Geothermal District Heating Assessments Using Iterative Applications of Techno-Economic Simulation and Design Software in a Sparsely Populated Area of Helena, Montana, USA Thesis of 60 ECTS credits submitted to the School of Science and Engineering at Reykjavík University in partial fulfillment of the requirements for the degree of Master of Science (M.Sc.) in Sustainable Energy Sciences June 2021 Supervisors: Dr. Juliet Newson, Faculty Supervisor Director – Iceland School of Energy, Reykjavík University, Iceland Jeff Birkby, Technical Advisor Birkby Consulting LLC, Missoula, Montana, United States of America Examiner: Dr. Páll Valdimarsson, Examiner Adjunct Professor, Reykjavík University, Iceland ii Copyright Nicholas Fry June 2021 iv Geothermal District Heating Assessments Using Iterative Applications of Techno-Economic Simulation and Design Software in a Sparsely Populated Area of Helena, Montana, USA Nicholas Fry June 2021 Abstract Barriers to geothermal district heating (GDH) in the United States include the availability of consumer building heat demand information, which is currently withheld by private gas utility companies, the lack of policy incentives to encourage exploration and construction, and a lack of GDH assessments that leverage modern materials, technology, and design from abroad. This project bypasses proprietary data barriers by developing building heat demand density maps using State of Montana Department of Revenue property information, coupled with residential and commercial building energy consumption surveys. A community selection process weighs the existing public data on geothermal surface manifestations across the State, in this case selecting a sparsely populated neighborhood in Helena, Montana as a demonstration site. A deeper review of public geologic, geophysical, and geothermometry reporting reveals enough data to conduct reservoir simulation using the software GEOPHIRES. The project goes on to create a new iterative process of techno- economic simulation and district heating network automation using Comsof Heat software, to develop the first rapid assessment method for GDH. Eleven production test cases serve as the basis to determine the efficacy of 44 GDH design schemes and potential outcomes, including augmentation with a peaking boiler. Quotes from local and international vendors of the most technologically advanced components and controls for GDH reveal whole system levelized costs of heat. Using existing policy incentives in the State of Montana, the results also indicate potential revenue pressure relief for GDH operations, through financing and ownership options. The results indicate costs for a GDH system that approach price parity with natural gas, giving policymakers an attractive option to consider in the efforts to decarbonize America’s building stocks. vi Háhitamat á jarðhita þar em notast er við endurteknar forrit tækni-efnahagslegrar hermunar- og hönnunarhugbúnaðar á fámennu svæði í Helena, Montana, Bandaríkjunum Nicholas Fry Júní 2021 Útdráttur Aðgengi að upplýsingum um eftirspurn neytenda í Bandaríkjunum eftir hita, er ein aðalhindrun þess að jarðhiti sé valkostur þar. Þessum upplýsingum er haldið leyndum af einkareknum gas fyrirtækjum og skortur á stefnumótandi hvötum hins opinbera til rannsókna og byggingar, ásamt skorti á jarðhita mati sem byggð eru á nýjustu tækni, gögnum og hönnun erlendis frá. Þessi ritgerð sniðgengur þörfina fyrir höfundavarið efni með því í staðinn að setja saman þéttleikakort sem styðst við upplýsingar um byggingarhita frá skattrannsóknarstofu Montana ríkis, ásamt könnun á orkunotkun íbúðar- og atvinnuhúsnæðis á afmörkuðu svæði. Strjábýlt hverfi í Helena, Montana var valið sem úrtak með því að rýna í fyrirliggjandi opinber gögn um hugsanleg jarðhitasvæði víðsvegar um ríkið. Eftir úrvinnslu frekari opinbera gagna um jarðfræði-, jarðeðlisfræði- og jarðhitamælingar á svæðinu kom í ljós að það voru til nóg gögn til að gera eftirlíkingu lóns með GEOPHIRES tölvuforritinu. Í þessari ritgerð er stuðst við Comsof Heat hugbúnað til að þróa hagkvæmt tæknilíkan og sjálfvirkt hitaveitunet sem fyrsta matsaðferð fyrir jarðhita. Ellefu framleiðsluprófstilvik eru notuð sem grunnur til að ákvarða virkni 44 jarðhita áætlana og hugsanlegra útkomu þeirra, þar með talin aukning með hitakatli. Verðtilboð, frá staðbundnum og alþjóðlegum söluaðilum, sem innihalda tæknivæddustu íhluti og stýringar fyrir jarðhita; leiða í ljós heildarkostnað á hitakerfinu. Þegar þetta er sett í samhengi við núverandi hvata í Montana-ríki, benda niðurstöðurnar einnig til hugsanlegrar tekjuþrýstingslækkunar fyrir starfsemi jarðhita, með möguleikum til frekari fjármögnunar og eignarhalds. Niðurstöðurnar benda til að kostnaður fyrir jarðhitakerfi nálgist kostnað við náttúrulegt gas, sem veitir stefnumótandi aðilum góðan kost til að hafa í huga við mótun leiða til að stuðla að kolefnislosun í byggingariðnaði Bandaríkjanna. Geothermal District Heating Assessments Using Iterative Applications of Techno-Economic Simulation and Design Software in a Sparsely Populated Area of Helena, Montana, USA Nicholas Fry Thesis of 60 ECTS credits submitted to the School of Science and Engineering at Reykjavík University in partial fulfillment of the requirements for the degree of Master of Science (M.Sc.) in Sustainable Energy Science June 2021 Student: Nicholas Fry Supervisors: Juliet Newson Supervisors: Jeff Birkby Examiner: Páll Valdimarsson viii The undersigned hereby grants permission to the Reykjavík University Library to reproduce single copies of this Thesis entitled Geothermal District Heating Assessments Using Iterative Applications of Techno-Economic Simulation and Design Software in a Sparsely Populated Area of Helena, Montana, USA and to lend or sell such copies for private, scholarly, or scientific research purposes only. The author reserves all other publication and other rights in association with the copyright in the Thesis, and except as herein before provided, neither the Thesis nor any substantial portion thereof may be printed or otherwise reproduced in any material form whatsoever without the author’s prior written permission. June 3, 2021 date Nicholas Fry Master of Science x I dedicate this to Holly Acknowledgements I would like to offer my special thanks and appreciation for the assistance and discussions with State of Montana Library staff, Eric Spangenberg, Jamie Clark, Jon Gunnerson, Gary Icopini, Bonnie Rouse, Ben Brouwer, Nat Carter, Chad Augustine, and Kevin McCabe. They work tirelessly, in and around the public sector, to present relevant and timely information that can make a difference in the lives of many. My great appreciation goes to Derrick Mueller, Viesturs Ozolins, Mikko Mertala, Tommy Lorenzen, Vemco Inc. of Montana, Gebwell of Finland, Ouman of Finland, Logstor of Denmark. The work of these companies and the experts they employ is not only necessary but vital in bringing advanced heating and cooling component solutions to market, in the face of energy transitions. I thank them for often hours long conversations about the minutiae of building-level through system-wide district heating needs. They have been invaluable in my own professional development. Kurt Marlein, Joseph Jebamalai, Julia Faracini, and the staff of Comsof Heat are more than a team of innovators and trainers, they truly believe in bringing energy intelligent options to the policymakers, utilities, planners, and engineers that need the information most. I appreciate their patience with me as I learned to fit into a mature industry of district heat planning and approaches. They did not turn away from my barrage of questions, wrought of inexperience, and instead became important supporters of my journey through this project. Educators and researchers such as Helge Averfalk, Maria Richards, and Laxmi Rao were important in providing me with early direction for this work. The possibilities grew with every conversation I had and their work and willingness to explore these avenues will lead to greater energy efficiency levels, improved industry advocacy, and a more sustainable way of life. To my supervisors, Juliet Newson, and Jeff Birkby, I am grateful for their critiques, their advocacy, and their enthusiasm throughout this project. Guiding me away from an often-overconfident train of thought so I could reengage every aspect of the project was invaluable. Picking me up from points of near defeat when I could not find the answer took their real leadership. They are true professionals in the geothermal energy world and learning deeply from them made me appreciate these resources as more than just a supply potential. This work was graciously funded in part by a 2020-2021 Iceland Fulbright Commission student grant titled, “Geothermal Systems for Rural Communities.” xii Preface This thesis is original work by the author, Nicholas Fry. xiv xvi Contents Acknowledgements ............................................................................................................xii Preface ............................................................................................................................... xiv Contents ............................................................................................................................. xvi List of Figures ................................................................................................................... xix List of Tables ...................................................................................................................