The University of New Mexico’s Utility Services Department could in the near future heat and cool all its buildings with geothermal energy, making UNM one of only a few universities nationwide to adopt such a campus-wide system.
Conversion from heating and cooling based on natural gas to a system that draws natural heat from the ground is one possibility under consideration as UNM develops a new master plan for its facilities management going forward, said Utility Services Director Jeff Zumalt. But pulling the trigger depends on careful analysis of the costs and benefits.
“We’ve looked at building a geothermal heat exchange system on Johnson Field in the past, but it requires an expensive upfront cost,” Zumalt told the Journal. “It’s a large scale process that would be built to last 20 or 30 years, so we need to project out the use of different fuel sources to decide if it’s economical.”
A number of public buildings already use ground-source heat pumps for heating and cooling, including some schools in Albuquerque, Rio Rancho and Alamogordo.
New federal tax breaks of up to 30% on the purchase and installation costs of such geothermal systems contained in last year’s Inflation Reduction Act could make the conversion a lot more affordable. And now, new bills in the state Legislature could add significantly to those savings if approved, potentially helping UNM and other commercial, industrial and government buildings in New Mexico make the switch.
That includes two bills introduced in this year’s session by Sen. Jerry Ortiz y Pino, D-Albuquerque, to provide $25 million in grants and loans, plus additional tax incentives, for nearly all types of geothermal research and development projects around New Mexico. That encompasses both geothermal electric generation and heating and cooling systems, including use of ground-based pumps to capture general subsurface heat, or systems that tap into hot underground water reservoirs.
A third bill, SB45 – introduced by Las Cruces Democrat Sen. William Soules – would focus specifically on ground-based heat pumps that target general subsurface heat with heat exchangers to circulate hot air in winter and cool air in summer in residential and commercial buildings. SB45 would offer up to a 30% tax break on those systems, including direct rebates for low-income consumers who have limited or no tax liabilities.
“People without tax burdens could actually get a check back from the state,” Soules told the Journal. “That makes the credit much more accessible at all income levels.”
Technological advancements
New technology for modern geothermal electric generating systems is still evolving and could take five or more years to take hold in New Mexico and elsewhere.
In contrast, today’s geothermal heating and cooling systems are market-ready and already being deployed in many places. But homeowners, building managers and commercial enterprises need more encouragement to adopt them.
“These systems can play a critical role as we move away from fossil fuels and develop renewable energy systems,” Soules said. “The technology is well developed, but it will take educational efforts and incentives to move it forward.”
Shari Kelly, a senior geophysicist with the state Bureau of Geology and Mineral Resources, called ground-based geothermal heating and cooling systems “low-hanging fruit.”
“There’s quite a push now to use ground source heat pumps to heat and cool buildings,” Kelly told the Journal. “…Studies show that in wells at depths of just 200 to 400 feet, temperatures remain constant at about 50 to 60 degrees Fahrenheit. During the summer, that temperature is cooler than ambient air and can be used for cooling, and in winter, it’s warmer than ambient temperatures and can be used for heating.”
In addition, a variety of commercial operations have successfully tapped subsurface hot water reservoirs to manage their businesses, which is different that the systems based on ground-based heat pumps.
That includes AmeriCulture Inc. near Lordsburg that uses geothermally heated pools to raise tilapia fingerlings and Masson Farms in Radium Springs – a 20-acre greenhouse operation that grows flowers and plants and is now billed as the second-largest geothermally heated greenhouse in the U.S.
Retired New Mexico State University Geologist Jim Witcher, who did consulting work with Masson Farms, said the Radium Springs operation has lowered its heating costs by 93%.
“It provides significant energy savings compared with natural gas,” Witcher told the Journal. “Heating costs for Masson Farms could be (calculated out to) as low as 50 cents per 1,000 cubic feet of natural gas.”
Today’s wholesale natural gas prices have fluctuated from about $4 to $7 per 1,000 cubic feet.
Large-scale deployment?
Beyond individual buildings and commercial operations, advanced drilling technologies – now under development to exploit intense heat from deep underground hot-rock formations – could soon provide heating and cooling for whole communities.
Canadian geothermal energy developer Eavor Inc., which has been testing its new technology in southwest New Mexico, is now signing contracts in Europe to heat full city districts.
The war in Ukraine, which crippled natural gas and other energy supplies from Russia, has generated a lot more European interest in Eavor’s geothermal heating options, said Eavor Vice President for Business Development Neil Ethier.
“We have a lot of projects in the works for district-wide heating in many large European cities,” Ethier said.
A geothermal working group that Sen. Ortiz y Pino established last year has identified numerous opportunities around the state to develop more commercial operations using geothermal energy. That could include everything from greenhouses and hot-spring spas to crop drying for chile and nuts and using geothermal kilns to make adobe bricks.
For geothermal heating and cooling of buildings, the lowest hanging fruit is in new construction. Ortiz y Pino expects to file a memorial in the current session to encourage new government projects to include ground-source heat pumps.
“We can’t mandate it, but we can urge the use of these systems when planning construction,” Ortiz y Pino said.
Large-scale deployment?
Beyond individual buildings and commercial operations, advanced drilling technologies — now under development to exploit intense heat from deep underground hot-rock formations — could soon provide heating and cooling for whole communities.
Canadian geothermal energy developer Eavor Inc., which has been testing its new technology in southwest New Mexico, is now signing contracts in Europe to heat full city districts.
The war in Ukraine, which crippled natural gas and other energy supplies from Russia, has generated a lot more European interest in Eavor’s geothermal heating options, said Eavor Vice President for Business Development Neil Ethier.
“We have a lot of projects in the works for district-wide heating in many large European cities,” Ethier said.
A geothermal working group that Sen. Ortiz y Pino established last year has identified numerous opportunities around the state to develop more commercial operations using geothermal energy. That could include everything from greenhouses and hot-spring spas to crop drying for chile and nuts and using geothermal kilns to make adobe bricks.
For geothermal heating and cooling of buildings, the lowest hanging fruit is in new construction. Ortiz y Pino expects to file a memorial in the current session to encourage new government projects to include ground-source heat pumps.
“We can’t mandate it, but we can urge the use of these systems when planning construction,” Ortiz y Pino said.
A source: https://www.abqjournal.com
