geothermal business incubator james c. witcher witcher and associates las cruces, new mexico nmsu...

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