Geoexchange (Geothermal) Technology Standing Committee on Natural Resources

1. Geoexchange (Geothermal) Technology Standing Committee on Natural Resources Ottawa – April 18, 2007 Denis Tanguay Executive Director Canadian GeoExchange Coalition

2. Who are we? The Canadian GeoExchange™ Coalition acts as the industry catalyst to unite private and public sector stakeholders, and to expand the market for ground source heat pumps and geoexchange™ technology in Canada. As the nexus of information, training, certification, standards and public awareness, our mandate is to work with stakeholders to build the necessary infrastructure to foster the growth of the Canadian geoexchange™ industry. More than 100 members from across Canada: • Equipment Manufacturers and Distributors • System Designers (Architects & Engineers) • System Installers • Energy Distribution Companies (electric and natural gas) • Financial, legal, other industry support services • Research centers, academic institutions • Building owners & managers, Developers, Facilities managers, and Governments • Industrial / Professional Associations

3. Where are we from and what do we do? • Created in 2001 thanks to the joint financial efforts of Natural Resources Canada and 6 electric utilities • 2002-2005: managed pilot projects and put in place the basis for the development of a market transformation initiative • 2005-2007: development and deployment of the market transformation initiative – CGC Global Quality GeoExchange Program • Development and deployment of 4 training programs • Drilling • Installation • Residential Design • Commercial Design • Partnership with the Association of Canadian Community Colleges and other delivery agents • Deployment of a comprehensive accreditation program (individuals) and certification (systems) • Program structure and extensiveness unique throughout the World in the renewable energy sector. IN-I-3

4. Defining geothermal / geoexchange technology Four types High energy: more than 150°C Depth of 1500 to 3000 metres. Generally capture as dry or humid vapours used for electricity production Average energy: from 90°C to 150°C Depth of 2000 to 4000 metres. Hot water or dry vapours used for electricity production Low energy: 30°C to 90°C Water extraction usually found between 1500 and 2500 metres. Not sufficient for electricity production but excellent for district heating Very low energy: less than de 30°C Low depth aquifer. Heating and cooling of building when coupled with ground source heat pump IN-I-4

5. Ground source heat pumps Works with low underground energy Requires some mechanical work for heat exchange Need energy to produce energy Electricity Fossil fuels Energy needed is less than energy transferred (coefficient of performance between 300 – 500 %) One system used both for heating and cooling

6. What is a geoexchange system? • An obvious fact: it is an energy SYSTEM • Three important components • The underground loop • Energy source • The most important component of the system • The heat pump • Energy transfer mechanism • Air or water distribution system • Energy services: heating and cooling, comfort, etc… • The most efficient pump on the market will provide poor results if the system is badly designed or badly installed

7. 461 1791 413 7817 3687 Heat production Installed capacity Installed Capacity 2000 15 000 MWth 2005 28 000 MWth

9. Available energy for consumption in Canada : 12,05 exajoules • _____________ • Pipelines: - 0.19 exajoules • Non Energy Use: - 0.90 exajoules • Electrical Systems Energy Loses: - 1.82 exajoules • Lost Energy • Residential / Commercial: - 0.77 exajoules (- 29 %) • Industrial: - 1.62 exajoules (- 39 %) • Transport: - 1.89 exajoules (- 80 %) ____________ Useful Energy: 4.87 exajoules Only 40 % of available energy for consumption end up as useful energy

10. Non traditional approach to R&D and innovation pour for heating and cooling HEATING OIL NATURAL GAS GEOEXCHANGE $ SOLAR ÉLECTRICITY

11. Step 1 – Training Professionals possessing solid geoexchange experience and recognised expertise (exemption from training) Selection criteriae include a combination of experience, number of installations, wells drilled, or designs stamped (depending on the accreditation sought) Evaluation of received training Individual receives training before CGC training is in place Partial Equivalence Full Equivalence Abbreviated training Condensed modules cover weaknesses identified in other training programmes. Success Results Certificate of Study from CGC Examination Potential Market Drillers, plumbers, electricians, specialists in refrigeration, HVAC system specialists, engineers, architects, property managers, municipal inspectors, financiers, energy distribution / utility employees, general public, etc... CGC Training Modules Drilling Installation Residential Design Commercial Design Failure Abandon Step 2 - Accreditation

12. Step 2 – Accreditation Candidate files a request for accreditation CGC receives requests and verifies their conformity with programme criteria The Driller becomes an ‘CGC Accredited Driller’ The Installer becomes a ‘CGC Accredited Installer’ NO Conformity YES The Designer becomes a ‘CGC Accredited Designer for small systems’ Application remains valid until the individual meets programme criteria, or withdraws his application The designer becomes an ‘Accredited Designer for Commercial Systems’ CGC Training Modules Drilling Installation Design of Residential / Small Systems Design of Commercial / Large Systems

13. Step 3 – Qualification of Firms An enterprise applies to become a QUALIFIED FIRM CGC receives requests and verifies their conformity with programme prerequisites and other criteriae. YES Conformity NO Deposit of a demand for CERTIFICATION of a system CGC receives requests and verifies their conformity with programme requirements Application remains valid until the firm meets programme criteria, or withdraws their application

14. Step 4 – Certification Stakeholder Files a request for CERTIFICATION of a system CGC receives requests and verifies their conformity with programme criteria. The system qualifies for other programmes / incentives (for example) NO Conformity YES Government Sales Tax Rebate Programmes Financial Aid programmes of energy dist. companies The System qualifies for a five-year performance warranty from CGC The System qualifies for a five-year performance warranty from CGC The geothermal system is not certified and is not eligible for financing, insurance or warranty programmes developed by the CGC. Targeting Financing Programmes, regulatory and tax benefits Financial aid programmes at the Provincial or Federal level CONSUMER DECISION

15. Why all those efforts ? • Put in place the market transformation infrastructure to support the expected growth of the industry • Create a strong and professional geoexchange industry through our training programs and partnerships – building the labour force • Keep the Canadian financial resources (training and accreditation) in Canada and reinvest those financial resources in Canada to support services to the Canadian industry • Create the necessary mechanisms for this industry to play a major role as a renewable and reliable energy source all across Canada • Ensure that this industry plays a major and increasingly significant role to help optimize the Canadian energy system as a whole Are we there yet ? • Not quite so, but we are well on our way • Will not reject any partnership / help aimed at delivering our market transformation initiative