HomeMy WebLinkAbout2017 Heat Pump Published ArticleHeat pump technology: An Alaska case study
Christopher Pike, and Erin Whitney
Citation: Journal of Renewable and Sustainable Energy 9, 061706 (2017);
View online: https://doi.org/10.1063/1.4986584
View Table of Contents: http://aip.scitation.org/toc/rse/9/6
Published by the American Institute of Physics
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Heat pump technology: An Alaska case study
Christopher Pike and Erin Whitney
Alaska Center for Energy and Power, University of Alaska Fairbanks, P.O. Box 755910,
Fairbanks, Alaska 99775-5910, USA
(Received 6 June 2017; accepted 18 October 2017; published online 21 December 2017)
Heat pumps are a proven technology around the world and are being increasingly
used in Alaska. Technological advances have improved their performance at low
temperatures, making them more suitable for arctic environments. This analysis
identified data related to 17 heat pumps installed in Alaska, which included air
source, ground source, and sea water source systems. The data show that the
average installed cost/kW of the heat pumps studied was $5,579. The minimum
cost was just over $700/kW for a small air source minisplit system and over
$12000 for a complex vertical loop ground source heat pump. Air source heat
pumps in Alaska have operated successfully down to 15 C. Technological
advances are ongoing that should enable further heat pump operation in colder
climates.Published by AIP Publishing.https://doi.org/10.1063/1.4986584
INTRODUCTION
Heat pumps are space-conditioning appliances that can provide both heating and cooling of
indoor areas by moving heat using a refrigeration cycle. Heat pumps take advantage of low-
grade heat that is challenging to harvest with other technologies. This low-grade heat can
include seawater, ground sources (even permafrost), relatively low air temperatures, and waste
heat. The technology takes advantage of the phase change properties of a refrigerant to trans-
port heat between spaces. When used for cooling, heat pumps extract heat from the indoors and
pump it outside. In the heating mode, heat pumps extract heat from the outdoors and pump it
inside. Heat pumps use electricity to power fans, pumps, and compressors, which run the refrig-
eration cycle to transfer heat. The ratio of the amount of heat transported to the amount of elec-
trical energy used to power the process is known as the coefficient of performance (COP),
which in the right conditions can be well over 3, indicating that for every 1 unit of electrical
energy input, 3 units of heat energy are transported. Put another way, the process is 300% effi-
cient where electrical resistance heating is 100% efficient.
Price volatility associated with hydrocarbons as well as a desire by many to transition
towards lower-carbon forms of energy has resulted in renewed interest in this technology.
According to Lund and Boyd (2016), the installed heating capacity of ground source heat
pumps worldwide is over 50GW and the annual heating production is over 90 TW h/year.
The performance of heat pumps in cold climates continues to improve. In recent years, sev-
eral studies have been conducted to learn more about the options for heat pump use in Alaska.
In the study by Stevens et al.(2015), heat pumps performed well down to about 15 C. Other
studies have examined the use of ground source heat pumps in Canadian cities and found suffi-
cient economic payback to justify their expense in situations where the ratio of high heating oil
costs and low electricity costs is favorable (Le D^u et al., 2015). In the United States, ground
source heat pumps have been used in all fifty states, with most applications concentrated in
areas with cold climates and high population densities (Liu et al., 2017).
There are limits to the use of heat pumps, and the economics depend on the price of elec-
tricity and competing fuel. In general, when air temperatures approach 17 C, air-source
heat pumps are nearing the limits of their operating parameters. In addition to the Alaska
resources cited throughout this report, Efficiency Maine has created a simple online calculator
1941-7012/2017/9(6)/061706/9/$30.00 Published by AIP Publishing.9, 061706-1
JOURNAL OF RENEWABLE AND SUSTAINABLE ENERGY 9, 061706 (2017)
that helps customers to compare heat pumps with other heating sources (Compare Home
Heating Costs, 2017).
The emergence of natural refrigerants could further improve the environmental footprint
and cold weather performance of heat pumps. Heat Pumps that use CO2 as a refrigerant are
becoming more common. CO2 has significantly less global warming potential than synthetic
refrigerants and has improved characteristics as a refrigerant for its ability to produce high out-
put temperatures from relatively cool source temperatures (Stevens et al., 2015).
Several hundred heat pumps are operating in the State of Alaska in both residential and
commercial settings (Stevens et al., 2013 and Meyer et al., 2011). For residents already using
electric heat, as in many areas of Southeast Alaska where inexpensive hydropower has made
the use of electricity economical, heat pumps can be a good option. In addition, air-source heat
pumps work well in the mild maritime climate of Southeast Alaska (Stevens et al., 2015). In
Juneau and Seward, sea life research facilities that have existing seawater intake infrastructure
have been able to convert from fuel oil-fired boilers to seawater source heat pumps. These sys-
tems harvest heat from seawater where temperatures hover between 1 C and 10 C(Alaska
Center for Energy and Power, 2014). For super-efficient structures that require minimal
space heating, heat pumps can be good alternatives to fuel oil boilers, eliminating the need
to buy heating oil and store it on-site. In addition, improved air-source ductless heat pumps
are relatively inexpensive and easy to install and can function at cold temperatures (Stevens
et al., 2015).
This review of heat pump technology in Alaska is a result of Alaska Senate Bill (SB) 138.
In this bill, the Alaska State Legislature created an uncodified section of law entitled: “Plan and
Recommendations to the Legislature on Infrastructure Needed to Deliver Affordable Energy of
the State to Areas That Do Not Have Direct Access to a [proposed] North Slope Natural Gas
Pipeline.” To support the Alaska Energy Authority (AEA) in its development of an Alaska
Affordable Energy Strategy, the Alaska Center for Energy and Power (ACEP) contracted with
AEA to document technology development needs specific to Alaska with regard to renewable
and sustainable energy technologies. The intention was to determine what targeted, energy tech-
nology development solutions could be implemented in Alaska to make energy more affordable
in the Alaska Affordable Energy Study area. While the focus was on technology research solu-
tions, other factors such as logistics, labor, and training were also addressed. Drafts of technol-
ogy reviews were vetted by expert roundtables in late February and early March 2016. These
reviews are not meant to be exhaustive discussions of energy technologies in Alaska or proper
designs for each technology, and they should not be used as guides for the choice and installa-
tion of specific systems.
METHODS
Data sources
Data from 17 heat pump projects were used in this study to estimate their effectiveness in
the Alaskan environment and the approximate installed cost per kilowatt. These included 4
effluent/sea water source heat pumps, 7 vertical loop ground source heat pumps, 4 air source
heat pumps, and 2 horizontal ground loop heat pumps. While this is a small percentage of the
total number of heat pumps installed around the state, the heat pumps discussed in this report
were chosen because their performance and cost data were available. Cost data came from engi-
neering studies, State of Alaska grant applications, installation and maintenance records, and
interviews with installers, owners, and facility staff members.
The majority of heat pumps described are large systems installed in sizeable public build-
ings. However, some smaller systems are also described. In rural areas of the state, the exis-
tence of small government and tribal offices often blurs the lines between residential and com-
mercial installations and systems designed for residential dwellings are often utilized. In
Wrangell, for example, small residential air-to-air mini-split heat pumps are used in utility and
city offices.
061706-2 C. Pike and E. Whitney J. Renewable Sustainable Energy 9, 061706 (2017)
Heat pumps generally produce lower temperature heat (55 C) than conventional fuel oil
boilers (82 C). While technology is changing, lower temperatures may require differently
designed heating, ventilation, and air conditioning (HVAC) systems to use the low-temperature
heat produced by heat pumps efficiently (Alaska Sea Life Center, 2013). Conversions from fuel
oil boilers to heat pumps can require significant indoor HVAC modifications. In other cases,
building envelope modifications can allow the integration of a heat pump into the existing
hydronic system. An example is the integration of new ground-source heat pumps in the exist-
ing 1580 square meter Senior House in Seldovia in 2013, which was able to integrate the heat
pumps with the existing hydronic heating infrastructure because the insulation value of the
roof, walls, windows, and doors was first upgraded in a weatherization effort. The improved
envelope performance allowed lower temperature (55 C–60 C) heat pumps to meet 90% of the
annual building heat load when one oil boiler was retained as backup for the coldest days
(Baker, personal communication, 2016).
For heat pump retrofits, HVAC modifications are part of the necessary cost. Initially, we
intended to separate costs for indoor HVAC work from the heat pump work performed outdoors
and in the mechanical room. However, it quickly became clear that this would be overly diffi-
cult and subjective. As such, cost information for many of the systems in this analysis often
includes HVAC modifications. Readers should keep this in mind when observing the high costs
of some systems. These high costs often occur because of necessary modifications to the
HVAC system in the existing building. These high installed costs per kW are especially evident
on the large commercial systems discussed below.
As an additional caveat about costs, figures are approximate, and many come from feasibil-
ity reports. Discussions with installers in Interior Alaska indicate that installed system costs are
typically lower than some costs reported here (Roe, personal communication, 2016).
No discounting of installation or operations and maintenance costs occurs in this analysis.
All heat pumps discussed have been installed since 2010. The systems described range in size
considerably. Some systems can be purchased from online retail websites and shipped to the
consumer; others are large custom units.
DISCUSSION
Installed costs
The data in Fig.1 show that ground-source systems have the widest range for installed
cost per kilowatt thermal (kWth), ranging from less than $2000/kWth to over $12 000/kWth.
The same range is found for air-source heat pumps. In general, air-source mini-split style heat
pumps are better suited for smaller projects due to their simplicity, cost, and ease of installa-
tion. The smallest range of installed costs/kWth was found for seawater-source heat pumps.
These systems are typically installed where a reliable intake of seawater is already in place,
which helps to reduce costs. In this study, all systems over 200 kWth are either seawater heat
FIG. 1. The installed cost per kWth (thermal) of rated output is compared with the rated output of 17 heat pumps of varying
sizes and designs around Alaska.
061706-3 C. Pike and E. Whitney J. Renewable Sustainable Energy 9, 061706 (2017)
pumps or ground-source heat pumps. The weighted average cost/kWth of all 17 heat pumps
studied is $5579. The weighted average cost is calculated by combining the total installed cost
of all heat pumps by the total combined installed size in KWth of all the heat pumps. The mini-
mum cost for a heat pump analyzed in this study was just over $700/kW for a small air source
minisplit system and over $12 000 for a complex vertical loop ground source heat pump.
The cost breakdown of components is addressed in a later section. Table I shows the
weighted average cost/kWth of the different types of heat pumps studied. Note that the study
size was rather small, and some categories only have a couple of data points. This small sample
size is demonstrated by the high cost of air-source heat pumps, where the high cost of larger
systems masks the relatively low cost of smaller systems.
Installed costs by component
Because a broad range of heat pump installations has been described, generalizing the cost
of components from one system to another is challenging. The costs of major components for
some example projects are as follows:
Juneau airport ground-source heat pump
Installation of the heat pump was part of a renovation and expansion of the airport termi-
nal. The old HVAC system was removed, and everything was replaced. The major heat pump
component costs:
•Ground loops – 108 vertical wells @ 305 feet deep:$1 million
•Water-source heat pumps – 28:$460000
Total Project Cost: $6 million (Building controls, ventilation, commissioning, mechanical
room replacement, etc. are all additional significant expenses not broken out in this paper)
Cold climate housing research center (CCHRC) ground-source heat pump
This system replaced an oil-fired condensing boiler in an existing building, and no interior
renovations were necessary. Costs include outdoor components and those in the mechanical room:
•Ground loop design: $1026
•Ground loop parts and installation: $26491
•Heat pump parts and installation: $19686
Total Project Cost: $47203
Alaska Sea Life Center seawater-source heat pump
This system was a retrofit and required modification to the building mechanical room and
HVAC system:
•Two 90-ton water-to-water heat pumps: $190000
•Corrosion-resistant heat exchangers: $36000
•Design: $100000
•Labor: $150 000
TABLE I. Weighted average costs of different heat pump types.
Heat pump type Weighted average of installed cost/kWth
Effluent/seawater $2096
Vertical ground loop $7613
Horizontal ground loop $3036
Air source $10359
061706-4 C. Pike and E. Whitney J. Renewable Sustainable Energy 9, 061706 (2017)
Total Project Cost: $476000 (The seawater intake was already installed, which otherwise
would represent a significant expense.)
Other considerations
For vertical ground-source heat pumps, drilling is required. Drilling costs vary significantly
around the state. Andy Roe of Alaska Geothermal indicated that his company entered the dril-
ling business several years ago because of the high cost of drilling for their systems. In many
areas of the state, a drill rig would need to be shipped in for projects, elevating costs.
Maintenance and repair costs
Figure 2 shows the annual cost of maintenance and repairs associated with different heat
pumps around Alaska. These costs include the approximate cost of system replacement in
20–25years. The figures do not include the electricity needed to run these systems (this is
addressed in later sections). In most cases, these data were compiled from actual system cost
and feasibility assessments developed as part of system planning.
Since the systems discussed in this analysis are relatively new, detailed long-term operation
and maintenance (O&M) cost information does not exist. Andy Roe reports that maintenance
on systems is minimal. All systems from Alaska Geothermal are sold with a 5-year warranty.
Owners can expect a compressor replacement after approximately 12years, which costs approx-
imately $1000 and requires 5h of labor. Tom Marsik and Clay Hammer, in Dillingham and
Wrangell, respectively, report that the only maintenance their small mini-split air-source heat
pumps require is vacuuming the filter. Tom reports that he spends about 20min per year on
maintenance. In these circumstances, it was assumed a cost of $50 per year and a 15-year
replacement life.
The Alaska Sea Life Center is one of the few systems that have actual O&M cost informa-
tion available. Their biggest challenge is the lack of local heat pump and refrigeration techni-
cians; so, any time that maintenance is required from the manufacturer and travel costs tend to
be high, as more time is spent by technicians traveling to and from Seward than actually work-
ing on the system.
Expected life
The life expectancy of newer heat pumps is still not entirely known, but 20 to 25years is
safe to assume for larger heat pumps. For smaller mini-split air-source heat pumps, life expec-
tancy is probably closer to 15years. Compressor replacement will likely be necessary after
approximately 12years in ground-source heat pumps, according to Andy Roe. Trane, the manu-
facturer of the large 90-ton heat pumps at the Alaska Sea Life Center, reports that the compres-
sor bearing the lifespan of the units of 20years is based on 40000 total hours of operation at
FIG. 2. Maintenance and repair costs per kWth along with the system installation size are shown for 14 heat pumps around
Alaska. These cost figures include the estimated cost of eventual replacement or refurbishment of the system; the approxi-
mate cost of system replacement in 20–25years. These cost figures do not include the electricity needed to run the systems.
061706-5 C. Pike and E. Whitney J. Renewable Sustainable Energy 9, 061706 (2017)
2000h per year. Compressor overhaul will likely be necessary at 12–15years at a cost of
$30000–$50000.
Conditions for the greatest efficiency and the coefficient of performance
Heat pump efficiency is dependent on input temperature on the cold side of the unit. This
is the outside air temperature for an air-source heat pump or the seawater temperature for a
seawater-source heat pump. The compressors in the heat pumps must work harder to extract
heat from colder fluids, as shown in Fig.3. Warmer input temperatures lead to higher coeffi-
cients of performance.
A study by the Cold Climate Housing Research Center (CCHRC) on air-source heat pump
performance around Alaska found that performance varied widely based on the heat pump
model as well as on regional locations (Stevens et al., 2015). Air-source heat pumps have
reported operating ranges as low as 27 C; however, below 17 C, current technology is likely
to be problematic. Cold weather heat pump technology continues to advance. Many participants
in the study from the CCHRC reported that air-source heat pumps did not work on the coldest
days. The authors of the study recommended that in Alaska, air-source heat pumps are paired
with a backup heating appliance.
Ultimately, the economics of a heat pump are largely dependent on the cost of electric-
ity and the cost of an alternate fuel source such as natural gas or heating oil. Heat pumps
will be most economical in places with inexpensive electricity, expensive fuel oil, and con-
ditions that lead to high coefficients of performance (Compare Home Heating Costs, 2017).
In 2015, the CCHRC produced a two-page handout entitled “Could a ground source heat
pump work for you?” This document explains that forced air—or in-floor hydronic heating
paired with south-facing slopes and cheap electricity, relative to the cost of the alternate fuel
type—could make a ground-source heat pump an economical heating option (Garber-Slaght
and Rettig, 2015). This scenario is common in Southeast Alaska where inexpensive hydro-
power and expensive imported heating oil can make heat pumps a cost effective option.
Alternatively, switching from electric resistance heating to a heat pump is nearly always
cost effective.
Diesel offsets
Using annual electrical energy consumption and the coefficients of performance reported in
Fig.3, an estimated diesel offset was calculated for these systems (see Table II). The following
assumptions were used:
•Alternate heating source is a fuel oil-powered boiler
•One gallon of heating oil ¼138000 Btu
•Boiler operates at an efficiency of 85%
FIG. 3. Average coefficient of performance is plotted according to input temperatures for a variety of heat pumps in
Alaska. Warmer input temperatures lead to higher coefficients of performance.
061706-6 C. Pike and E. Whitney J. Renewable Sustainable Energy 9, 061706 (2017)
Levelized cost of energy (LCOE)
Using the levelized cost of energy (LCOE) calculator from the National Renewable Energy
Lab (http://www.nrel.gov/analysis/tech_lcoe), we used a set of assumptions to calculate the
LCOE for a range of conditions. Capital costs, capacity factor, and O&M costs were kept con-
stant, while the coefficient of performance (COP) values were changed to demonstrate the
effect that changing COP values have on LCOE. Cost assumptions are shown in Table III.
These are middle-of-the-road costs, as observed in the systems reviewed in this study. Some
systems such as the Alaska Sea Life Center system had lower costs, and other systems had
higher costs. The LCOE values ranged from $.083/kWhth, with a COP of 3.5 and electricity at
$.08/kWhe, to $.221/kWhth with a COP of 1.5 and electricity at $.24/kWhe (Fig.4). These
LCOE values are equivalent to $2.85/gallon and $7.59/gallon of fuel oil, respectively, when
consumed in a boiler with an efficiency of 85% (Fig.5).
Cost curve over time
The number of different units installed varies in size, type, and location. There are not
enough long term data in Alaska to show a change in the installed cost over time.
Transportation average
Heat pumps do not require any special transportation and can be shipped around the state
as any other piece of equipment would be shipped; they are shipped to Alaska from Lower
48 and sometimes from outside the United States. Small mini-split air-source heat pumps,
like those described in this study installed in Wrangell and Dillingham, weigh about 100
pounds.
Technology trends
Heat pump technology is improving as companies strive to develop more efficient heat
pumps that function better in colder climates. In addition, advances with more efficient
compressors and alternate natural refrigerants such as carbon dioxide, propane, and ammo-
nia enable heat pumps to efficiently heat water to higher temperatures. This is attractive for
space heating as well as in industrial process heating applications. In December 2015, the
Alaska Sea Life Center installed four water-to-water heat pumps that use carbon dioxide as
TABLE II. Approximate fuel offsets of heat pumps in Alaska.
Heat pump installations Annual fuel oil offset (gallons)
Alaska Sea Life Center seawater heat pump 41 534
CCHRC ground-source heat pump 746
Juneau residential air to water 858
Wrangell utility office air-source heat pump 276
Dillingham air-source heat pump 26
Weller Elementary School ground-source heat pump 575
TABLE III. LCOE calculation assumptions.
Capital cost ($/kWth) $2000
Capacity factor (%) 30
Fixed O&M ($/kWth-Yr) $20
Variable O&M ($/kW h) $0.002
Heat rate/COP (Btu/kW h) 2274 (for COP of 1.5)
Fuel cost ($/MMBtu) Varies with the electric rate
061706-7 C. Pike and E. Whitney J. Renewable Sustainable Energy 9, 061706 (2017)
a refrigerant. This design compresses the carbon dioxide to a transcritical state at 2000psi
and enables hydronic fluid to be heated as high as 90 C. The project demonstrates the inte-
gration of transcritical carbon dioxide heat pumps into an existing medium-temperature
(70 C) hydronic heating system in a large facility with both heating and cooling loads. The
challenge of this emerging technology is that it requires higher refrigerant pressures, and
the price of the packaged units is still significantly higher than that of conventional R-134a
heat pumps.
CONCLUSIONS
Data from 17 heat pump projects in Alaska were reviewed as part of this study. These data
indicate that ground-source systems show the widest range for installed cost/kW: from less than
$2000/kW to over $12 000/kW. The same range is found for air-source heat pumps, which tend
to be used for smaller projects. The smallest range of installed cost/kW is found for seawater-
source heat pumps. Sea water sourced heat pump systems are typically installed where a reli-
able intake of seawater is already in place, and so, the intake cost is not included in these
figure. All systems over 200kW were either seawater heat pumps or ground-source heat pumps.
The mean cost/kW of the systems studied is $5579. The average cost per installed kW of vari-
ous types of heat pumps reviewed is as follows:
•Effluent/Seawater $2096
•Vertical Ground Loop $7613
•Horizontal Ground Loop $3036
•Air Source $10359
The LCOE values ranged from $.083/kWhth for heat pumps with a COP of 3.5 and elec-
tricity at $.08/kWhe to $.221/kWhth with a COP of 1.5 and electricity at $.24/kWhe.
FIG. 4. Heat pump LCOE is plotted at different electric rates and different COP values using a constant set of assumed cap-
ital and O&M costs.
FIG. 5. This graph uses the same input data as Fig.4. However, LCOE is shown as the equivalent cost of fuel oil when con-
sumed in an 85% efficient boiler.
061706-8 C. Pike and E. Whitney J. Renewable Sustainable Energy 9, 061706 (2017)
The life expectancy of newer heat pumps installed in Alaska is still not entirely known but
is probably 20 to 25years. For smaller mini-split air-source heat pumps, life expectancy is
closer to 15years. Compressor replacement is typically needed sometime during the lifetime of
the heat pump. On some larger units, a compressor overhaul could be necessary at 12–15years
at a cost of $30000–$50000.
Heat pump technology is improving as companies develop more efficient heat pumps that
function better in colder climates. Some air-source heat pumps have operating ranges as low as
27 C; however, in Alaska, a backup heating source is recommended during cold temperature
air source heat pump operation.
In the correct environment, heat pumps are a viable technology for space and water heating
in Alaska, especially where cheap electricity and expensive fuel oil or natural gas coincide with
each other.
ACKNOWLEDGMENTS
The authors wish tothank the Alaska Energy Authority for its funding tosupport this project.
Many people have contributed information and insight to this study. For their review and
comments, we wish to thank Tom Marsik of the University of Alaska Fairbanks Bristol Bay
Campus; Catherine Fritz, Juneau Airport architect; Dan Smith at the Alaska Energy Authority; Eric
Hansen from the Alaska Native Tribal Health Consortium; Clay Hammer from Wrangell Municipal
Light and Power; Roger Smith with Murray and Associates; Darryl Schaefermeyer with the Alaska
Sea Life Center; Andy Baker of YourCleanEnergy LLC; Bruno Grunau with the Cold Climate
Housing Research Center (CCHRC); and Dan Hertrich and Neil McMahon of the Alaska Energy
Authority. In addition, staff at the CCHRC have researched heat pumps and their role in Alaska
extensively, and they were an invaluable resource during this study. The authors especially wish to
thank Vanessa Stevens and Robbin Garber-Slaght. In addition, Andy Roe, owner of Alaska
Geothermal LLC, provided valuable insight into his experience with ground-source heat pumps in
Interior Alaska.
Alaska Center for Energy and Power, An Investigation of the Alaska Sea Life Center Seawater Heat Pump Demonstration,
2014.
Alaska Sea Life Center, Trans-Critical CO2 Heat Pump System. An Application for the Alaska Emerging Energy
Technology Fund Grant, 2013.
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comparison/for Efficiency Maine; accessed 16 August 2017.
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061706-9 C. Pike and E. Whitney J. Renewable Sustainable Energy 9, 061706 (2017)