Geothermal Just Got Hotter
Kelowna firm's tech makes it easier for old buildings to tap the Earth for heating and cooling.
Vancouver's Hotel Georgia reno includes geothermal engineered by GeoTility.
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As Barry Milner, the marketing director for GeoTility Systems Corp., explains it, a geothermal system uses the same technology as a refrigerator, taking heat from one place and moving it somewhere else.
"It's a good story," said Milner. Based in Kelowna, with an office in Richmond and one planned for Vancouver Island, Geotility has been installing geothermal heating and cooling systems since 1990. "It is part of the puzzle here of what we need to do."
As building owners and policy makers search for ways to reduce greenhouse gas emissions, companies like Geotility -- which has a new compact drilling platform allowing it to put systems into older buildings that would have been previously difficult to retrofit -- offer a solution.
But as the sector grows, participants and observers agree there's a need for industry standards and for incentives to help make the systems affordable.
"It's not rocket science," Milner said, noting the earliest system he's come across was built in Sweden in 1932. "It's a very simple process of drawing heat from the ground."
Wherever you live, the temperature a few metres below the surface is the same year round. In winter, that heat can be pulled up into a building. In the summer, the system can be reversed to cool the building by pumping heat back into the earth.
The systems use electricity to operate, but for every unit of energy they use they provide four or five units of heat. That efficiency, said Milner, is good for reducing our carbon footprint, improving air quality and decreasing our dependence on fossil fuels.
Awesome efficiency: BCSEA
"The potential there is very great because it's a very efficient source of energy," said Tom Hackney, the policy vice chair for the B.C. Sustainable Energy Association. "In terms of energy efficiency, that's one of the really awesome sources of energy."
The main barrier is cost, but a ground-based heat pump will pay for itself over time, he said. "Upfront costs are a consideration, but if you can get beyond those, it's just a super energy system."
Geotility's most prominent project is likely at the Hotel Georgia in downtown Vancouver. Done while the new hotel tower was under construction, a new compact drilling platform allowed them to work from the lowest level of an already constructed parkade.
It's a system first tested in a downtown Victoria heritage building last year. It means less construction delay in new developments and increases the possibilities for retrofitting buildings, Milner said. And with Vancouver pledging to go carbon neutral by 2020, he said, there may be a lot more retrofitting work to come.
Over 20 years the company has completed projects at the Westjet headquarters in Calgary, Crofton House school in Vancouver, the South Surrey Recreation Centre and many other public and private buildings.
Milner calls Geotility the "largest comprehensive geo-construction firm" in Canada. The company will take a project from design and engineering through installation and servicing. It also owns a utility company, so that in some cases it will maintain ownership of the system while charging consumers for the energy they use as other energy providers would. That way consumers can avoid paying the cost of the system—sometimes a barrier—up front.
Totalling up the greenhouse gas emission reductions on all the projects the company has built, 50,000 tonnes of GHG are avoided annually, Milner said. Over 20 years that works out to a million tonnes of GHG reductions, he said.
Gaining acceptance
The price for a system, in the past, has been a barrier. For a 3,000 square foot building, a geothermal system will cost about $10,000 to $15,000 more than a high-efficiency gas furnace and up-to-date air conditioner, said Milner.
Once it is in, it is cheaper to operate, and will pay for itself in about seven years, he said.
And as energy rates go up, he said, the technology is becoming more competitive and better known. "It's not such a fringe sort of thing."
It's not the cheapest solution, he admitted. "We can't compete with electric baseboards and open the window if you get hot kind of thing." But the company is instead focussed on "quality" developments, ones where a full heating and air conditioning system are part of the attraction.
Customers include a long list of residential developments, many of them towers and projects requiring a more refined heating and cooling system.
And such a system will add to the value of the building, Milner argued. He compared the cost to a granite counter top. "People have to get their heads around is it looks or is it function?" While it might be a wiser investment, he was realistic about the looks-obsessed culture we live in. "We build crap."
The best-suited buildings are schools, hospitals and libraries that are built to be used for 50 years or more. After the seven years a geothermal system takes to pay for itself through energy cost savings, the investment continues to pay off, he said. Still, he added, more people are choosing it for their single family homes.
Standards needed
Geotility is working with the Pacific Carbon Trust so that its systems can be recognized as providing carbon offsets. Even a small household customer who saves five tonnes of greenhouse gas emissions might anticipate a cheque of $125 from the Trust at current rates, Milner said. For bigger buildings the pay-off will be greater.
BCSEA's Hackney said there's a need for the government or a trade organization to set standards in the industry and make sure customers get consistent messages and treatment from contractors. "The industry is a bit in it's infancy now," he said. "These early installations will be the ambassadors for the installations to come."
It might mean registering or certifying contractors, he said.
Milner said his company has been lobbying to have the geothermal industry regulated. "We would like to see stronger guidelines and regulations to ensure customers are protected."
There are many little companies who will put in a system, but with no regulation of the industry it's unclear how many are to standard. "It is scary," said Milner. "I feel for customers who've been put in situations where they've trusted they were making a good investment" only to discover later it wasn't designed or built properly.
The pitfalls are many, he said. "They put crap in. They don't serve them. They don't know what they're doing."
The industry is professionalizing itself and colleges are beginning to offer apprenticeship programs, but government regulation is needed to protect consumers, he said. "I can't stress enough how difficult it is to fix a system that hasn't been designed properly."
He also argued for offering more incentives to help people put systems into older buildings, as well as for other green energy projects.
The billions of dollars B.C. is planning to spend on the Site C hydroelectric project on the Peace River would have a greater impact if it were directed to green technologies like geothermal, wind and tidal energy, he said. "I see great economic opportunities being set back by this major investment in 1950s technology."
Through B.C.'s LiveSmart program the provincial government will give people up to $1,250 to install a ground or water source heat pump certified by the Canadian GeoExchange Coalition. ![]()





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jwstewart
1 year ago
The problem with ground
The problem with ground source heat pumps is there is no giant profit for large corporations or governments.
Natural gas, heating oil or massive amounts of electicity are no longer required, and the costs and taxes are eliminated. Business and govenrment don't lke that.
Never mind that this techniology is needed desperately to save the environment, and should actually be mandatory.
I beleive CSA Standard C448 governs installations.
seth
1 year ago
nuclear electricity
Is trending towards the 1 cent a kwh level.
At that price plain old electric heat/air conditioning is a lot more economical than gas heat or new/retrofit ground source heat pumps.
One needs to be careful with payback times in most places outside of BC
Unfortunately with the double whammy of our BC and Ottawa corrupt fascist governments bought and paid for by Big Oil and dirty little not so green stockbroker power schemes, it is likely power rates will triple before BCHydro is allowed to go nuclear.
Makes ground source heat pumps in BC, a good bet for the near future.
Sylvain Hebert
1 year ago
buyer beware
[COMMENT REMOVED FOR LEGAL CONCERNS. -MODERATOR.]
Boreal
1 year ago
perils of early adoption
I am very much attracted by the idea of geothermal heating, and would be prepared to make this investment for my home in Prince George.
But I probably won't go near this for several years. Regardless of government incentive payments or other subsidies, I've learned the hard way about being an early adopter.
Back in 2000, I replaced my gas furnace with the highest efficiency model that I could find locally. It chronically malfunctioned, and the installer's staff made repeated visits to get it adjusted correctly. At one point, it appeared that the manufacturer's U.S. head office would need to send someone up to get it working properly. It took about 5 years to get to the point where I trusted it. Even now, I'm nervous about going away for extended trips in mid-winter. The consequences of a heating failure are pretty serious up here!
So it will take a lot to convince this otherwise well-intentioned homeowner to make the jump to a technology with an even shorter track record.
Such mundane realities make a great difference to the speed of introducing energy-saving technology, alas!
YCSTS
1 year ago
Geothermal Heat? Nope.
This is not Geothermal Heating. The correct term is Ground Source Heat Pumps. It is actually a form of Solar Heating. Using Solar Energy stored in the ground over the summer to supply heat in the Winter.
Geothermal heating or power is actually a form of Nuclear Energy. It utilizes the heat of radioactive decay stored inside the core & mantle of the Earth. Brought to the surface in fissures or plumes of magma, and tapped in areas where it is close to the Surface, such as Iceland.
The big issue with Heat Pumps is Cost. With Electricity costs double that of NGas, and thanks to SCAMpbell, they are going to rise a lot faster.
If you have a COP of 4X, you only gain 2X in cost. So if a house uses 20,000 kwh of heat per year, the yearly savings is $360 per year (neglecting higher maintenance costs), over NG heating. With an additional expenditure of $6k the energy gain is $6,000/(15,000/8,800)kw = $3.5k per kwth savings. Not bad, a might high for thermal energy. With Hyperion 70 MWth Nuclear Power plants at $30M or $430 per kwth savings. The obvious priority should be rapidly replacing Industrial Process Heat, especially the Tar Sands with Nuclear Thermal Energy. It’s called spending seriously short capital in the most cost effective way. Maximum fossil fuel / GHG savings for minimum cost. With Wind Energy upwards of $12k per kwth, it is an incredibly STUPID way to generate energy. A Total Loser. Heat Pumps make way more sense then using Wind. So to advocate Wind Energy is to advocate the theft of capital that could otherwise be used for improved Education, Health Care and Social Welfare.
skarpes
1 year ago
heatpumps
In the residential market and many commercial applications, AIR/Air heatpumps are a cost effective alternative, especially in the lower mainland or the island. (Absorbes heat out of the air, rather than the ground.) As a bonus, you get air-conditioning for those once a year heat-waves. Regardless, heatpumps are definately the way to go in this day and age.
one
1 year ago
Comments
As an HVAC Mechanic of 25 plus years I know a bit about this topic. YCSTS and Sylvain nailed it on a technical level. YCSTS covered one of my major frustrations, the misunderstanding of what we call a 'geothermal' system. jwstewart is right about the standard (which means nothing since it isn't enforced) but misses the boat with the conspiracy theory thing. The only thing holding geothermal back is cost effectiveness and payback. Would you install a $25,000 system in your house to save $800 per year? Even $2000/yr? Factor in amortization, equipment lifespan and repair/maintenance costs and you may do just as well buying Nortel stock. Lets face it, it is about money no matter how 'green' you want to be. The numbers can be even more prohibitive in commercial buildings. No conspiracy dudes, just good old fashioned ecomonics. The maintenance and repair costs on geothermal systems generally far exceed conventional systems too. ALWAYS remember to send the guy with the baseball cap and 'crack' showing away, far away. Ensure you use a properly licensed and experienced REFRIGERATION MECHANIC. Get a written contract on projected energy savings and hold the contractors feet to the fire. These devices are refrigeration units, so use "Joes Plumbing and Heating" at your own peril. Possibly your problem Sylvain??????? I'll bet it is. Caveat emptor. A plumbing company can do the field piping work but the design, commissioning and startup has to be done by someone with the skills and training. Not the plumbing trade, sorry.
I have worked on hundreds of geothermal systems, never installed ONE but do service and diagnostics. Make poorly installed systems work, diagnose and rectify poor design (when possible.) The systems I have worked on vary from single residential to commercial applications exceeding 300tons cooling capacity. I worked on a 40ton system today that has been off since september!!! (Trended via the building automation system) The building was being heated by the backup boiler and no one noticed!!! A huge amount of money to spend to simply go back to square one!!! I try not to laugh sometimes but the industry I work in is quite laughable. One can become very good at what they do, but have to deal with property managers and administrators who prefer the cult of personality over experience and competence.
Geothermal systems will grow proportionally to the increase in energy costs and the strength of our economy. For the interim, most large systems will be installed in public buildings.
jwstewart
1 year ago
One
I'm sticking to the conspiracy theory.
Because basically what you are saying is that both individuals, businesses and governments are more concerned with the money than the environment.
I will say that my shares of WFI have doubled since I bought them:)
cfvua
1 year ago
Cost
Sometimes doing the right thing might cost a bit more. The system we recently installed in a small office building(8 tonne) capacity worked great this last winter. The only real additional cost was drilling(grouting) and piping in the wells. The Canadian made heat pumps cost about the same as a furnace and boiler might. I will be monitoring the electrical consumption of the units this year. It might take a while to pay off and even without the benefit of carbon credit trading and all the BS red tape for any government incentive it makes sense. And we are on our way to being mor self sufficient. Think about how nice it will be one day to not get a utility bill, which you do get whether you use gas, fuel or line supplied electricity. It is indeed time for people to re-evaluate the cost of gas and line power. Governments should incent people(not global corporations who say they are free enterprise, but love subsidies) to use LED lighting and self generated power with wind mills and solar panels. Battery storage, with inverter systems. Not cheap but right. Remember that many of the situatons we are in right now are because somebody wouldn't spend the money to do it right.
YCSTS
1 year ago
Cost is Life or Death - Survive or Perish
Probably 90% of our population, just have no idea of the magnitude of the peak oil / global warming crisis that we are rapidly approaching. Our civilization was built upon energy supplies that cost well under one cent per kwh to produce. These new "green" energy supplies and energy efficiency methods that are being promoted as alternatives are 10-50 cents a kwh, or more even.
The per capita energy consumption of Canada, X4 for a family of four, is 528,000 kwh per yr. That would cost $52k per avg family of four per yr - JUST FOR ENERGY! That's at 10 cents per kwh not 20 to 50 cents, like many of these "solutions" cost. That simply spells economic collapse - mass unemployment, social breakdown, mass migrations of population, starvation of billions of people.
"...In today's industrialized world, it takes the energy equivalent of one-half glass of diesel fuel just to put a glass of milk on the table; two pounds of coal to produce a one pound loaf of bread; and three pounds of coal to produce one pound of hamburger..."
http://www.me.utexas.edu/~ans/info/reactor5.htm
People will burn filthy brown coal in smoke belching dirt burners until the sky is dark, the air is acrid, the lakes are poisoned and runaway global warming has transformed the Earth, when faced with life or death choices.
The issue of Cost is the modern day equivalent of the problem a subsistence farmer might face, who relies on harvesting wood for his family's energy needs and the local forest he relies upon for wood has been depleted. So maybe 20 miles away there is a large forest with lots of Wood. But the time and physical energy it takes him to transport the Wood that distance, leaves him insufficient energy & time to produce sufficient food & shelter for survival. And so he & his family may perish. That's cost.
RickOshea
1 year ago
It's Stupid Economics, Not "It's The Economics, Stupid"
We desperately need a carbon tax - being able to use the atmosphere to dump C02 and other GHGs for 'free' is killing us.
Given what's at stake, putting GHG into the atmosphere should be an expensive proposition. That's what it will take to make alternatives - like geothermal - feasible.
A tax is the quick, direct, easy, reliable way to do this. Carbon credits - that's the Rube Goldberg approach that will enrich the Wall Street crowd while accomplishing little-to-nothing in terms of averting the climate change disaster that is looming ever larger.