Condensing Gas Furnace Technology, DOE’s New Furnace Efficiency Rule, and Objections to the Rule

 

     I researched and wrote a little about new highly efficient condensing furnaces in my 2022 book, Natural Gas and Decarbonization:

     “New natural gas condensing furnaces utilize absorption technology. Most US homes and businesses run natural gas furnaces with about 80% annual fuel utilization efficiency (AFUE). In 2015 75% of US homes had furnaces with 80% or less AFUE. The new condensing furnace design utilizes an acid-gas trap (AGT) to remove acidic gas. Current condensing furnaces have an AFUE of about 90% but are more expensive. The AGT-absorber technology helps to up the AFUE to 97-98.5%, about 18% higher efficiency than standard non-condensing furnace models. Payback is estimated at 1-2 years. Some furnaces will be able to be retrofitted. If these are widely adopted there are significant reductions in gas use and thus emissions. Price installed is expected to be low, comparable to non-condensing furnaces and slightly cheaper than existing condensing furnaces which utilize a secondary heat exchanger to increase efficiency. Carrier sells the Infinity 98 Gas Furnace with Greenspeed Intelligence with up to 98.5% AFUE and premium humidity control and comfort settings. They bill it is as the most advanced Carrier furnace ever made.[1] [2] [3] Rheem, a furnace provider that was involved in the development of these ultra-high efficiency condensing furnaces offers the Prestige Series Modulating R98V Gas Furnace.”[4]

 

     Condensing furnaces run on natural gas or LPgas/propane. Condensing furnaces are able to utilize waste heat rather than just venting it outside as non-condensing furnaces do. When comparing non-condensing furnaces to the previously available 90% AFUE condensing furnaces, the added energy efficiency benefits were offset by the higher costs and the possibility of another component (heat exchanger) needing repair at some point. Some of the undated references I am using seem to be comparing to those older condensing furnaces. My writing above seems to suggest that the new condensing furnaces at 97-98.5% AFUE do not have an added heat exchanger, but they do seem to require it to get the added efficiency. That means that installation costs will be higher in order to add and accommodate drain lines rather than comparable to non-condensing furnaces. I may have made an error or interpreted something wrong in my original estimates, but I believe I wrote what I read at the time. The difference in installation costs between non-condensing furnaces and the newest high-efficiency condensing furnaces seems to be about $1300-1400, or 30-50% higher. That is significant and at estimated energy savings would take about 8 years to pay out in cost savings. Of course, the furnace being replaced is likely an older 80% AFUE furnace rather than the newer 85% AFUE non-condensing furnace. While there are rebates and incentives to buy the more efficient condensing furnaces, they may require certain certified installers that will charge more for installation. That is the case with heat pumps. Thus, the savings from rebates and incentives may be offset by higher installation costs. It is true that a heat exchanger going out could be costly, but I looked at some Carrier models that have a 5-yr parts warranty and a ‘lifetime’, or 20-year warranty on the heat exchanger. :

 

Source: Carrier

Apparently, those numbers from my quote were never realized, especially the short payout times, but I am not completely sure. Below is where I got my ideas. The numbers I had in my quote were target numbers from a DOE-funded project launched in 2019 to develop the AGT-enabled condensing furnace. They are shown below:

 Thus, as you can see, the predicted installation costs for the AGT-enabled condensing gas furnace and a non-condensing furnace were only $125. Is that a real estimate or not? I am guessing it is not since many of the current condensing furnaces have been installed at presumably higher costs. I am also unsure of the AGT-enabled furnaces have been fully developed. I may add to this post later. pending any new information about AGT-enabled furnaces and costs to install.

 

DOE’s New Furnace Efficiency Rule, and Objections to the Rule

          The DOE finalized their gas furnace efficiency rule in October 2023. The rule will go into effect in late 2028. It will require all new non-weatherized gas furnaces and mobile home gas furnaces to be at least 95% efficient. DOE says it can save homeowners $1.5 billion annually and 25 billion over the life of the furnace, estimated at 30 years.

     The American Public Gas Association (APGA) has come out against the rule and the Air-Conditioning, Heating, and Refrigeration Institute is reviewing it. An APGA spokesperson issued the following objection:

 

 “The rule wrongfully drives costly fuel switching, as it bans a popular appliance technology — non-condensing furnaces — from the market,” “Without access to this technology, many consumers will be forced to replace their furnaces with costly retrofits, if even possible, or switch to electric alternatives. This policy is especially concerning for vulnerable, underserved communities, potentially forcing them to shift to electric furnaces, which are less affordable and efficient than the direct use of natural gas.”

 

     In late December 2023 the American Gas Association, American Public Gas Association, National Propane Gas Association and manufacturer Thermo Products filed a lawsuit in the U.S. Court of Appeals for the District of Columbia Circuit. They argue that effectively banning non-condensing gas furnaces will result in high costs for everyone who must comply and that this will be an economic hardship for many. Although I do like efficient new technologies I tend to agree because dealing with economic hardships is no fun for anyone. Thus, I am against the effective ban on non-condensing gas furnaces. Apparently, some large gas utilities have endorsed the rule so there is some support from industry. I just know I would not be happy being forced to spend money I didn’t have due to a new government mandate.

     The DOE told an appeals court in June 2024 that condensing technology does not alter furnace installation requirements and “has only a limited effect on installation costs.” A June 20, 2024 article in Utility Dive gives the additrional arguments of the parties for and against the rule as follows:

 

“By capturing heat that other designs waste, condensing designs can reduce the amount of wasted energy from about 20% to 5% or even less,” the agency said. “Over the 20-to-25 year expected life of the relevant products, the amended standards will thus create substantial savings for the average consumer and generate billions of dollars in net economic benefits for the United States.”

 

The gas industry argues, however, that condensing technology requires access to water and has different venting requirements “that make it effectively impossible for many existing homes, particularly apartments or town houses, to retrofit for them.”

 

That argument “rests on a series of factual assertions that are both mistaken and plainly at odds with factual findings,” DOE fired back in its brief.

 

“Contrary to petitioners’ suggestion, condensing technology does not alter where an appliance can be installed or how much space it requires, and it has only a limited effect on installation costs,” the agency said. “As EPCA instructs, the Department accounted for those installation costs in its economic analysis.”

 

    Those against the rule also argue that it does not prove that the rule is economically justified by the Energy Policy and Conservation Act (EPCA). They say that the EPCA forbids a rule that would eliminate a whole class of appliances from the market. The DOE says the new rule is economically justifiable.

 

 

 

References:

DOE, conservation groups defend furnace efficiency rule, technology requirement. Robert Walton. Utility Dive. June 20, 2024.  DOE, conservation groups defend furnace efficiency rule, technology requirement | Utility Dive

DOE finalizes gas furnace efficiency rule, potentially saving consumers $25B over 30 years. Robert Walton. Utility Dive. October 2, 2023. DOE finalizes gas furnace efficiency rule, potentially saving consumers $25B over 30 years | Utility Dive

Gas industry sues DOE over new furnace efficiency rule, citing cost and other concerns. Robert Walton. Utility Dive. December 20, 2023. Gas industry sues DOE over new furnace efficiency rule, citing cost and other concerns | Utility Dive

Condensing Furnace vs. Non-Condensing Furnace. Rox Hearing and Air. Condensing Furnace vs. Non-Condensing Furnace (roxheating.com)

Condensing vs. Non-Condensing Furnace: Which Is Better for My Home? Sara Coleman. Angi. January 9, 2024. Comparing Condensing and Non-Condensing Furnaces (angi.com)

Infinity System Condensing Gas Furnaces: Ultra-quiet, extra-efficient comfort with up to 98.5% AFUE. Carrier. 01-858-670-25.pdf (shareddocs.com)

What Does a High-Efficiency Furnace Cost? Lester Mclaughlin. Blue National HVAC. Updated On November 16, 2021. What Does A High-Efficiency Furnace Cost? – Blue National HVAC

 

Quote References:

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[1] Advanced Adsorption Technology for New High-Efficiency Natural-Gas Furnace at Low Cost. April 8, 2019. Advanced Adsorption Technology for New High-Efficiency Natural-Gas Furnace at Low Cost | Department of Energy

 

[2] Advanced Adsorption Technology for New High-Efficiency Natural-Gas Furnace at Low Cost. 2019 BTO Peer Review – ORNL – Advanced Adsorption Technologies for New High-Efficiency Natural-Gas Furnace at Low Cost (energy.gov)

 

[3] Infinity® 98 Gas Furnace With Greenspeed™ Intelligence. Carrier. Infinity 98 Gas Furnace With Greenspeed - 59MN7 | Carrier - Home Comfort

 

[4] R98V Gas Furnace. Rheem. Meet Rheem's Most Efficient Gas Furnace, the R98V with EcoNet® - Rheem Manufacturing Company - Rheem Manufacturing Company

 

‘Living and Working Near Pipelines’: A Summary and Review of TC Energy’s Mailing to Landowners

     This is a summary and review of an 11-page booklet I got in the mail from TC Energy. This one is about natural gas pipelines. They have another slightly different one for oil pipelines. I have a natural gas transmission line crossing my property. The booklet has useful information about pipelines, call before you dig information, understanding utility markings and flag colors, pipeline markers, what land uses can pipeline rights-of-way accommodate, and how to recognize and respond to a pipeline leak.

     There is a free one-call center using 811 as the call-before-you-dig number. This is a national number. One is expected to call at least two days before any excavation on or near a pipeline right-of-way. The lines and other underground utilities can be located and flagged before excavation. The color scheme for utility marking is shown below. A TC Energy representative must be on-site during any excavation on the right-of-way.

Recognizing a pipeline involves noting a cleared generally linear pipeline right-of-way and signs indicating the presence of the pipeline. A common right-of-way size is 50ft in width. One is not permitted to put up fences or buildings on a pipeline right-of-way. Farming and mowing are OK. Some rights-of-ways are maintained more or less than others. I think trees and shrubs are removed from mine about every 4 or 5 years.

     Types of pipeline signs and markers are shown below:

 

One may also request that a sign be put up if warranted.

     A natural gas pipeline leak may be recognized by the smell of gas. However, natural gas may be odorless. A sulfur-like odorant is commonly added to small distribution lines but is not added to transmission lines. A gas leak can kill vegetation. It can attract vultures. It can bubble in water, blow dust into the air, or even frost the ground due to pressure differential. Leaking gas can also be seen. I experienced this at a well once when rigging down gas detection equipment. The well was experiencing lost circulation and there was no hydrostatic pressure holding the gas down. It was leaking at a high rate, and you could see little wavelets moving in the air. I had seen it at a few other wells as well. A hissing sound or even a roaring sound for a big one may indicate a pipeline leak. Dangers of leaking gas include dizziness if in a confined space, fire or explosion of an ignition source is present, or an air pressure hazard if the pipeline is high pressure.

     TC Energy gives the following instructions when a leak is recognized or a pipeline is struck during excavation:

 

1. Stop all excavation and construction. Shut off all machinery if safe to do so and move away from the area on foot – warn others to do the same.

 

2. Do not attempt to repair the pipe or operate any valves.

 

3. Call ‘911’ as soon as you are in a safe location. Describe the situation and inform the operator of any injuries, leaking product or fire.

 

4. Call TC Energy’s emergency number (see the back of this booklet) and explain the incident. This number is available on all pipeline marker signs.

 

5. Do not continue your project until authorized by a TC Energy representative.

 

     The consequences of unsafe digging include interrupted service of water, electric, or gas depending on what lines were struck, possible fines and repair costs incurred, and the risk of serious injury or death. They report that “since 2008, the Pipeline and Hazardous Materials Safety Administration (PHMSA) has reported 715 injured workers and 79 fatalities due to  damages done to underground infrastructures during excavation work.”

     One can ask the pipeline owner if they can get a right-of-way crossing that can be traversed by vehicles but to get approval the company must know exact location and makes and models and axle weights of any vehicles that will cross.

     TC Energy states that they do the following best practices to ensure pipeline safety:

 

• 24/7 monitoring of our facilities

 

• In-line inspections of pipelines that can identify the smallest of issues or defects for repair

 

• Regular patrols of the right-of-way

 

• Multiple shut-down valves to isolate and limit potential releases

 

• Cathodic protection to prevent corrosion

 

• Hydrostatic testing

 

• Investigative digs

 

• Ground surveys

 

They also do smart drone monitoring and fiber optic monitoring. Some areas along the lines may be designated as High Consequence Areas (HCAs) and require Integrity Management Programs (IMPs).

     In the case of leaks they employ state-of-the-art leak detection systems and employees are trained to recognize and deal with leaks. Their process for leak response in the event of a leak is as follows

• Shutting down the affected pipeline if necessary

• Isolating the impacted section of the pipeline through either automatic valve

shutoff or manual valve operation.

• Dispatching emergency personnel to the location of the incident.

A pipeline will not be re-started until it is safe and until regulators give them the OK to do so.

 

References:

Living and working near pipelines. What you need to know - Natural Gas. TC Energy. tc-natural-gas-pipelines-safety-info-nb-us.pdf (tcenergy.com)

Smart and Compassionate Stakeholder Capitalism: Capitalism Can and Should Be Tweaked for Fairness

      The following is an excerpt from my 2021 book 'Sensible Decarbonization.' Since then, the ESG tide has been stemmed a bit by pushback from corporations and the anti-woke GOP who have equated ESG with so-called 'woke' policies. Nonetheless, the main and more sensible metrics of it are still being adhered to by many companies, including energy companies. 

Smart and Compassionate Stakeholder Capitalism: Capitalism Can and Should Be Tweaked for Fairness

     Clearly, capitalism has been the most successful system ever devised to create wealth. Though often that wealth was just for some, as time goes on that wealth is for more and more. The poorest of the poor today are wealthier than the wealthiest of the past. Capitalism has succeeded in lifting people out of poverty through voluntary exchange while other economic systems like communism can only do it in a limited way by coercion. Milton Friedman was a smart guy with many interesting ideas but his insistence that the only responsibility of business is to increase profits for shareholders is looking like it won’t last much longer. As a mentioned above there is the profit motive but there is also the usefulness or utilitarian motive that promotes public good and public interest. Public good and public interest include externality management like mitigating environmental and climate impacts. That usefulness includes usefulness to society as a whole. As mentioned, in 2018 Larry Fink, CEO of world’s largest investment firm BlackRock, announced that all future investments will be screened for usefulness or benefit to society. This stakeholder capitalism is likely to continue eclipsing shareholder capitalism. Friedman’s shareholder primacy is likely to continue fading away, especially as shareholders themselves begin to demand it. Companies that ignore social responsibilities are becoming more and more disadvantaged. That is why stakeholder capitalism is also smart capitalism. Socially responsible investing has been around for decades and offers returns roughly similar to traditional investing. Companies overly focused on short-term quarterly returns are not likely to last. This is not mainly because they are likely to fail but because they may succeed and be acquired or merge with another company. For some executive management that is the goal. Of course, such mergers and acquisitions often involve some downsizing of workers. Sometimes, or perhaps more often, it is market conditions that lead to downsizing. The 2020 market conditions in the US oil industry, due mostly to demand drop from coronavirus but also to OPEC-plus price competition, are beginning to yield bankruptcies, and mergers and acquisitions. The industry as a whole may contract a bit before returning to profitability.

     Whole Foods founder and former CEO John Mackey and Harvard Business School’s Raj Sisodia wrote a book in 2014 called Conscious Capitalism: Liberating the Heroic Spirit of Business. They argue that a business model that includes all stakeholders: investors, suppliers, customers, contractors, team members (employees), industry partners, the community, the environment, and even competitors, is better, more realistic, and just as profitable or potentially more profitable. All of these should be integrated into the business model and linked by many shared goals. Getting people out of poverty was basically a side-effect of past capitalism but with conscious capitalism it can be a primary goal as well. Mackey and Sisodia note that:

 

“… voluntary exchange for mutual benefit has led to unprecedented prosperity for humanity” and that “free enterprise, when combined with property rights, innovation, the rule of law, and constitutionally limited democratic government, results in societies that maximize societal prosperity and establish conditions that promote human happiness and well-being …”

 

Short-term focus is the method of “flippers,” speculators, system gamers, and those with “exit strategies.” ‘Build the company and sell’ has been a model that focuses on the success of company owners, executives, and investors, sometimes at the expense of non-executive employees, contractors, and other stakeholders. Mackey and Sisodia noted that the average shareholder time period dropped from 12 years in the 1940’s to less than a year in the mid-2010’s. Pressure to show quarterly gains is one reason, so some have argued that such financial reporting should be stretched out to a half-year model. Offering incentives to executives for short-term gains as is common, will certainly lead them to focus on short-term gains, often at the expense of long-term gains.[1]

     Former Medtronic CEO and Harvard Business School professor Bill George says stakeholder capitalism is here to stay and that seems to be the case. All major businesses are being urged to address their environmental, climate, labor, and social impacts. ESG is a ubiquitous buzzword in the energy sector. Providing clear and demonstrable plans to address these concerns and externalities is becoming mainstream. He notes that shareholder primacy is being dropped as the main concern of major companies. He notes that the coronavirus has reminded us about the essential workers whose concerns must be better addressed. The pandemic has also highlighted remote work with its advantages and disadvantages, but especially the advantages. It will also likely result in more spending toward keeping supply chains more responsive and less vulnerable to disruptions. He also says it highlights the importance of our local communities. He says better long-term strategies toward stakeholder capitalism will help companies to improve their “bottom line” as well.[2]

     The late corporate law scholar Lynn Stout was an advocate of prosocial behavior, meaning behavior that benefits others, or unselfish behavior. She points out that the notions that shareholders own a corporation, and that maximizing shareholder value is the sole or main focus of a corporation, are erroneous. She notes that before the 1970’s and 80’s there was a corporate style known as managerialism that promoted other stakeholders and demoted shareholders. She argues that corporate law and precedents have upheld that shareholder primacy is not enshrined in law in any way but is merely a style of running corporations. She argues that it is really an ideology. She does acknowledge that some SEC decisions and parts of the tax code have supported maximizing shareholder value. She notes data that strongly suggests that over-focus on short-term investing by shareholders has weakened the profits of most corporations and their staying power in the market. It has also weakened the profits of long-term investors, say those of us investing in retirement, to the benefit of short-term investors. Practices like tying executive pay to shareholder value encourages and rewards a focus on short-term share price. If anyone is interested the video of her explaining these issues referenced and linked here is quite interesting.[3]

 

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[1] Mackey, John and Sisodia Raj, 2014. Conscious Capitalism: Liberating the Heroic Spirit of Business. Harvard School Press.

[2] George, Bill, May 15, 2020. Stakeholder Capitalism is Here to Stay. https://www.billgeorge.org/articles/stakeholder-capitalism-is-here-to-stay

 

[3] Stout, Lynn, posted 2018. The Shareholder Value Myth. Youtube. https://www.bing.com/videos/search?q=The+Shareholder+Value+Myth+youtube&view=detail&mid=6B29975FF36BB2D3C90A6B29975FF36BB2D3C90A&FORM=VIRE

 

The Process for Permitting and Approving Private Water Systems in Ohio

     In Ohio, private water systems are regulated by the Ohio Department of Health (ODH) and the Ohio Department of Natural Resources (ODNR). Permitting and approval are done at the county health department level.

1)        An application for a permit to drill a well is received (or to develop a spring, build a cistern, a rainwater collection system, or develop a pond, but usually a well).

2)        A site plan is drawn up after a site visit to look at the well stake and measure isolation distances from the septic system (>50ft), the house (>10ft), the driveway (>5ft), property lines (>10ft), and the old well if applicable (>5ft). Drilling rig access issues can be identified during the site visit. If there is an older well being replaced, it is common to receive a well sealing permit application as well. The rig can seal the old well before drilling the new one. A site visit can also verify the location of the septic system since many older ones may not have specific location information. Even if they do, there could be differences. The water well driller must be registered by the Ohio Health Department.

3)        If all is in compliance, a permit to drill a well, to develop a private water system, is issued by the county health department. A copy is sent, usually via email, to the property owner and the water well driller.

4)        The well is drilled and completed. Completion refers to setting the casing, cementing or more commonly grouting the annular space between the casing and the borehole, setting the pump and other equipment such as screens if applicable, installing the pitless adapter, running the water line to the house, and doing the plumbing to the pressure tank. Typically, there is a pressure regulator valve at the pressure tank or a backflow preventer, if required. All piping and the pressure tank must meet National Sanitation Foundation (NSF) or ANSI codes. A sample tap is required, typically at the pressure tank. The pressure tank must be 8 inches minimum off of the floor to allow space to draw a sample. However, if the sample tap is installed before the pressure tank at sufficient height, then the pressure tank could be closer to the floor. The sample tap should be non-threaded and not used for any other purpose.

5)        The well driller submits a well log to the Ohio Department of Natural Resources (ODNR) within 30 days of drilling and completion of the well. The driller also submits a completion form. The driller also typically provides a copy, or usually a pdf file of the well log and one of the completion form, to the county health department. The ODNR also regulates water wells and keeps interactive maps updated.

6)        A health department sanitarian/environmental health specialist reviews the well log and the completion form. Data is entered into the database. A well-log review checklist may be utilized. Any errors on the forms need to be updated by ODNR personnel. All information is reviewed and inspected to make sure it meets the code. There is a grout calculation worksheet with Excel macros that can determine that the correct amount of grout and water were used and that enough grout was used. The type of connections on the pitless adapter are noted, the indoor and outdoor pipe specs are noted, and casing sizes and depths are noted. A subsurface log is indicated by the driller of formations encountered, their depths, and whether they produced water. The sustainable yield established via a drawdown test is noted. Using cement, usually neat cement, in the annulus usually indicates rock such as shale or unconsolidated sediment that is harder to fill and seal off. Typically, bentonite grout is used in powdered or granular form. Often, it is made into a slurry with water and pumped down with a tremie pipe. This is to make sure the annulus does not get bridged off. Typically, just after completing the well, the well driller will do a chlorine disinfection of the well bore and piping. Any surface dirt or shallow water that may have gotten into the well during construction may contain coliform bacteria. Some of these types of bacteria are common in soil.

7)        Once the well log and completion form are reviewed a water sample is scheduled. The well and components will also be inspected at that time to verify compliance.

8)        The water sample is obtained. First, the water is run through the sample tap and tested for chlorine and nitrites/nitrates with test strips that give instant results. If chlorine levels are too high, then the water must be run until there is no longer any chlorine registering on the strips. According to the rules, however, the water is expected to be chlorine-free for 48 hours. The rationale is that any chlorine in the water will kill any bacteria in the sample that may still be there in the water system. That is, however, not always practical. One may use alcohol, chlorine, or fire to purify the sample tap. We used alcohol. I think the EPA requires chlorine to be used. A small amount of additive is pre-added to the water sample bottles before sampling so that any residual chlorine will be taken up. The water is typically run for a while, usually until the pressure tank kicks on so that the water sampled is coming from the well instead of the water that has been sitting in the pressure tank. It is run preferably somewhere else in the home, but water is also run out of the sample tap to bring new water through it. The sample is then taken. Avoiding contaminating the sample by touching the threads of the sample bottle or even breathing too close is the way we did it. Sample information is recorded, and the sample is put in a cooler with ice. It is stored in a refrigerator before it is picked up by the lab.

9)        The well inspection is done along with the sample. Isolation distances may be rechecked if suspect. The wellhead is observed to be at least 12 inches above grade level. There should be a vent screen on the underside of the approved type of well cap. A probe may be used to determine if the well is grouted to the surface as required. The pipe specs, pressure tank specs, and components are observed. The wellhead is GPS’d into ArcGIS Survey 123, the information is put into GIS, and pictures are taken of the wellhead, the pressure tank, and components that can be stored in GIS as well.

10)   The sample is sent to the lab for analysis. Doing coliform testing: total coliform and E coli, there is a two-day turnaround time.

11)   If the sample tests good (<4.2 MPN total coliform) and 0 E coli, then the private water system is approved. Approval is sent, usually via email, to the property owner and the well driller.

12)   If the sample tests too high in coliform bacteria, then the well must be further disinfected and re-sampled at a cost to the property owner. The presence of coliform bacteria does not in itself indicate that the well is contaminated since all coliform bacteria are not harmful. However, its presence does indicate that contamination is much more likely since harmful coliform bacteria can live where non-harmful coliform bacteria live. With the unacceptable sample email or letter, the sanitarian can use another Excel macro sheet to determine the amount of chlorine and vinegar to add to the well for deeper disinfection and how long to run it based on the well’s depth and  sustainable yield. The time period to run the well to remove the chlorine is also given. This disinfection is typically done by the water well driller but may be done by the property owner or someone known to them using the custom instructions provided for that well.

13)   If the second sample comes back unacceptable then the well may be super-chlorinated. This may include washing down and brushing down the casing. I had this happen once. The water well driller dug up the water line and found that a gasket did not seal right near where it came into the house and there was a small amount of dirty water that was likely the source of the coliform bacteria. A third sample is then obtained at a cost to the property owner.

14)   Once a good sample is obtained the private water system is approved and a letter is sent out to property owners and well driller.

15)   If a good sample cannot be obtained, then the well may have to be continuously chlorinated. This involves a chlorination system and possibly a UV light, all at expense to the property owner.

16)   The well may be disapproved for use until a good sample is obtained. 

Appalachian Blue Hydrogen Projects (ARCH2): Status, Economics, and Challenges of the H2Hubs

 

     Blue hydrogen is hydrogen formed from natural gas where the carbon is captured and either utilized or sequestered. The main blue hydrogen project in the Appalachian region is the ARCH2 hub to be developed around Morgantown, West Virginia. The full project, or group of projects, stretches out in locations and impacts into West Virginia, Pennsylvania, Ohio, and even Kentucky. As a DOE-funded project it should benefit from the nearby National Energy Technology Lab, also in Morgantown. The DOE announced that nearly $1 billion ($925 million) will be made available for the project. Due to the fairly assured low cost of Appalachian natural gas due to pipeline constraints, the region offers the lowest cost blue hydrogen in the country and possibly the world.

 

 

     The timeframe of the project is not immediate, and the construction and in-service dates are at least a few years away, probably several for the latter. The details of the project are not easy to find but ARCH2 says they will be revealed in the next few months after they sign an agreement with the DOE. The required community engagement and environmental justice commitments built into the Infrastructure Investment and Jobs Act of 2021 that will help fund the project will also likely slow down its implementation. ARCH2 also involves significant private investment. Updated tax credits for hydrogen (45V) and CCS (45Q) are in place. The map below from the EPA and Frac Tarcker shows potential industrial CO2 sources in the general area.

 

 

     Blue hydrogen is made from natural gas through steam reforming of methane. This process makes the CO2 produced in the process easier to capture at high percentage rates. The CO2 captured in H2 production is much cleaner than the CO2 captured in the combustion of fossil fuels or biomass. Once the carbon is captured it will be transported via pipelines to sequestration wells for storage in deep saline aquifers, depleted oil & gas fields, or dewatered coal bed methane wells. Thus, the oil & gas industry is involved in three ways: providing the methane, drilling and operating the sequestration wells, and building and operating the CO2 pipelines. Transport and sequestration require the most government assistance. They provide the capacity to move the CO2 and to deliver it to permanent storage. Coal mine methane will also be a part of the project, which also plans to make hydrogen aviation fuel.  

     Any concerns about these hydrogen projects affecting natural gas demand and prices are probably unwarranted. Natural gas in the region is used for electricity generation, heat, and as a precursor for chemicals. Hydrogen would fall into the latter category and is not expected to be a drain on available supplies.

     Critics of the DOE-funded blue hydrogen projects cite the same old tired arguments about fugitive methane emissions. Hydrogen also leaks and that could affect supplies and it could also affect the methane in the atmosphere. Hydrogen stored underground for later use as is planned is reactive and that could create problems as well. The DOE does require detailed tracking of emissions of each hydrogen project.

     The hub concept enables carbon capture from a variety of sources: power plants, heavy industry, and other commercial projects that will be transported via a unified regional CO2 pipeline system to the same subsurface disposal reservoirs. A model of such a hub is shown below.

 

     As mentioned, hydrogen aviation fuel is planned to be developed. Hydrogen fuel cell powered ships, boats, and trains. There is even a food waste-to-hydrogen program being developed as part of ARCH2. This will involve treating food waste in an aerobic digester to make methane for hydrogen production. Blending hydrogen into natural gas pipelines and into natural gas at power plants will also likely be a part of the project. This will be a part of DOE’s HyBlend initiative to address the challenges of blending hydrogen with natural gas.

     The ARCH2 project is planned in four phases. Right now, in mid-2024, the hub is in the pre-award phase. Phase 1 will involve preliminary planning and analysis and will involve community and stakeholder input. Phase 2 will finalize business and labor agreements, engineering designs, permitting, offtake agreements, etc. I am guessing this will take up to about 2027. Phase 3 involves construction and installation. I would guess this will take place from 2027 to 2030. Phase 4 involves ramping up and scaling up the project. I would say this will happen post-2030.

     Columbus Ohio-based Battelle will lead the ARCH2 hub as program manager. GTI Energy, Allegheny Science & Technology (AST), and TRC Companies are also involved as well as “the National Energy Technology Laboratory (NETL), consultants, academic institutions, community organizations, and non-government organizations that will provide commercial, technical, and programmatic leadership for the development and buildout of the hub.” According to Battelle, the companies directly involved in producing hydrogen and developing projects include “Air Liquide, The Chemours Company, CNX Resources Corp, Dominion Energy Ohio, Empire Diversified Energy, EQT Corporation, Fidelis New Energy, First Mode, Hog Lick Aggregates, Hope Gas Inc., Independence Hydrogen Inc., KeyState Energy, MPLX, Plug Power, and TC Energy.” It has been estimated that the project will create as many as 21,000 jobs at its peak, 18,000 in construction, and 3000 permanent jobs.

     The project is expected to support the development of several hybrid energy projects utilizing solar energy, green hydrogen production via electrolysis, greenhouses, ammonia production, and hydrogen availability for hard-to-abate heavy industry applications. It is a major public-private partnership. A major effort may be in the works to develop hydrogen fuel cell technology for aviation, trucking, and even powering businesses and residences. Natural gas producer EQT hinted at a $2 billion investment for that aspect of the project. The Fidelis New Energy project slated for Mason County, West Virginia is such a hybrid project. It is known as the Mountaineer Gigasystem project. Fidelis describes it as follows:

 

“The Mountaineer Gigasystem is a lifecycle carbon neutral clean hydrogen facility and renewable microgrid designed to produce over 640 metric tons per day (“MTPD”), per train in Mason County, West Virginia utilizing Fidelis’ patented FidelisH2® technologies combined with carbon capture utilization and sequestration (“CCUS”) for carbon neutral hyperscale data centers and greenhouses that lowers the cost and environmental impact of food production.”

 

A picture envisioning the final project in operation is shown below:

 

 

 

     One major issue that will likely come up and also likely delay the project is simply the building of CO2 pipelines. Building any pipelines in the Appalachian region has involved lots of opposition by organized environmental groups and I suspect this will be no different. These groups have succeeded in delaying other projects by half a decade and these types of delays could keep the project from meeting its deadlines and also have the potential to inflate costs as they have with other pipelines. CO2 can be dangerous if it leaks in an area where it does not dissipate. There was a major leak from a CO2 pipeline in Mississippi that is often brought up, but the major issue of that leak was not CO2 at all but the sour gas (H2S) that was the safety issue. H2S can be deadly. However, H2S will not be an issue at all in ARCH2 as the Appalachian gas is not sour.

 

 

References:

Critics question how climate-friendly an Appalachian ‘blue’ hydrogen hub will be. Kathleen M. Kowalski. Energy News Network. August 21, 2023. Critics question climate implications of Appalachian hydrogen hub | Energy News Network

Hydrogen is the Future of Appalachian Energy. ARCH2. Appalachian Regional Clean Hydrogen Hub. ARCH2 | Appalachian Regional Clean Hydrogen Hub (arch2hub.com)

Frequently Asked Questions. ARCH2. Appalachian Regional Clean Hydrogen Hub. ARCH2-FAQs-Final-5-13-24.pdf (arch2hub.com)

Appalachian Regional Clean Hydrogen (ARCH2) Selected by the Department of Energy (DOE) to Develop Multi-State Clean Hydrogen Hub. Battelle. October 13, 2024. Appalachian Regional Clean Hydrogen (ARCH2) Selected by the Department of Energy (DOE) to Develop Multi-State Clean Hydrogen Hub (battelle.org)

With Arch2 hydrogen hub planned for Western Pa., some decisions are malleable, others are already made. Anya Litvak. Pittsburgh Post Gazette. June 10, 2024. With Arch2 hydrogen hub planned for Western Pa., some decisions are malleable, others are already made | Pittsburgh Post-Gazette

Appalachia will receive $1 billion for a hydrogen hub: What does that mean and how does it impact West Virginia? Charlie Burd. West Virginia News.  January 15, 2024. Appalachia will receive $1 billion for a hydrogen hub: What does that mean and how does it impact West Virginia? | | wvnews.com

An Insider Take on the Appalachian Hydrogen and CCS Conference. Guest Author. Frac Tracker Alliance. June 23, 2022. Insider Take on Hydrogen and Carbon Capture Conference - FracTracker Alliance

EQT Confirms What it’s Planning for its ARCH2 Hydrogen Hub Project. Watt Fuel Cell. October 16, 2023. EQT Confirms What it's Planning for its ARCH2 Hydrogen Hub Project | WATT Fuel Cell

Decarbonization Network of Appalachia. 2023. Decarbonization Network of Appalachia

 

EIA Inquiries Reveal That Arbitrage and Frequency Regulation Are the Most Common Functions of Batteries on the Power Grid

     Arbitrage refers to the practice of buying low and selling high. In the context of energy storage, it means charging batteries when energy prices and demand are low and discharging them when prices and demand are high. This is one way that batteries can help offset their high upfront costs. Dynamic energy pricing has resulted from the changing availability of resources during daily cycles and seasonal cycles, mostly with variable generation such as solar and wind. Natural gas can have some changing availability in high-demand times due to pipeline constraints. Solar and wind variability are predictable enough that dynamic pricing can be supported. This allows battery owners to charge low and sell high. The EIA gives the following definition for arbitrage: “The simultaneous purchase and sale of identical or similar assets across two or more markets in order to profit from a temporary price discrepancy.” The key here is “the ability to profit.”

     EIA reports that as of the end of 2023, U.S. utilities operate 575 batteries with a collective capacity of 15,814 megawatts (MW). This is expected to possibly triple by 2028 if all proposed projects get built. The data from the graph below comes from a preliminary release of EIA’s Annual Electric Generator Report.

 

     To recap, the main uses of grid-scale batteries, chiefly lithium batteries, is in arbitrage, providing grid stability through ancillary services such as frequency regulation and demand response services peak shaving, and in storing excess wind and solar generation.

 

References:

Utilities report batteries are most commonly used for arbitrage and grid stability. Energy Information Administration. Today in Energy. June 25, 2024. Utilities report batteries are most commonly used for arbitrage and grid stability - U.S. Energy Information Administration (EIA)

Utility Applications of GIS Mapping

    Utility companies include water, electric power, and natural gas companies. Utilities also map their solar, wind, telecommunication, and geothermal assets with GIS. Each of these types of companies has considerable infrastructure in the form of pipelines, metering stations, power distribution lines, poles, transformers, compressor stations, pump stations, power or gas transmission lines, electrical substations, city gates with gas letdown generators, and much more. In towns and cities, this infrastructure is mostly in the form of distribution lines and individual meters. A large city can have a very geographically dense network of distribution lines that go to each structure. When any of these components need to be found and examined for things like assessing health, repair, or replacement, they are best mapped out digitally by entering their exact locations into GIS databases.  

     Presentation of data in a geospatial format that conveys the information most useful to the project at hand is the goal of GIS mapping. Industry-standard software like Esri’s Arc GIS Pro or QGIS can be powerful tools to this end. ArcGIS Pro has a query engine that can quickly provide the specific information needed for a given map. The graphics tools can make maps very presentable at any scale.

     Data acquisition in the field may involve onsite GPS with an app such as ArcGIS Survey123 or the data may be acquired aerially, typically by drones (UAVs). Drones can record data via photogrammetry or LiDAR technology and GIS can put it into a usable topology. LiDAR is the most accurate way to record the data in 3D or xyz format. Drones and GIS can replace or complement traditional land surveying depending on the project needs. A key capability of accurate and thorough GIS mapping for utilities is avoiding and minimizing environmental impacts. The high degree of accuracy of acquired LiDAR data that can penetrate land cover to delineate land use and topographical data is important for environmental applications. Things like flooding potential and spill simulations can be informed by such mapping. Simulations and projections can be utilized for planning future upgrades and expansions and can inform cost management. One goal here is to avoid unforeseen issues to construction that can increase costs. Underground utility mapping especially requires great accuracy so that safety issues are avoided. Another benefit of GIS mapping is improved efficiency. Optimization of the utility networks is the ultimate goal, including the optimization of system resiliency.

     Location is a main feature of all utility networks. Companies need to know where the outages are, where customer behavior is changing, and where their network is vulnerable. In ESRI’s ebook, 'Digitally Transforming Utilities', they traced the development of the maturity curve of digital information systems. This model proposed a digital progression, or maturity pathway, from systems of record to systems of engagement and then to systems of insight. The model was developed in the 1990s and utilized by IBM and other companies. GIS allows utilities to migrate to a real-world model of their assets, share this location information with relevant stakeholders, and to utilize analytics for planning, prediction, problem-solving, and better overall understanding.

 

 

Source: ESRI: Digitally Transforming Utilities

     Comprehensive GIS software like ArcGIS can be easily integrated with data analytics tools such as machine learning and artificial intelligence. Systems of record involve data management and integration. Systems of engagement involve sharing, collaboration, and dissemination. Systems of insight involve analytics, models, and data exploration. A system of record is mostly transferring paper maps to digital maps. Digital maps have better accuracy and many more capabilities. A system of engagement is the sharing of data so that collaboration and interaction can be optimized in a company. It allows people working in the field or from home to upload, collate, and analyze data just as if they were at the office. This enables and optimizes mobility. It can help people in the field to be more efficient in their work. A system of engagement involves the development of platforms like location-based dashboards that can be information hubs for those working for a utility company. Those dashboards were very useful during the COVID pandemic, enabling methodologies like contact tracing. It is unquestionable that GIS, once implemented and once made accessible and understandable by all relevant stakeholders, reduces work times by streamlining processes and by making relevant geospatial data instantly available. A system of insight enables analytics that can find hidden information in the data. New patterns and relationships can be discovered. This can be very important for enabling new processes and new ways to solve problems. Other locational data such as SCADA systems and Internet of Things (IOT) sensor devices can be integrated into GIS. The mantra ‘location, location, location’, enabled through GIS can mean better business intelligence. Below is an example of an ArcGIS screen with geospatial utility data.

Source: ESRI: Digitally Transforming Utilities

 

     A comprehensive GIS system can optimize safety and compliance, customer engagement, asset management, operations management, and design and engineering. Knowing the location of hazards, enabling instantaneous information to customers, enabling better asset inventory and how those assets relate to other entities, enabling operational efficiency, and enabling risk reduction through a single seamless comprehensive GIS database can mean improvement of many metrics from safety to employee satisfaction to customer satisfaction to company profitability. ESRI notes that GIS enables a geographical approach to problem-solving and enables science-based decision-making. Regarding this geographic approach. ESRI contends:

     “GIS is increasingly becoming interconnected between the desktop, the cloud, enterprise servers, apps, and portals. This ecosystem of interconnected components is about streamlining collaboration.”

     “This ecosystem is called geospatial infrastructure. It enables and supports the geographic approach. It is the sum of all the parts coming together as new technology, for which portals provide support. It helps utilities organize and integrate the distributed services to bring people together.”

Such a comprehensive framework integrating desktop and mobile technologies means that problems can be prevented and solved faster when they occur.

 

“The geospatial infrastructure enables spatial analytics. This includes spatiotemporal analysis; robust interactive visual analysis; and graph analysis, which involves geospatial artificial intelligence (GeoAI), a new family of tools used for looking at relationship patterns. GeoAI and other intelligent tools allow access to vast collections of big data and raster analytics in the cloud.”

    

     The availability of new and improved imaging technologies such as remote sensing, new modeling technologies such as 3D digital twins, and new formats such as GIS hubs can be very useful for company optimization goals. A better informed and better location-enabled work force can be more efficient and more innovative.

     ESRI also offers their ArcGIS Utility Network oriented specifically to utilities. This setup enables better analytics, better presentation of data analysis, better data editing, and better data visualization. The result is better overall data management.

 

 

GIS and Utility Planning Case Study from Clallam County, Washington

 

     A May 2024 study of enhanced utility planning in Clallam County, Washington by the Smart Electric Alliance demonstrated the importance of combining data from other sources and agencies to inform planning. In this case, the socioeconomic data of local residents was considered and integrated. The study noted that GIS can aid “distribution planning, customer initiatives, and grant pursuits, offering a nuanced understanding of service territories for targeted improvements that serves as a learning opportunity for many public utility districts (PUDs) in the Pacific Northwest and utilities nationwide. The initiative can set a precedent for utilities to leverage geospatial data analysis to meet the complex demands of the 21st century, ensuring that energy systems are resilient, reliable, and equitable.”

     The methodology used in the study involved five stages: 1) data collection and review, 2) data sources and criteria, 3) GIS integration and tool development, 4) analysis and strategic planning, and 5) leveraging the mapping tool for grant applications. In the data collection and review stage data was gathered from the public utility district and from state and federal databases. Specifically, data relating to energy equity, environmental justice, and utility infrastructure was collected from relevant databases. Data sources included census information, demographic studies, and relevant data from the U.S. DOE and the U.S. EPA. Requirements for state and federal grant applications were also examined. This data was combined with existing GIS data for local utility distribution systems and organized into a user-friendly platform. The goal was to identify “vulnerabilities, underserved communities, historical outages, critical customers, and investment opportunities.” Tool development involved integrating the multiple data layers into a single interactive platform that enabled “detailed visualization and analysis of the utility’s infrastructure within the broader context of socio-economic and environmental factors.” Customizable views and data filtering were also enabled. This new integrated GIS system allows for better strategic planning of future distribution system investment that considers equity, system resilience, areas prone to outages due to aging infrastructure, and critical customers that meet federal and state grant eligibility criteria. The Clallam County Public Utility District is now better enabled to write grant proposals based on the integration of GIS data and socio-economic data. Target grants include “the U.S. DOE Grid Resilience State and Tribal Formula Grant Program and various initiatives under the Washington State Department of Commerce aimed at clean energy, grid resilience, and equity enhancement.” The overall goal was to identify areas where the need is greatest so that funding can be justified. The map below shows a hypothetical project location derived from the integrated data.

 

 

     The project also assessed the potential environmental impact of future upgrades by integrating data related to “land use, proximity to protected areas, and potential impacts on bodies of water, floodplains, and endangered species.” The study was focused on reducing outage times for critical customers such as hospitals, public water, city administration, police, and firefighter services, especially in disadvantaged communities. It identified where resilience enhancements are most needed in the network of substations and feeders. Reducing service restoration times for all citizens, especially critical customers, through predictive analytics can now be better achieved through proper reliability investments. Future projects may include improving infrastructure upgrades, community engagement programs, and emergency response strategies. The map below, though not zoomed enough to really examine, shows some of the results.

 

     This study shows the value of GIS for strategic utility planning. The paper also addresses the importance of continuous monitoring and improvement through GIS-based statistical analysis:

“By regularly updating the public data sets and integrating into their in-house GIS systems, utilities can ensure that they remain responsive to emerging challenges and opportunities. In this specific project, SEPA developed an in-house version that Clallam County PUD is currently using and the utility plans on updating the datasets as necessary to continue to maintain the tool in-house.”

 

   

Geospatial Analytics: Integrating Multiple Data Sources for Safety Awareness and Asset Health Awareness

     Geospatial analytics, a key technology system of insight, as discussed above, can yield very useful and practical benefits. Oil and gas companies are using it to monitor infrastructure. According to an article in Pipeline and Gas Journal by Sean Dinegan, President and CEO of Safelytics, geospatial analysis “allows for multispectral and hyperspectral imagery, gathered from satellites, UAVs, planes and fixed cameras, to be analyzed in a process that ultimately can provide both alerts and qualitative results for oil and gas companies.” Real-time information from the field and continuous digital monitoring enables analytics to find trends and optimize both safety awareness and asset health awareness. Hazards can be identified quickly, and potential problems can be prevented. AI can be a part of geospatial analytics, improving monitoring capabilities.

     Oil and gas assets from the upstream and midstream sectors especially, are often spread out over large areas, sometimes in remote or difficult terrain. Methane leaks can be located quickly through these technologies and changes in rates of leakage can become better understood. Analytics can be used to find smaller leaks that may get bigger over time. In one kind of geospatial analytics, methane measurement algorithms are used to detect and measure methane plume concentrations and flow rates. This can help with early detection and be integrated with alert systems.

     Infrastructure monitoring is especially challenging for pipelines since they can be spread over hundreds of miles. Pipeline leaks often start small and grow over time. Technologies such as SCADA systems are not able to detect smaller leaks. Early leak detection has the potential to prevent life-threatening and costly accidents. Geospatial analytics with AI can analyze very large amounts of geospatial data, particularly aerial and satellite data, to predict and detect leaks. Algorithms can help to quantify the leaks. The bottom line is improved safety and better asset health.  

References:

Introduction to ArcGIS Pro for utilities. August 6, 2019. Video. Bing Videos

GIS Mapping for Enhanced Utility Planning: A Clallam County PUD Case Study. May 2024. Smart Electric Power Alliance. SEPA_Clallam-County-PUD-Case-Study.pdf (sepapower.org)

Why GIS is Critical to Utility Mapping. Land Point. December 7, 2021. Why GIS Is Critical to Utility Mapping | Landpoint

Digitally Transforming Utilities.  A Comprehensive GIS. Electric and Gas Utilities. ESRI. comprehensive-gis.pdf (esri.com)

Geographic Information Systems: Some History, Some Thoughts, and What's New. Kent C. Stewart. Blue Dragon Energy Blog. April 26, 2020. Blue Dragon Energy Blog: Geographic Information Systems: Some History, Some Thoughts, and What's New

ArcGIS Utility Network: A next-generation system for utility management. ESRI. ArcGIS Utility Network | Spatial Information Management System for Utilities (esri.com)

Geospatial Analytics: Predictions, Trends, and A.I. Applications for Pipeline Management. Sean Donegan. Pipeline and Gas Journal. June 2024, Vol. 251, No. 6. Geospatial Analytics: Predictions, Trends, and A.I. Applications for Pipeline Management | Pipeline and Gas Journal (pgjonline.com)