As a holiday blizzard sweeps across the middle of the country just in time for Christmas, we may find ourselves at home bundled in blankets pushing our thermostats ever higher. Utility companies across America smile just thinking about it.
But what if we could stay warm without relying so much on our electric and gas companies and better yet, what if the solution was accessible almost anywhere?
As it turns out, the ability to heat buildings and homes using the earth’s own natural heat source has been around for over 50 years. It’s called geothermal technology and it’s one of the most basic forms of reusable energy. Now geothermal technology is grabbing the headlines as Congress and the President consider imposing mandates on renewable energy use and global leaders return from climate talks in Copenhagen.
One company joining the renewable energy discussion is Alter NRG (OTCQX: ANRGF; TSX: NRG), an emerging clean, alternative energy company which recently acquired Clean Energy Developments Corp., an award winning and leading integrator of products for geoexchange products to the commercial and residential building industry.
Geoexchange uses energy, in the form of heat, stored 10 to 15 feet under the Earth’s surface. The Sun’s energy heats up the surface of the earth as well as underneath. At depths of 10 to 15 feet under the surface, temperatures remain stable year-round due to insulation from the layers of rock and dirt. During the winter it is warmer than the above ground temperature and during summer it is cooler. The geothermal heat pump transfers heat stored in the ground into buildings or houses during the winter and transfers it back into the ground during the summer. These pumps can be used for space heating and cooling and also water heating.
Geoexchange facts:
- A geoexchange system can reduce energy consumption and corresponding emissions by more than 40% compared to air source heat pumps and by over 70% compared to electric resistance heating with standard air-conditioning equipment.
- Just one geoexchange system installed in an average home is the equivalent of planting 750 trees.
- Each geoexchange system represents a savings to homeowners of 30% to 70% when heating and 20% to 50% when cooling.
- Since the geothermal pump is using a reusable energy source and decreasing the need of fossil fuels, the consumer is reducing their carbon footprint while lowering operating costs.
- A geoexchange system has a typical payback period of 5 to 6 years for larger installs.
So what does a plasma gasification company like Alter NRG want with a Geoexchange company? Well, with the acquisition of Clean Energy Developments Corp., Alter NRG looks to enter into the fast growing Canadian geoexchange market. According to Ted Kantrowitz, VP of the Canadian GeoExchange Coalition, early reports indicate that the geoexchange industry is growing between 40% and 260% depending on the region.
Clean Energy hasn’t been able to take full advantage of this sleeping giant due to poor capitalization for the past few years. However, Alter NRG’s strong balance sheet, with over $30 million in cash reserves, will allow them to take full advantage of Clean Energy’s potential and compete on larger projects throughout the highly fragmented Canadian market. This acquisition fits perfectly with Alter NRG’s vision of “Commercializing growth technologies through developing environmentally sustainable and economically viable alternative energy projects.”
Alter NRG believes it can become the market leader in turnkey geoexchange systems and will be able to generate over $100 million in sales per year from this segment within the next 3 to 5 years, which would represent an earth shattering 1,963% growth in revenue over FY08 revenue of $4.8 million.
Now that’s a growth strategy I can warm up to.