Post on 19-Dec-2015
GEOTHERMAL BUSINESS INCUBATOR
James C. Witcher
Witcher and AssociatesLas Cruces, New Mexico
NMSU Geothermal Incubator Greenhouse, Las Cruces, New Mexico NMSU
BACKGROUND
NMSU geothermal business incubator greenhouse NMSU
• Started 1986• Concept of Larry Icerman and Rudi Schoenmackers• Construction funded by USDOE and State of New Mexico• No funding for outreach and marketing from State of New Mexico since 1992• Lease fees applied to O&M
WHY USE GEOTHERMAL?
DRAWBACKS1) up front capital costs2) approach unfamiliar3) acceptance of risk4) can require more effort
ADVANTAGES1) energy savings2) energy costs stable
NMSU geothermal business incubator greenhouse NMSU
PURPOSE OF GEOTHERMAL
GREENHOUSINGTHE PRIMARY OBJECT OF
GEOTHERMAL GREENHOUSING IS TO GROW
THE BEST QUALITY CROP PROFITABLY WITH ENERGY
SAVINGS
A GEOTHERMAL WELL AND HEAT EXCHANGER REPLACE A
CONVENTIONAL FOSSIL FUEL BOILER
NMSU geothermal business incubator greenhouse
NMSU
BUSINESS APPROACH
• RESOURCE ASSESSMENT AND RESERVOIR CONFIRMATION
• ENGINEERING FEASIBILITY• PERMITTING• BUSINESS AND MARKETING PLAN• RESOURCE MANAGEMENT PLAN
Alligator aquaculture, Mosca, ColoradoNREL
MOST IMPORTANT REQUIREMENTS
• SOUND BUSINESS PLAN
• EXPERT GROWER AND GREENHOUSE MANAGER
• MARKETS TO SELL PRODUCT
NMSU geothermal business incubator greenhouseNMSU
RESOURCE
CO-LOCATION
1) suitable land2) geothermal 3) fresh water 4) labor force
INCUBATOR BUSINESSES
• J & K Growers• Masson Radium
Springs• Plant Propagation
Technologies• Flores de New
Mexico• Sorenson Cactus
NMSU geothermal business incubator greenhouse NMSU
Spurred creation of more than 50 acres of new greenhouse acreage
ECONOMIC IMPORTANCEANNUAL SALES (wholesale)
$325,000 to $850,000 per acre
EMPLOYMENT
4 to 8 employees per acre
ENERGY SAVINGS
$46,200/yr per acre
4,200 MMbtu/yr/acre at less than $1.50/MMbtu
Natural gas $12.50/MMbtu (boiler inefficiency included)
Masson Geothermal Greenhouse, Radium Springs, New MexicoWilliamson, NREL
MASSON RADIUM SPRINGS FARM
Potted plants and flowers
Williamson, NRELMasson Geothermal Greenhouse, Radium Springs, New Mexico
SORENSEN CACTUSOrnamental cactus
NMSU geothermal business incubator greenhouse Williamson, NREL