Finding funds for a “hot” investment: a case for ground source heat.

drilling ground source heat

January 20, 2017

Harold Schock is the Energy and Sustainability Manager for SD23 in the Central Okanagan.

 

Improvements in energy efficiency can have a large impact on labour costs, greenhouse gas emissions and utility expenses. These benefits, however, can be challenging to see when a large upfront investment is required.

A school district in British Columbia eliminated the need for natural gas for heating in an elementary school by installing a ground source heat pump on the property. Using a noteworthy arrangement between the district and the energy supplier, this large-scale project was able to meet the district’s financial needs and create drastic improvements in efficiency.

“It’s great for SD23,” said the district’s energy manager, Harold Schock.

Ground heat pump fields use the ground’s ability to store and release heat. In the summer, the pump can transfer heat into the ground, and then the opposite process occurs in the winter.

“It’s a suitcase of heat that we use in the wintertime,” said Schock.

In a pilot project, FortisBC created a fee structure specifically for SD23. The cost of the heat pump field ($600,000) would be covered initially by FortisBC, and then the school district would pay FortisBC for the field over 25 years with a flat monthly fee.

Before the field was installed, the elementary school was heated with natural gas. Now, the geofield consists of 31 vertical pipes that go 250 feet into the ground. Six schools in the district have ground source heat pumps, but this was the first time it was funded through fee structure from an energy service company.

The main motivation for this arrangement was monetary.

“There is no natural gas bill,” said Schock. “All our heat pump schools that are operating in our school district do not have a natural gas draw.”

During a heat pump conversion, schools in SD23 also under a lighting retrofit. This reduces the electrical load from lighting, but additional electricity is required to run the heat pumps. Compared to before the heat pump conversion, electricity usage tends to slightly increase.

After the field is installed, the schools do not pay carbon offsets, which are currently $25 per tonne for British Columbia schools. In additional, schools with heat pumps have a reduced need for a cooling tower, saving water previously used for the cooling tower and eliminating tower maintenance.

Overall cost savings for heat pump schools in SD23 is between $10,000 and $30,000 per year.

SD23’s monthly fee to FortisBC does not mean a drastic reduction in overall energy costs, but the district did not pay for the field and after 25 years the field will be returned to the district. In addition, many incidentals have been reduced or even eliminated, such as cooling tower and heating system maintenance.

The fee structure that SD23 pays to FortisBC was calculated using the thermic value of the ground that the elementary school sits on. This unit – energy therms – is an up-and-coming measurement for ground heating potential.

“We blazed the trail for that to possibly be done,” said Schock, who has been in his current role since 2010.

“That established a rate based on the size of our geofield. We pay that rate every month and we are glad to pay it.”

Despite the many benefits of a ground source heat pump, it was still a challenge for Schock and his team to convince district administration to accept the special arrangement with FortisBC.

“It is such a long-term investment and somebody else owns the infrastructure on your property. It’s hard to wrap your head around.”

Although SD23 has not moved forward on any more funding arrangements with energy companies, Schock said “the business case is there – the model could be reproduced again.”

Back at the elementary school, everything is back to nature and the only commitment for the district is to pay a monthly fee.

“You wouldn’t even know it’s there. Realistically I think people have already forgot about it.”

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