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pool and the hot tub, with some supplemental heating during the coldest month for the building. It is estimated that 100 tons of an air-source heat pump would be required to boost the temperature (160 gpm with a 15oF boost). Natural gas could also be used to boost the temperature at a cost of about $70,000/yr. Pipeline: 100 ton booster heat pump @ $1,000/ton: Booster pump: Piping and other in building equipment: Total capital cost: Electricity for the heat pump: Electricity for booster pumps: Other O&M cost: Total annual cost: $500,000 $100,000 $ 50,000 $ 50,000 $700,000 $ 30,000 (COP=2, $0.04/kWh, 4,300 hr/yr) $ 5,000 $ 5,000 $ 40,000 Simple payback: 700,000/(105,100 – 40,000) = 10.8 years Return on investment: = 8.5% With the pipeline suspended below a bridge: Simple payback: 600,000/(105,100 – 40,000) = 9.2 years Return on investment: = 10.2% Assuming the natural gas heating system is already in place, and the pipeline is suspended below a bridge, the estimates would be as follows: capital cost reduced $200,000 and annual costs increase to $80,000. Sample payback: 500,000/(105,100 – 80,000) = 19.9 years Return on investment: = 5.0% However, even though the natural gas option is less attractive than the heat pump option, natural gas has the ability to easily provide additional heating is required in the future, but with the probability of increased unit cost. Summary To summarize all the cost data presented earlier, a spread sheet is attached showing capital cost, O&M costs, energy use, and income for all the alternatives. The assumption has been made that the City would provide the capital funds and operate the system. This situation is then used to determine the simple paybacks in years (i.e. at zero interest) and the returns on investment (for 30 year life) (Appendix C - Table 3). A summary of each system follows: 44PDF Image | GEOTHERMAL RESOURCES GLENWOOD SPRINGS, COLORADO
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