Life Cycle Assessment of Residential Heating and Cooling Systems in Minnesota: A comprehensive analysis on life cycle greenhouse gas (GHG) emissions and cost-costeffectiveness of ground source heat pump (GSHP) systems compared to the conventional gas furnace and air conditioner system

University of Minnesota M.S. thesis. January 2013. Major: Bioproducts/Biosystems Science Engineering and Management. Advisor: Timothy M. Smith. 1 computer file (PDF); viii, 77 pages, appendices p. 60-77.Ground Source Heat Pump (GSHP) technologies for residential heating and cooling are often suggested as an effective means to curb energy consumption, reduce greenhouse gas (GHG) emissions and lower homeowners' heating and cooling costs. As such, numerous federal, state and utility-based incentives, most often in the forms of financial incentives, installation rebates, and loan programs, have been made available for these technologies. While GSHP technology for space heating and cooling is well understood, with widespread implementation across the U.S., research specific to the environmental and economic performance of these systems in cold climates, such as Minnesota, is limited. In this study, a comparative environmental life cycle assessment (LCA) is conducted of typical residential HVAC (Heating, Ventilation, and Air Conditioning) systems in Minnesota to investigate greenhouse gas (GHG) emissions for delivering 20 years of residential heating and cooling - maintaining indoor temperatures of 68ºF (20ºC) and 75ºF (24ºC) in Minnesota-specific heating and cooling seasons, respectively. Eight residential GSHP design scenarios (i.e. horizontal loop field, vertical loop field, high coefficient of performance, low coefficient of performance, hybrid natural gas heat back-up) and one conventional natural gas furnace and air conditioner system are assessed for GHG and life cycle economic costs. Life cycle GHG emissions were found to range between 1.09 × 105 kg CO2 eq. and 1.86 × 105 kg CO2 eq. Six of the eight GSHP technology scenarios had fewer carbon impacts than the conventional system. Only in cases of horizontal low-efficiency GSHP and hybrid, do results suggest increased GHGs. Life cycle costs and present value analyses suggest GSHP technologies can be cost competitive over their 20-year life, but that policy incentives may be required to reduce the high up-front capital costs of GSHPs and relatively long payback periods of more than 20 years. In addition, results suggest that the regional electricity fuel mix and volatile energy prices significantly influence the benefits of employing GSHP technologies in Minnesota from both environmental and economic perspectives. It is worthy noting that with the historically low natural gas price in 2012, the conventional system's energy bill reduction would be large enough to bring its life-cycle cost below those of the GSHPs. As a result, the environmentally favorable GSHP technologies would become economically unfavorable, unless they are additionally subsidized. Improved understanding these effects, along with design and performance characteristics of GSGP technologies specific to Minnesota's cold climate, allows better decision making among homeowners considering these technologies and policy makers providing incentives for alternative energy solutions