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Exhibit 7-1 Temperature-Based Classification of Geothermal Energy There are three components to a Geothermal HVAC system: 1) the local soil and geological environment; 2) the thermal transfer exchange system, or “loop field;” and 3) the mechanical system or heat pump and the ventilation ducts inside the building. Most installations are done by small to medium sized mechanical engineering or HVAC companies who coordinate with the building contractor. Project coordination includes design of the loop system, a bore-hole drilling contractor, pump installation inside the building, and a ventilation contractor for the building. These systems have reduced maintenance costs because the equipment is typically inside the building and loops are below ground so they are not susceptible to vandalism or extremes in weather conditions. Once considered primarily a technology for the colder climates, geothermal heat pumps have advanced with improved system designs that are sized for both air conditioning and heating needs. These can work anywhere in Texas if the system is properly designed for the local climate. The geothermal heat pump uses a fluid loop to exchange the excess heat or cold inside the building with the upper few hundred feet of the Earth. Anyone who has gone underground into a natural cavern has experienced the constant temperature that exists within the subsurface. The temperature of the ground and/or groundwater from 10 to 50 feet (3–15 m) beneath the Earth’s surface remains relatively constant year round and is able to stabilize the inside air temperature changes from outside weather. In this depth range, the ground temperature in the Panhandle is as low as 54°F ± 2°F (12°C) and in South Texas it is as high as 78°F ± 2°F (25°C) (Exhibit 7-2).6 By using the constant ground temperature as a starting point for additional cooling or heating of a building, less energy is used when compared to a conventional HVAC system which relies on heat transfer from outside air temperatures. Various studies by the Geothermal Heat Pump Consortium have shown that approximately 70 percent of the efficiency is derived by the Geothermal HVAC system through the ground loop fluids exchanging with the Earth.5 These systems are referred to as an “offset” technology because of the reduction in electrical power production resulting from their installation. This can reduce monthly cooling and heating energy usage by 40 to 70 percent depending on the heat pump unit, energy efficiency of the building, and the local climate.5 In addition to reduction in expenses for cooling and heating, excess heat may also be used to heat hot water tanks and swimming pools. Resource temperature Best Applications For Geothermal Heat* Surface Temperature (40°F to 80°F) Geothermal HVAC systems for homes and buildings Low Temperature (70°F to 165°F) Direct Use: agriculture and greenhouses, aquaculture (fish farming), mineral water spas and bath facilities, district water heating, soil warming, fruit & vegetable drying, concrete curing, food processing Moderate Temperature (165°F to 300°F) Binary fluid generators for electrical production; Direct Use: absorption chillers, fabric dyeing, pulp and paper processing, lumber and cement drying, sugar evaporation High Temperature (>300°F) Electricity production, minerals recovery, hydrogen production, ethanol and biofuels production *Uses of geothermal energy adapted from the Geothermal Education Office materials. Geothermal HVAC Systems. One of the simplest ways to make use of the geothermal resource is through Geothermal Heating, Ventilation and Air Conditioning (HVAC) systems for homes and buildings. It is also known as geothermal heat pumps (GHP), ground source or ground coupled heat pumps (GSHP or GCHP), or geoexchange systems. This application of geothermal resources in Texas can be used by anyone from the average homeowner to the large commercial developer for the heating and cooling of buildings. According to the U.S. Environmental Protection Agency (EPA), geothermal heat pumps are the most energy-efficient, environmentally clean, and cost-effective systems for temperature control.2, 5 From 2002 to 2006 there was a 71 percent increase in Geothermal HVAC system installations for residential applications in the United States.4 7-2 Geothermal Energy Texas Renewable Energy Resource AssessmentPDF Image | GEOTHERMAL ENERGY Texas
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