AdvancedEnergyGroup

GeoUtilityPresentation

AEG:AnIntegratedSolution

New Century Career Center

AEG 2010

Hardin Geothermal 2010

TeamBackground
AdvancedEnergyGroup(AEG):
Geothermal/solarthermalassessment,engineering,design Experienceinworkingwithmunicipal/countyprocesses Arrayofotherrenewableenergyalternativesavailable Widearrayofpublic/privatefinancingoptions Management/ReportingforGrants,TaxCredits&otherSubsidies Training/workforcedevelopmentcapabilities Communications,evaluation,reportingabilities

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AdaptiveRenewableEnergySolutions
Goal:Reducecurrentenergyusebeforeaddingnewenergysources GroundsourceGeothermalisthefoundation
Supplementedbyothersolutionsascalledfor(Weatherization,LEDlighting)

Solarthermal(almostalwaysagoodcompaniontoGeothermal) Otherdesiredenergysolutionsthenneedtoprovidefarlesspower
Photovoltaicsolar Windenergy AlternativeFuelGeneratorsand/orFuelCells
totakekeybuildingsOffGrid,inemergencies,orwhenotherwisenecessary

Highestoverallperformance,efficiency
Energyefficiencyratingof500% 600%(EPA),comparedtomostefficient conventionalheatingandcooling
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What We Do!
Wecoolandheatasplantsdoit,byputtingroots downintotheearth

SolarEnergystoredintheearthsmantle,createsanearconstant51 temperature. Usingaclosedloopsystem,heatexchangers(piping)bringup51 waterfromtheearth. UsingHeatPumps,51 waterismuchlesscostlyforproducingsummerACthan70100 air. AndisalsolesscostlytouseasthebaseforwinterHeatthan 1050 air. Onceused,theearthloop returnsthewatertoberechargedagainat51.
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Hardin Specializes InTurnKeyDesign

WellsCanAdd ToCapacity VerticalSystem Lakes CanStoreColdOrHeat Horizontal(LakeSystem)

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Geothermal vs.Conventional

Geothermal (Underground)
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Conventional (UsableSquareFootage)
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What is NoLongerNeeded
CONVENTIONALMECHANICALSYSTEMS

Cooling Towers
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ImagineHowMuchCanBeSaved InCost ANDSPACE

Also NotNeeded:

CONVENTIONALMECHANICALSYSTEMS

BoilerPlant

Chiller Plant

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Drilling Drilling
Boreholesaredrilledtocreatethewellfield

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TheInstallation
InstallationProcessandHowitAllWorks

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CostEfficiency

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2008OakridgeNationalLabReportforDOE
Giventheneedtoreininournationsenergy consumptionandcarbonemissions,whileatthe sametimestimulatingoureconomyoutofitsmost seriousdownturnsincetheGreatDepression,the authorrecommendsthatfederalpolicymakers seriouslyconsideraggressivelydeploying GeothermalHeatPumpsnationwide,with programscommencingassoonaspossible.

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3 SignificantBenefitswithAEGandHardin
1.ConcentrationonDistrictwideGeoUtilitysystems:
Harnessestremendouseconomiesofscale, Createsjobsandcommunitywealth, Makesfinancingagainstfutureenergysavingspossibleona muchbroaderscale,withlowerinterest

2.Hardinspatentedgeothermaltechnologydevelopments thatreducedrillingcosts(andtime)by4560%
Withotherpatentedenergy/costsavingtechnologiesaswell.

3.Hardinhasmanymoreyearsofdistrictwideexperience thanothers;startedwithcollegecampuswidesystems
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1. GeoThermalUtilities&DistrictwideSystems: ASampleDistrictGeothermalSystem

This is the district-wide geothermal installation at Ball State University, the largest US Geothermal installation. The geo-fields and bore holes need not be near the buildings being served.

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SolarThermalAidsGeothermalfor DistrictHeating

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2. TheBiggestHardinTechnologyDifference
TheBiSec 3.2HeatExchanger
CutstheCostofDrillingandInstallingtheGeothermalfield4560%
ConventionalUBendPipe Hardin BiSec HeatExchanger

*GreyRepresentsGrout;theLightBlueistheWaterintheHeatExchangepiping.*

Thethinnertheannulargroutspace,themoreefficientheattransfer
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BoreholeThermalResistanceofDifferentHeatExchangerDesigns

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TheHardinBiSec Advantage
FewerBores,SmallerFootprint,LowerCost

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NewHRX(TriSec)4.5 HeatExchanger

ScientificallydesignedbyHardinandUniv. ofTennessee,thenewHRXhasseveral advantagesovertheBiSec. Waterheldundergroundlonger,more completelyexchangesheatwiththeearth. Kidneyshapedlobescreateevenmore circumferenceforheatexchange. UnitissimplywiderthantheBiSec, allowingfewerfeetofExchangertoserve theproject. Result:thesizeofthegeofieldisreduced byatleast60%overUBend.

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AdditionalHardinTechnologicalAdvantages
WaterPlus canuseacitysdomesticwatersupplytoaid thegeothermalfield,withfarlesscost. Hardincanuselocalwaterfeatures(lakes,rivers)toeven furtherreducethecostofgeothermalfields. HardinisnowpatentingnewdevelopmentsinHeat Exchangers,DrillingandInstallationTechnologies. LocalHeatExchangermanufacturingsavestransportation costs,nearlyallothersaremanufacturedinChina.
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3. HardinGeothermalInstallations
Crosswinds Community LaFontaineCadillac/BPG Crossroads ofMichigan A3COfficeBuilding WayneStateUniversity LawrenceInst.ofTech. St.JosephsHospital MurrayStateCollege LaurelIslandTownship St.MarysMedical Center EisenhowerMedical Center GoldenGate Casino
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Detroit,MI Highland,MI Detroit,MI AnnArbor,MI Detroit,MI Southfield,MI SuperiorTwp,MI Tishomingo,OK LaurelIsland,GA NewYork,NY ElCentro,CA LasVegas,NV
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LocalCaseStudy#1: LawrenceTechnologicalUniversity
ThenewStudentServices buildingdemonstrates geothermalatwork.
(88)300FTbores Noboiler,furnace orgasmeter

Signagedescribesand windowsshowthesystem asdesignedandatwork. Beginningacampuswide geothermalsystem.

Photo Credit: LTU

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LocalCaseStudy#2: LaFontaine Dealership,Highland,MI

Formerbuildingwas30,000sq.ft.& heating/cooling$20,000permonth usingtraditionalHVAC. Newbuildingsizeis62,000sq.ft.This includesservicebayareas,whichhave doorsthatareopeningandclosing continually. Currentbill:between$3,000& $5,000/month.

*Savings of $180,000 to $ 204,000 per year*

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LocalCaseStudy#3:UniversityofToledo IndoorPracticeFacility
MostadvancedmultiusefacilityofitskindinUS 90,400SF ROIunder3years Providesheating& coolingwithsame equipment 42bores,300feet deepunderthe arena spacewas acriticalissue Geothermalcreatedenoughextraroomforwomanssoccer UTnowplanningcampuswide(3campus)system
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WhatIsAGeoUtility?
Acitycanlevyutilitypaymentsfromitsresidencesorbusinesses Itformsautilitydistrict usinggeothermal/solarthermal
Alongwithotheralternativeenergyaddons

Otherentitiesthatcanguaranteebillpayment schoolsystem, condocomplex,universityorcountycampusesetc. candothe same City(orotherentity)signsaLetterofIntent(LOI);entersintoa PowerPurchaseAgreement(PPA)guaranteeingfinancingispaid outofenergysavings

Laysouttheworkingsofthisgeoutility

FinancingpaysforcompleteinstallationAGAINSTFUTUREENERGY
SAVINGS
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SavingsPayBackGeoUtilityFinancing
Residentsandbusinessesgeta6070%reducedbill fromtheirregularutilitycompany,andabillfrom theGeoutilitycoveringthefinancechargesfor:
Installingtheoverallgeothermalinfrastructure Individualhookupsforhomes,businessesorother buildings Operatingfees(asmalldevelopmentfeecanbeadded)

Withthegeoutilitybill,aconsumerscombined savingmayonlybe2030%;5060%when financingispaidoff

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HowtheGeoUtilityWorks
TheGeoutilityprovidesservice,maintenance,billing,etc.
Individualcities/entitiesmaywanttoplaygreaterorlesserrole.

Allorpart ofgeosysteminstallationcostcanbefinanced.
Includingthegeofieldinfrastructureandhome/buildinginstallation.

Thehomeownerclaimsthe30%taxcreditnow. Thebusinessownerclaimsa1030%taxcreditnow. Geoutilityclaimsa1030%taxcreditfortheinfrastructure portionofproject(55%).

Thiscanbesoldinadvancetohelpreduceinitialfinancingneed.

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NewPropertyTaxes/NewCommunityWealth
UsingWyandottes$20MillionPhase1Projectastheexample $9Millionisthecostofhomeandbuildinghookup $11Millionisthecostofthegeothermalfieldandpumps TheGeoFieldisautilityplant:
Itsunderground,usingpublicrightsofway Andspreadoutaroundthecity

Butitisstillautilityplantproducingenergyfromsolarenergy trappedintheearth Thisprivateplant(inWyandotte),withavalueof$11Million,will paypropertytaxesof$450,000peryear Thefinal$200Millioncitywidesystemwillpay$4.5Million/Yr.

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GeoThermal &GeoUtilityBenefits
Naturalgasusevastlyreduced Electricpowerconsumptionadvantages:
Totalpowerconsumptionisreduced(especiallyinsummer) Loadfactorsmorecloselymatchwhatcanbeprovidedbyrenewableproduction

Farlessequipmentneeded,nocoolingtowersorboilers
Createmoreusablespaceinabuildingbyeliminatingcurrentequipment

Equipmentlongevitycanbe3xlonger;oftenmuchlonger Greatlyreducesprocesswatertreatmentuse 6070%reductioninutilityuse;2030%reductionincost SignificantlongtermPropertyTaximprovementandgrowth;as PropertyTaxAssessmentgrowswitheachinstallation Jobs!Jobs!Goodjobs!(about110jobsforeach$20MillionInstallation)

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Current&PlannedGeoUtilityDistricts
ACTIVELYINTERESTEDMUNICIPALITIES/DISTRICTS/COUNTIES: Wyandotte LOI,signed,PPAgoingtoCityCouncil,now Southfield LOI,signed ClintonTwp LOI,PPAbeingnegotiated Pontiac LOIsigned HighlandPark LOISigned AnnArbor LOI,PPAbeingnegotiated Toledo/LucasCounty(OH) LOISigned,PortAuthorityplanningproject Sandusky(OH) LOISigned,PPAinprogress Saginaw LOISigned,NonProfitDevelopment WoodhavenSchools Contracted MeetingwithDetroit CityCouncilGreenTaskForceon14plannedprojects. WithDetroitPublicSchoolsonnewconstructionandrenovation. WithMt.Clements,HarrisonTwp,Warren,Farmington,RoyalOak,Ferndale, NoviandDearborn;andOaklandandLucasCountiesforcountycampuses.
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ToledoLucasCountyPortAuthorityReceives $15MillionDOEGrantforEnergyRetrofits
NeighborhoodFundingResourcesassistedtheTLCPAin planningforandobtaininga$15milliongrantfromtheDOE. ItwillbeusedwithinitsNorthwestOhioBondFundto:
Leverageover$60Millioninprojectfinancing. Alongwithothermatchingfundsandfinancingallowit&Toledoto establishanAdvancedEnergyUtilityDistrict(AEU)withintheCityof Toledotoimplement$200Millioninwidescaleuseofenergy efficiency,alternativeenergypracticesandsolutionsinresidential, commercial,governmentalandindustrialfacilities. Almost2/3rdsofthiswillbeforaDistrictwideGeothermalprogram.

TheAEUwillbeginwithintheCityofToledoandwillbe expandedtoothercitiesandtownshipswithinLucasCounty.
Ultimately,willincludeall28countiesthatarepartoftheTPAs financingjurisdictioninNorthwestOhio. BecauseofToledosproximitytoMichigan,theprojectisdesignedto benefitbusinesses&citizensofbothstates.
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AGeoUtility:Wyandotte(Phase1):Creating CommunityWealthinaNewFinancialEra
$20MillionPhase1Includes:
220UnitnewCondoComplex HistoricBuilding(Museum)District CityRecreationCenter&IceRinks HighRiseBank/OfficeBuilding CommercialArea/SurroundingHomes 47NSP3financedHomeRehabs $450,000innewannualtaxassessment 110goodjobs(60entrylevel);training localHVACcontractors,electricians, plumbersanddrillersingeoinstallation

ForWyandottesUtilityCo.it: Evensoutsummer/winterpeaks,letting
itcloseitsold,inefficientpeakplants.

Phases2,3andbeyond(likely$200Millionover15years)willconnectthese3areasintoone largerdistrictwide/citywidesystem ALLfinancedbyfutureenergysavings Withnocapitaloutlayforthecityornecessaryuseofitscreditcapacity

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SchoolGeoUtility: WoodhavenSchoolCampus
Thisisfundedbyschoolfinances,but canbefinanced,againstfutureenergy savings.Itincludes: HighSchoolBuilding(250KSF)
MiddleSchoolBuilding(130KSF) AdministrativeBuilding(20KSF) Total500KSFsystemwillcost$800K.

Willbedoneoversummerbreak. WillSave70+%onUtilityBills IffinancedbyageoutilityandQualified EnergyConservation(School)Bonds Itcanqualifyfor$80KinTaxCredits Andupto$240KinDTEIncentives Likelytobeamodelforamuchlargercentraltownshipwidegeothermalsystem,setup withageoutilityandusingfinancingagainstfutureenergysavings.

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AGeoUtility:Pontiac
LOIsigned:$15Millionproject FirsttargetedLoop,butpaybacktooslow Alternatives:
CityHall,Police&FireDepts. Library&DistrictCourt SchoolAdmin.Building LighthouseNeighborhood:UnityPark

Loop businessescanoptin,financedby expandedgeoutilityorprivately Benefits:

ReducesCityUtilitiesby2030%now. Hasa$1.5MillionTaxCredittoSell Public/privategeoutilityprofitsfromLoop businessesthatoptin. Increasedpropertytaxesonallprivate buildingsoptingin.
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CityofHighlandPark

LetterofIntent(LOI)signedfor$15Millionproject. AreastillbeingdeterminedwithHPDEVCO Financingnotyetidentified MaybeginwithMcGregorLibrary/CityHall;canbe financedbyRecoveryZoneorQualifiedEnergy ConservationBonds Include2commercialdistrictsand3neighborhoods InitialPhase1willcreate75Jobs(60%entrylevel) Willreduceutilityuseby60%lutilitybillsby2030%; 5060%whenfinancingispaidoff Willadd$300Kinnewpropertyassessments

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DetroitProjectsUnderDiscussion
Cobo Hall(withSDG) NewPortAuthorityTerminal Kronk Village(Emman.Steward) GardenViewEstates(HUD) EastVillageHistoricDistrict WhittierApartmentComplex WurlitzerBuildingonBroadway OldChannel56bldg.
forMosaicYouthTheatre

DetroitHousingCommission DetroitPublicSchoolsthroughRFP Districts:

Jefferson(Ren Cen toCobo WashingtonSt.(Cobo toGrandCircus) BroadwayAve. SouthwestSolutions 20Blocks
37
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FinancingSolutions
PotentialUseofFederalRecoveryZoneBonds:
EconomicDevelopmentBondscanbeusedforpublicbuildings;PNC Bankandtax staffworkingwithAEGtoassesspossibleGeoutilityuses FacilityBondscanbeusedforpublicprivatepartnershipsforgeoutilities PensionFundscanbeapproached Combinationofoptions,ifappropriate Oakland,Lucascounties;citiesofToledo; AnnArborconsideringRZBuse

OtherOptions:
QualifiedConservationBonds FederalTaxCode6320Financing DOELoanGuarantees PrivateFinancing Leasing AdvancedTaxCreditSales EECBGFundsorOtherStateorFederalFunds BrownfieldTaxCreditscouldapplytoallinstallationsinCoreCity
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NewCenturyCareerCenter(NC3)
Strategy
Eachinitial$20MillionProject creates110newjobs 800jobswillbecreatedin Michigan,justwiththeworknowin theplanningstage. NC3Programisbasedoncreating pathwaysforindividualcareer development,inthefieldsbelow.

Curriculum/PathwayAreas
GeothermalFieldInstallation
FromDiggingtoCrewChief DrillingTeams/InstallGeofields GroundSourceHeatExchanger HeaderAssemblyInstallation ManifoldSystemInstallation

Construction
Inspections&Assessments ResidentialEnergyEfficiency Installations ElectricalandPlumbing PlenumandDuctwork OnDemandHotWaterSystems Weatherization

MechanicalEquipment
GroundSourceHeat Pumps RadiantHeatingSystems SolarThermalInstallation HybridSolar/WindSystem Installation LED(alternative)lighting

Maintenance
Ongoing Metering New Installations

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ADDITIONAL CASESTUDIES

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GaltHouseEast(Hotel)Louisville,KY

DonebyHardin22yearsago DuringthecoolestDecemberon recordthetotalheatbillforthe buildingwas$500 Operatingcostsforthewellpump andheatexchangerpumpare estimatedat$1.50perhour,as comparedwith$15to$20fora conventionalsystem

Tower1:Geothermal/Tower2:NotGeothermal Utilitycostshavebeenreducedby

$272,700ayear

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GreatRiverMedicalCenter
Wechoseageoexchangesystemforits flexibility. SteveLeavitt,Directorof Development.Medicalfacilitieswillchange substantiallyoveralifetimeandthenice thingaboutthegeothermalheatpump systemistheabilitytojusttieintotheloop andaddadditionalcapacitywhereitis needed. Engineersestimatedtheoperatingcostsof $.25persq.ft.peryearvs.conventional costof$.55. Todaytheysave31%onenergycostsvs. othersimilarsizedfacilities.

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MurrayStateCollege
Verticalboreswereinitially installedtosupportalibrary; combinationofexpansionand retrofit. Firstinstalledasprivatelyowned utility;expandedcampuswide overtime Finally,theUniversityuseda bondtopurchaseandcomplete expansionofthesystem.
Utilitysavingsexceed60%forheatingandcooling.
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UniversityofBritishColumbia Okanagan Campus

CampuswideGeoexchangeSystem
88%CO2emissionreduction,or2,959Tons/yr,equivalentto taking14,000carsofftheroadoverthenexttwodecades. $610,000peryear savingsoffsetting thetotalprojects capitalcostinonly 10years.

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THANKYOU

ForFurtherInformationContact:
AnnArborOffice: 1003Broadway AnnArbor,MI48105 7343270019 JimMoran:jim@nfrmi.com OrionOffice: 4140S.LapeerRd. Orion,MI48359 2484754770 BillSharp:bills@advresearch.com

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