farmington, Royal Oak, Ferndale,

Novi and Dearborn; and Oakland and Lucas Counties for county campuses.

Current & Planned GeoCurrent & Planned Geo Utility DistrictsUtility Districts

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ToledoToledo Lucas County Port Authority Receives Lucas County Port Authority Receives $15 Million DOE Grant for Energy Retrofits$15 Million DOE Grant for Energy Retrofits

Neighborhood Funding Resources assisted the TLC PA in planning for and obtaining a $15 million grant from the DOE.

It will be used within its Northwest Ohio Bond Fund to: Leverage over $60 Million in project financing. Along with other matching funds and financing allow it & Toledo to

establish an Advanced Energy Utility District (AEU) within the City of Toledo to implement $200 Million in widescale use of energy efficiency, alternative energy practices and solutions in residential, commercial, governmental and industrial facilities.

Almost 2/3rds of this will be for a District wide Geothermal program.

The AEU will begin within the City of Toledo and will be expanded to other cities and townships within Lucas County. Ultimately, will include all 28 counties that are part of the TPAs

financing jurisdiction in Northwest Ohio. Because of Toledos proximity to Michigan, the project is designed to

benefit businesses & citizens of both states. AEG


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A GeoA Geo Utility: Wyandotte (Phase 1): Creating Utility: Wyandotte (Phase 1): Creating Community Wealth in a New Financial EraCommunity Wealth in a New Financial Era

$20 Million Phase 1 Includes: 220 Unit new Condo Complex Historic Building (Museum) District City Recreation Center & Ice Rinks High Rise Bank/Office Building Commercial Area/ Surrounding Homes 47 NSP3financed Home Rehabs $450,000 in new annual tax assessment 110 good jobs (60 entry level); training

local HVAC contractors, electricians,plumbers and drillers in geo installation

For Wyandottes Utility Co. it: Evens out summer/winter peaks, letting

it close its old, inefficient peak plants.

Phases 2, 3 and beyond (likely $200 Million over 15 years) will connect these 3 areas into onelarger district wide/city wide system ALL financed by future energy savings

With no capital outlay for the city or necessary use of its credit capacity


This is funded by school finances, but can be financed, against future energy savings. It includes:

High School Building (250K SF) Middle School Building (130K SF) Administrative Building (20K SF)

Total 500K SF system will cost $800K. Will be done over summer break. Will Save 70+% on Utility Bills If financed by a geo utility and Qualified

Energy Conservation (School) Bonds It can qualify for $80K in Tax Credits And up to $240K in DTE Incentives

Likely to be a model for a much larger central township wide geothermal system, set up with a geo utility and using financing against future energy savings.

School GeoSchool Geo Utility: Utility: Woodhaven School CampusWoodhaven School Campus


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LOI signed: $15 Million project

First targeted Loop, but payback too slow

Alternatives: City Hall, Police & Fire Depts. Library & District Court School Admin. Building Lighthouse Neighborhood: Unity Park

Loop businesses can opt in, financed by expanded geo utility or privately

Benefits: Reduces City Utilities by 2030% now. Has a $1.5 Million Tax Credit to Sell Public/private geo utility profits from Loop

businesses that opt in. Increased property taxes on all private

buildings opting in.

A GeoA Geo Utility: PontiacUtility: Pontiac


City of Highland ParkCity of Highland Park

Letter of Intent (LOI) signed for $15 Million project. Area still being determined with HP DEVCO Financing not yet identified May begin with McGregor Library/ City Hall; can be

financed by Recovery Zone or Qualified Energy Conservation Bonds

Include 2 commercial districts and 3 neighborhoods Initial Phase 1 will create 75 Jobs (60% entry level) Will reduce utility use by 60%l utility bills by 2030%;

5060%

when

financing

is

paid

off Will add $300K in new property assessments

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Cobo Hall (with SDG) New Port Authority Terminal Kronk Village (Emman. Steward) Garden View Estates (HUD) East Village Historic District Whittier Apartment Complex Wurlitzer Building on Broadway Old Channel 56 bldg.

for Mosaic Youth Theatre Detroit Housing Commission Detroit Public Schools through RFP

Districts: Jefferson (Ren Cento CoboWashington St. (Coboto Grand Circus)

Broadway Ave.Southwest Solutions 20 Blocks

37

Detroit Projects Under DiscussionDetroit Projects Under Discussion


Financing SolutionsFinancing SolutionsPotential Use of Federal Recovery Zone Bonds:Economic Development Bonds can be used for public buildings; PNC Bank and tax staff working with AEG to assess possible Geoutility uses Facility Bonds can be used for public private partnerships for geo utilitiesPension Funds can be approachedCombination of options, if appropriate Oakland, Lucas counties; cities of Toledo;

Ann Arbor considering RZB useOther Options:Qualified Conservation Bonds Federal Tax Code 6320 FinancingDOE Loan GuaranteesPrivate FinancingLeasingAdvanced Tax Credit Sales EECBG Funds or Other State or Federal FundsBrownfield Tax Credits could apply to all installations in Core City


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New Century Career Center (NC3)New Century Career Center (NC3)

Geothermal Field Installation Construction Mechanical Equipment Maintenance From Digging to Crew Chief Drilling Teams/Install Geofields Ground Source Heat Exchanger Header Assembly Installation Manifold System Installation

Inspections & Assessments Residential Energy Efficiency

Installations Electrical and Plumbing Plenum and Ductwork On Demand Hot Water Systems Weatherization

Ground Source Heat Pumps

Radiant Heating Systems SolarThermal Installation Hybrid Solar/Wind System

Installation LED (alternative) lighting

Ongoing Metering New

Installations

Strategy Each initial $20 Million Project creates 110 new jobs 800 jobs will be created in Michigan, just with the work now in the planning stage. NC3 Program is based on creating pathways for individual career development, in the fields below.

Curriculum/Pathway Areas

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ADDITIONAL

CASE STUDIES

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Done by Hardin 22 years ago

During the coolest December on record the total heat bill for the building was $500

Operating costs for the well pump and heat exchanger pump are estimated at $1.50 per hour , as compared with $15 to $20 for a conventional system

Utility costs have been reduced by $272,700 a year

Tower 1: Geothermal / Tower 2: Not Geothermal

AEG 2010

Galt House East (Hotel) Louisville, KYGalt House East (Hotel) Louisville, KY


We chose a geo exchange system for its flexibility. Steve Leavitt, Director of Development . Medical facilities will change substantially over a lifetime and the nice thing about the geothermal heat pump system is the ability to just tie into the loop and add additional capacity where it is needed.

Engineers estimated the operating costs of $.25 per sq. ft. per year vs. conventional

cost of $.55.

Today they save 31% on energy costs vs. other similar sized facilities.

AEG 2010

Great River Medical CenterGreat River Medical Center


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Murray State CollegeMurray State College

Vertical bores were initially installed to support a library; combination of expansion and retrofit.

First installed as privately owned utility; expanded campus wide over time

Finally, the University used a bond to purchase and complete

expansion of the system.

Utility savings exceed 60% for heating and cooling.

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Campus wide Geo exchange System 88% CO2 emission reduction, or 2,959 Tons/yr, equivalent to taking 14,000 cars off the road over the next two decades.

$610,000 per year savings offsetting the total projects

capital cost in only 10 years.

University of British ColumbiaUniversity of British ColumbiaOkanaganOkanagan CampusCampus

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THANKTHANKYOUYOU

AEG 2010

For Further Information Contact:

Ann Arbor Office: Orion Office:1003 Broadway 4140 S. Lapeer Rd.Ann Arbor, MI 48105 Orion, MI 483597343270019 248 4754770Jim Moran: [email protected] Bill Sharp: [email protected]

Documents

AEG Geo Utility