MAR 07

Breaking even at about a 3% discount rate? Better than a 10-year TIPS even at current interest rates, and it even provides insurance against rising fuel prices. Nicely done!

Actually, I was wondering if a wind turbine and electrical resistance heating might provide a better rate of return. I know that where I am located it certainly would, but I have no idea what the wind is like in Indiana. I realise that the wind doesn't blow all the time, but wind speed and need for heating are correlated.

Wait a minute, does the 2 million in savings from the geothermal system represent mostly heating oil or coal? I assumed it was heating oil, but it might be much cheaper coal. In which case forget what I said about wind and electrical resistance heating.

Looking at the links I see it is coal they are replacing. That's a good thing as coal is even dirtier than heating oil, it's just a pity that the return isn't better.

Very nice to see a big geothermal system going in, and a university willing to move forward with such a project.

I have to think that natural gas would have been a lot more economical for Indiana. It is really not that cold there.

Coal is produced in Indiana, so I doubt natural gas would be cheaper than the coal boilers they are replacing. And while the rate of return seems low to me here in Australia, apparently in the US it is currently possible to borrow money long term at very low rates, so the low return might not be much of a problem. (A higher return would of course still be better.)

And as for Indiana not being that cold, I've heard that it is so cold in winter that that water actually changes state and falls from the sky in a strange white precipitate that covers the ground.

It would be great if more universities, hospitals and other large institutions would "go geo." All of these places need to drastically reduce their infrastructure costs, and geothermal would pay for itself relatively quickly when done on such a large scale. I want to install geothermal at my house and get rid of that big ol' clunky oil tank that now costs up to $2000 in a cold winter to fill. (We got off lightly this year, such a warm season. But we can't depend on that weather continuing.)

Epic Systems, a private healthcare software developer in Verona, WI, is currently involved in installing a comparable system at its campus. Following is information from their facility director, Bob Brandherm:

Here is the data comparing Epic’s geothermal system with that of Ball State. Hope this is beneficial to you.

1. Both Ball State and Epic are using the same consultant for design of their geothermal systems.
2. The Ball State figures quoted assume phase 2 of their project is complete. Only phase 1 is operational at this time.
3. Phase 1 has 1832 bore shafts 400 feet deep (Epic currently has 2974 bore shafts in use, with an additional 800 coming on line this summer)
4. When phase 2 is complete, Ball State will have an additional 2000 bore shafts 500 ft. deep. (Epic’s planned expansion may include additional bore shafts or ponds/lakes, scope has not yet been determined)
5. The Ball State phase 1 chiller plant has 5000 tons capacity (Epic has approximately 7000 tons of installed capacity)
6. In phase 2, Ball State will be adding an additional 5000 tons of capacity. Construction of phase 2 is to start in 2013. (Epic is planning additional expansion of our system as well)
7. I believe both Ball State and Epic have around 1000 miles of piping in our systems.
8. Ball state’s project cost $70 million for both phases of construction. It is unclear whether that figure includes the cost of decommissioning their coal fired power plant or not.
9. Ball State claims $2 million savings annually
10. Epic does not publish economic data but we firmly believe that geothermal pays for itself within a reasonable time frame since our buildings use significantly less energy than standard office buildings.

My name is Charles Young and I am a student from Albion College (In Michigan)and all I can say is WOW! This is amazing. Its the type of progress that we need to not only lower costs of the use of eneryg but also promote a healthier earth as well! My only question is why is this not being put into use in so many other places.