Case Study: Consulting Engineering

Margaret Mary Health Outpatient & Cancer Center

Margaret Mary HealthBatesville, Indiana

Geothermal Central Plant Conversion Maximizes Cost & Energy Savings

In 2022, Margaret Mary Health (MMH) engaged CMTA as the MEP engineer for the design of their new replacement hospital. During the pre-design phase, MMH explored various HVAC system options, including geothermal solutions. This analysis led to the decision to implement a geothermal conversion for the existing central plant at their Outpatient & Cancer Center. The central plant geothermal conversion marks a significant step in MMH's pursuit of energy efficiency and sustainability, reinforcing their commitment to minimizing environmental impact while maintaining exceptional healthcare services. The 45,300 ft² facility serves as a critical resource for the rural southeastern Indiana community, delivering essential oncology care and addressing healthcare gaps often faced in underserved areas. Designed with a strong emphasis on functionality, accessibility, and resiliency, the center is built to meet the evolving needs of the community it serves.

The Challenges

  • Convert the existing boiler/chiller central plant to a geothermal system
  • Improve system resiliency and operational efficiency
  • Eliminate reliance on natural gas to cut utility costs and carbon emissions
  • Leverage energy savings and federal incentives to maximize initial and long-term savings
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CMTA's knowledge of federal clean energy tax credits guided us in our decision-making process to convert our central plant to geothermal in a budget-friendly way. Their high-performance healthcare design expertise introduced operational possibilities that have transformed our facilities. Created with Sketch.

David Neff

Margaret Mary Health Director of Facilities

The Solutions

Before initiating the geothermal conversion project, MMH had explored multiple options to replace the facility’s existing chiller, including air- and water-cooled chiller options. However, they ultimately decided to implement a geothermal central plant due to its superior energy performance and long-term value. CMTA collaborated closely with MMH to evaluate costs and scheduling, demonstrating the feasibility of integrating the new geothermal system into their existing infrastructure.

To maximize the Outpatient & Cancer Center’s energy efficiency, CMTA conducted an in-depth analysis of the central plant’s existing systems. The evaluation revealed the systems were oversized for the facility, consuming excess energy and operating at an unnecessarily low leaving air temperature, which strained the chiller and increased reheat demand. Additionally, the constant-volume pumping strategy combined with the use of 30% glycol in the outdoor chiller system reduced heat transfer efficiency, further escalating energy consumption. Leveraging this insight, the design team “right-sized” the new systems to meet the facility’s actual needs, significantly reducing overall energy consumption. This included removing the 210-ton oversized air-cooled chiller and installing 7.73 miles of geothermal linear piping with its respective mechanical systems. Three 60-ton, 6-pipe heat recovery chillers were also installed, which not only minimize boiler usage during below-freezing temperatures but also efficiently heat the facility using heat pump modules, even when outside air temperatures drop as low as 20°F.

These upgrades drastically reduced the facility’s Energy Use Intensity (EUI) to 140 kBtu/ft²/yr—a 40% reduction from the facility’s benchmark of 233 EUI. As a result, the new cancer center has achieved an 80% reduction in natural gas consumption and gas usage costs. MMH also received two utility rebates for the facility’s energy-efficient design—one totaling $4,600 for adding a variable frequency drive (VFD) to the chilled water pump and another $14,085 rebate for installing a more efficient chiller. Additionally, the project secured $413,046.12, or 40% of the total cost, in federal clean energy tax credits for the installation of the geothermal system, made possible by leveraging a domestic content bonus credit. Combined with operational savings, these incentives paved the way for the project budget to be expanded from $500,000 to $1.1 million, achieving a remarkable four-to-five-year expected payback period. 

Improved Resiliency with Modernized System Placement

Engineered with an emphasis on efficiency and sustainability, the facility’s systems now feature advanced, low-maintenance geothermal equipment housed within a single, accessible mechanical room. Pre-renovation, the facility faced frequent chiller failures, partially due to the system’s placement in the building’s service area—a space also used for deliveries and waste management. While partially protected, the equipment remained vulnerable to damage from large vehicles and exposure to the elements.

Now, the geo-central plant system placement in an indoor mechanical room eliminates these vulnerabilities, protecting equipment from the elements and improving resiliency. The contractor offered a cost reduction for the installation due to the mechanical room’s easily accessible location, as work could proceed without the delays and challenges posed by outdoor weather conditions. This cutting-edge system also streamlines routine maintenance while delivering exceptional durability, with a lifespan two to three times longer than conventional HVAC systems. By incorporating this technology, the facility ensures reliable performance, significant environmental advantages, and long-term cost efficiencies. 

The Results

By leveraging financial incentives and energy-efficient equipment, the project demonstrates a comprehensive approach to cost-effectively implementing high-performance design strategies. The transition to geothermal technology delivers numerous benefits, including a more sustainable energy solution, insulation from energy price volatility, and cost saving opportunities. These savings will continue to accumulate, as the existing natural gas boiler system, which is nearing the end of its useful life, will no longer require replacement.

The geothermal conversion project also paved the way for the building to become fully electrified. By the winter of 2024, the building was able to maintain operational temperatures as low as 20°F, with only the the heat pump chillers energized. Future modifications to the air handing systems are planned to enable efficient operation at even lower temperatures. This strategy eliminates an estimated 131.38 Metric Tons of CO₂ emissions annually, while also reducing the time, effort, and chemicals needed for cleaning the air cooler condenser coils. 

MMH Cancer Center Energy Use

[{"x":"JAN","Pre-Renovation":"19.4","Post-Renovation":"16.8"},{"x":"FEB","Pre-Renovation":"38.8","Post-Renovation":"29.9"},{"x":"MAR","Pre-Renovation":"58.2","Post-Renovation":"39.8"},{"x":"APR","Pre-Renovation":"77.6","Post-Renovation":"49.3"},{"x":"MAY","Pre-Renovation":"97.0","Post-Renovation":"58.5"},{"x":"JUN","Pre-Renovation":"116.4","Post-Renovation":"68.8"},{"x":"JUL","Pre-Renovation":"135.8","Post-Renovation":"80.2"},{"x":"AUG","Pre-Renovation":"155.2","Post-Renovation":"93.0"},{"x":"SEP","Pre-Renovation":"174.6","Post-Renovation":"104.5"},{"x":"OCT","Pre-Renovation":"194.0","Post-Renovation":"115.3"},{"x":"NOV","Pre-Renovation":"213.4","Post-Renovation":"124.6"},{"x":"DEC","Pre-Renovation":"232.8","Post-Renovation":"137.8"}]
PRE-RENOVATION: THE ANNUAL ENERGY USE BEFORE THE PROJECT
POST-RENOVATION: THE MEASURED ENERGY USE AFTER PROJECT COMPLETION