Starting a Geothermal Drilling Company
Editor’s Note: No two geothermal loop systems are the same, which is why constant education is a requirement for geothermal drillers. In this department, we will explore the variety of loop systems, installation methods, drilling approaches and unique product offerings in the residential geothermal heat pump market. Take it away, Brandon.
The word is out and has been out for a long time. Geothermal heat pump systems are one of the most cost-effective, energy efficient and environmentally friendly heating, cooling and water heating systems in existence. Both the U.S. Department of Energy (DOE) and the Environmental Protection Agency (EPA) have endorsed ground source heat pump systems, asserting that they reduce energy consumption and emissions by up to 72 percent compared to traditional systems. It is no wonder that many governments, businesses and homeowners are getting the point and making the switch. The result?
According to a new report from Pike Research, “geothermal heat pump sales will experience strong growth rates in the next several years, with annual unit shipments in the United States increasing from just fewer than 150,000 in 2011 to more than 326,000 units by 2017.” The firm forecasts that “the total worldwide capacity for geothermal direct use applications will increase by 179 percent during the same period.” That is very good news for everyone in the geothermal heat pump industry.
Meanwhile, many in the HVAC, plumbing, excavating and landscaping industries are seeing great potential and opportunities to expand operations into this growing market. And while ground source heat pump (GSHP) systems can be installed horizontally (requiring a lot of available land surface) or in a pond (very limited applications), the advantages of a vertical loop system (drilled boreholes) are obvious especially for retrofit applications, limited access sites (when available land surface is inadequate) and for inner city buildings.
With the abundant market potential that exists, you’ve probably decided that you want a piece of the pie. Question: Will you specialize in drilling geothermal boreholes, heat pump installation, system design or offer a one-stop geothermal shop (designing and installing all under one roof)? The solution could be to bring the drilling in house, but is that really a feasible option? What do you need to know about starting a geothermal drilling company for the installation of vertical loop heat pump systems? Although it is not possible to discuss every option and scenario, here are some important factors to consider. This information is for reference only and not designed to be used as an all inclusive business model.
Obviously your business must be profitable, so firstly, what costs can be expected? Many of the office operating expenses may be absorbed by your existing infrastructure. Drilling specific overheads include permits, licenses and transportation. Consumables include thermally conductive grout and ground loops or high density polyethylene (HDPE) pipe. Costs associated with these products can be significantly reduced by purchasing in large quantities. Some contractors recommend buying HDPE when the oil prices are down — in spring and fall when heating/cooling costs are the lowest. As shipping costs can factor in quite heavily, go online and find a local distributor for these products if at all possible.
While many believe that the drill rig will be the single most costly piece of equipment, and while that is often true, there are some very economical options available. A drill rig can be obtained new, used or rented. If you already own a skid steer or mini excavator, a drilling mast attachment provides low cost entry into the drilling market. Quick-attach mechanisms mounted between the mast and the carrier machine ensure simple attachment and easily couple to the machine’s auxiliary hydraulics.
It should be noted though, that the rotation head is still your bread and butter when it comes to drilling and as always, you will get what you pay for. Some companies offer extremely low cost equipment and boast deep drilling capabilities and lightning fast penetration rates. However, when you compare power specifications — torque, rpm, pullback and pushdown force — with more costly equipment, it becomes clear which unit will provide reliability day in and day out and the confidence to be able to drill effectively through diverse ground conditions, from sticky clay to loose gravel to hard rock. The balance between price and efficiency is the key as this is what makes any piece of equipment truly cost effective.
In addition to the drill rig, operating costs also include necessary support equipment. This may involve a truck or equipment trailer, air compressor for DTH hammer drilling or mud pump for mud rotary drilling, grouter (for mixing and pumping thermally enhanced grout) and possibly a mud cleaning unit (for cleaning and recycling mud drilling fluid). Tooling may include drill rods, augers, DTH hammer, mud drilling bit and mud tray. Rather than coordinating and purchasing these items from several different suppliers or manufacturers, customer support focused drill rig manufacturers provide knowledgeable advice and also supply support equipment and tooling. Don’t hesitate to ask them for recommendations on how to best match the drill rig and drilling method with your equipment and tooling.
Brandon Wronski is an equipment specialist with RigKits LLC, based in Charlotte, N.C.
