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Western Australia's largest not-for-profit aged care and retirement living provider Bethanie Villages is trialling geothermal heat pumps at three of  its centres.

The 60-year old aged care provider operates across 24 locations and is trialling the cutting edge technology at Bethanie Peel (Mandurah), Beachside (Yanchep) and Dallyellup.

Bethanie's housing general manager, Mike Brown, said the system pumps water through a series of underground pipes, taking advantage of the constant temperature found underground (approximately 17degrees Celsius). This water is then passed through a water-to-coolant heat exchange.

A traditional heat pump has to use an air-to-coolant heat exchange and cope with a much greater range of outside air temperatures.

Brown said the system can be used to assist in the heating of hot water for showers and also to heat swimming pools.

“It can also be linked up to slab heating and cooling, to provide an even more efficient system, which has a side benefit of reducing the flow of airborne germs around buildings, creating a healthier environment,” he said.

“I hope the residents really notice the difference once these systems are operational and it has a positive impact on their quality of life.”

All three projects are being supported by Commonwealth grants and once the trial is completed Bethanie will introduce geothermal heating and cooling at sites right across the state.

There are a range of  benefits that accompany a geothermal system including a more environmentally friendly solution that uses cool water rather than ambient air.

“There is a lot less pumping to displace the same amount of heat,” Brown explains. Less air movement also reduces the spread of germs.

“We are also enjoying significant savings in electricity costs,” he added.

The residential care group, which is part of an industry worth $17 billion in Australia, employs 1,600 staff and about 500 volunteers.

According to research firm, IBISWorld, only seven per cent of Australia's ageing population (over 55 years) live in retirement housing or aged care facilities.

“The aged care residential services industry is highly fragmented and characterised by a low level of market share concentration,” a spokesperson for IBISWorld said.

This financial year (2014/15) the top four operators account for less than 20 per cent of industry revenue. No operator commands a market share of more than five per cent.

As at June 2013, charitable and religious organisations accounted for just under 45 per cent of all residential care places, while community-based operators accounted for 13.5 per cent.

In contrast, private for-profit operators accounted for 36.2 per cent, up from 33.3 per cent just five years earlier, while government made up the balance.

How does the geothermal heat pump work? The cool 17-degree water is pumped from the water aquifer into a plate heat exchanger and acts as a heat-soak for the air handling units within the building. The heat is effectively extracted from the building and transferred into the water via the plate exchanger.

This 'hot' water (in reality its only three to four degrees warmer than the cool water) is then re-injected back into the aquifer for a short period, returning slightly warmer.