Progress 09/01/20 to 01/08/24
Outputs
Target Audience:Over the course of our Phase I grant, we informed and evolved our understanding of potential market opportunities. Our initial target market primarily anticipated rural applications such as irrigation and water requirements for animal farming facilities, e.g., pig farms and turkey barns, which have an inherent need for water and onsite water wells to supply these requirements. We also thought a minimum sized heating and/or cooling load would be required to justify the incremental costs of the system. Our ingoing hypotheses anticipated the primary customers would be for profit entities, and that market access and the potential go to market channels would occur through the electric utility and potentially equipment manufacturers. Our insights came at both the detailed market level (e.g., pig and turkey farms) and at the more macro heating, cooling, and ventilation (HVAC) level. Starting with the individual market, through our market research we met with individual animal farmers, industry trade associations, and equipment vendors. Through these discussions we confirmed that there is a market need for a better heating and cooling solution. Current techniques such as propane fueled heating for turkey barns is extremely inefficient given typical barn characteristics such as ceiling height and cross-barn ventilation, resulting in poor animal body temperature modulation and insufficient heat at the barn floor level. From a go to market perspective within this segment, we gained several important insights. There were two primary paths to potentially access building owners: through the relationship of the parent company (e.g., Jennie-O) with its portfolio of independent farmers and through the industry trade association (e.g., MN Turkey Growers). Creating a demonstration opportunity with a farmer could provide an effective mechanism for the industry players to better understand the benefits of geothermal heating and cooling to turkey farms by heating during early maturation and cooling as the turkeys reach adulthood. This is an area potentially worth further exploration during a Phase II in partnering with a university agriculture program for a demonstration project. The market potential of utilizing a Darcy system in pig farms in SW Minnesota and NW Iowa was explored with an industry vendor. The envisaged application for our technology would provide a heating solution for farrowing operations for new piglets and potentially a simultaneous cooling option for sows. The vendor had a particular interest in providing an air filtering solution for pig barns. They were interested in pairing our technology with their filtering solution and potentially creating a business model to offer a lease-based solution to the owner operator as a financing mechanism to reduce the upfront financial burden on the farmer. The joint effort supported the potential market need. However, there were several challenges, the biggest of which is market readiness. Like the turkey application, having a demonstration project would highlight benefits such as reduced animal food requirements, reduced mortalities, operating costs savings, improved air quality, and reduced greenhouse gas emissions. It also became apparent through these research efforts that utilities and product manufacturers can provide secondary benefits (project-based financial incentives, equipment financing models) that enhance projects and owner interest. We have also learned that quickly gaining market traction is paramount. We have focused our initial market research on larger system applications such as cow farms, settings providing irrigation and other water supply requirements, and other commercial-sized applications (schools, multi-unit residential, healthcare). By matching the development priorities to the immediate market opportunities, we can accelerate adoption with successful project demonstrations and simultaneously enable technical development with direct applicability to rural sectors like single family residential markets. From a macro market perspective, we have significantly advanced our understanding. Beginning with the overall process of heating and cooling mechanical system design and procurement, we have learned that technology selection is driven by the mechanical engineering design firms (aka Plan and Spec) and the design-build HVAC contractors. Electric utilities and architects can play an early role introducing building owners to potential technology solutions. However, mechanical designers are the primary driver of the system design. Ensuring they have a detailed understanding of the technology and how to incorporate it into the overall HVAC system design is a fundamental requirement for adoption. Providing a level of demonstrated system performance is also required. We have learned that one of the most effective ways to access mechanical designers is through the HVAC manufacturer's representative. These organizations provide system designers with design ideas and equipment selections to constitute the designs. For a new technology such as ours, a manufacturer's rep can leverage their industry contacts, design expertise, and industry reputation in support of new technology introduction. As a direct result of this effort, we have established formal relationships with two leading manufacturers' representatives in Minnesota and Wisconsin with additional relationships forming in Illinois and other Midwest states. These partners have brought insights regarding a variety of market segments and designs. There are significant opportunities with rural K-12 schools, government buildings, multi-unit residential buildings, and subsegments within these building types. These segments are generally new opportunities for the geothermal HVAC market. With the passing of the Inflation Reduction Act in August 2022, these market segments are now able to benefit from the increased investment tax credits (ITC) and the elective pay option for non-profit entities. Previously, the ITC for commercial geothermal was only 10% and could only be utilized as an income tax offset for taxable entities. With the IRA, non-profits such as K-12 schools can receive direct payment for up to 30-50% of the project cost and many rural projects in below average economic communities may access an additional 10% incentive. These incentives fundamentally change the financial attractiveness of geothermal projects. Through the building owner contacts enabled via our manufacturers' representatives, we have also discovered the potential to repurpose existing water supply wells. There are many corporate campuses in semi-suburban and outstate areas that have existing irrigation wells in close proximity to the buildings, making a dual use system operationally viable. We have also learned of opportunities to utilize existing wells that are currently supplying cooling towers. The evaporative losses and operating disinfecting requirements are growing concerns that can be overcome with our technology. Working on these types of applications is also generating significant complementary and synergistic technical development insights for us to apply across a broad portfolio of settings. In summary, our market insights gained over the course of our work have been extremely beneficial: Market opportunities exist across a variety of customer segments, including the initial set of hypothesized customers (agriculture and farming) and a new set of rural and outstate customers (education, healthcare, municipal) Most critical stakeholder after the building owner is the mechanical designer Manufacturers' representatives provide the most effective point of access to designers Synergistic technical development and application benefits (dual use applications, using existing wells) Opportunities to leverage successful dual use testing and recent primary use installations Inflation Reduction Act offers game-changing financial incentives Changes/Problems:As discussed in Task 3 of the accomplishments section, the field test at the site in Nome, ND was unable to proceed due to insufficient project funding. In seeking an alternative field site, Darcy identified several dual use candidate sites in Minnesota, where our company is based. For various reasons, those projects were unable to proceed. A common factor in all of them, however, has been the lack of an existing regulatory framework that contemplates Darcy's novel technology. Darcy has made significant progress partnering with regulators to streamline the deployment of our novel technology, and Darcy is actively working with MDH on the approval framework to install a dual-use system in Minnesota. The interactions with regulators during the course of this project have allowed Darcy to educate a broad range of stakeholders on the benefits of dual-use systems, and Darcy has established a strong case that the technology is low-risk and efficacious. While seeking projects in which to deploy the technology for a field test and while working with regulators on the regulatory framework for dual-use wells, Darcy sought out and created an alternative means of testing the technology and gathering the relevant data to inform further development. Fortunately, a unique world-class fluid mechanics research facility that leverages the flow of the Mississippi River, the St. Anthony Fall Laboratory (SAFL), exists near our company headquarters. In lieu of installing our equipment in a dual purpose well, we tested our setup in a simulated well at SAFL. The results were valuable and have allowed us to advance along our R&D pathway as we continue to seek deployment opportunities. What opportunities for training and professional development has the project provided?This project prompted research and discussions with numerous entities that otherwise would not have happened. Most often this was the result of informational meetings with specific partners, however also included webinars, in-person conferences, and sales calls. Darcy geologists and engineers engaged in multiple conferences and webinars. Specifically, a Darcy geologist attended a weeklong water well seminar to develop an understanding of how to design wells for potable water production. Additionally, two Darcy geologists and two engineers attended the National Groundwater Association annual conference to develop understanding of well design and componentry for potable water production. Simultaneously, we also developed and successfully tested our go-to-market strategy and business model that leverages an HVAC manufacturers representative. In working with our selling partners, evaluation of different types of building owners and institutions in the rural area became a large focus. The impact of economics, educational understanding of mechanical systems, and differing views on the practicality and need for technology that can eliminate emissions became obvious. The market in rural America is very different from the largest population centers and selling the concept will require different considerations. Operations partners augmented the knowledge of this customer type. Drillers have been working in traditional geothermal markets and understand what has worked historically. They provided significant information on the scheduling, scope, and demand for these systems in rural markets, as well as the requirements to travel to new locations for project installation while having a price point that was viable. The importance of economics also emphasized why understanding the August 2022 Inflation Reduction Act and how to access the incentives is so critical. This directly led to discussions with multiple firms doing consulting for accounting services to build a financial model and consider supply chain implications for complying with the incentive requirements. This has become a primary opportunity for business development efforts with our sales partners. How have the results been disseminated to communities of interest?This grant directly led to opportunities with multiple entities which otherwise would not have been aware of the technology, not explained in the previous section. Community oriented organizations in low-income housing such as Project for Pride in Living and Sabathani Community Center have progressed discussions with Darcy through investigative discussions on the topic. Corporate entities such as General Mills, John Deere, Kimberly Clark, and Bemis have expressed interest in the dual-use technology for manufacturing facilities which stemmed from sales efforts. Different areas are currently updating their expectations for using natural resources which have caused them to review their existing operations and plans. Specific sectoral verticals such as agriculture and animal farming have shown interest in incorporating the technology for air purification and energy optimization. Discussions with aggregators in the space focused on modernizing farming both for energy efficiency and emissions reductions have begun to happen in late 2023. Tribal communities have expressed interest in using the technology due to the impacts of financial incentives from the Inflation Reduction Act and newfound ability to use them similarly to solar and wind. Partnerships with experts in these areas and sales partners continue to drive interest in learning both about the law and technologies to access it. Finally, there is interest in leveraging the technology for project development in rural communities from financial institutions and developers. These organizations are interested in new sustainable living projects marketed towards younger generations and sustainability focused customers. What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts
What was accomplished under these goals?
This project has enabled Darcy to develop and test the practicality of a Dual-Use well in a simulated environment. Further it has helped Darcy to develop well componentry and well componentry suppliers to facilitate the implementation of Dual-Use wells. The successful testing and performance verification conducted at St. Anthony Falls Laboratory (SAFL) has paved the way for customer adoption. Darcy's distributor representative for Minnesota, Midwest Mechanical Solutions, has introduced this option for the Darcy technology to a number of customers who can implement it in a rural setting. Among these potential customers is General Mills, who Darcy is working with to utilize existing wells to provide heating and cooling, while retaining their potable water production. This example of market interest demonstrates a major opportunity for implementation of Darcy's Dual-Use well technology. Task 1, Obj 1 With the development of a comprehensive numerical model, we determined that only minimal changes in design and operation are needed for a dual-use well compared to a well without potable water production. As an example, a system operating without potable water production might circulate groundwater at 250 GPM to provide a heat exchanger effectiveness (HX%) of 46.62%. If potable water production of 10 GPM were added to this system, the reduced reinjection pressure would enable increasing the circulation to 251.7 GPM increasing HX% to 46.81%. This minimal improvement suggests a dual-use well does not need to be operated differently than a well without potable water production. Task 2, Obj 1 A key learning from this task was the benefits of using separate pumps for inducing flow through the heat exchanger and for producing water to the surface. Because the heat exchanger requires a pump designed for high flow and low pressure and potable water production requires low flow and higher pressure, it is more efficient to use separate submersible pumps specifically designed for each use. Through this analysis, we discovered that the benefits far outweigh the additional cost. Task 2, Obj 2 The addition of a submersible pump for potable water production, which is placed vertically above the heat exchanger does not require any changes to the heat exchanger design. However, during the USDA grant execution, and partially informed by the analysis described above, Darcy did identify opportunities to increase well and heat exchanger diameters to increase heat transfer per well. These heat exchanger design modifications result in greater efficiency and cost effectiveness. Task 2, Obj 3 As part of this objective, Darcy designed pitless units for both standard Darcy wells and Dual-Use Darcy Wells. The standard Darcy well pitless unit has two chambers (one for supply to and one for return from the heat exchanger), and the pitless unit allows for easy disconnection of the two sets of pipes for maintenance of the well and its components. The Dual-Use Darcy Well requires a third chamber for the potable water production. Darcy has filed patent applications through PCT phase at this point for both the double chamber and triple chamber pitless units. Darcy began manufacturing pitless units with the help of Baker Monitor, who is a leading US based manufacturer of water well pitless units. To date, Darcy has installed 15 standard Darcy well pitless units and Baker Monitor is ready and able to produce a Dual-Use pitless unit when required. Task 3, Obj 1 A field test at the Nome, ND site was not able to proceed due to a lack of funding. Darcy has made significant progress partnering with regulators like Minnesota Department of Health (MDH) to streamline deployment of our technology. Darcy is currently working with MDH to finalize the regulatory framework to allow installation of dual-use systems in Minnesota, where we are based. While working in parallel with regulators on the regulatory framework for dual-use wells, Darcy developed an alternative means of testing the technology and gathering the relevant data to inform further development. In lieu of installing our equipment in a dual purpose well, we tested our setup in a simulated well at a unique world-class fluid mechanics research facility - SAFL - that leverages the flow of the Mississippi River. Task 3, Obj 2 Full scale tests were carried out in April of 2023 at SAFL. SAFL constructed a test to simulate the conditions of a groundwater well, while being able to gather significantly more data than would be feasible in the field. While not initially planned as part of our effort, SAFL testing provided crucial information that will greatly increase the likelihood of success for ultimate field deployment. The setup consisted of a simulated open groundwater loop, a closed flow loop with a variable thermal load, temperature and pressure instrumentation, and controls. Once baseline performance was established for standard Darcy well operation, a 4" domestic well pump was slid into the casing downstream of the heat exchanger (which would be vertically above the heat exchanger in a well) to simulate a situation where a single well is used for domestic water as well as heat exchange. The pump discharge was routed through a valved discharge with a pressure gauge to measure back pressure. We operated the test with the potable water production pump experiencing back pressures between 0 psi at 15.8 GPM and 60 psi at 8.7 GPM. Additionally, we operated the system without the potable water production pump. Across 7 tests with potable water production and 1 without, HX% varied from 26.9% to 27.3% with no visible pattern and R-squared of 0.373. This testing proved that all components needed for simultaneous potable water production and heat exchange could be installed in an 8" wellbore, and potable water production could occur concurrently with heat exchange. Task 4, Obj 1 Darcy has created a robust model for evaluating the total cost of ownership, capital expenditure, operating expense, and incentives for our system and comparative systems by partnering with industry experts having knowledge of each area. Task 4, Obj 2 Darcy has modeled a theoretical deployment of the AGHP system compared with the most likely substitute system per input from market experts, a natural gas boiler and roof top units. The system was sized for a 25,000 square foot newly constructed facility and uses EIA CBECS data for expectations of heating and cooling requirements. The model incorporates tax credits, deductions, and accelerated depreciation though all these variables can be altered for different customer requirements. The CapEx comparison to build the system heavily favors Darcy despite an initially higher first cost ($905k vs. $750k), after all incentives are included: Darcy System: $408,756 Substitute System: $679,185 The OpEx comparison also favors Darcy: Darcy System: $22,904 energy, $4,680 maintenance, $27,584 annual total Substitute System: $31,463 energy, $14,430 maintenance, $45,893 annual total The combination of cash flow from CapEx and OpEx results in an overwhelmingly positive story for the total costs of ownership for the Darcy system, customers will save $1,064,670 over the course of 50 years which is a net present value of $374,480 using an 8% cost of capital. Task 4, Obj 3 As part of calculating the financial implications of the Darcy system and substitutes, all energy consumption and associated emissions profiles were analyzed and incorporated into the model. The Darcy system requires less energy to heat compared with traditional systems, specifically 2.91 KWh vs. 10.19 KWh per square foot. The Darcy system also requires less energy for cooling, 2.9 kWh vs. 3.9 kWh per square foot. Using EIA benchmark emissions data from electricity, Darcy system emissions total 52 tons CO2e, whereas the substitute system is 158 tons CO2e. These numbers do not reflect impending changes to source electricity emissions.
Publications
|
Progress 09/01/20 to 12/29/23
Outputs
Target Audience:Over the course of our Phase I grant, we informed and evolved our understanding of potential market opportunities. Our initial target market primarily anticipated rural applications such as irrigation and water requirements for animal farming facilities, e.g., pig farms and turkey barns, which have an inherent need for water and onsite water wells to supply these requirements. We also thought a minimum sized heating and/or cooling load would be required to justify the incremental costs of the system. Our ingoing hypothesis anticipated the primary customers would be for profit entities. Market access and the potential go to market channels would occur through the electric utility and potentially equipment manufacturers. Our insights came at both the detailed market level (e.g., pig and turkey farms) and at the more macro heating, cooling, and ventilation (HVAC) level. Starting with the individual market, through our market research we met with individual animal farmers, industry trade associations, and vendors. Through these discussions we confirmed that there is a market need for a better heating and cooling solution. Current techniques such as propane fueled heating for turkey barns is extremely inefficient given typical barn characteristics such as ceiling height and cross-barn ventilation, resulting in poor animal body temperature modulation and insufficient heat at the barn floor level. From a go to market perspective within this segment, we gained several important insights. There were two primary paths to potentially access building owners: through the relationship of the parent company with its portfolio of independent farmers and through the industry trade association. Creating a demonstration opportunity with a farmer could provide an effective mechanism for the industry players to better understand the benefits of geothermal heating and cooling to turkey farms by heating during early maturation and cooling as the turkeys reach adulthood. This is an area potentially worth further exploration during a Phase II in partnering with a university agriculture program for a demonstration project. The market potential of utilizing a Darcy system in pig farms in southwestern Minnesota and northwestern Iowa was explored with an industry vendor. The envisaged application for our technology would provide a heating solution for farrowing operations for new piglets and potentially a simultaneous cooling option for sows. The vendor had a particular interest in providing a filtering solution for pig barns. They were interested in pairing our technology with their filtering solution and potentially creating a business model to offer a lease-based solution to the owner operator as a financing mechanism to reduce the upfront financial burden on the farmer. The joint effort supported the potential market need. However, there were several challenges, the biggest of which is market readiness. Like the turkey application, having a demonstration project would highlight benefits such as reduced animal food requirements, reduced mortalities, operating costs savings, improved air quality, and reduced greenhouse gas emissions. It also became apparent through these research efforts that utilities and product manufacturers can provide secondary benefits (project-based financial incentives, equipment financing models) that enhance projects and owner interest. We have also learned that quickly gaining market traction is paramount. We have focused our initial market research on larger system applications such as cow farms, settings providing irrigation and other water supply requirements, and other commercial-sized applications (schools, multi-unit residential, healthcare). By matching the development priorities to the immediate market opportunities, we can accelerate adoption with successful project demonstrations and simultaneously enable technical development with direct applicability to rural sectors like single family residential markets. From a macro market perspective, we have significantly advanced our understanding. Beginning with overall process of heating and cooling mechanical system design and procurement, we have learned that technology selection is driven by the mechanical engineering design firms (aka Plan and Spec) and the design-build HVAC contractors. Electric utilities and architects can play an early role introducing building owners to potential technology solutions. However, mechanical designers are the primary driver. Ensuring they have a detailed understanding of the technology and how to incorporate it into the overall HVAC system design is a fundamental requirement for adoption. Providing a level of demonstrated system performance is also required. We have learned that one of the most effective ways to access mechanical designers is through the HVAC manufacturer's representative. These organizations provide system designers with design ideas and equipment selections to constitute the designs. For a new technology such as ours, a manufacturer's rep can leverage their industry contacts, design expertise, and industry reputation in support of new technology introduction. As a direct result of this effort we have established formal relationships with two leading manufacturers' representatives in Minnesota and Wisconsin with additional relationships forming in Illinois and other Midwest states. These partners have brought insights regarding a variety of market segments and designs. There are significant opportunities with rural K-12 schools, government buildings, multi-unit buildings, and subsegments within these building types. These segments are generally new opportunities for the geothermal HVAC market. With the passing of the Inflation Reduction Act in August 2022, these market segments are now able to benefit from the increased investment tax credits (ITC) and the elective pay option for non-profit entities. Previously, the ITC for geothermal was only 10% and could only be utilized as an income tax offset for taxable entities. With the IRA, non-profits such as K-12 schools can receive direct payment for up to 30-50% of the project cost and many rural projects in below average economic communities may access an additional 10% incentive. These incentives fundamentally change the financial attractiveness of geothermal projects. Through the building owner contacts enabled via our manufacturers' representatives, we have also discovered the potential to repurpose existing wells. There are many corporate campuses in semi-suburban and outstate areas that have existing irrigation wells in close proximity to the buildings, making a dual use system operationally viable. We have also learned of opportunities to utilize existing wells that are currently supplying cooling towers. The evaporative losses and operating disinfecting requirements are growing concerns that can be overcome with our technology. Working on these types of applications is also generating significant complementary and synergistic technical development insights for us to apply across a broad portfolio of settings. In summary, our market insights gained over the course of our work have been extremely beneficial: Market opportunities exist across a variety of customer segments, including the initial set of hypothesized customers (agriculture and farming) and a new set of rural and outstate customers (education, healthcare, municipal) Most critical stakeholder after the building owner is the mechanical designer Manufacturers' representatives provide the most effective point of access to designers Synergistic technical development and application benefits (dual use applications, using existing wells) Opportunities to leverage successful dual use testing and recent primary use installations Inflation Reduction Act offers game-changing financial incentives Changes/Problems:As discussed in Task 3 of the accomplishments section, the field test at the site in Nome, ND was unable to proceed. In seeking an alternative field site, Darcy identified several candidate sites in Minnesota, where our company is based. For various reasons, none of those projects were able to proceed. The common factor in all of them, however, was regulatory uncertainty from the well management section within the Minnesota Department of Health (MDH), which is the authority having jurisdiction over the installation, maintenance and sealing of wells and borings. In this case, MDH also permits the installation of submerged closed-loop heat exchangers (i.e., a Darcy heat exchanger). While Darcy has made significant progress partnering with regulators to streamline the deployment of our technology, Darcy is still awaiting MDH approval to install a dual-use system in Minnesota. The interactions with regulators during the course of this project have allowed Darcy to educate a broad range of stakeholders on the benefits of dual-use systems, and Darcy has established a strong case that the technology is low-risk and efficacious. While seeking projects in which to deploy the technology for a field test and while working with regulators on the regulatory framework for dual-use wells, Darcy sought out an alternative means of testing the technology and gathering the relevant data to inform further development. Fortunately, a unique world-class fluid mechanics research facility that leverages the flow of the Mississippi River, the St. Anthony Fall Laboratory (SAFL), exists near our company headquarters. In lieu of installing our equipment in a dual purpose well, we tested our setup in a simulated well at SAFL. The results were valuable and have allowed us to advance along our R&D pathway as we continue to seek deployment opportunities. What opportunities for training and professional development has the project provided?This project prompted research and discussions with numerous entities that otherwise would not have happened. Most often this was the result of informational meetings with specific partners, however also included webinars, in-person conferences, and sales calls. Darcy geologists and engineers engaged in multiple conferences and webinars. Specifically, a Darcy geologist attended a weeklong water well seminar to develop an understanding of how to design wells for potable water production. Additionally, two Darcy geologists and two engineers attended the National Groundwater Association annual conference to develop understanding of well design and componentry for potable water production. In working with our selling partners, evaluation of different types of building owners and institutions in the rural area became a large focus. The impact of economics, educational understanding of mechanical systems, and differing views on the practicality and need for technology that can eliminate emissions became obvious. The market in rural America is very different from the largest population centers and selling the concept will require different considerations. Operations partners augmented the knowledge of this customer type. Drillers have been working in traditional geothermal markets and understand what has worked historically. They provided significant information on the scheduling, scope, and demand for these systems in rural markets, as well as the requirements to travel to new locations while having a price point that was viable. The importance of economics also emphasized why understanding the Inflation Reduction Act and how to access the incentives is so critical. This directly led to discussions with multiple firms doing consulting for accounting services to build a financial model and consider supply chain implications for abiding by the law. This has become a primary opportunity for business development efforts with our partners. How have the results been disseminated to communities of interest?This grant directly led to opportunities with multiple entities which otherwise would not have been aware of the technology, not explained in the previous section. Community oriented organizations such as Project for Pride in Living and Sabathani Community Center have progressed discussions with Darcy through investigative discussions on the topic. Corporate entities such as General Mills, John Deere, Kimberly Clark, Donaldson, and Bemis have expressed interest in the technology for manufacturing facilities which stemmed from sales efforts. Different areas are currently updating their expectations for using natural resources which have caused them to review their existing operations and plans. Specific sectoral verticals such as agriculture and animal farming have shown interest in incorporating the technology for air purification and energy optimization. Discussions with aggregators in the space focused on modernizing farming both for energy efficiency and emissions reductions have begun to happen in late 2023. Tribal communities have expressed interest in using the technology due to the impacts of financial incentives from the Inflation Reduction Act and newfound ability to use them similarly to solar and wind. Partnerships with experts in these areas and sales partners continue to drive interest in learning both about the law and technologies to access it. Finally, there is interest in leveraging the technology for development rural communities for financial institutions and developers. These organizations are interested in new sustainable living projects marketed towards younger generations and sustainability focused customers. What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts
What was accomplished under these goals?
This project has enabled Darcy to develop and test the practicality of a Dual-Use well in a simulated environment. Further it has helped Darcy to develop well componentry and well componentry suppliers to facilitate the implementation of Dual-Use wells. The successful testing and performance verification conducted at St. Anthony Falls Laboratory (SAFL)has paved the way for customer adoption. Darcy's distributor representative for the Minnesota market, Midwest Mechanical Solutions, has introduced this option for the Darcy technology to a number of customers who can implement it in a rural setting. Among these potential customers is General Mills, who Darcy is working with to be able to utilize existing wells to provide heating and cooling, while retaining their potable water production. This example of market awareness demonstrates a major opportunity for the implementation of Darcy's Dual-Use well technology. Task 1, Obj 1 Through the development of a comprehensive numerical model, we determined that only minimal changes in design and operation are needed for a dual-use well compared to a well without potable water production. As an example, a system operating without potable water production might circulate groundwater at 250 GPM to provide a heat exchanger effectiveness (HX%) of 46.62%. If potable water production of 10 GPM were added to this system, the reduced reinjection pressure would enable increasing the circulation to 251.7 GPM increasing HX% to 46.81%. This minimal improvement suggests that a dual-use well does not need to be operated differently than a well without potable water production. Task 2, Obj 1 A key learning from this task was the benefits of using separate pumps for inducing flow through the heat exchanger and for producing water to the surface. Because the heat exchanger requires a pump designed for high flow and low pressure and potable water production requires low flow and higher pressure, it is more efficient to use separate pumps specifically designed for each use. Through this analysis, we discovered that the benefits far outweigh the additional cost. Task 2, Obj 2 The addition of a submersible pump for potable water production, which is placed vertically above the heat exchanger does not require any changes to the heat exchanger design. However, during the USDA grant execution, and partially informed by the analysis described above, Darcy did identify opportunities to increase well and heat exchanger diameters to increase heat transfer per well. These heat exchanger design modifications result in greater efficiency and cost effectiveness. Task 2, Obj 3 As part of this objective, Darcy designed pitless units for both standard Darcy wells and Dual-Use Darcy Wells. The standard Darcy well pitless unit has two chambers (one for supply to and one for return from the heat exchanger), and the pitless unit allows for easy disconnection of the two sets of pipes for maintenance of the well and its components. The Dual-Use Darcy Well requires a third chamber for the potable water production. Darcy has filed patent applications through PCT phase at this point for both the double chamber and triple chamber pitless unit. Darcy began manufacturing pitless units with the help of Baker Monitor, who is a leading US based manufacturer of water well pitless units. To date, Darcy has installed 15 standard Darcy well pitless units and Baker Monitor is ready and able to produce a Dual-Use pitless unit when required. Task 3, Obj 1 A field test at the Nome, ND site was not able to proceed due to a lack of funding. Though Darcy has made significant progress partnering with regulators like the Minnesota Department of Health (MDH) to streamline the deployment of our technology, Darcy is still awaiting MDH approval to install a dual-use system in Minnesota, where we are based. While working with regulators on the regulatory framework for dual-use wells, Darcy sought out an alternative means of testing the technology and gathering the relevant data to inform further development. In lieu of installing our equipment in a dual purpose well, we tested our setup in a simulated well at a unique world-class fluid mechanics research facility that leverages the flow of the Mississippi River, SAFL. Task 3, Obj 2 Full scale tests were carried out in April of 2023 at SAFL. SAFL constructed a test stand to simulate the conditions of a groundwater well, while being able to gather significantly more data than would be feasible in the field. While not initially planned as part of our product development, the SAFL testing provided crucial information that will greatly increase the likelihood of success for ultimate field deployment. The setup consisted of a simulated open groundwater loop, a closed flow loop with a variable thermal load, temperature and pressure instrumentation, and controls.Once baseline performance was established for standard Darcy well operation, a 4" domestic well pump was slid into the casing downstream of the heat exchanger (which would be vertically above the heat exchanger in a well) to simulate a situation where a single well is used for domestic water as well as heat exchange. The pump discharge was routed through a valved discharge with a pressure gauge to measure back pressure. We operated the test with the potable water production pump experiencing back pressures between 0 psi at 15.8 GPM and 60 psi at 8.7 GPM. Additionally, we operated the system without the potable water production pump. Across 7 tests with potable water production and 1 without, HX% varied from 26.9% to 27.3% with no visible pattern and R2 of 0.373.This testing proved that all components needed for simultaneous potable water production and heat exchange could be installed in an 8" wellbore, and that potable water production could take place concurrently with heat exchange. Task 4, Obj 1 Darcy has created a robust model for evaluating the total cost of ownership, capital expenditure, operating expense, and incentives for our system and comparative systems by partnering with industry experts having knowledge of each area. Task 4, Obj 2 Darcy has modeled a theoretical deployment of the AGHP system compared with the most likely substitute system per input from market experts, a natural gas boiler and roof top units. The system was sized for a 25,000 square foot newly constructed facility and uses EIA CBECS data for expectations of heating and cooling requirements. The model incorporates tax credits, deductions, and accelerated depreciation though all these variables can be altered for different customer requirements. The CapEx comparison to build the system heavily favors Darcy despite an initially higher first cost ($905k vs. $750k), after all incentives are included: Darcy System: $408,756 Substitute System: $679,185 The OpEx comparison is also in favor of Darcy: Darcy System: $22,904 energy, $4,680 maintenance, $27,584 total annually Substitute System: $31,463 energy, $14,430 maintenance, $45,893 total annually The combination of cash flow from CapEx and OpEx results in an overwhelmingly positive story for the total costs of ownership for the Darcy system, customers will save $1,064,670 over the course of 50 years which is a net present value of $374,480 using an 8% cost of capital. Task 4, Obj 3 As part of calculating the financial implications of the Darcy system and substitutes, all energy consumption and associated emissions profiles were analyzed and incorporated into the model. The Darcy system requires less energy to heat compared with traditional systems, specifically 2.91 KWh vs. 10.19 KWh per square foot. The Darcy system also requires less energy for cooling, 2.9 kWh vs. 3.9 kWh per square foot. Using EIA benchmark data for emissions from electricity, the Darcy system emissions are a total of 52 tons CO2e, whereas the substitute system is 158 tons CO2e. These numbers do not reflect impending changes to source electricity emissions.
Publications
|
Progress 09/01/22 to 08/31/23
Outputs
Target Audience:Over the course of our Phase I grant, we informed and evolved our understanding of potential market opportunities. Our initial target market primarily anticipated rural applications such as irrigation and water requirements for animal farming facilities, e.g., pig farms and turkey barns, which have an inherent need for water and onsite water wells to supply these requirements. We also thought a minimum sized heating and/or cooling load would be required to justify the incremental costs of the system. Our ingoing hypothesis anticipated the primary customers would be for profit entities. Market access and the potential go to market channels would occur through the electric utility and potentially equipment manufacturers. Our insights came at both the detailed market level (e.g., pig and turkey farms) and at the more macro heating, cooling, and ventilation (HVAC) level. Starting with the individual market, through our market research we met with individual animal farmers, industry trade associations, and vendors. Through these discussions we confirmed that there is a market need for a better heating and cooling solution. Current techniques such as propane fueled heating for turkey barns is extremely inefficient given typical barn characteristics such as ceiling height and cross-barn ventilation, resulting in poor animal body temperature modulation and insufficient heat at the barn floor level. From a go to market perspective within this segment, we gained several important insights. There were two primary paths to potentially access building owners: through the relationship of the parent company with its portfolio of independent farmers and through the industry trade association. Creating a demonstration opportunity with a farmer could provide an effective mechanism for the industry players to better understand the benefits of geothermal heating and cooling to turkey farms by heating during early maturation and cooling as the turkeys reach adulthood. This is an area potentially worth further exploration during a Phase II in partnering with a university agriculture program for a demonstration project. The market potential of utilizing a Darcy system in pig farms in southwestern Minnesota and northwestern Iowa was explored with an industry vendor. The envisaged application for our technology would provide a heating solution for farrowing operations for new piglets and potentially a simultaneous cooling option for sows. The vendor had a particular interest in providing a filtering solution for pig barns. They were interested in pairing our technology with their filtering solution and potentially creating a business model to offer a lease-based solution to the owner operator as a financing mechanism to reduce the upfront financial burden on the farmer. The joint effort supported the potential market need. However, there were several challenges, the biggest of which is market readiness. Like the turkey application, having a demonstration project would highlight benefits such as reduced animal food requirements, reduced mortalities, operating costs savings, improved air quality, and reduced greenhouse gas emissions. It also became apparent through these research efforts that utilities and product manufacturers can provide secondary benefits (project-based financial incentives, equipment financing models) that enhance projects and owner interest. We have also learned that quickly gaining market traction is paramount. We have focused our initial market research on larger system applications such as cow farms, settings providing irrigation and other water supply requirements, and other commercial-sized applications (schools, multi-unit residential, healthcare). By matching the development priorities to the immediate market opportunities, we can accelerate adoption with successful project demonstrations and simultaneously enable technical development with direct applicability to rural sectors like single family residential markets. From a macro market perspective, we have significantly advanced our understanding. Beginning with overall process of heating and cooling mechanical system design and procurement, we have learned that technology selection is driven by the mechanical engineering design firms (aka Plan and Spec) and the design-build HVAC contractors. Electric utilities and architects can play an early role introducing building owners to potential technology solutions. However, mechanical designers are the primary driver. Ensuring they have a detailed understanding of the technology and how to incorporate it into the overall HVAC system design is a fundamental requirement for adoption. Providing a level of demonstrated system performance is also required. We have learned that one of the most effective ways to access mechanical designers is through the HVAC manufacturer's representative. These organizations provide system designers with design ideas and equipment selections to constitute the designs. For a new technology such as ours, a manufacturer's rep can leverage their industry contacts, design expertise, and industry reputation in support of new technology introduction. As a direct result of this effort we have established formal relationships with two leading manufacturers' representatives in Minnesota and Wisconsin with additional relationships forming in Illinois and other Midwest states. These partners have brought insights regarding a variety of market segments and designs. There are significant opportunities with rural K-12 schools, government buildings, multi-unit buildings, and subsegments within these building types. These segments are generally new opportunities for the geothermal HVAC market. With the passing of the Inflation Reduction Act in August 2022, these market segments are now able to benefit from the increased investment tax credits (ITC) and the elective pay option for non-profit entities. Previously, the ITC for geothermal was only 10% and could only be utilized as an income tax offset for taxable entities. With the IRA, non-profits such as K-12 schools can receive direct payment for up to 30-50% of the project cost and many rural projects in below average economic communities may access an additional 10% incentive. These incentives fundamentally change the financial attractiveness of geothermal projects. Through the building owner contacts enabled via our manufacturers' representatives, we have also discovered the potential to repurpose existing wells. There are many corporate campuses in semi-suburban and outstate areas that have existing irrigation wells in close proximity to the buildings, making a dual use system operationally viable. We have also learned of opportunities to utilize existing wells that are currently supplying cooling towers. The evaporative losses and operating disinfecting requirements are growing concerns that can be overcome with our technology. Working on these types of applications is also generating significant complementary and synergistic technical development insights for us to apply across a broad portfolio of settings. In summary, our market insights gained over the course of our work have been extremely beneficial: Market opportunities exist across a variety of customer segments, including the initial set of hypothesized customers (agriculture and farming) and a new set of rural and outstate customers (education, healthcare, municipal) Most critical stakeholder after the building owner is the mechanical designer Manufacturers' representatives provide the most effective point of access to designers Synergistic technical development and application benefits (dual use applications, using existing wells) Opportunities to leverage successful dual use testing and recent primary use installations Inflation Reduction Act offers game-changing financial incentives Changes/Problems:As discussed in Task 3 of the accomplishments section, the field test at the site in Nome, ND was unable to proceed. In seeking an alternative field site, Darcy identified several candidate sites in Minnesota, where our company is based. For various reasons, none of those projects were able to proceed. The common factor in all of them, however, was regulatory uncertainty from the well management section within the Minnesota Department of Health (MDH), which is the authority having jurisdiction over the installation, maintenance and sealing of wells and borings. In this case, MDH also permits the installation of submerged closed-loop heat exchangers (i.e., a Darcy heat exchanger). While Darcy has made significant progress partnering with regulators to streamline the deployment of our technology, Darcy is still awaiting MDH approval to install a dual-use system in Minnesota. The interactions with regulators during the course of this project have allowed Darcy to educate a broad range of stakeholders on the benefits of dual-use systems, and Darcy has established a strong case that the technology is low-risk and efficacious. While seeking projects in which to deploy the technology for a field test and while working with regulators on the regulatory framework for dual-use wells, Darcy sought out an alternative means of testing the technology and gathering the relevant data to inform further development. Fortunately, a unique world-class fluid mechanics research facility that leverages the flow of the Mississippi River, the St. Anthony Fall Laboratory (SAFL), exists near our company headquarters. In lieu of installing our equipment in a dual purpose well, we tested our setup in a simulated well at SAFL. The results were valuable and have allowed us to advance along our R&D pathway as we continue to seek deployment opportunities. What opportunities for training and professional development has the project provided?This project prompted research and discussions with numerous entities that otherwise would not have happened. Most often this was the result of informational meetings with specific partners, however also included webinars, in-person conferences, and sales calls. Darcy geologists and engineers engaged in multiple conferences and webinars. Specifically, a Darcy geologist attended a weeklong water well seminar to develop an understanding of how to design wells for potable water production. Additionally, two Darcy geologists and two engineers attended the National Groundwater Association annual conference to develop understanding of well design and componentry for potable water production. In working with our selling partners, evaluation of different types of building owners and institutions in the rural area became a large focus. The impact of economics, educational understanding of mechanical systems, and differing views on the practicality and need for technology that can eliminate emissions became obvious. The market in rural America is very different from the largest population centers and selling the concept will require different considerations. Operations partners augmented the knowledge of this customer type. Drillers have been working in traditional geothermal markets and understand what has worked historically. They provided significant information on the scheduling, scope, and demand for these systems in rural markets, as well as the requirements to travel to new locations while having a price point that was viable. The importance of economics also emphasized why understanding the Inflation Reduction Act and how to access the incentives is so critical. This directly led to discussions with multiple firms doing consulting for accounting services to build a financial model and consider supply chain implications for abiding by the law. This has become a primary opportunity for business development efforts with our partners. How have the results been disseminated to communities of interest?This grant directly led to opportunities with multiple entities which otherwise would not have been aware of the technology, not explained in the previous section. Community oriented organizations such as Project for Pride in Living and Sabathani Community Center have progressed discussions with Darcy through investigative discussions on the topic. Corporate entities such as General Mills, John Deere, Kimberly Clark, Donaldson, and Bemis have expressed interest in the technology for manufacturing facilities which stemmed from sales efforts. Different areas are currently updating their expectations for using natural resources which have caused them to review their existing operations and plans. Specific sectoral verticals such as agriculture and animal farming have shown interest in incorporating the technology for air purification and energy optimization. Discussions with aggregators in the space focused on modernizing farming both for energy efficiency and emissions reductions have begun to happen in late 2023. Tribal communities have expressed interest in using the technology due to the impacts of financial incentives from the Inflation Reduction Act and newfound ability to use them similarly to solar and wind. Partnerships with experts in these areas and sales partners continue to drive interest in learning both about the law and technologies to access it. Finally, there is interest in leveraging the technology for development rural communities for financial institutions and developers. These organizations are interested in new sustainable living projects marketed towards younger generations and sustainability focused customers. What do you plan to do during the next reporting period to accomplish the goals?We will be submitting this report as our final report.
Impacts
What was accomplished under these goals?
This project has enabled Darcy to develop and test the practicality of a Dual-Use well in a simulated environment. Further it has helped Darcy to develop well componentry and well componentry suppliers to facilitate the implementation of Dual-Use wells. The successful testing and performance verification conducted at St. Anthony Falls Laboratory (SAFL)has paved the way for customer adoption. Darcy's distributor representative for the Minnesota market, Midwest Mechanical Solutions, has introduced this option for the Darcy technology to a number of customers who can implement it in a rural setting. Among these potential customers is General Mills, who Darcy is working with to be able to utilize existing wells to provide heating and cooling, while retaining their potable water production. This example of market awareness demonstrates a major opportunity for the implementation of Darcy's Dual-Use well technology. Task 1, Obj 1 Through the development of a comprehensive numerical model, we determined that only minimal changes in design and operation are needed for a dual-use well compared to a well without potable water production. As an example, a system operating without potable water production might circulate groundwater at 250 GPM to provide a heat exchanger effectiveness (HX%) of 46.62%. If potable water production of 10 GPM were added to this system, the reduced reinjection pressure would enable increasing the circulation to 251.7 GPM increasing HX% to 46.81%. This minimal improvement suggests that a dual-use well does not need to be operated differently than a well without potable water production. Task 2, Obj 1 A key learning from this task was the benefits of using separate pumps for inducing flow through the heat exchanger and for producing water to the surface. Because the heat exchanger requires a pump designed for high flow and low pressure and potable water production requires low flow and higher pressure, it is more efficient to use separate pumps specifically designed for each use. Through this analysis, we discovered that the benefits far outweigh the additional cost. Task 2, Obj 2 The addition of a submersible pump for potable water production, which is placed vertically above the heat exchanger does not require any changes to the heat exchanger design. However, during the USDA grant execution, and partially informed by the analysis described above, Darcy did identify opportunities to increase well and heat exchanger diameters to increase heat transfer per well. These heat exchanger design modifications result in greater efficiency and cost effectiveness. Task 2, Obj 3 As part of this objective, Darcy designed pitless units for both standard Darcy wells and Dual-Use Darcy Wells. The standard Darcy well pitless unit has two chambers (one for supply to and one for return from the heat exchanger), and the pitless unit allows for easy disconnection of the two sets of pipes for maintenance of the well and its components. The Dual-Use Darcy Well requires a third chamber for the potable water production. Darcy has filed patent applications through PCT phase at this point for both the double chamber and triple chamber pitless unit. Darcy began manufacturing pitless units with the help of Baker Monitor, who is a leading US based manufacturer of water well pitless units. To date, Darcy has installed 15 standard Darcy well pitless units and Baker Monitor is ready and able to produce a Dual-Use pitless unit when required. Task 3, Obj 1 A field test at the Nome, ND site was not able to proceed due to a lack of funding. Though Darcy has made significant progress partnering with regulators like the Minnesota Department of Health (MDH) to streamline the deployment of our technology, Darcy is still awaiting MDH approval to install a dual-use system in Minnesota, where we are based. While working with regulators on the regulatory framework for dual-use wells, Darcy sought out an alternative means of testing the technology and gathering the relevant data to inform further development. In lieu of installing our equipment in a dual purpose well, we tested our setup in a simulated well at a unique world-class fluid mechanics research facility that leverages the flow of the Mississippi River, SAFL. Task 3, Obj 2 Full scale tests were carried out in April of 2023 at SAFL. SAFL constructed a test stand to simulate the conditions of a groundwater well, while being able to gather significantly more data than would be feasible in the field. While not initially planned as part of our product development, the SAFL testing provided crucial information that will greatly increase the likelihood of success for ultimate field deployment. The setup consisted of a simulated open groundwater loop, a closed flow loop with a variable thermal load, temperature and pressure instrumentation, and controls.Once baseline performance was established for standard Darcy well operation, a 4" domestic well pump was slid into the casing downstream of the heat exchanger (which would be vertically above the heat exchanger in a well) to simulate a situation where a single well is used for domestic water as well as heat exchange. The pump discharge was routed through a valved discharge with a pressure gauge to measure back pressure. We operated the test with the potable water production pump experiencing back pressures between 0 psi at 15.8 GPM and 60 psi at 8.7 GPM. Additionally, we operated the system without the potable water production pump. Across 7 tests with potable water production and 1 without, HX% varied from 26.9% to 27.3% with no visible pattern and R2 of 0.373.This testing proved that all components needed for simultaneous potable water production and heat exchange could be installed in an 8" wellbore, and that potable water production could take place concurrently with heat exchange. Task 4, Obj 1 Darcy has created a robust model for evaluating the total cost of ownership, capital expenditure, operating expense, and incentives for our system and comparative systems by partnering with industry experts having knowledge of each area. Task 4, Obj 2 Darcy has modeled a theoretical deployment of the AGHP system compared with the most likely substitute system per input from market experts, a natural gas boiler and roof top units. The system was sized for a 25,000 square foot newly constructed facility and uses EIA CBECS data for expectations of heating and cooling requirements. The model incorporates tax credits, deductions, and accelerated depreciation though all these variables can be altered for different customer requirements. The CapEx comparison to build the system heavily favors Darcy despite an initially higher first cost ($905k vs. $750k), after all incentives are included: Darcy System: $408,756 Substitute System: $679,185 The OpEx comparison is also in favor of Darcy: Darcy System: $22,904 energy, $4,680 maintenance, $27,584 total annually Substitute System: $31,463 energy, $14,430 maintenance, $45,893 total annually The combination of cash flow from CapEx and OpEx results in an overwhelmingly positive story for the total costs of ownership for the Darcy system, customers will save $1,064,670 over the course of 50 years which is a net present value of $374,480 using an 8% cost of capital. Task 4, Obj 3 As part of calculating the financial implications of the Darcy system and substitutes, all energy consumption and associated emissions profiles were analyzed and incorporated into the model. The Darcy system requires less energy to heat compared with traditional systems, specifically 2.91 KWh vs. 10.19 KWh per square foot. The Darcy system also requires less energy for cooling, 2.9 kWh vs. 3.9 kWh per square foot. Using EIA benchmark data for emissions from electricity, the Darcy system emissions are a total of 52 tons CO2e, whereas the substitute system is 158 tons CO2e. These numbers do not reflect impending changes to source electricity emissions.
Publications
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Progress 09/01/21 to 08/31/22
Outputs
Target Audience:Our initial product-market fit interviews with current groundsource industry players has helped focus our target market and audience. These discussions have established a minimum well diameter for our target application, raising it from our initial hypothesis of a 4" diameter well, to 6" or 8" diameter. This has informed the design of our heat exchanger and in-well system configuration and provided greater flexibility. More in-depth evaluation of the target market is part of our next phase of work. Changes/Problems:We have encountered several significant challenges over the course of the project. Fortunately, we have developed a revised project plan that will enable us to achieve our original project goals. COVID-19 presented a variety of challenges, causing significant delays in progress in general, and with customer development, vendors, equipment suppliers, and regulatory bodies, in particular. Our original Project Director unexpectedly resigned due to family medical issues. We have since hired a new senior geologist to help lead this research effort. We have also hired a director of strategic marketing to help with financial analysis. After further hydrogeological evaluation, we determined the designated research site was not well-suited to the Darcy technology. Further regulatory analysis also shows it is unlikely that approval to install our equipment in a regulated well could not be obtained within the grant timeframe. As an alternative, we are proposing to install the assembly in a laboratory, the St. Anthony Falls Lab, in Minneapolis, MN. This laboratory provides the space and equipment to design and configure a bench-testing setup mimicking a real-world installation. The Darcy technology represents a novel approach to the use of groundwater for heat exchange. As such, current regulatory frameworks have proven to be inadequate for straightforward permitting of the installation of our technology. Over the past 12 months we have worked with the states of Minnesota, Iowa and Wisconsin fleshing out an appropriate framework. We received approval of our first site in Wisconsin in November, and are currently operating three sites in Minnesota. We are now at a point where we have a strong understanding of the requirements for these regulatory agencies and the implications for installing the Darcy technology. We have developed an approach that will enable our envisioned testing. What opportunities for training and professional development has the project provided?
Nothing Reported
How have the results been disseminated to communities of interest?
Nothing Reported
What do you plan to do during the next reporting period to accomplish the goals?Complete the remaining work in Tasks 1-4 with the described modifications.
Impacts
What was accomplished under these goals?
Task 1 - A conceptual model has been developed and a preliminary MODFLOW groundwater model without production has been created to begin this effort. Additional analytical models are being developed and evaluated to assist determining the best operational parameters for a dual-use system. These models help define hydrogeologic expectations of the system in a typical setting, including pumping and temperature radius of influence, changes to the regional groundwater flow regime, and flow characteristics. Task 2 Objectives 2 and 3 - Heat exchanger design with extended field testing of our standard heat exchanger design, we have corroborated our performance models with real world data. This has enabled us to lean more heavily on the models, which we have used to create the heat exchanger design that will simultaneously provide heat transfer and potable/process water at the surface. Additionally, we have determined other aspects of the well configuration, including submersible pump location, piping arrangement, and system placement within the completed well. Finally, we identified and tested product from multiple local suppliers and have narrowed in on one supplier, which has enabled us to inform our designs with considerations of manufacturability while building a relationship with a supplier who is invested in our success. Task 2 Objective 3 - Pitless adapter design We have identified multiple fabricators of pitless units and have settled on one located in Wisconsin with significant experience in manufacturing single chamber pitless adapters as well as having dual chamber pitless adapter experience. We have executed an exclusive relationship with them for the production of three chamber pitless adapters. We have also evaluated other options for freeze protection, including well houses. Task 3 Objective 1 - Well installation and permitting We have identified the specific regulatory requirements for a dual-use application with the respective regulatory agencies in Minnesota, Iowa, and Wisconsin. We are also beginning to investigate other jurisdictions, both in terms of suitable geology and regulatory environment, including New York and Illinois. As mentioned below, Darcy's novel technology does not fit within current regulatory frameworks. It is a combination of water well technology and groundsource heat exchanger technology. Currently, these are two very distinctive and separate regulatory regimes. We have worked closely over the course of the past year to develop an applicable framework for the deployment of our technology in both a single use HVAC-only context and a dual-use HVAC and water supply application. This has been a significant undertaking and has required significantly more effort and time than we had originally envisioned. With these understandings now in place with the respective state agencies, we have reconsidered the feasibility of completing the installation of a dual-use well in a regulated well. Rather, we are proposing to install the assembling in a laboratory, the St. Anthony Falls Lab, in Minneapolis, MN. This laboratory provides the space and equipment to design and configure a bench-testing setup mimicking real-world applications. The bench-testing will allow us to calibrate models and develop an understanding of the affect of removing water from the well on heat exchange capacity. We anticipate the timing for this testing will be January 2023. Task 4 Objective 1 - Cost model We have developed a very deep understanding of the various cost components for the AGHP system. This includes a detailed understanding of the well drilling costs for various aquifers and well designs; the costs to manufacture and supply each of the components of the system including the heat exchanger, pitless adapter, PVC drop pipe, submersible pump, wiring, and lateral piping; and the installation of the heat exchanger in the well. We have developed this understanding over the course of evaluating and pricing more than 25 projects over the past 12 months. This understanding will allow us to develop detailed cost comparisons. We have also grown a formal partnership with a mechanical engineering firm with deep expertise in project modeling, as well as hiring mechanical engineering staff. This has helped us develop a deeper understanding of the cost analysis and the energyanalysis to compare the AGHP technology to other HVAC alternatives.
Publications
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Progress 09/01/20 to 08/31/21
Outputs
Target Audience:Our initial product-market fit interviews with current groundsource industry players has helped focus our target market and audience. These discussions have established a minimum well diameter for our target application, raising it from our initial hypothesis of a 4" diameter well, to 6" diameter. This has informed the design of our heat exchanger and in-well system configuration and provided greater flexibility. More in-depth evaluation of the target market is part of our next phase of work. Changes/Problems:We have encountered several significant challenges over the course of the project. Fortunately, we have developed a revised project plan that will enable us to achieve our original project goals. COVID-19 presented a variety of challenges, causing significant delays in progress in general, and with customer development, vendors, equipment suppliers, and regulatory bodies, in particular. Our original Project Director unexpectedly resigned due to family medical issues. We have since hired a new senior geologist to help lead this research effort. After further hydrogeological evaluation, we determined the designated research site was not well-suited to the Darcy technology. We have since identified a new site that has been extensively evaluated and will work well for the initial technical evaluation. The Darcy technology represents a novel approach to the use of groundwater for heat exchange. As such, current regulatory frameworks have proven to be inadequate for straightforward permitting of the installation of our technology. Over the past 12 months we have worked with the states of Minnesota, Iowa and Wisconsin fleshing out an appropriate framework. We are now at a point where we have a strong understanding of the requirements for these regulatory agencies and the implications for installing the Darcy technology. We have developed an approach that will enable our envisioned testing. COVID has to some degree, impacted everyone throughout our value chain. We have changed our supplier for our heat exchangers to a new fabricator located in Minnesota. This has given us greater control over the development cycle and facilitated better, and more rapid iteration with the design development. In addition, we have developed a new supplier for the other key enabling component of our system, our pitless adapter. We have met with this new supplier and have established a commercial relationship and shared initial design requirements. Again, we feel confident in our ability to create and manufacture the pitless design needed for our dual-use application. What opportunities for training and professional development has the project provided?
Nothing Reported
How have the results been disseminated to communities of interest?
Nothing Reported
What do you plan to do during the next reporting period to accomplish the goals?Complete the remaining work in Tasks 1-4 with the described modifications.
Impacts
What was accomplished under these goals?
Task 2 Objectives 2 and 3 - Heat exchanger design With extended field testing of our standard heat exchanger design, we have corroborated our performance models with real world data. This has enabled us to lean more heavily on the models, which we have used to create the heat exchanger design that will simultaneously provide heat transfer and potable/process water at the surface. Additionally, we have determined other aspects of the well configuration, including submersible pump location, piping arrangement, and system placement within the wellbore. Finally, we identified and tested product from multiple local suppliers and have narrowed in on one supplier, which has enabled us to inform our designs with considerations of manufacturability while building a relationship with a supplier who is invested in our success. Task 2 Objective 3 - Pitless adapter design In order to successfully install the dual chamber pitless adapters used in our standard heat-exchange only installations, we learned the basics of what makes a single chamber pitless adapter function and then extended these learnings to a dual chamber pitless adapter. With some trouble shooting in the field, we added several design specifications that will enable repeatable success for these dual chamber pitlesses. With the successful testing of the extension of the single chamber design to a dual chamber design, we have designed a three chamber pitless that is ready for fabrication. In the process of testing our pitless designs we have identified multiple fabricators and have settled on one located in Wisconsin with significant experience in manufacturing single chamber pitless adapters as well as having dual chamber pitless adapter experience. We have executed an exclusive relationship with them for the production of three chamber pitless adapters. Task 3 Objective 1 - Well installation and permitting We have identified the specific regulatory requirements for a dual-use application with the respective regulatory agencies in Minnesota, Iowa, and Wisconsin. As mentioned below, Darcy's novel technology does not fit within current regulatory frameworks. It is a combination of water well technology and groundsource heat exchanger technology. Currently, these are two very distinctive and separate regulatory regimes. We have worked closely over the course of the past year to develop an applicable framework for the deployment of our technology in both a single use HVAC-only context and a dual-use HVAC and water supply application. This has been a significant undertaking and has required significantly more effort and time than we had originally envisioned. With these understandings now in place with the respective state agencies, we have identified where we will conduct our system test and how it will be conducted. Task4 Objective 1 - Cost model We have developed a very deep understanding of the various cost components for the AGHP system. This includes a detailed understanding of the well drilling costs for various aquifers and well designs; the costs to manufacture and supply each of the components of the system including the heat exchanger, pitless adapter, PVC drop pipe, submersible pump, wiring, and lateral piping; and the installation of the heat exchanger in the well. We have developed this understanding over the course of evaluating and pricing more than 25 projects over the past 12 months. This understanding will allow us to develop detailed cost comparisons. We have also established over the past 12 months a formal partnership with a mechanical engineering firm with deep expertise in project modeling. This has helped us develop a deeper understanding of the cost analysis and the energy analysis to compare the AGHP technology to other HVAC alternatives.
Publications
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