Mike Hammond

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Mike Hammond ClimateMaster
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ClimateMaster Facts

• Founded in 1956
• Eldest WSHP manufacturer
• Global Leader in WSHP Production
• Millions installed world-wide
• No company makes more
• Leading U.S. WSHP and GHP market share
• Focused on WSHP Technology
• Its all that we do
• Senior management team has over 200 years of WSHP
  experience
• Subsidiary of LSB Industries (NYSE LXU)
• Headquarters in Oklahoma City
• 1800 employees

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ClimateMaster Facts

• Based in Oklahoma City
• 800 employees tied to heat pump business
• 425,000 square feet of facilities (75,000 more
  under construction)
• Extensive Product Range
• Hundreds of sizes and configurations
• Award-Winning products
• Industrys highest efficiencies
• Focused on Quality
• ISO 9001-2000 certified
• AHRI award for zero failures
• Computer-controlled assembly and testing process
• Certified sound testing lab
• Vertically Integrated
• In-house air coil and coaxial coil production
• In-house powder-coat and e-coat

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Geothermal Heat Pump Basic Principles
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Earthis a VastSolar Collector
17 reflected by clouds.
100
6 reflected by surface.
19 absorbed by water vapor, dust
4 absorbed by clouds.
46 absorbed by ground
Earth
Solar energy maintains a nearly constant
temperature throughout the year just below ground
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U.S. Underground Temperatures
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The Earth is a Source of Heat in Winter
Outdoor air design temperature -5F
72F
50F
Geothermal heat pumps transfer underground heat
into buildings to provide heating
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and an Efficient Place to Reject Heat in Summer
Outdoor air design temperature 95F
74F
50F
Geothermal heat pumps transfer heat from
buildings into the ground to provide cooling
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using Heat Pump Technology
Geothermal heat pumps circulate water through a
sealed underground piping loop where it is
naturally warmed (or cooled) by the Earth
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Geothermal Heat Pumps Transfer Heat Efficiently
Purchased 1 kWh of energy from the grid to
operate the system
Yields 4-6 kWh of energy for the building
Free 3-5 kWh of energy absorbed from the earth
400-600 Efficient
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Geothermal Heat Pumps Exchange Heat between Air
and Water
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1 Worth of Electricity to Operate the Compressor
and Fan Moves 4 Worth of Heat from the
Water Delivering 5 Worth of Heat into the
Air Heating Mode Shown
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Heat can be pumped uphill meaning delivered at
a higher temperature than the source
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Geothermal Heat Pumps alsoProduce Hot Water
Operates on the Same Principle as a
Refrigerator Cooling Mode Shown
Hot water is produced whenever the unit is
operating
160F
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Residential Site Energy Conventional System
Over 70 of the energy consumed by a typical home
is used to meet thermal loads
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Residential Site Energy Geothermal Heat Pump
System
Total site energy consumption is cut in half
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Geothermal Heat Pumps are the Most Efficient way
to convert Green Energy into Heating, Cooling
and Water Heating
Making the most effective use of this limited
resource
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Geothermal System Advantages

• Whole House Comfort Control
• Heats or cools on demand regardless of season
• Better comfort summer and winter
• Easily adapted to zoning systems
• Better humidity control summer and winter
• Self-Contained Compact Units
• Hidden within attics or installed in closets
• Upflow, horizontal, or downflow
• Split systems
• Generally No Outdoor Units
• Better aesthetics
• No noise
• No vandalism or theft concerns

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Geothermal System Advantages

• Long Equipment Life
• Factory-sealed systems
• Indoor installation
• Moderate loading versus air-source systems
• Highest Efficiency Operation
• Water is a better heat transfer medium
• Geothermal heat exchange loops tap the
  renewable energy of the earth
• No Fossil Fuel
• Improves safety
• Eliminates service lines, flues, air intakes
• Makes Hot Water
• Anytime the unit is heating or cooling

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Geothermal Heat Pump Installation Methods
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Vertical Closed-Loop A pair of pipes with a
special U-bend assembly at the bottom is placed
into bore holes from 100 to 400 feet deep
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Horizontal Closed-Loop A piping array is
installed in trenches cut 3 to 5 feet deep and
hundreds of feet in length
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Surface Water Closed-Loop A piping array is
submerged in a pond or lake at least 8 feet deep
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Ground Water Open-Loop Well water from an
underground aquifer is pumped through the
geothermal heat pump and then returned to the
aquifer or discharged to the surface
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Vertical Closed-Loop Installation
Drilling
Pipe Loop Insertion
Heat Fusing
Inside Connection
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Vertical U-bends rough in
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Vertical U-bend piping to Header Manifold
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Horizontal 6-pipe
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Horizontal Loop Field Six-Pipe Design
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Header Pit Area
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Reduced Header Manifold6-Ton
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Example of Manifold Header Pit
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Quick Connect Test Caps Examples (McElroy Mfg.)
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Horizontal Chain Trench - Example
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Chain Trencher Example(Monster Truck version!
Charles Machine Works)
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Horizontal 6 Pipe Loop
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Backhoe Horizontal Trenching Example
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Horizontal Trench (Note Dry Sandy Soil,
requires stepping to reduce cave in dangers)
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Building Penetration Example(Keep Supply
Return Piping 10 min. away from foundations, run
_at_ 90 deg.)
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Horizontal Excavation
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Not a good trench to work in, keep the dirt away
from trench to reduce danger of cave in
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Large Horizontal Trench Field
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Pond/Lake Loop
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Commercial Manifold
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Butt Fusion Process(2 dia. Pipe or larger)
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Electro Fusion Welding Unit(Central Plastics)
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Electro Fusion Coupling(2 dia. Pipe
Fittings)
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Typical Installation completed
Whitehouse, OH Approx 3200 sq. ft December 2004
Total Utility bill 170.00
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Geothermal Heat Pumps Are a Scalable Technology
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Geothermal Heat Pumps
1300 Sq. Ft. Low Energy Habitat for Humanity Homes
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Habitat for Humanity Low Energy Home Construction
Details
Geothermal Heat Pump / Foam Insulation / Low-E
Glass / CFL Lighting / Energy Star Appliances
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Habitat for Humanity Site Energy Consumption by
End Use Std and Low Energy Homes
55 to 80 Reduction in Total Energy Use
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Habitat for Humanity Total Energy Consumption and
Carbon Emissions
16 to 61 Reduction in Carbon Emissions
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Geothermal Heat Pumps
Black Point Inn - Prouts Neck, ME
Galt House Hotel - Louisville, KY
Statue of Liberty Gift Shop
ASHRAE Headquarters - Atlanta, GA
French Laundry Rest.- Napa, CA
Harvard Library Cambridge, MA
Whistler Village - BC, Canada
Alta Condos, Washington DC
Gaillardia Offices Okla. City
California University of PA
Hirschfeld Towers Denver, CO
Yale Art Bld. New Haven, CT
Commercial Buildings
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The Oklahoma State Capitol uses over 600
geothermal heat pumps
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Garrett Office Buildings Edmond, Oklahoma
One is Geothermal and the Other is Conventional
HVAC (VAV)
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Geothermal Building 20,000 Sq. Ft.
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VAV Building 15,000 Sq. Ft.
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Geothermal BuildingFloor 2 Heat Pump Zoning
HP-15
HP-14
HP-13
HP-9,10
HP-12
HP-8
HP-11
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Typical Heat Pump
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Loop Field Overview
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Geothermal BuildingLoop Field Site Plan
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LoopFieldDetails
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Geothermal Mechanical Room
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GeothermalMechanicalRoom
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Floor 1 Heat Pump Piping
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Floor 1 Heat Pump Piping
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Garrett Office Buildings Highway View
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Geothermal Building Roof View
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VAV Building Roof View
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VAV Building Central Air Handler
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VAV Building Air-Cooled Condensing Unit
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VAV Building Boiler Room
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Garrett Office Buildings 2000 Energy Consumption
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Garrett Office BuildingsInstallation Costs

• Geothermal System circa 1998
• Complete exterior loop, mechanical room, interior
  PE piping, flushing and unit startup, heat pumps,
  duct work, exhausts, MUA system, timeclock-based
  controls
• 128,700 (2,574 per ton)
• VAV System circa 1987
• air-cooled condenser, VAV air handler, boiler,
  VAV boxes with reheat coils, economizer,
  electronic controls
• 100,000 (2000 per ton)
• costs per building owner do not include
  structural or architectural

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Garrett Office Buildings Actual Metered Annual
Energy Use 2006-2007
47 Site Energy Savings
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Garrett Office Buildings Annual CO2 Emissions
2006-2007
28 Carbon Emissions Reduction
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Garrett Office Buildings Monthly Peak Demand
35 Peak Demand Reduction
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Geothermal Heat Pump Market Perspective
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Historical N.A. Geothermal Industry Shipments

• Single Family Residential - 63 of Total
• New Homes 75
• Existing Homes 25
• Commercial 37 of Total
• Schools and Universities
• Public and Government
• Religious Buildings
• Multi-family Housing
• Office Buildings
• Retail

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Geographic Geothermal Shipments - 2006
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Industry-Trained Geothermal Installers
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Geothermal Heat Pump
USA
GHPs were installed in 1 out of 38 new US homes
in 2008 (2.6 share)
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Geothermal Heat Pump Government Perspective
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Buildings Dominate U.S. Energy Use and Carbon
Emissions with Heating, Cooling, and Water
Heating being the Largest Contributors
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Geothermal Heat Pump Systems
are the most energy-efficient, environmentally
clean, and cost-effective space-conditioning
system
produce the lowest carbon dioxide emissions,
including all source effects, of all available
space-conditioning technologies(EPA)
Geothermal Heat Pumps are one of the Most
Effective Ways to the Reduce Energy Consumption
and Environmental Footprint of our Building Stock
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Geothermal Heat PumpPolitical Drivers

• Rising Energy Costs
• Energy Security Concerns
• Climate Change Concerns
• Electric Grid Capacity

This Convergence of Issues has been Dubbed a
Perfect Storm Driving Energy Policy
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Geothermal Heat PumpLegislative Talking Points

• 50 State technology
• Unlike solar, wind, and hot rocks geothermal
• Uniquely addresses one of the largest components
  of US energy consumption
• Thermal loads of heating, cooling, hot water in
  buildings
• Incremental cost is the underground loop
• This cannot be imported from China
• Local skilled job creation
• Why we requested tax incentives
• Creates consumer awareness and pull demand
• Improves purchase economics
• Foundation for investment in industry capacity
  increase
• Drilling rigs are expensive and trained operators
  scarce
• Contractors need to see that market will have
  sustained growth to commit resources

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Geothermal Heat PumpCurrent Residential Tax
Incentives(Enacted in October 2008 and amended
in February 2009)

• Federal Income Tax Credit
• 30 of total GHP system cost
• Maximum credit is not limited
• Can be used to offset AMT tax
• Can be used in more than one year
• Eligibility
• Home must be located in the U.S.
• Includes houses, cooperatives, condos, mobile
  homes
• Does not have to be your main home
• GHP must meet Energy Star requirements
• Placed in service between 1/1/2008 and
  12/31/2016

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Geothermal Heat PumpCurrent Business Tax
Incentives (Enacted in October 2008 and amended
in February 2009)

• Federal Income Tax Credit or Grant
• 10 of total GHP system cost
• Direct 10 grant available for businesses
  unable to utilize tax credits
• Maximum credit or grant is not limited
• Can be used to offset AMT tax
• Can be used in more than one year
• Accelerated Depreciation
• 5 year MACR depreciation for entire GHP system
• Eligible for bonus depreciation in 2009 (50
  writeoff in first year)
• Eligibility
• Building located in the U.S.
• Original use begins with taxpayer
• Installed between 10/3/2008 and 12/31/2016

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Questions?