EnLink Geoenergy

January Newsletter

noreply@blogger.com (Emily) — Mon, 23 Jan 2012 16:26:00 +0000

Recent geothermal energy project may inspire more systems in downtown Ann Arbor

A College Campus Offers a Glimpse of a Geothermal Future

ACEEE Report: U.S. Better Off 'Thinking Big' About Energy Efficiency Instead of Focusing First on Development of New Energy Sources

TN launches grant, energy initiatives

Fort Benning earns high marks for energy efficiency

Glencoe's Central School could go geothermal

Eisenhower Hall renovation ramps up

Geothermal Heat Pump Systems in the Wine Industry

An EnLink Information Piece

EnLink Current Projects 2012

Announcements from EnLink

EnLink Trade Shows

Read all about it EnLink Geoenergy's January Newsletter.

Ball State University

noreply@blogger.com (Emily) — Tue, 10 Jan 2012 23:31:00 +0000

Inside Obama’s $4B energy efficiency plan

noreply@blogger.com (Emily) — Fri, 02 Dec 2011 19:48:00 +0000

As written by Kirsten Korosec and published on Smart Planet:

The Obama Administration — with help from former President Bill Clinton and a little used federal energy savings program — announced $4 billion in energy efficiency upgrades to government and private sector buildings over the next two years. The effort, known as the Better Buildings Challenge, aims to create jobs and improve energy performance at least 20 percent by 2020 across 1.6 billion square feet of commercial industrial space.

And it’s all been accomplished — or hopes to be — without asking Congress for money.

Where the money will come from

The investment includes a $2 billion commitment made via presidential memorandum to upgrade federal buildings using a little used program known as Energy Savings Performance Contracts. The program pays the contractors who undertake the work with realized energy savings. In other words, the building upgrades are financed using long-term energy savings to pay for up-front costs — and at no cost to taxpayers.

The other half is dependent on the private sector and local government. Sixty major companies, universities, labor unions, hospitals, cities and states have committed to invest an additional $2 billion in private capital into energy efficiency projects. The announcement builds on a previous commitment made by 14 private and local government partners at the Clinton Global Initiative America meeting in June to finance $500 million in energy efficiency projects.

Metrus Energy, a California-based startup, was among that inaugural group and announced Friday it has upped its commitment in energy efficiency projects to $75 million. The company is one of several startups that have sprung up in recent years in the burgeoning energy retrofit financing market. Metrus Energy has developed an efficiency services agreement, which is modeled after the power purchase agreements used to help finance large-scale renewable energy projects.

A number of manufacturers including Alcoa, Briggs and Stratton, Cummins Inc., Legrand and Nissan as well as retailers such as Best Buy, Kohl’s Department Stores and Walgreens have committed to energy retrofits. In all, some 300 manufacturing plants will be upgraded. The total commercial industrial space that is expected to be retrofitted equals more than 500 Empire State buildings, Obama said in a speech this morning.

The Better Buildings Challenge is essentially an offshoot of the Better Buildings Initiative, a plan launched by Obama in Febraury 2011 that aims to improve energy efficiency in commercial buildings 20 percent by 2020 through legislation, private investment and action by the administration. Since Congress has failed to act on many of the proposals within the initiative, the Obama Administration moved forward on the private-public partnership component and tapped Clinton to recruit businesses.

Clinton’s involvement isn’t surprising. The former president has long pushed for investment in energy efficiency upgrades, calling it “not sexy,” but important low-hanging fruit that will create jobs, reduce costs and save energy.

Independent estimates including one from the University of Massachusetts Amherst have said the broader Better Buildings Initiative has the potential to create up to 114,000 jobs. That is, if Congress were to approve the numerous legislative proposals. It isn’t clear how many jobs could be created under the $4 billion building challenge program. Gene Sperling, director of the National Economic Council, said in a conference call Thursday that according to U.S. Chamber of Commerce estimates, the $2 billion federal piece could add some 35,000 jobs.

A Brighter Future for Geothermal Heat Pumps

noreply@blogger.com (EnLink Geoenergy) — Tue, 01 Nov 2011 19:17:00 +0000

From Canaccord Genuity's "The Green Scene" Daily Letter published Oct. 31, 2011:

"Last week we listened to an informative webinar on GHPs hosted by the Association for Renewable Energy (ACORE). According to its mission statement, ACORE “is an organization of member companies and institutions that are dedicated to moving renewable energy into the mainstream of America’s economy, ensuring the success of the renewable energy industry while helping to build a sustainable and independent energy future for the nation.” Here are our thoughts on GHPs and some highlights from the Oct. 26 ACORE webinar entitled “Building Energy Efficiency and Geothermal Heat Pump Systems”:

• Getting to know geothermal heat pump systems heat pump systems. Ask a random person to give an example of a “green” or renewable energy source, and he (or she) will probably say solar or wind power, or maybe even biofuels. It’s highly unlikely you’ll hear “geothermal heat pump systems,” which is disappointing because GHPs are among the most energy- and cost efficient heating and cooling systems available. (Note: GHPs are not the same as geothermal energy (“geysers”) which are used by some utilities to generate electricity.)

Since the earth retains approximately 50% of all solar energy, the temperature as little as five feet below ground remains relatively unchanged throughout the year. Through the use of GHPs, that energy source can be tapped indefinitely to provide year-round heating, cooling and hot water. GHPs consist of sealed underground (or underwater) copper or plastic piping loops and the geothermal heat pump, which together function as a heat-exchange system. In the winter, the piping loops absorb heat from the earth and carries it to the GHP. The pump then compresses the air to a higher temperature and distributes the heated air throughout the home or building. In the summer, GHPs pull heat from the building and discharge it back into the ground. The key takeaway here is that GHPs function by moving or transferring heat, unlike traditional HVAC systems that utilize fossil fuels to create heat.

• GHPs are highly efficient and can dramatically reduce energy consumption. The US environmental Protection Agency has stated that GHPs can reduce energy consumption up to 72% compared to conventional HVAC systems. The US Dept. of Energy has said GHPs can cut HVAC energy demand by 50% and overall energy demand by 35%. Besides these compelling benefits, GHPs reduce peak energy demand, are demand-side renewable energy sources, can work with any energy plan (solar, wind or conventional), and don’t rely on weather (i.e., sunlight or wind power) to work. In addition, GHPs can provide potable hot water, produce no emissions on site, and are low-maintenance systems because they’re not exposed to the elements.

• Green building industry increasingly turning to GHPs. Over the past two years, four of the top ten buildings earning green project awards from AIA/COTE (Committee on the Environment) have utilized geothermal heating and cooling, according to Mark Mizrahi of Enlink Geoenergy Services, who was an ACORE webinar presenter. In addition, Mr. Mizrahi noted that four of the eight listed case studies on the Dept. of Energy Zero Energy Buildings Datable utilize GHP systems. Finally, GHP systems have been traditionally employed in the US by government and public institutions, especially the military, schools and other public buildings (many of which are LEED certified). The growing popularity of GHPs in green buildings reflects the fact that GHPs efficiently and cost-effectively address the single biggest source of energy consumption in buildings: traditional HVAC systems, which account for approximately 50% of a typical building’s energy consumption.

• GHPs are are an ideal solution to meet net zero energy gover an ideal solution to meet net zero energy government mandates. Given the many advantages of GHPs, they are likely to gain much more significant market share, in our view, as some recent government mandates require newly constructed buildings to be zero net energy. For example, President Obama’s Executive Order 13514 (authorized Oct. 2009) requires all new federal government buildings to be net zero energy by 2030. Meanwhile, California’s Zero Net Energy Action Plan mandates all new residential construction in the state to be zero net energy by 2020 and all new commercial construction by 2030. Finally, as we often note in these pages, the green building market in general continues to gain momentum, which should drive increased use of GHPs in both new construction and energy-efficient retrofits.

• A widespread market opportunity for GHPs. While GHPs have traditionally been used in government and public institutions, “the private sector is beginning to embrace GHP technology,” according to Mr. Mizrahi. For example, retail, commercial and lodging establishments are increasingly looking to GHPs as a highly efficient and cost-effective heating/cooling solution. Interestingly, GHPs are even seeing interest by operators of industrial facilities, particularly in buildings which need to dissipate large amounts of heat and/or need to reduce their costs of generating hot water. Webinar presenters emphasized that GHPs are practical for almost any type of facility, but may be especially well-suited to industrial facilities where they have very little market penetration currently.

• A wealth of incentives for GHPs exist in the US. There are numerous federal, state and local incentives for buying and installing GHP systems. Mr. Mizrahi of Enlink Geoenergy Services noted that “incentives alone could result in a 1-2 year payback. Among the federal incentives are a 10% investment tax credit, depreciation deduction (with a first-year bonus 100% depreciation), and $0.30-$1.80 per square foot tax deduction. State incentives include rebates through utilities, “which can be applied to equipment or peak kWh saved, energy savings grants, sales tax exemption, and others.”

Concluding thoughts

The future for GHP systems is very positive, in our view, as we continue to believe geothermal represents the most compelling technology to efficiently and cost-effectively reduce energy usage in buildings. As a time-tested and proven renewable energy technology, GHPs can work effectively almost anywhere in the world. Although there is a higher upfront cost to installing GHPs compared to traditional HVAC systems, the payback period can be as short as two years but normally ranges from about three to 12 years. In addition, residential GHP systems can create positive cash flow from year one, making them especially appealing to homeowners looking to reduce their home heating and A/C costs.

As government-mandated net zero energy buildings start to proliferate, one of the key beneficiaries will be the GHP market share leaders, in our view. Two of these companies, both of which are included in our Green Building Index, are LSB Industries (LXU : NYSE : 4 $37.75 | HOLD) and WaterFurnace Renewable Energy (WFI : TSX : $19.31 | BUY, followed by our Sustainability colleague Sara Elford)."

Asia Society Texas Center

noreply@blogger.com (EnLink Geoenergy) — Thu, 29 Sep 2011 16:09:00 +0000

EnLink Geoenergy recently completed work on a geothermal heating and cooling system for the Asia Society Texas Center (formally called the Asia House Museum). The Center was designed by Yoshio Taniguchi, an acclaimed Japanese architect who also designed the MoMA.

The building is set to open in 2012.

EnLink at the forefront of geothermal technology

noreply@blogger.com (Emily) — Fri, 16 Sep 2011 17:01:00 +0000

The following appeared in The Arizonan August 2011 issue:

"As America shifts its thinking about energy use toward sustainability, geothermal heat exchange technology may not yet be on many people's radar screens. Bur that's changing, thanks to advances in technology, financing opportunities, and the expertise to get it done.

One such outfit with just that expertise is EnLink Geoenergy. a rapidly growing company that specializes as a full service, turnkey design-build geothermal contractor. EnLink has been in the geothermal heat exchange--also known as ground source heat pump technology--arena for 15 years, and boasts successful projects all over the United States, including schools, government buildings. military installations, prisons and commercial applications.

EnLink specializes in what it calls "GeoExchange Systems," based on using energy in the ground to heat and cool a building. According to the U.S. Department of Energy. using geothermal heat pumps instead of traditional ones can cut HVAC energy demand by 50% and overall energy demand by 35%. The beauty of the geothermal heat exchange systems is that they rely on the constant temperature of the earth just a few feet below the surface. Whether you are in Nome, Alaska, or Phoenix, Arizona, the earth's temperature remains constant and thus provides a source of year-round heating and cooling, 24-hours per day, seven days a week.

The systems are built with two simple components: an earth heat exchanger and the geothermal heat pumps. The earth heat exchanger is buried underground in a bore field between 200 and 500 feet deep located outside the building, and acts like a car's radiator. The heat pumps are located inside and transfer hear in the building to the ground in the summer and vice versa in the winter.

EnLink Senior Vice President for Business Development Mark Haarer said the beauty of the system is its simplicity and flexibility. We eliminate people's need for chillers and boilers, which frees up additional space, uses no water or natural gas, and gives you a better indoor air quality at the same time," Haarer said. "Not to mention the tremendous energy cost savings you see.

In recent years, EnLink has taken on a variety of projects that call for unique design systems and project development. With 13 patents related to drilling, casing, loops and metering, EnLink hasn't found a project yet it couldn't take on.

To start a project, EnLink first does a feasibility analysis on the geology and size of the system to evaluate whether a project is economically suitable for geothermal heating and cooling. If it is, the team provides technical assistance to the professional design community and works closely with engineers in system development. The EnLink systems also can complement other renewable energy components, such as solar. The result, according to Haarer, is a satisfied customer.

Clark County School District in southern Nevada selected GHP for the heating and cooling needs of its new trade school campuses, which EnLink provided. Northwest Technical and Career Academy main building is 220,000 square feet, and accommodates more than 2,000 students. EnLink's project was 420 bore holes ar a depth of 400 feer, and provides approximately 400 tons of heating and cooling. The system was designed to handle 80% of the academy's cooling load. As a result of the geothermal hear pump system, the academy's energy use is an estimated 40% of a typical school of the same size. EnLink has a number of school projects in the greater Las Vegas area that have performed exceptionally well. The Clark County School District continues to install these systems because of the energy and cost savings accrued.

In a very different climate, American Canyon High School is newly constructed high school and is collaborative for High Performance Schools certified, which is similar to LEED certification (but for educational buildings). EnLink installed the GHP system at this 260,000 square feet campus. All but two of the buildings are connected to the campus's geoexchange technology. The system consists of 285 boreholes at a depth of 350 feet, and provides approximately 200 tons of heating and cooling. A cost analysis on the GHP system shows an annual savings of $130,OOO when compared to the operation costs of a conventional heating and cooling system.

In addition to the need to reduce greenhouse gas emissions, the U.S. military sees renewable energy as a security matterer. As part of its program to become more energy efficient, the Air Force constructed a new dormitory building at Shaw Air Force Base in South Carolina utilizing a geothermal heat pump system for its heating and cooling needs. The building is approximately 54,000 square feet, and is LEED certified. Although many green technologies were used to receive certification, the dormitory attributes its GHP system as the predominant contributor, and estimates an overall energy savings of 38.9%. The ground heat exchanger installed by EnLink consists of 180 boreholes ar a depth of 150 feet.

EnLink is seeing an increased interest in Arizona and currently is looking at several opportunities in the state. The combination of Arizona's proactive renewable energy goals and finite water resources make geothermal technology an attractive option in the Grand Canyon State, Haarer said.

"As more and more of our projects go online, the word is getting our," Haarer said. "It's exciting to be involved with EnLink because the technology speaks for itself, and we think the future of geothermal is now.""

A Case for Geothermal Heat Pumps’ Contribution to Renewable Portfolio Standards

noreply@blogger.com (EnLink Geoenergy) — Tue, 02 Aug 2011 18:41:00 +0000

by Emily Roberson

eroberson@enlinkgeoenergy.com

EnLink Geoenergy Services, Inc.

Much confusion surrounds how geothermal heating and cooling differs from geothermal electricity generation. Both forms have the capacity to reduce reliance on non-renewable, carbon-emitting energy sources by using thermal energy created and stored within the earth. Geothermal heat pumps (GHPs), which make use of underground pipes filled with water that exchanges temperatures, tout extreme efficiency and actually reduce the amount of electricity needed to maintain atmospheric comfort levels in a building. Considering current electricity prices, Oak Ridge National Lab estimates that the widespread use of ground source heat pumps would represent savings between $33 and $38 billion in retail utility bills within the United States, which exceeds current renewable energy contributions from solar photovoltaic, wind and geothermal power combined.

By transferring a combination of stored solar energy and geothermal energy that is manifested as a constant temperature just below the earth’s surface, GHPs reduce energy consumption and correlated air pollution emissions up to 44% compared to air-source heat pumps and up to 72% compared to electric resistance heating with standard air-conditioning equipment. With 400% operating efficiencies in mind, it is hard to deny that GHPs are a sensible and ecologically advanced alternative to traditional HVAC methods. Combined with a desuperheater, GHPs can also serve as a water heater that does not require additional energy to operate, and—unlike natural gas furnaces—the magic that contributes to GHPs’ reduced electricity reliance is replenished daily.

Essentially, geothermal heat pumps bypass the need to produce power by using a natural means to heat and cool. Oddly enough, though, GHPs are overlooked by many states’ Renewable Portfolio Standards (RPS), which are put into effect to increase renewable energy production. Only eight out of 32 states that require or recommend that utilities produce energy from renewable sources and/or promote efficient technologies list geothermal heat pumps as qualifying devices. Some would argue that the reason for this is because GHPs do not generate power, yet most RPSs only address renewable energy—not renewable power or renewable electricity. Heat is energy, and heat in the earth’s crust is renewable. Ergo, the heat that we are transferring to and from the earth is indeed renewable energy. This renewable energy can be used to reduce household and building-wide energy usage by 60%, thus decreasing demand for electricity that may otherwise be produced using sources that are unsustainable and polluting.

Federal and state organizations alike define geothermal heat pumps as using energy that is renewable. The EPA cites GHPs as a form of energy production that has been evaluated for use on formerly contaminated sites, including abandoned coalmines. The U.S. Department of Energy recognizes GHPs as a means of using renewable energy and allocates funding for GHP project through the State Energy Program, which provides grants to states and their energy offices. The DOE’s National Renewable Energy Laboratory sets guidelines for policymakers looking to increase the deployment of geothermal energy for heating and cooling purposes. Furthermore, GHPs are recognized under the Business Investment Tax Credit, among other federal incentives provided for the installation of energy efficient and renewable energy technologies—including a 100% MACRS 1st year depreciation Investment Tax Credit. Propoert Assessed Clean Energy With all of the recognized “green” benefits associated with GHPs, it is hard to fathom a reason that they are not encouraged by state legislators who are clearly trying to ramp up dependency on renewable energy—yet some states’ governing bodies do not credit GHPs as a renewable resource under RPS standards. A glaring example of the inconsistency is present in the state of California; the California Energy Commission includes GHPs in the “Renewable Energy” section of its website, but it is not counted towards the state’s 33% by 2020 RPS goal.

One might infer that energy production is more easily measured in terms of power generation, thus making RPS credits easier to calculate. Most people don’t realize that the “renewable energy” component of geothermal heat pumps can also be directly quantified by placing an energy meter (or “heat meter” as they are sometimes referred to in Europe) on the heat pump or pumps – calculating the energy placed into or extracted from the earth loop – and then subtracting out the electricity required to power the heat pump. On average, this “renewable energy component” that is extracted from the earth is 4 to 5 times (COP of 4 or 5) greater than the energy used. The energy meter can also be put on the bore field, but the diversity of the building would reduce the energy recorded by as much as to 30%. Additionally, energy savings could easily be compared against other HVAC system’s energy use for an appropriate baseline and contribution towards green energy goals. GHPs, after all, reduce demand for electricity, which eliminates the need for manufacturing additional equipment for large-scale facilities—a feat that can require nonrenewable materials and added maintenance despite the source of renewable generation (i.e., wind turbines, solar PV panels, geothermal steam turbines, etc.). It must be noted, though, that this argument isn’t for reducing the capacity to produce electricity from renewable sources; it is merely advocating a decrease in the overall demand for electricity through the use of RPSs.

In some cases, GHPs can make use of renewable resources where other technologies cannot. For example, GHPs work year-round in parts of the United States that do not receive as much wind or sunlight. Where land is scarce, vertical-loop systems can be hidden beneath buildings, conserving space and remaining unobtrusive. As far as RPS requirements go, utilities could easily incentivize GHPs or pursue a loop-ownership program to meet states’ yearly goals of renewable reliance.

Electricity generation from renewable sources does have its place in reducing—and even eliminating—carbon emissions, especially when combined with GHP systems. GHPs allow higher-cost renewable generation to power homes with lower electricity demands, thus making it easier and more cost-effective to develop net-zero buildings. Net-zero infrastructure seems to be the eventual goal of Renewable Portfolio Standards—why not make this goal easier to achieve by encouraging the incorporation of geothermal heat pumps into building retrofits and new construction? In terms of legal definitions, a reevaluation of GHPs as a renewable energy source is in order to ensure a reduced demand for electricity and increased use of renewable energy sources.

Existing legislation or executive orders do not need to be amended—a simple addendum will do the trick: “The renewable energy transferred from the earth by geothermal heat pumps shall be included in the calculation to meet the State’s renewable energy portfolio requirements.” Semantics aside, GHPs are a realistic solution for a permanent transition to clean energy sources.

States with

Renewable Portfolio Standards

including GHPs

	Percentage of Renewable Sources	Goal Year
Arizona	15%	2025
Nevada	25%	2025
Texas	5,880 MW	2015
Wisconsin	10%	2015
Michigan	10%	2015
Pennsylvania	8%	2020
North Carolina	13%	2021
Hawaii	20%	2020

Source: http://apps1.eere.energy.gov/states/maps/renewable_portfolio_states.cfm

Geo in the Hospitality Industry

noreply@blogger.com (Mark Mizrahi) — Mon, 20 Jun 2011 18:24:00 +0000

Geothermal Heat Pump Systems:
Offering Hospitality Industry a Permanent Vacation from High Energy Costs

The hospitality industry is implementing various strategies for addressing their hotel, resort or related operations’ commitment to reducing building energy use. Whether a result of government programs like California’s Zero Net Energy initiative or an internal, company commitment to “greening” accommodations, industry participants are moving more aggressively to reduce their carbon footprint.

In a recent report by the American Hotel & Lodging Association, hotelier respondents overwhelmingly indicated that they were working toward some sort of a green certification program. This corresponds with a growing number of travelers who are giving greater weight in their decision making to hotels and resorts that offer either certified sustainable lodgings or some other formal commitment to reducing energy use. A recent report by Deloitte Financial Advisory Services, Risks and Rewards for Building Sustainable Hotels, indicates that business travelers increasingly consider a hotel’s sustainability practices when making accommodation selections, and almost half of those surveyed were willing to pay a premium for those practices.

Geothermal heat pump (GHP) systems, which are used around the world in everything from big box stores to military bases, offer the greatest single answer to the hospitality industry’s desire to save energy and market a “green” product. For over 60 years in the United States, GHPs have assisted in reducing HVAC-related energy consumption by as much as 70 percent in both retrofit and new building projects. Considered by the U.S. Department of Energy as “the most efficient technology available,” these systems can work virtually anywhere, with efficiencies of up to 600%.

GHPs utilize the earth’s moderate and stable temperature, located just a few meters below its surface, to provide heating and cooling for buildings.. The earth is used as a heat sink during cooling mode and a heat source during heating mode. A GHP’s heat exchange is even more reliable than “traditional renewable”, as the earth’s constant temperature is always available at the point of use, providing heating and cooling 24 hours a day, 365 days a year. Instead of having to work with high and low degree ambient air temperatures, GHPs work with the moderate temperature of the water flowing through the systems’ underground heat exchanger, decreasing energy use as much as 70% compared to a traditional HVAC system. Depending on the region, the water temperature (heat transfer medium) will be in the range of 45-70˚ F.

See EnLink’s short video “How Geothermal Works” by visiting: http://www.enlinkgeoenergy.com/geothermal.html

GHPs in Hotel and Resort Settings

Hotels and resorts around the world have installed GHPs, experiencing tremendous energy, water and maintenance savings. In the United States, by installing a GHP system, the 4,700-ton combined hotel, apartment and office Galt House complex in Kentucky saved thousands in monthly energy bills, enhanced indoor air quality and comfort, while freeing-up approximately 25,000 square feet of additional commercial space that would otherwise have been used for equipment rooms .

When the Ramada Inn on the Geneva Lakefront in NY State was constructed in 1997, Ramada was ahead of the green design movement. The property utilizes a geothermal heat pump system that provides heat for the building in the winter, as well as cooling for the building in summer, reducing the property’s energy consumption. The property also utilizes the system for its hot water needs.

Finally, the boutique Hotel Bardessono, located in California’s wine country touts that an “underground geothermal system heats and cools the guest rooms, the spa, and the domestic hot water supply. Almost no offsite energy is used.” The hotel holds a LEED Platinum rating.

Why are savings so significant in hotels and resorts?

 Hotels are in operation 24 hours day, year round, expending enormous amounts of energy for heating, cooling, and air conditioning purposes.
 With multiple guest rooms and common areas, hotels have the need for multiple heating/cooling zones.
 Not every zone will be heating or cooling at the same time, and simultaneous heating and cooling needs must be met.
 For hotels, there is a hefty need for hot water. Whether for pools, spas, showers, laundry, kitchen, or any other activity hotels need plenty of energy to meet these needs.
 Finally, maintenance on equipment is rare. The geothermal heat exchange system (which is located underground), has no moving parts and consists of high density polyethylene. Inside the building the actual geothermal heat pump has an ASHRAE life expectancy of close to 30 years. Between the exchanger underground and the heat pump inside the building, there is little need for maintenance professional.

In summary: GHPs are capable of cutting utility costs dramatically in facilities that run 24/7, providing every zone with its own thermal comfort level and hot water needs at little or no cost.

Financing of GHPs

Third party financing is available with an array of options to suit either the tax-exempt or tax-paying entity’s needs. For those wishing to self-finance, federal and state incentives are available to assist n paying down the installation costs. However, federal programs that provide 100 percent depreciation requires that projects must be “in-service” before December 31, 2011. Beginning in 2012 projects must be “in service” by year’s end to take advantage of 50 percent depreciation.

Enlink will provide additional information upon request.

Conclusion

GHPs are big energy and money savers. EnLink can help assess whether your facility is a good candidate for this technology. Please contact EnLink’s Albert Escobedo at 424-242-1219, or aescobedo@enlinkgeoenergy for more information.

Geothermal Heat Pump Systems and Third Party Financing

noreply@blogger.com (Mark Mizrahi) — Mon, 06 Jun 2011 21:01:00 +0000

What are Geothermal Heat Pump (GHP) Systems?
GHP systems are highly efficient air conditioning and heating systems powered by the moderate and stable temperature of the ground beginning just a few feet below the surface. Also known as ground source heat pumps, GHP systems are considered both a renewable and demand side efficiency technology. No conventional chillers or boilers are required. According to the U.S. Department of Energy, GHP systems can save up to 70% of the energy used to heat and cool buildings compared with a conventional HVAC system. GHP systems have been in use for over 40 years, their efficiencies and benefits are well documented and they can be used for all building types. In addition to the energy savings, benefits include water savings, no on-site use of water or fossil fuels, reduced peak demand, environmental friendliness, and reduced operating and maintenance costs.

The systems consist of an outside, underground portion called the earth-heat exchanger, which is a set of connected buried pipes circulating water. This portion is what utilizes the earth’s power and replaces conventional chillers or boilers. The inside part of the system consists of standard air handling equipment and the geothermal heat pumps.

Note that geothermal heat pump systems are not the same as geothermal energy, where deep drilling for “hot rocks” geological activity produces steam to generate electricity.

Economics

GHP systems can have a somewhat higher first cost than a conventional system, but the energy, water, maintenance, and replacement costs are significantly less, resulting in a simple payback of as little as 5 years. Federal, state and local incentives enhance the economics substantially. Building type, use patterns, heating and cooling loads and utility pricing are key factors in determining economics.

How GHP Systems are Financed

System financing options are now available for private and tax exempt entities. Options for financing include:

Lease:

The financing entity can own the system and lease it to the customer, the lease payment

structured by the cost of the system and the term. HVAC leasing already exists and a GHP system lease can be structured in a similar basis. Some U.S. utilities offer lease programs for GHP systems they own.

“Thermal Purchase Agreement”:

Patterned after the successful Power Purchase Agreement used for solar or wind, a TPA for a GHP system works similarly. The financing entity will own the system and sell power (in this case BTUs) back to the customer. At the conclusion of an initial term, the term can be extended or the asset transferred to the customer for an agreed upon price.

Savings-Based Contract: Since the savings from GHP are so significant compared to conventional HVAC, GHP systems are excellent candidates for savings-based contracts. An analysis will be conducted to determine the savings between a GHP system and a corresponding conventional system for a particular customer, and the differential can be the basis for structuring the savings-based agreement.

MicroUtility:

The financing entity owns the system without the intention of selling or transferring it back to the customer. It continues to sell power (BTUs) to the customer. Building owners with tenants may be interested in this option as it becomes an additional revenue source along with rent and CAM.

Loan:

The financing entity structures a standard loan agreement to the customer for the cost of the

GHP system, payable by the customer at a set rate and term.

Benefits to Financing Entity

The unique features and benefits of GHP provide a very predictable and stable annuity for a financing entity as follows:

Low Variability:

GHP systems work the same in all areas and do not require special geological activity, the sun to shine, or the wind to blow. Therefore there will be less variability in their operation and can serve as the basis for a stable portfolio.

Dependable Asset:

The outside portion of a GHP system is entirely underground, basically permanent in nature, and almost never requires maintenance. The inside portion consists of standard ductwork and heat pumps with an ASHRAE rated 26 year life span. This provides a stable asset suitable for long-term ownership or sale for the financing entity.

Low Maintenance:

With very few moving parts, and no portion of the system exposed to the elements or subject to vandalism, the systems require very little maintenance.

Easily Measured and Verified:

Usage can easily be measured and verified by BTU metering systems.

Guaranteed Savings:

It is documented that the least efficient GHP system still has greater efficiencies than the most state of the art conventional system. Therefore, savings will always be achieved. Federal, State and Local Incentives: GHP systems are eligible for numerous incentives and rebates, and the owning entity will benefit through its ownership of the entire system.

Benefits to End Customer

Customers in both the private and public sector can benefit by third party financing of their GHP system.

Elimination of HVAC Capital Costs:

With outside financing, HVAC expenses shift from the balance sheet for equipment to an operating expense for usage. Rather than pay for costly HVAC system, a building owner can just pay for the heating and cooling it uses as it would for electricity.

Reduced Operating Costs:

Customers will enjoy reduced operating expenses related to utility expenditures for heating and cooling, resulting in increased cash flow.

Ability to Recognize Instant Savings:

Without having to pay up front for the systems and factor in payback periods, the customer will immediately recognize the savings provided by the GHP system.

PR and marketing benefits:

Customers can market the environmentally responsible and green aspects of these systems to enhance their business reputation.

Frequently Asked Questions

What do I actually own?

The GHP system has three main components. First, the outside component is the underground earth heat exchanger. This provides the energy to heat and cool the buildings and this is what will replace conventional chillers and boilers. The inside components are the air handling equipment and the geothermal heat pumps. The entire system is eligible for tax incentives. The financing entity will at minimum own the outside portion; it can also own inside portion as well.

How would I determine if a candidate is worthwhile? How will I know what to charge?

A design-build GHP contractor or mechanical engineer with a specialization in GHP systems can provide an energy analysis and corresponding financial analysis to determine system viability.

Who would install the system?

An accredited, qualified geothermal contractor, like EnLink, would install the system.

What about long term maintenance?

An accredited installer should provide a long-term warranty.

I am interested, but don’t want to get involved in overseeing the construction, etc.

An accredited project management or GHP contractor with experience in this area can manage the build out to industry and agreed upon specifications and act as the owner’s rep on behalf of the financing entity.

How do I find out about available projects?

Partnering with design-build GHP contractors, engineers who specialize in the area or companies wishing to adopt GHP will be excellent sources of new projects.

Northern Nevada Business Weekly article on GHP

noreply@blogger.com (Mark Mizrahi) — Wed, 18 May 2011 21:53:00 +0000

If you're interested in how GHP is progressing in Nevada, click here for a link to the Northern Nevada Business Weekly, which ran a nice story on GHP's potential in the north end of the Silver State.

Geothermal Heat Pump Systems and the Navajo Nation

noreply@blogger.com (mhaarer) — Fri, 13 May 2011 21:16:00 +0000

EnLink's SVP of Business Development Mark Haarer (7th from left/top row), recently joined, upon invitiation, a select group of companies in Window Rock, Arizona to meet with and present opportunities for an energy efficient future to Navajo President Ben Shelly (center).

President Shelly is working to establish an energy efficient and energy independent Nation. Creating jobs by training tribal members on the mechanics of these technologies is a top priority. Enlink's ability to tap in to and transfer heat between the earth and buildings is a natural technology for all tribal entities; using Mother Earth as the source of heating and cooling -- naturally.

Not only are there significant energy and water savings available to the tribe upon installation of geothermal heat exchange systems, but they will also experience a great drop in their reliance upon propane and fuel oil for their heating / cooling needs. This creates bth cost and environmental benefits. EnLink looks forward to creating jobs and training tribal members on loop installation, and working cloely with the tribe on better understanding the benefits of geothermal heat exchange systems, and geothermal heat pumps.

[Also in this picture (bottom row/far right kneeling) is a special advisor to EnLink, former Navajo president Peterson Zah (and namesake for the museum in which this Expo was held). We are honored to have him as part of the EnLink team.]

EnLink - On the Road

noreply@blogger.com (EnLink Geoenergy) — Wed, 27 Apr 2011 20:28:00 +0000

Enlink is wrapping up a visit to the Wild Horse Pass Hotel & Casino, where a few members attended the 8th Annual Construction in Indian Country Conference. Our company is also represented at the 2011 EIA Energy Conference in Washington, D.C., and we will be attending the Navajo Nations Presidents Technology Expo later this week.

What will May bring? Below are just a few of the conferences where EnLink can be found next month:

2011 CIRT Spring Conference (D.C)
LA on the Hill LAACC (D.C.)
Utility Energy Forum (Asilomar Conference Center)
Coachella Valley Energy Summit (Palms Springs Convention Center
ICSC RECON Global Retail Real Estate Convention (Las Vegas Convention Center)

Welcome to EnLink Geoenergy's Green Blog

noreply@blogger.com (Mark Mizrahi) — Tue, 12 Apr 2011 22:55:00 +0000

Hello, I’m Mark Mizrahi, the president and CEO of EnLink Geoenergy Services … this is my first blog on our new Green Blog.

EnLink is the leading Geothermal Heat Pump (GHP) HVAC system innovator in the country, and we are on a mission: We want everyone to know that GHP can heat and cool the world more efficiently, more inexpensively and with less impact on the environment than any other technology available today. Period.

This blog is just one of the tools we are going to use to spread the word. We will, from time to time, bring you useful information about what’s happening in the world of GHPs; new markets, new projects, changes in building codes or government regulatory issues, and technological innovation. Pretty much anything about GHP.

EnLink has been building GHP systems for more than 15 years. We’ve installed more than 100 systems all across the country, from the Northeast to the Southwest. Today, we are experiencing growth in the GHP industry that we haven’t seen before. The primary drivers of that growth are the need to reduce greenhouse gases and increase energy efficiency. While I normally try to avoid repeating myself, this is worth repeating: GHP is the most energy efficient HVAC technology available and a GHP system will have less impact on the environment than any other type of system you can install.

Through this blog and our web page, you can access information about EnLink, current and past projects, information about our patented technology, and analysis from the US Department of Energy about the efficacy of GHP systems.

The first bit of news for this blog is that EnLink has been selected to build the earth heat exchangers for two new projects:

In Southern California, the state’s Department of Water Resources, which operates and maintains the California Aqueduct – an engineering marvel that carries huge amounts of water from Northern California for agricultural and residential uses in the south - has chosen GHP to heat and cool a new pumping station near Pearblossom, California. EnLink will sink 42 boreholes approximately 450 feet deep, which will be linked to the heat pump inside the building to provide the HVAC capacity that the building requires.

Our Utah project is at Herriman Middle School #2 in the West Jordan, Utah district, about 30 miles south of Salt Lake City. The system will have 300 wells drilled 350 feet deep. Work is scheduled to start in early June.

We are also finishing up two current projects, in Bellingham, Washington and in Pahrump, Nevada. In Bellingham, EnLink worked on the new administration building now under construction on the reservation of the Lummi Nation, a Native American tribe of about 5,000 living just west of Bellingham. The EHX for the Lummi Nation project is comprised of 118 bore holes approximately 350 feet deep. The building will be approximately 100,000 square feet.

In Pahrump, EnLink drilled 300 geothermal wells to a depth of 390 feet each. The system includes two underground vaults that serve as central connection points for the smaller lines coming from the geothermal borefield, before feeding into the school building. In addition, the district is planning for the future and has sized the GHP system so that it can service two additional buildings when the school expands at a later date. This is an approach that others have taken as well, including City College of San Francisco, where Enlink designed and built a system for a four-building complex, even though only one of the buildings was being built immediately.

As you might have noticed, schools are some of the most enthusiastic users of GHP systems. Because of the budget pressures most schools seem to be under these days they are looking for ways to lower their operations and maintenance costs. And school district officials seem to be more inclined to see the big picture and think in terms of lifecycle costs instead of just the upfront cost.

It’s called thinking ahead! That’s what EnLink is all about.

One last thing for you ... if you are interested in the progress of of GHP in Nevada, click here for a recent article from the Northern Nevada Business Weekly.

We’ll be back with more news about EnLink and GHP soon. Stay tuned.