Technology on the Horizon

Ramping Up Energy Efficiency: Delivering Solutions to Natural Gas Utility Customers in a New Energy Economy

Presented at AGA Energy Efficiency Forum by Southwest Gas Corp. Anthony W. Hills, P.E. anthony.hills@swgas.com 12/10/2009

Technology on the Horizon

AGENDA New energy economy What is Southwest Gas doing
Energy Efficient Technology Department Delivering solutions
Gas cooling (available today) Gas cooling (on the horizon) Solar thermal (available today)

SWG Service Territory

Carson City

Las Vegas
Victorville

Phoenix Tucson

1.8 million customers

1.8 Million Customers

New Energy Economy for a Natural Gas Company

Efficiency vs. overall efficiency Site vs. source (Full-Fuel-Cycle) Site only standards dont work in a carbon constrained global environment

Responsibility #1
Natural gas companies and AGA to push policy makers to recognize Site-based standards do not work Source efficiency ratings and standards must be accepted or we will never reach the greenhouse gas reduction goal the policy makers want

Resource Optimization Site vs. Source

Responsibility #2
Deliver solutions to our natural gas customers.

Have real answers How are we going to do this?

Responsibility #2
Provide products that

Reduce overall greenhouse gas emissions Offer superior user benefits (cost, comfort, green, etc.) Deliver overall environmental superiority compared to the electric fueled equipment on the market today

What is Southwest Gas (SWG) doing?

SWG Energy Efficient Technology Department Projects:
Gas heat pumps (GHPs)
8-ton & 15-ton multi-zone GHPs 10-ton packaged GHP Residential GHP in development

Solar thermal space heating & domestic hot water with natural gas backup

Gas-Fired Heat Pumps (GHP)

The basic system for the heating and cooling cycle is the same as an electric heat pump (EHP) Main differences are:
A GHP uses a natural gas (or propane) fired engine to drive its compressors instead of an electric motor Captures and uses waste heat from the engine Variable speeds / variable capacity (versus on/off for electric units)
Maximizing fuel economy Maximizing comfort

Drivers for Gas Cooling

Air conditioning load is the dominant energy use in the Southwest Gas service territory
Most of our customers are in the three largest metro areas (Las Vegas, Phoenix, Tucson)

A viable solution to alleviate increasing electric demand

Gas cooling can save over 80% of the electric usage compared to electric air-conditioners

Help flatten the companys load profile

Purchase more 12-month gas and less winter peak gas

Energy Consumption

Electric Gas

Spring

Summer

Fall

Winter

Months

Energy Consumption

Electric Gas Elec w/GHP Gas w/GHP

Spring

Summer

Fall

Winter

Months

Gas Heat Pumps Packaged & Multi-zone

Provides heating, cooling & captures waste heat

Gas Heat Pumps products

Now sold and supported by

Headquartered in Phoenix, AZ www.NextAire.com

Multi-zone Outdoor Units

8 RT up to 17 zones

15 RT up to 33 zones

Multiple Zones, Flexible Design

Multi-zone Air Conditioning System

Ducted and ductless applications

Multi-zone GHP

NextAire GHP

Air Handlers

SWG Office Buildings in Arizona

Bullhead City, Arizona Phoenix, Arizona

Factory in Hungary

Multi-zone GHP
Features
8-ton & 15-ton R-410A Multi-zones (up to 33 zones) Ground or roof mounted Designed to operate in extreme high and low temperatures Space saver on existing or future mechanical rooms Quiet as a whisper, 58 dB

Application
Commercial buildings Custom & semi-custom residential New or retrofit construction Ducted, ductless, or combination of both Outdoor unit can be set back as far as 400 feet from the building Up to a total of 1,706 relative feet

Benefit
Highly efficient in both heating and cooling modes All-in-one heating and cooling unit Multi-zone feature provides higher comfort level Potential for innovative building design with ductless capabilities Fully optimizing part loads (IPL) Freeing up electricity for redistribution within the facilities

Can handle large 100, 200, Lower operating cost than 300+ tonnage applications two or four pipe systems Manufactured in Japan

10-Ton Packaged GHP

Packaged GHP Overview

Features
10-ton R-410A Rooftop package Built in the U.S. Made for harsh temperatures of the desert Southwest

Application
Commercial Retrofit New construction Mounted on rooftop curb, similar to electric rooftop units

Benefits
Avoid high demand and time-of-use electric charges Highly efficient in both heating and cooling modes Captures and utilizes waste heat from the engine Saves water compared to electric units

GHP Demonstration
Yuma, AZ

Department of Defense Demonstration Project Barstow, CA (Barstow Marine)

Phoenix, AZ (Luke AFB) Las Vegas, NV (Nellis AFB) Yuma, AZ (Yuma Marine) CA desert (Ft. Irwin Army)*

* Fueled by propane

Commercial Applications

Environmental Merit of GHPs

Lower emissions Save primary energy Smaller carbon foot print Ozone friendly Water savings

Annual Water Savings

Saves approximately 17,000 gallons of water a year compared to a similar-sized electric HVAC system.

Impressive Water Savings!

Conventional A/C

GHP

Whisper Quiet Personalized Comfort

Emerged Technology

Commercially available within SWG service territory Great opportunity for other Gas Companies? Consumers CAN have a choice!

Solar Thermal Technology

How does SWG and the natural gas industry play a role? Solar heating and solar domestic hot water Natural gas back-up with a condensing, modulating burner (~95% efficient)
Remember site vs. source (it can apply to solar as well) Does not just shift the electrical load but eliminates the load

Tucson Solar / Natural Gas Hydronic Heating Project

Phoenix Water Heater System

Solar panel

Hydronic fan coil

Using natural gas on site builds the bridge to a more efficient, environmentally friendly era of energy use.