Toronto developer Jack Pong figures we’re sitting on the solution to high energy prices — literally.
Green Building
TORONTO
Toronto developer Jack Pong figures we’re sitting on the solution to high energy prices — literally.
And that’s why as president of City Core Development, he took the bold step of specifying a geothermal HVAC system for his 100-unit medical professional condominium development across from the William Osler Health Centre in Brampton.
While the Springdale Professional Building — which is aiming for LEED silver accreditation — is also equipped with both passive and photovoltaic solar panels, it is the geothermal system which will provide the bulk of the heating and cooling functions.
It is expected to be finished by December this year.
Geothermal systems work by extracting cold or heat from the constant temperature of the earth below the ground.
They pump a coolant fluid through a loop to either drain heat in summer or extract warmth in winter which is then applied to forced air and distributed through a structure in the traditional manner.
These ground source heat pump systems require a fraction of the electricity to operate the pump compared to a standard natural gas furnace or AC compressor system.
While initial capital costs are much higher — more than double — than traditional HVAC installations, they cost about half as much to operate and can pay back in seven years.
And that’s the attraction to bottom line and environmentally conscious developers like Pong.
Energy eats up more than 60 per cent of the average building’s operating costs and the soaring price of oil and fossil-derived energy is prompting many builders and designers of ICI projects to look beyond traditional mechanical HVAC systems.
Making the equation work economically in a market driven context, however, was the first hurdle, admits Pong, who was inspired by the concept of geothermal when he installed a $55,000 system in his own 8,200 square foot home two years ago.
“I started talking to Guelph Hydro’s subsidiary Selectpower about how we could make this a win-win,” said Pong. “The capital cost for a geo system was $2 million and we couldn’t just pass that along to the buyer in a competitive marketplace.”
Using the standard residential water tank lease as the base for the model, Selectpower arrived at an arrangement whereby they would put up the capital costs for installation and guarantee maintenance and replacement of the system if needed over a 30-year term.
“We are also heating water through the passive nature of the panels.”
Jack Pong, City Core Development
In return the condo would enter into a 30-year energy supply contract and divert half the monthly cost savings to pay back the capital costs while also diverting the normal funds set aside for HVAC maintenance and replacement for that term.
“It’s a win-win,” said Pong. “We’re saving the equivalent in greenhouse gases to take 100 cars off the road each year and the condo corporation will have lower energy costs.”
The combination of lower operating costs, reduced carbon footprint and higher energy prices have converged to push geothermal to the forefront in building design, says Selectpower’s president Suzanne Wiltshire.
She’s quick to point out Selectpower won the contract to install a geothermal system at Guelph Hydro’s administration building Phase 2 project. Combined, the two phases account for more than 100,000 square feet of space heated and cooled by two geothermal systems, the first installed a decade ago.
“The word is spreading rapidly as more homeowners and businesses discover geothermal technology as a truly sustainable and affordable solution that literally pays for itself,” Wiltshire said.
The Springdale project also has nine solar panels about 12 by 20 feet each, said Pong, and will combine photovoltaic power with batteries to provide emergency back-up in the case of power outages.
“We are also heating water through the passive nature of the panels,” said Pong, who is developing a seniors’ residence with geothermal and says an office tower in the planning stages will also go that route. “We would have put up more panels, but we reached capacity that we could use or store. We tried to work a deal with the hospital across the street to offer hot water for their laundry, but with their P3 arrangement and stage of development, they were too far ahead in their curve to do anything.”
Hamilton-based Bermingham Foundation Solutions is also noticing the uptick in geothermal interest. It owns the North American rights to Enercrete, a system which uses looped piping in slabs, walls and claims an energy saving of up to 80 per cent.
Bermingham was one of four contractors who installed the system in the $6-million Parks Canada Marine Discovery Centre in Hamilton three years ago
“It took a while to get it working right, but it’s working great now,” said Chuck Chapman, the asset manager. “Our electrical bills have dropped 30 per cent now to about $1,500, down $1,000 a month. For new construction, it really is worth looking at.”
It uses a system of 14-inch pipe driven 100 feet down and through the concrete pilings and foundation to exchange energy, said Bermingham vice-president Peter Smith.
“We’ve got another major project, a quasi public-private development which we’re very close to signing as well and a couple of New York projects,” said Smith. “Certainly we’re getting a lot more serious interest. What’s different now is that we’re meeting with people and we don’t have to explain the system to them; they understand the concept.”
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