eMag-District Energy 2009 Q4

District
Energy
www. di stri ctenergy. org
F OURT H QUART E R 2 0 0 9
Biomass
Gas Fuels
Victorias
Dockside Green
Considering
Commissioning
Achieving
Ultra-High
Efficiency
Carbon
Recycling
for Profit
An Industry
Leader
Talks Shop
and more.
District
Energy
IDEA is actively...
I Advocating for district energy/CHP in energy and
climate legislation
I Educating Congress on the merits, potential and
economic importance of district energy
I Working to forge a district energy/CHP program
with the US Department of Energy
I Seeking robust federal appropriations to fund
industry development
I Linking with international partners to build global
industry knowledge
I Expanding markets for IDEA members with the
US Department of Commerce
IDEA
For more information,
visit www.districtenergy.org or call
Rob Thornton at 508-366-9339.
At this critical juncture in the energy/climate debate,
IDEA is committed to advancing the interests of all of
our members.
We urge you to get involved and support our industry
future.
You can support our mission by contacting your legisla-
tors and by your timely contribution of financial support
to IDEA to continue its work in Washington, DC.
District Energy: Nows The Time!
Your industry voice in Washington, DC.
For weekly updates, IDEA members are invited to subscribe to Van Ness Feldman Climate Change Update at www.vnf.com/news-signup.html.
I
Features
2009 International District Energy Association. ALL RIGHTS RESERVED. District Energy / Fourth Quarter 2009 1
18 Blue Skies for Dockside Green: Biomass gasification
heats harborfront
Dejan Sparica, Vice President and Chief Engineer, Nexterra Systems Corp.
Victoria, British Columbia, is home to one of North Americas leading examples of sustainable urban
design: Dockside Green. This eco-friendly community is served by a unique district energy system
based on advanced biomass gasification technology. Due in no small measure to this system,
Dockside is on track to be carbon-neutral and has captured international attention and acclaim.
7 Commissioning: Delivering a central plant that works
Barney York, PE, Project Manager, RMF Engineering Inc.
More and more district energy system owners are opting to commission both new and existing
central plants. The process, which helps assure facilities are constructed and operated as intended,
has become more formally defined and applied in the past 10 years. Today, in fact, central plant
commissioning is a required and rewarded part of the LEED
green building certification program.

13 How High Can You Go? New approaches for cooling
system efficiency
Ben Erpelding, PE, Director of Engineering, Optimum Energy LLC
Usually, energy efficiency is a lower-priority goal than reliability in district cooling plant opera-
tions. But a new approach is making it possible to meet both objectives by employing more
variable-frequency drives, fully automated network controls, relational control algorithms and
new optimization software.
25 Carbon Recycling: An alternative to carbon capture
and storage
Rowan Oloman, Vancouver, B.C.
Carbon capture and storage may sound like one of the most promising solutions to rising glob-
al carbon dioxide levels, but the technology is unproven and unavailable commercially for the
next decade or two. So why not treat CO
2
as a commodity instead of as waste? Scientists are
doing just that, researching options for carbon recycling and reuse.
29 A View From Veolia: Q&A with Stewart Wood
Two years ago Veolia Energy North America acquired the Trigen district energy systems. District
Energy catches up with Stewart A. Wood, company president and chief executive officer to
find out more about upgrades to the systems, the future of combined heat and power, Woods
take on federal funding and coping with an aging workforce.
District
Energy
District
Energy
F OURT H QUART E R 2 0 0 9
VOL UME 9 5
NUMB E R 4
Cover
3 Chairs Message
Juan Ontiveros
Executive Director of Utilities and Energy
Management, The University of Texas
at Austin
4 Presidents Message
Robert P. Thornton, President
International District Energy Association
35 Industry News
47 People in the News
49 From a Legal Perspective
Tax Incentives: How public institutions
can reap benefits
Elizabeth Teuwen, Attorney,
Jennings Strouss & Salmon PLC; and
Nancy Pohl, Attorney,
Jennings Strouss & Salmon PLC
51 LEED
+ District Energy
What Do You Mean I Need to Commission
My Plant? Answering the call
Tim Griffin, PE
IDEA USGBC Liaison
54 Inside Insights
Horizontal or Vertical: Whats your angle?
Steve Tredinnick, PE
Syska Hennessy Group
56 Members Speak Out
Is District Energy for Everyone?
David W. Wade, PE
RDA Engineering Inc.
57 Energy and Environmental Policy
Reducing CO
2
Emissions: How much
can district energy help?
Mark Spurr
IDEA Legislative Director
62 Customer Closeup
Prescription for Reliability: District energy
heats and cools Detroit Medical Center
63 Meet Our Advertisers
64 Calendar of Events/
Dates to Remember
Departments
ON THE COVER:
Dockside Green is a mixed-use development
that has won international acclaim as a model
of environmental sustainability. An innovative
biomass gasification system fuels Docksides dis-
trict heating system. Other sustainable features
include a stormwater reuse system and an on-
site sewage treatment facility that reclaims
wastewater for use in Dockside rooftop gar-
dens and irrigation systems. Located on the
harborfront of Victoria, British Columbia,
Dockside is targeting LEED
Platinumcertification.
Rendering Dockside Green.
10% POST
CONSUMER
WASTE
2 District Energy / Fourth Quarter 2009 2009 International District Energy Association. ALL RIGHTS RESERVED.
District Energy is an official publication of the International District Energy Association. Published quarterly since 1915.
Publisher and President
Robert P. Thornton
Executive Editor
Monica Westerlund
Technical Editor
Anthony Mirabella
Advertising Sales
Tanya Kozel
Art Director
Dick Garrison
Editorial Advisory Committee
Ray DuBose
University of North Carolina at Chapel Hill
Dennis Fotinos
Enwave Energy Corp.
Mike Goff
Stanford University
Joe Hoose
Cool Systems, Inc.
Jack Kattner
Kattner Associates
Doug Maust
HGA Architecture Engineering Planning
Steve Spiwak
Nalco Company
David Woods
Energy Systems Company of Omaha
To contact the publication:
District Energy
24 Lyman Street, Suite 230
Westborough, MA 01581
(508) 366-9339
(508) 366-0019 (fax)
idea@districtenergy.org
Board of Directors
2009-2010
Executive Committee
Chair
JUAN ONTIVEROS
University of Texas at Austin
P. O. Box 7850
Austin, TX 78713
(512) 232-4191
Juan.Ontiveros@austin.exas.edu
Vice Chair
DAVID TOOMBS
Citizens Thermal Energy
366 Kentucky Ave
Indianapolis, IN 46225
(317) 693-8805
dtoombs@citizensenergygroup.com
Second Vice Chair
VINCENT BADALI
Consolidated Edison
4 Irving Place Rm. 1328
New York, NY 10003
(212) 460-3972
badaliv@coned.com
Secretary/Treasurer
TOM GUGLIELMI
NRG Thermal LLC
Suite 2600
80 S. 8th Street
Minneapolis, MN 55402
(612) 436-4106
tom.guglielmi@nrgenergy.com
Past Chair
DENNIS FOTINOS
Enwave Energy Corporation
181 University Ave., Suite 1710
Toronto, ON, M5H 3M7
CANADA
(416) 338-8912
dfotinos@enwave.com
At-Large
JOSEPH BRILLHART
Johnson Controls
41st Floor
60 E. 42nd Street
New York, NY 10165
(646) 658-6785
joseph.m.brillhart@jci.com
Board Members
JAMES ADAMS
Cornell University
135 Humphreys Service Building
Ithaca, NY 14853
(607) 255-6647
jra4@cornell.edu
GREGG COFFIN
University of Missouri, Columbia
417 S. Fifth Street
Columbia, MO 65211
(573) 882-3094
coffing@missouri.edu
JOHNATHAN COLEMAN
JA Coleman LLC
PO Box 425
Wilmington, VT 05363
(802) 338-5855
john@jacolemanllc.com
KURT LIEBENDORFER
Stellar
2900 Hartley Road
Jacksonville, FL 32257
(904) 260-2900
kurt@stellar.net
CHRIS LYONS
Solar Turbines
P.O. Box 85376; MZSP3-Q
San Diego, CA 92186
(858) 694-6586
lyons_chris_D@solarturbines.com
ANN McIVER
Citizens Energy Group
2020 N. Meridian Street
Indianapolis, IN 46202
(317) 927-4393
amciver@citizensenergygroup.com
BOB MAFFEI
Perma-Pipe, Inc.
7720 N. Lehigh Avenue
Niles, IL 60714
(847) 966-2235
maffeib@permapipe.com
TIMOTHY MERRILL
NRG Energy Center Pittsburgh
111 S. Commons
Pittsburgh, PA 15212
(412) 231-0409
tim.merrill@nrgenergy.com
TOM PIERSON
TAS Packaged Central Plants
6110 Cullen Blvd.
Houston, TX 77021
(713) 877-8700
tpierson@tas.com
AUREL SELEZEANU
Duke University
114 S. Buchanan Blvd.
Durham, NC 27708
(919) 660-4222
aurel.selezeanu@duke.edu
STEPHEN SWINSON
Thermal Energy Corporation
1615 Braeswood Blvd.
Houston, TX 77030
(713) 791-6765
sswinson@teco.tmc.edu
STEVEN TREDINNICK
Syska Hennessy Group
429 Gammon Place, Suite 200
Madison, WI 53719
(608) 826-9402
stredinnick@syska.com
PATRICIA WILSON
Affiliated Engineers, Inc.
Suite 400
401 N. Washington Street
Rockville, MD 20850
(301) 509-6730
pwilson@aeieng.com
STEWART WOOD
Veolia Energy North America
99 Summer Street, Suite 900
Boston, MA 02110
(617) 502-4446
swood@veoliaenergyna.com
JEFFREY ZUMWALT
University of New Mexico
MSCO1 1060
Albuquerque, NM 87131
(505) 277-1143
jzumwalt@unm.edu
Ex-Officio
Robert P. Thornton
Monica L. Westerlund
Legislative Director
Mark Spurr
Legal Counsel
Joel L. Greene
Jennings, Strouss & Salmon
District Energy (ISSN 1077-6222) USPS No. 158-240 is published quarterly by the International
District Energy Association, 24 Lyman Street, Suite 230, Westborough, MA 01581-1483. Phone:
(508) 366-9339. Home page: http://www.districtenergy.org.
Yearly non-member subscription price: $50 USA; all international $75. Single copy: $15 and $20
respectively. Forty dollars of all membership dues are allocated to subscriptions. Periodical postage
paid at Westborough, Mass., and additional mailing offices. Postmaster: Send address changes to
District Energy, International District Energy Association, 24 Lyman Street, Suite 230, Westborough,
MA 01581-1483.
Statements and opinions advanced in articles are to be understood as the individual expressions of
the authors and are not necessarily those of District Energy or the International District Energy Association.
The appearance of advertising in IDEAs publications and on its Web sites in no way implies endorsement
or approval by IDEAof any advertising claims or of the advertiser, its product, or services.
IDEA was founded in1909. Its purpose is to foster the success of its members as leaders in providing
reliable, economical, efficient and environmentally sound district energy services. The associations
membership consists of representatives from utilities, municipalities, universities, hospitals, military
bases, airports, industrial parks and other physical plant systems engaged in supplying thermal energy
in the form of steam, hot water and/or chilled water for heating, cooling and process uses. It also rep-
resents engineers; architects; financial, legal, and management consultants; and manufacturers
who supply services and equipment for community energy systems.
2009 International District Energy Association. ALL RIGHTS RESERVED. District Energy is indexed
by Engineering Index Inc.
For much of the year, for example, the
weather in parts of the southwestern and
central United States is similar to that of
the Middle East. In addition, with a slow-
down of development, systems everywhere
have had to reduce costs by right-sizing
their organizations, reducing water con-
sumption, training personnel and squeezing
out efficiency to deal with utility and budget
shortages. As attendees at the Dubai con-
ference saw firsthand, we all can benefit,
all regions learning from each other.
But the conference is just one exam-
ple of whats happening at IDEA. There
are many balls to juggle on behalf of the
organization, and I am very excited to be
working with President Thornton and the
board to make things happen. We have
our work cut out for us making more
Capitol Hill visits to explain and reinforce
the positive difference CHP and district
energy can make for our nation. But we
also need ongoing feedback from you,
our members, on any new issues you
believe the organization should address so
that we can continue moving forward to
support you.
Help us help you by taking the ini-
tiative to contact the board if you want to
contribute to the organization via presen-
tations, sponsorships, board interest or
anything else. I look forward to continuing
to serve you as your chairman.
Juan Ontiveros
Chair, 2009-2010
Executive Director of Utilities and
Energy Management
The University of Texas at Austin
Juan.Ontiveros@austin.utexas.edu.
Chairs
Message
We have our work cut out
for us.
If we get an opportunity to
share what we have done, we
need to do so.
I
t seems that in these times, more than
in the past, everyone is juggling many
balls at once. Were all working on various
projects, plus dealing with LEED
certifica-
tion issues and climate legislation pres-
sures. Yet, as busy as we are, we need
more than ever to step up and make a
difference to advance our industry and
our association.
While those of us at state institutions
are unable to get involved in the legislative
process, we can help it along by being
positive examples of what can be accom-
plished; if we get an opportunity to share
what we have done, we need to do so.
The rest of our members need to take
advantage of what may be unprecedented
opportunities to further the industry and
ultimately benefit themselves by conveying
district energys many economic and envi-
ronmental benefits while energy and climate
issues are on everyones radar.
Those of you who can get involved in
the legislative process need to be visible and
participate, by contacting your members of
Congress and responding to IDEAs legisla-
tive alerts, for example. Our president, Rob
Thornton, and others are actively involved
in increasing the uncovered threshold for
combined heat and power and explaining
to lawmakers how CHP/district energy can
be used as a climate mitigation tool. But they
can only do so much. Rob will soon be
suggesting new ways IDEA members can
help the effort. I continue to be optimistic
about our future, but we all need to capi-
talize on the current national discussion
on climate change solutions.
There are so many opportunities to
help in Creating an Efficient Energy Future
my theme for the year. Energy efficiency
also happens to be featured in this issue
of District Energy, in articles talking about
biomass fuel advances employed in British
Columbia, the importance of commissioning
of plants and how all-variable-speed loops
provide a competitive advantage. In this
issue we also debut a new column, From
a Legal Perspective. The first edition of the
column discusses tax incentives available
for public institutions. Youll want to check
it out! I continue to be impressed with the
quality content and look of our magazine,
and I value the insights and industry expe-
rience IDEA members continue to share
through interesting and informative articles.
If youve never contributed an article, I
encourage you to consider doing so.
Creating an efficient energy future is
challenged by the need to enhance energy
security while slowing climate change,
especially as we try to strengthen the
economy. But I know that IDEA members
are ready to meet the challenge. When
things get this hectic, we need to be the
steadying, calming and comforting force
to lead the way to a better energy future;
if any of us lacks the in-house expertise to
do this, we can rely on other IDEA members
to provide the help we need. This can all
happen synergistically, enabling us to achieve
a positive energy future using proven, off-
the-shelf technology.
Times are no less challenging beyond
the United States. Economic woes and
climate change affect countries world-
wide, including in the Middle East, site of
IDEAs Fourth International District Cooling
Conference & Trade Show that was held
Oct. 11-13 in Dubai. While the district
energy industry in the Middle East faces
many unique challenges in terms of growth,
weather, and plant operation and mainte-
nance, I contend that we all have much in
common and much knowledge and
experience to exchange in gatherings such
as this conference.
that it is a rare exception: It does not focus
legislative language entirely on electricity
and provides program recognition and
support for thermal energy. Since 40 per-
cent of all energy used in buildings is for
heating and air conditioning, it only makes
sense to have policies focus on thermal
energy development and optimization, as
contemplated in the Sanders-Merkley bill.
The bills genesis reflects a dozen or more
community-scale, biomass-based, district
energy development schemes under con-
sideration in Vermont and New Hampshire.
At the state policy level, district energy
and CHP have gained solid program foot-
ing in places like Massachusetts, with the
Alternative Energy Portfolio Standard;
Connecticut, with the Clean Energy Fund;
and New Jersey, with public benefit funds
invested in highly efficient cogeneration
via grants dispersed by the Board of
Public Utilities. In fact, many states have
been driving investment in clean energy
technologies and will continue to lead in
this area. IDEA will be covering state
energy programs and an update on feder-
al climate and energy policies as part of
the agenda for the 23rd Annual Campus
Energy Conference to be hosted by the
University of Nevada, Reno, Feb. 9-12,
2010. (The distribution workshop pre-
cedes the conference Feb. 8-9.)
Of course, there is also real momen-
tum outside the U.S. We just returned
from the Fourth International District Cooling
Conference, hosted by the IDEA Middle
East Chapter in Dubai, United Arab
Emirates. In the past 10 years, more than
1 million tons of district cooling capacity
have been constructed in the Middle East,
largely in the UAE.
While the global financial crisis has
affected the pace of development in
Dubai and difficult market corrections are
under way, district cooling has been widely
accepted as an important infrastructure
alternative to traditional air-conditioning
systems that transpose high peak demands
on the power grid. Members of the IDEA
Middle East Chapter are engaged in
addressing the complicated market chal-
lenges of limited water supply, subsidized
and inequitable electricity rates and pro-
viding customer satisfaction across the
entire GCC region. The current economic
slowdown presents an opportunity for
Also at the federal level, legislation has
been introduced in the Senate Climate bill
to increase support for district energy
development. The Thermal Energy Efficiency
Act (S. 1621), co-sponsored by Sen. Bernie
Sanders, I-Vt., and by Sen. Jeff Merkley,
D-Ore., is structured around the impor-
tance of thermal energy as a resource for
heating and cooling buildings. The bill
effectively sets aside revenue generated
from the sale of carbon-dioxide emission
allowances to provide grants and loans
through the State Energy and Environmental
Development (SEED) programs for devel-
opment and expansion of district energy
systems.
This legislation is also significant in
and waste energy recovery. The RACs will
be working to accelerate investment in
larger-scale CHP of 20+ MW to achieve
even greater market penetration for energy-
efficient technologies that mitigate carbon
emissions.
DOE has established an ambitious
agenda for CHP to expand from 9 per-
cent of U.S. electricity generation in 2008
to 20 percent by 2030. In the large com-
mercial and industrial segment, this will
involve the increase of over 82 GW of
generating capacity from 77.6 GW in
2008 to reach 160 GW by 2030. Re-pow-
ering existing heat-only district systems in
cities and campuses to adapt to combined
heat and power is a key near-term market
opportunity. Leveraging the potential for
waste-heat recovery is another highly
valuable strategy. IDEA is slated to provide
technical program support to the RACs in
pursuit of the district energy segment.
L
ooking out across the changing energy
landscape, it is exciting to observe a
growing awareness and greater
appreciation for district energy. Planners,
policy makers and energy professionals
from around the world are recognizing
district energy as a proven, community-
scale solution to enhance energy security,
stimulate local economic development,
and deliver more sustainable, lower-carbon
energy services. District energy is gaining
ground through more than simple win-
dow-dressing of government-subsidized
demonstration projects, but through hon-
est-to-goodness policy engagement
designed to generate real industry growth.
Around the globe, and especially
here in the U.S., district energy systems
are now increasingly seen as effective
investments for optimizing combined
heat and power or tapping indigenous
energy resources such as surplus industri-
al waste heat and renewable lake or
ocean water. Whether this enhanced
popularity is due to last years record-high
oil costs of $147 per barrel or to recent
government activity on climate change
legislation, district energy systems are
gaining traction as a near-term carbon
emissions mitigation strategy.
In the U.S., the U.S. Department of
Energy (DOE) Industrial Technology
Program has recently re-purposed the
eight Regional Application Centers (RACs)
to a broader mission that encompasses
education, outreach and support for
clean energy technologies, including dis-
trict energy, combined heat and power
Presidents
Message
Re-powering existing heat-only
district systems in cities and cam-
puses to adapt to combined heat
and power is a key near-term
market opportunity.
industry participants to focus on best
practices for improving energy efficiency
and optimizing assets.
Certainly, the efforts by the
International Energy Agency CHP/DHC
Collaborative, led by Tom Kerr, have
helped to raise the profile of district ener-
gy/CHP. The respective country reports
highlight industry market share and
describe the favorable policy settings that
have allowed district energy and CHP to
flourish.
IDEA is collaborating with the
International Energy Agency, Euroheat &
Power, the Danish Board of District
Heating, and the Danish District Heating
Association to organize the District
Energy Summit in Copenhagen Nov. 3.
Since Copenhagen will host the United
Nations Framework Convention on
Climate Change in early December, the
District Energy Summit is intended to
showcase the tremendous contribution
district energy has made in Denmarks suc-
cessful transformation from energy
dependent nation to net exporter. Large-
scale district energy networks form the
undergirding for a low-carbon economy
in Copenhagen that should serve as blue-
print for future urban planning around
the world.
On Oct. 15, industry participants in
the United Kingdom announced the for-
mation of the U.K. District Energy Association
(ukDEA) to promote the use of district
energy as a means to reduce carbon
emissions and to forge a stronger connec-
tion with government to better leverage
industry growth. Government leaders in
the U.K. helped to launch the ukDEA in
Birmingham, calling the city a beacon on
decentralised energy.
Six main operating systems in the
U.K. are the anchor members of the asso-
ciation. Some of these systems have been
operating for nearly 30 years, and many
utilize waste-to-energy as a main source
of heating supply. The ukDEA association
aims to improve information exchange,
collaborate on development solutions,
develop and share knowledge and best
practices, expand appreciation for the
benefits of district energy, and advocate
for policies and regulations that are fair or
favorable for industry participants.
This mission is entirely consistent with
the long-held principles and practices of
IDEA. In much the same way that IDEA
has served as a collective industry voice
with the U.S. Environmental Protection
Agencyand Department of Energy, ukDEA
plans to engage with the U.K.s Department
of Energy and Climate Change to improve
communication between existing and
potential scheme developers, operators,
partners and users, aiming to support more
robust industry growth.
As IDEA completes our 100th year in
operation, it is encouraging that our mis-
sion and message are still relevant and
resonating with others joining in the chorus
and the cause.
Robert P. Thornton
President
rob.idea@districtenergy.org
The IDEA District Cooling Best Practice Guide is a valuable reference tool for
district energy professionals. Based on decades of practical experience and
lessons learned, the Best Practice Guide is designed to provide insight and
practical solutions on the technical, engineering and operational challenges in
designing, constructing and managing a successful district cooling system.
This hard-cover first edition offers special emphasis on the business climate
and environmental conditions of the Middle East region, where district cooling
development is occurring on a massive scale, but the content is relevant in all
climates.
To place your order, please complete the form at
www.districtenergy.org/Best_Practice_Guide/BPG_Order_form.pdf
US$395, plus shipping and handling.
IDEA District Cooling Best Practice Guide
Questions? Contact
Len Phillips at len.idea@districtenergy.org
(508) 366-9339.
The current economic slowdown
presents an opportunity for
industry participants to focus
on best practices.
Our customers put their trust in us. We dont take
that responsibility lightly. To deliver on our promise
of Sustainability without Compromise we know
that we can never become complacent. That is why
we have the best stationary engineers in the industry
operating our plants 24/7. Our people are the heart
and soul of our company. Their collective experience
from around the world and from varied backgrounds
means that we are able to anticipate challenges before
they occur. Their passion for what they do means
that we are constantly improving our service while
keeping costs low. For our customers, this means they
can sleep at night and focus on their core business
during the day.
At Enwave, system
reliability is job one.
www.enwave.com | 310-wave
C
ommissioning is a process that
has been around for many years
but has been referred to by differ-
ent names in different industries. The
pharmaceutical and manufacturing busi-
nesses have often referred to it as vali-
dation, borrowing a term from the U.S.
Food and Drug Administration approval
process. In the military, commissioning
often refers to placing ships into service.
In the district energy industry, the terms
meaning has varied from person to person
perhaps because industry professionals
come from diverse backgrounds, many
trained in the military or manufacturing.
ASHRAE defines commissioning as
a quality-focused process for enhancing
the delivery of a project. The process
focuses on verifying and documenting
that the facility and all of its systems
are planned, designed, installed, tested,
operated, and maintained to meet the
Owners Project Requirements. Restated,
commissioning is a quality assurance
program for the architecture and engi-
neering industry that helps ensure that
facilities are constructed and operated
as intended by the owner. Is the process
perfect? No, but it is a giant leap in the
right direction.
Only within the past 10 years has
the concept of commissioning started to
take hold in the district energy industry
with a more defined focus and meaning;
this is largely due to the introduction of
federal and state energy policy legislation
that requires commissioning as part of
the energy reduction measures. It is a
process that can greatly aid plant owners
and operators in meeting the mounting
multiple demands of their complex plant
operations, ever-changing environmental
regulations, world energy market volatility,
record consumer energy consumption and
the need to reduce their facilities overall
energy usage and emission footprint.
How Does It Work?
The process is spearheaded by a
commissioning agent typically an
independent third party to the plant
owner and the design and construction
team, although this isnt always the case.
In some instances, such as for small simple
projects, the commissioning agent may
be either a member of the design firm
or the owners staff. Within the district
energy industry, however, the role of
commissioning agent is most often
assigned to an independent party, elimi-
nating any potential conflicts of interest.
When selecting a commissioning
agent, a plant owner should answer the
following questions: Does this person
have experience designing, operating and
testing my type of facility? Can he or she
communicate effectively? Does the agent
understand the specific codes and stan-
dards that apply to my facility? If the
answer to these questions is yes, that
particular agent is probably a good fit.
Another point to consider is whether
the state where the project is being built
requires a commissioning agent to be
licensed as a professional engineer in
that state; although preferred, this is
not always the case.
Planning and Design Help
Although the commissioning process
is different for every project, it is ideally
introduced into the plant design phase
to be of greatest value. As district energy
professionals well know, a central energy
plant is often designed years in advance
Commissioning:
Delivering a central plant that works
Barney York, PE, Project Manager, RMF Engineering Inc.
Feature
Story
Only within the past 10 years
has the concept of commission-
ing started to take hold in the
district energy industry with
a more defined focus and
meaning...
of actual construction. Many different
individuals have a hand in the planning
process each of whom has a different
background and vision of how the com-
pleted facility should look and function.
While many of the individuals tasked with
planning and building the plant have a
basic understanding of how it should
function, most have never operated one.
A commissioning agent brings to
the table a team comprising both indi-
viduals who understand how to design
and plan a facility as well as others who
know what it takes to operate one effi-
ciently. The latter consists of former plant
operators and supervisors, people with
controls contractor backgrounds, and
test and balance contractors. Coming
together with the commissioning agent
provides the opportunity for designers
and operators to learn from each other,
in addition to benefiting from the agents
third-party commissioning consultation.
This scenario enables designers, for
example, to be educated on the impor-
tance of head space around the backside
of a boiler or chiller and operators to
learn how and why a system was installed
and intended to operate.
Identifying Performance Issues
Not only will commissioning improve
the planning, design and construction
phases, but, through the use of functional
performance testing, it will also identify
those issues that operators will eventually
find as well as those issues that opera-
tors may not.
Such is frequently the case, for
instance, with commissioning chilled-
water systems. These systems are often
installed with a secondary pumping system
controlled by variable-speed controllers,
controlled in turn via a series of differ-
ential pressure sensors. While this part
of the system is usually installed correctly
and operators learn rather quickly if it
works or not the variable-speed drives
bypass is often overlooked! During com-
missioning, it is not uncommon to dis-
cover that when the drive is put into
bypass, the motor immediately begins to
spin backward! Although this is a simple
installation issue caused by the contractor
having crossed two wires, it is something
that the operators typically dont discover
until there is an emergency and they need
to use the bypass. Commissioning can
surface this problem well beforehand.
Through functional testing and sys-
tems training tailored for facilities oper-
ators, the commissioning agent can help
operators understand, for example, why
designers installed three pumps and two
flow meters instead of three and what to
expect when one of the pumps fails. This
was the case in one project commissioned
by RMF Engineering. In this instance a
chiller was added to an existing system,
and the designers added two new pumps
to serve the new chiller and replaced
the pump serving the existing chiller to
compensate for the additional pumping
head being introduced to the system.
The system was designed so that one of
the new pumps for the new chiller was
to run all the time, while the other standby
pump was to operate only in the event
the primary pump failed, thus establishing
a solid level of redundancy. Two flow
meters were installed in lieu of three,
one at each chiller, for the purpose of
monitoring flow to each chiller instead
of the flow through the pumps.
More important, the commissioning
agent can help facility operators under-
stand what and how the data is being
pulled out of the supervisory control and
data acquisition (SCADA) system and use
it to make an informed decision on how
to operate the plant more efficiently. The
SCADA system compiles real-time infor-
mation from the various sensors and
meters throughout the plant and presents
it in a format that can be easily under-
stood by plant operators.
Another often-overlooked and
potentially even more costly concern is
whether the over-current protection is
properly adjusted for the bypass. Nine
out of 10 times when checked during
commissioning, it is found set at the
factory default setting and has not been
Verifying the function and installation of equipment before startup is an integral part of commissioning.
Here a commissioning agent is checking that the drawout-style electrical breakers are installed properly.
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Commissioning can identify
issues while the contractor still
owns the equipment and
before operators discover them
during an emergency.
adjusted to match the corresponding
full-load amps associated with the motor
it is driving. What could be worse for an
operator than to learn that the motor
just burned up due to an avoidable
installation error! Commissioning can
identify these types of issues while the
contractor still owns the equipment
and before the operators are forced to
discover them at the very time they most
need the backup functions.
Three issues that an operator would
probably never identify without com-
missioning are undercapacity, inefficiency
and emissions problems. For example, a
plant owner was constructing a new boiler
facility containing three 80,000-lb/hr
water-tube boilers specified, as is typical,
with a minimum thermal efficiency (input/
output). By testing the functional per-
formance of these boilers, the commis-
sioning team quickly discovered that the
boilers were not capable of reaching
capacity at the efficiency specified.
Realizing this, the owner simply
refused to accept the boilers. Ultimately
the boiler manufacturer came in, removed
the boiler refractory and added addi-
tional tubes to each boiler to get them
to meet specifications and for the owner
to accept them.
In another boiler plant, testing during
commissioning revealed that the emissions
from the burner at the low and mid firing
range were higher than had been specified.
Later this issue proved not to be that large;
however, it did affect the plants Title V
operating permit, which kept them in
compliance with the U.S. Environmental
Protection Agency and their states Title
V, Part 70, permitting agencies.
Without commissioning, the plant
owners in both these examples likely
would have never realized that they had
not received what they had paid for
and probably would have blown their
operations budgets to boot.
Testing Interacting Systems
The commissioning process also tests
one systems interaction with another. In
a central energy plant, there are numerous
supporting systems e.g., the fuel oil
system, condensate systems and meter-
ing which must be set up correctly for
the main system to operate at optimum
efficiency. Testing these various supporting
systems through commissioning helps
plant owners, operators and designers
settle any debates as to where problems
may be coming from or what any one
system is supposed to do and how it is
intended to interact with the others.
Furthermore, the meters can be verified
during this time to help ensure that what
is being billed by the utility is based on
actual consumption. This testing also
helps establish an energy baseline that
can be referred to in the future. System
owners and operators often say that their
system could never perform as intended.
Commissioning the system will either
prove or disprove this statement.
Who Can Benefit?
In general, all central energy plants
can benefit from commissioning. That
includes existing facilities as much as, if
not more than, new plants. There is, in
The value of listening to your
commissioning agent
One important test of central plant operations is the planned shutdown of the
entire plant. Recommended during commissioning, this test enables plant owners
to identify and correct any operational issues so that they may be avoided in the
event of an electrical power outage. However, under pressure from consumers to
not interrupt their utilities, owners typically do not want to perform this test
preferring to wait until systems are tested in real time, during an actual loss of
power. Plant owners may regret such a decision after that fact.
In 2003 RMF Engineering was hired by a university to perform independent
third-party commissioning services for a new central energy plant during its con-
struction. This consisted mostly of verifying installation checklists and conducting
the functional performance testing of the chilled-water, condenser water and elec-
trical systems. The firm tested each of these systems to ensure that they operated
as designed and were integrated appropriately. However, the firm was not permit-
ted to simulate an electrical outage to observe how the plant would respond and
how the systems would come back on line after a major service disruption. The
plant operator was adamant that he could not tolerate a plant shutdown: His con-
sumers would be furious; moreover, the plant was partially on emergency power.
One hot August weekend, a storm came through and interrupted the main
electrical power service, shutting down the chillers. One chiller, on emergency
power, came back on line after the 10 or so seconds it took the generator to
re-establish power. Everything worked as designed. After a while, the utility com-
pany fixed the problem, and it was time to switch the plant back to normal power.
Before the switch back to normal power, however, the controls system had been
calling for more chillers to start due to the load the campus imposed on the system.
They couldnt start because no power was available. When normal power was
introduced back to the plant, the entire plant immediately went black.
What had happened? Since the plant shutdown had not been performed, the
coordination of the electrical breakers wasnt tested. Once power was again avail-
able to all of the equipment that was trying to operate but previously could not
without power all of the equipment tried to start at once and created such an
electrical demand that the breaker at the utilitys substation tripped, and all power
to the plant was lost. The electrical equipment in the plant serving the chillers was
supposed to trip first and keep the other plant systems operating. However, the
time settings on the breakers were adjusted incorrectly, so the utilitys equipment
tripped first resulting in a huge inconvenience that commissioning could have
avoided with testing.
commissioning process, plants can help
eliminate the challenges inherent in non-
traditional systems.
Commissioning is such a valuable
tool for ensuring that mechanical systems
operate as efficiently and environmentally
friendly as possible that the process is
recognized by the U.S. Green Building
Councils LEED (Leadership in Energy
and Environmental Design) certification
program. The 2009 version of LEED for
New Construction has provisions that
impact whether or not and how central
energy plants must be commissioned (see
LEED + District Energy column on p. 51.)
Commissioning Levels
Different levels of commissioning
can be performed at central energy plants,
depending on the plant owners unique
needs. When deciding whether or not to
commission a project, plant owners should
ask what it is they want the process to
do for them: Perhaps simply to test the
systems to ensure proper operation? Or
for assurance that a plant design is sound
and the documents coordinated such
that plant construction can be bid with
clarity and therefore minimal bid-related
change orders?
Though the various potential levels
of commissioning services have not been
formally defined in ways that are accepted
and used uniformly across the industry,
that may be changing. The U.S. Green
Building Council is the first industry
group or program to try to establish any
standard commissioning levels. Its LEED
certification program describes two levels:
fundamental and enhanced commissioning.
Fundamental commissioning is a
certification prerequisite focused on the
plant construction phase. It consists of
the commissioning agent providing
installation checklists, functional testing
and a final report summarizing how the
systems operate and any recommenda-
tions for system improvements.
Enhanced commissioning, worth two
additional points toward LEED certifica-
tion, emphasizes commissioning activities
during the design phase as well. Building
on the fundamental commissioning
requirements, this level requires that
the commissioning agent provide at least
one design phase review of the construc-
tion documents, preferably at the design
fact, a process called retrocommissioning
dedicated to commissioning existing
facilities. Retrocommissioning involves
analyzing an existing plants operation
in order to understand how the facility
was originally intended to operate and
to compare that against how it currently
operates. Generally speaking, only a few
years after startup, most utility plants
need to make changes in their operation
to keep pace with their customers chang-
ing needs. Retrocommissioning enables
existing plants to optimize their efficiency
while also optimizing their function to
meet new end-user requirements.
Whether new or existing, plants that
have nontraditional systems may find
commissioning to be especially valuable.
A traditional plant might be described
as one having four evenly matched boilers
or chillers arranged in a conventional
manifold system that operate on a classic
control sequence. Operators and owners
are familiar with these systems and typ-
ically have a great understanding of how
they should operate. In contrast, a non-
traditional system is one that is designed
and intended to operate outside of the
standard modus operandi.
One nontraditional system currently
undergoing commissioning is a boiler
plant comprising 15 10,000-lb/hr (300
HP) boilers, all interconnected to act as
a single 150,000-lb/hr boiler with a single
control panel controlling 30 different
firing rates. The plant owner chose this
configuration based on data suggesting
that this arrangement would generate a
higher operating efficiency than a tradi-
tional plant. Commissioning will enable
the owner to verify or disprove this claim.
Other nontraditional systems that
could benefit from commissioning might
include plants using alternative fuels or
those having multiple capacity equipment
installed which presents challenges with
equipment staging, water balancing and
operator training. By implementing the
It is advisable to test switchgear during central energy plant commissioning to ensure that it meets
InterNational Electrical Testing Association (NETA) standards. NETA testing is being conducted at this
plant to ensure the integrity of the equipment prior to placing it into service.
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Retrocommissioning enables
existing plants to optimize their
efficiency while also optimizing
their function to meet new
end-user requirements.
development or 65 percent construction
document development level. Enhanced
commissioning also requires that the
commissioning agent provide a user-
friendly manual describing how the sys-
tems are intended to operate. Random
system retesting is also required 10 months
after substantial completion and initial
commissioning.
Measuring Success
Is commissioning worth the cost?
In some cases, plant owners have found
that just one of the comments made by
their commissioning agent during design
review saved them enough money to cover
the cost of the commissioning effort. It
is also not unusual for some plant owners
to find it hard to pay for the process ini-
tially but to later become eager proponents
of commissioning as they see it provides
them with energy savings and better end
products. Repeat commissioning clients
often add more commissioning services
to subsequent projects after they realize
the value that the process can add.
But the value of commissioning
may be measured in other terms as well.
When plant owners are asked how they
would define success in commissioning,
they almost always answer that the effort
has to deliver a plant that works. Whether
constructing a new central energy facility,
or expanding or renovating an existing
one, more and more plant owners are
experiencing how can successful commis-
sioning helps improve overall construction
quality and ensure that what is built
today will help address environmental
concerns and tomorrows energy needs.
Though not everyone is incorporat-
ing commissioning into their plants, it is
gradually becoming more commonplace.
The push for energy efficiency and the
increasing number of owners who have
experienced successful commissioning
are helping the industry recognize the
benefits of the process. Its another tool
for district energy system owners and
operators to consider in their pursuit of
achieving and maintaining a plant that
works.
Barney York, PE, CBCP, is proj-
ect manager for RMF Engineering
Inc., where he has been employed
for 11 years. Throughout his tenure
he has designed, constructed and
commissioned various large central
energy plants and associated distribution networks,
focusing solely on commissioning these types of
projects during the past six years. York holds a
bachelors degree in engineering from North
Carolina State University. His email address is
byork@rmf.com.
Eddy-current testing of the chiller tubes ensures
no thin areas are present in the tubes. As part
of the commissioning process, it also establish-
es a baseline of tube thickness that can help
operators determine when it is appropriate to
replace failing tubes.
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The U.S. General Services Administration operates some of the
most important government buildings in the United States. NRG
Energy Centers in Harrisburg, Pa., Minneapolis, San Diego and
San Francisco are proud to provide five of these buildings and
the federal workers within their walls with district energy service.
Dover Harrisburg Minneapolis Pittsburgh San Diego San Francisco
Networked. Reliable. And Growing.
(612) 436-4108
www.nrgthermal.com
Serving those who serve us.
Edward J. Schwartz Federal Building
NRG Energy Center San Diego
U.S. Courthouse
NRG Energy Center Minneapolis
San Francisco Federal Building
NRG Energy Center San Francisco
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HARRISBURG
Ronald Reagan Federal Building and Courthouse
MINNEAPOLIS
U.S. Courthouse
SAN DIEGO
Edward J. Schwartz Courthouse and Federal Building
Metropolitan Correctional Center
SAN FRANCISCO
San Francisco Federal Building
How High Can You Go?
New approaches for cooling
system efficiency
Ben Erpelding, PE, Director of Engineering, Optimum Energy LLC
Feature
Story
T
he volatility of energy costs and
emphasis on reducing carbon
footprints have increased the
urgency of improving district cooling
plant energy performance. At the same
time, facility managers and owners face
increased pressure to reduce operating
costs, take on new loads and continue
to provide 100 percent reliability and
zero downtime for their chilled-water
services. This poses a dilemma for plant
operators, as energy efficiency usually
ranks lower as a priority than reliability,
availability and even construction time
schedules.
It is possible, however, for chilled-
water plants to achieve new levels of
efficiency what Optimum Energy calls
ultra-high performance without com-
promising reliability. Its already being
done in plants from California to the
United Arab Emirates using approaches
that represent a new paradigm in sys-
tem optimization.
What Is Ultra-High
Performance?
In district cooling plants, ultra-high
performance (a term first introduced in
a 2001 ASHRAE article by Tom Hartman)
is defined as the delivery of chilled
water at an average annual efficiency of
0.45 to 0.70 kW/ton (annual kilowatt-
hours divided by annual ton-hours) [7.8
to 5.0 coefficient of performance (COP)],
including all chiller, chilled-water distri-
bution pumping, condenser water pump-
ing and cooling tower fan energy. [This
annual average efficiency is based on an
all-electric plant and excludes hybrid
(gas- or steam-driven) plants and deep
lake/ocean water cooling plants; these
can achieve electrical efficiencies of less
than 0.30 kW/ton.]
While 0.45 kW/ton is achievable,
plant design, equipment, load profile
and climate (wet-bulb) push these levels
higher. The transitional climates, such
as New York, allow free cooling (plate-
and-frame heat exchanger) strategies
throughout the winter; temperate climates
like Los Angeles have year-round cooling
loads at relatively low wet bulbs; the
arid subtropical climate of the Middle
East (e.g., Dubai) is known for extreme
wet-bulb designs (89 degrees F); and
tropical climates, such as Singapore, have
a nearly constant outdoor wet-bulb tem-
perature year-round. Though the effi-
ciency variance in ultra-high performance
plants is minimal (0.45 to 0.7 kW/ton),
engineers need to understand how to
mitigate each climates effect on potential
cooling plant efficiency.
A Winning Combination
Achieving ultra-high performance in
district cooling plants requires a combi-
nation of best-of-class plant design and
sophisticated optimization algorithms,
as well as a fully automated plant and
extensive control system. Only this com-
bination makes it possible to sustain
consistent operation of a chiller plant at
levels less than 0.6 kW/ton for extended
periods across different facility types
and global locations.
In the past, district cooling plants
held strong to the control theory that
because their plants have multiple
chillers, equipment can be sequenced
accordingly to keep them as fully
loaded as possible. Control strategies
were written into the plant design and
specification by the engineer of record,
and custom programming was required
by the control contractor. Plant efficiency,
therefore, was limited by the equipment
full-load efficiency and the technical
expertise of the on-site programmer.
This old paradigm has resulted in average
annual plant operating efficiencies of
0.8 to 1.1 kW/ton.
Today higher levels of efficiency are
attainable by employing (1) variable-
frequency drives throughout the plant all
chillers, chilled-water and condenser-
water pumps and cooling tower fans;
(2) fully automated network controls;
(3) new relational control algorithms to
optimize all system components for
energy efficiency; and (4) optimization
software. Striving for ultra-high per-
formance using this combination of
technology represents a new paradigm
in district cooling plant optimization.
Variable-Frequency Drives
Variable-frequency drive retrofits
for large-tonnage chillers are becoming
more and more commonplace. Retrofits
have been done on both 4,160-V and 12-kV
chillers by major chiller manufacturers
and local contractors in almost all major
world markets. Variable-speed medium-
voltage new chillers have been available
for a few years now and are offered by
most manufacturers. Variable-speed dual-
compressor chillers are also available
from at least two major manufacturers.
There is nothing new in primary-
only variable-speed chilled-water pump-
ing. Variable primary-only plants are
being implemented around the world
with plant tonnages well exceeding
50,000 tons. The key to successful variable-
speed chilled-water pumping is getting
away from solely relying on the blind
differential-pressure control and blam-
ing the problem on the building guys
and their low delta T. New relational
control methodologies with extensive
networked controls need to employed.
An energy management and control sys-
tem network down to the building con-
nections bridges, booster pumps,
plate-and-frame heat exchangers and
even air-handler chilled-water valve
positions is mandatory. Open conver-
sations with building owners and man-
agers about improving delta T are also
strongly encouraged (or put into the
chilled-water contract language).
Variable-frequency drives on con-
denser water pumps significantly con-
tribute to lowering a plants annual kilo-
watts per ton. Variable-frequency drives
mitigate condenser pump energy at low
chiller capacities and also allow new
control strategies for optimal chiller,
tower and condenser pump sequencing
(add/shed). The key to success in employ-
ing variable-frequency drives on con-
denser water pumps is not robbing
Peter (the chiller energy) to pay Paul
(condenser pump energy).
Although there is nothing new about
the concept of employing variable-fre-
quency drives on tower fans, unfortu-
nately there is a new design and control
trend not to include them, especially in
tropical climates. This design method
assumes the objective is to make the
cooling tower water as cold as possible,
which would require the tower fans to
run at full speeds anyway. Variable-fre-
quency drives, again, mitigate tower
energy at low chiller capacities without
compromising the amount of tower cells
kept on line and allow new control
strategies for optimal chiller, pump and
tower cell sequencing (add/shed).
Fully Automated Networked Controls
Many district chilled-water plants
depend on operators to make efficiency
control decisions. Optimization is
deployed manually based on operator
experience, or trial and error, and can
be complaint-driven (i.e., tweak some-
thing until a customer complains). This
type of optimization is unsustainable
and can never achieve the full potential
for energy savings.
For truly effective optimization, the
district plant should have as much cool-
ing demand visibility as possible.
Cooling demand visibility is defined as
energy management system points that
extend to individual building booster
chilled-water pump variable-frequency
drive speeds (0 percent to 100 percent),
building chilled-water flow (gpm), build-
ing chilled-water supply and return tem-
peratures, commanded heat exchanger
valve positions (0 percent to 100 percent)
and commanded building air-handler
chilled-water valve positions (0 percent
to 100 percent). Networking all this
information back to the plant control
system can hugely affect the algorithms
ability to automatically control and sig-
nificantly improve system performance
and delta T.
Figure 1 shows delta T results before
and after improved cooling demand visi-
bility at the University of North Carolina
(UNC) at Chapel Hill. Jim McAdam, PE,
energy engineer with UNC Energy
Management, further explains, We have
begun operating the bridge pumps in
series with the mains pretty much
everywhere now and are very pleased
with the energy savings, reliability
improvements and delta T improve-
ments we are seeing. We have also pilot-
ed resetting each buildings end-of-line
differential-pressure setpoint using
building chilled-water valve positions.
This has significantly lowered building
pumping heads and allowed us to run
the buildings off the campus differen-
tial pressure much more than we
thought possible. The available pressure
increases nicely as building load
increases.
Relational Control Algorithms
Relational control algorithms are
defined as control sequences that use
mathematical relationships between
subsystems [as opposed to proportional-
integral-derivative (PID) independent
temperature or pressure setpoint con-
trol]. Examples of relational control
would be using orifice position from air-
handling unit valves to control chilled-
water distribution pump speed or using
chiller load to control cooling tower fan
speed.
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Figure 1. Chilled-Water Delta T Improvement at the University of North Carolina at Chapel Hill, 2004
vs. 2007.
Source: Jim McAdam, University of North Carolina at Chapel Hill.
The most important difference
between relational controls and PID con-
trol is energy optimization. Energy opti-
mization with PID control is accomplished
by continually adjusting the various
controlled setpoints. But continually
changing setpoints leads to additional
stability issues and is a reason that
operators often discontinue setpoint
reset functions. Relational controls are
far more effective, providing simpler
and more direct energy optimization
relationships than what are required
when attempting to optimize for energy
efficiency by adjusting temperature and
pressure setpoints.
Optimization Software
In district energy plants, the priority
has always been 100 percent reliability/
availability of services. In the past, com-
plex energy efficiency improvement
projects were difficult to implement
because of the months and months they
required of custom programming, com-
missioning and continuous tweaking of
the control algorithms. This process
could sometimes take more than one
year to complete with finger pointing,
manual overrides and customer com-
plaints weakening the importance and
intent of the original goal. Unfortunately,
the project still is often at the mercy of
the expertise of the local control con-
tractor. While there are many skilled
control programmers, many of us never
seem to get these guys on our jobs!
Tradeoffs among reliability, com-
plexity and efficiency no longer have to
be made with this new optimization
approach. The fourth important piece of
the paradigm shift enabling ultra-high
performance is the introduction of
chiller plant optimization software to
mitigate the challenges above. Optimum
Energy has now packaged complex opti-
mization logic using relational controls
in software that is integrated into the
existing plant control system (program-
mable logic control or direct digital control).
The benefits of this optimization
software include the following:
G Reliability Software algorithms
are prefabricated and can be
pretested prior to implementation.
The software model allows the com-
plex algorithms to be turned on or
off manually (using the existing
control system front end) or auto-
matically if there is a communication
failure. The ability to turn opti-
mization off offers huge flexibility
in troubleshooting and fundamental
control sequence redundancy.
G Scalability In the old paradigm,
highly custom optimization pro-
gramming is implemented on nearly
every central plant job. Though the
relational control algorithms are
customized for the specific plant,
the patented demand-based soft-
ware modules allow operators to
eliminate PID control and associated
loop tuning and not to reinvent the
high-performance modules each
and every time.
G Decreased implementation time
schedule Because of software
scalability and the ability to operate
the plant without the optimization
software, troubleshooting, commis-
sioning and cut-over are much
quicker.
G Performance verification Measure-
ment and verification (M&V) of over-
all plant performance is crucial to
ensuring desired efficiency levels
have been achieved, and just as
importantly, are maintained. The
new optimization software offers
M&V dashboards for monitoring,
trending and documenting savings
over time.
Ultra-High Performance
Examples
Implementing high-performance
solutions in large district and campus
cooling plants can save money and help
reduce carbon footprints. Figure 2 provides
examples of two ultra-high performance
district cooling plants one plant in the
United Arab Emirates and the other on a
college campus in the desert of Southern
California. These facilities present two
distinctly different examples of all-electric
central plant profiles, average wet-bulb
temperatures and total plant kilowatt-
per-ton performance, including all
chillers, chilled-water pumps, condenser
pumps and cooling tower fans. The
annual average ultra-high efficiency goal
in the United Arab Emirates would be
less than 0.7 kW/ton and in California
less than 0.52 kW/ton.
When originally designed and con-
structed, both the UAE and California
plants used conventional designs and
control methodologies. Based on the
one year of trend data, the UAE plant
Percent of plant peak load (10,000 tons)
P
e
r
c
e
n
t
h
o
u
r
s
s
p
e
n
t
o
p
e
r
a
t
i
n
g
a
t
e
a
c
h
p
o
i
n
t
U
l
t
r
a
-
h
i
g
h
p
e
r
f
o
r
m
a
n
c
e
p
l
a
n
t
k
W
/
t
o
n
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
9% 20% 32% 43% 55% 66% 78% 89%
Avg. WB
52 F
Avg. WB
58 F
Avg. WB
63 F
Avg. WB
68 F
Avg. WB
73 F
Avg. WB
78 F
Avg. WB
82 F
Avg. WB
87 F
Percent of plant design capacity (1,800 tons)
P
e
r
c
e
n
t
h
o
u
r
s
s
p
e
n
t
o
p
e
r
a
t
i
n
g
a
t
e
a
c
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p
o
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t
U
l
t
r
a
-
h
i
g
h
p
e
r
f
o
r
m
a
n
c
e
p
l
a
n
t
k
W
/
t
o
n
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
10% 20% 30% 40% 50% 60% 70% 80%
Avg.
WB
53 F
Avg.
WB
55 F
Avg.
WB
58 F
Avg.
WB
61 F
Avg.
WB
64 F
Avg.
WB
67 F Avg.
WB
70 F
Avg.
WB
74 F
90% 100%
Figure 2. Ultra-High Performance Profile for District Cooling Plants in the United Arab Emirates and on a Southern California College Campus (Central Plant
Load Profile, Kilowatts Per Ton and Average Outdoor Wet-Bulb Temperature).
Source: Optimum Energy LLC.
had an average annual total plant effi-
ciency between 0.90 kW/ton and 1.2
kW/ton; the California plant had an
average annual total plant efficiency
between 0.80 kW/ton and 1.0 kW/ton.
Even in very humid climates such
as the UAE (with design wet bulbs
greater than 89 F), district cooling is
still a part-load and part-lift industry
with a large portion of the hours occur-
ring at less than 74 F wet bulb and 60
percent capacity. One mistake many
engineers make is confusing load and
lift in centrifugal chiller plants. Lift
can be simply defined as the difference
between the exiting condenser water
temperature (out of the chiller) minus
the chilled-water supply temperature.
When talking about large district cool-
ing plants, the use of variable-speed and
high-performance control algorithms,
one must talk first in terms of lift opti-
mization and, secondly, load optimiza-
tion. Load optimization directs the plant
control sequences to run everything as
close to full load as possible, while lift
optimization lends itself to the use of
variable-speed chillers and components.
As can be seen in figure 2, the
sharp drop in plant efficiency occurs at
very low loads (10 percent and below) in
the California example vs. the UAE
example. This is a result of a two-chiller
plant serving the California campus vs.
eight chillers in the UAE plant. When
one chiller is operating at capacities
below 20 percent load, chiller perform-
ance falls, and auxiliary equipment
must maintain the minimum flow
requirements of the chiller condenser
and evaporator bundles. Low load is
often a problem in newer systems
because the plants are built for future
growth as the campus builds out. But,
without variable speed mitigating these
low-load conditions, performance with a
standard constant-speed plant at capaci-
ties below 20 percent can be anywhere
between 2 and 5 kW/ton.
In contrast to conventional control
methodologies, relational controls take
advantage of the ability to optimize the
operation of all variable-speed HVAC-
system components in relation to one
another and in response to real-time
building loads. Additionally, software
solutions available today are delivering
ultra-high performance across a wide
range of plants without compromising
reliability.
These solutions can be quickly
installed, and they provide persistent,
reliable optimization and real-time
measurement and verification capabilities
that are unprecedented in the industry.
Along with M&V reporting, new Web-
based software dashboards provide
real-time monitoring of plant perform-
ance metrics and operator alerts if the
system is not performing as expected,
thus helping to maintain savings over
time. This represents a paradigm shift
that is leading to significantly improved
kilowatts per ton (COP), providing
enhanced automatic plant control and
meeting the goals of long-term reduced
energy consumption and operating costs.
Ben Erpelding, PE, CEM, is
director of engineering for
Optimum Energy LLC. He has
more than 11 years experience in
energy efficiency, distributed gen-
eration, renewable energy and
demand response. Prior to joining the firm, he
measured and verified actual performance and
cost savings for energy efficiency retrofits, pho-
tovoltaic installations, demand response audits,
and combined heat and power projects while
at the nonprofit San Diego Regional Energy
Office. Erpelding received a master of science
degree, with an emphasis in combined heat
and power, and a bachelor of science degree in
mechanical engineering from San Diego State
University. His email address is ben.erpelding@
optimumenergyco.com.
One mistake many engineers
make is confusing load
and lift.
A paradigm shift is leading
to significantly improved
kilowatts per ton.
Cover
Story
BLUE
SKIES
FOR
DOCKSIDE
GREEN:
BIOMASS GASIFICATION HEATS HARBORFRONT COMMUNITY
Cyclists crossing the Johnson Street Bridge heading out of
downtown Victoria, British Columbia, quickly find themselves rid-
ing along a piece of the citys historic waterfront known as the
Galloping Goose Trail. Named for a gawky, noisy gas rail car that
carried passengers there in the 1920s, the trail passes directly in
front of a development
that many believe to
be the future of sus-
tainable urban living.
Dockside Green,
as the community is
known, is hailed as
one of the most ambi-
tious developments in
North America adher-
ing to a strict building
code based on envi-
ronmental, social and
economic responsibili-
ty. Built on 15 acres
reclaimed from a for-
mer brownfield site, it
is the largest develop-
ment of city land in
Victorias history and a
showcase of environ-
mentally friendly materials and sustainable design. Each building
to be constructed at Dockside Green will in fact be designed to
achieve the LEED
(Leadership in Energy and Environmental

Design) Platinum rating.
This innovative green project is anchored by a unique district
energy system based
on advanced biomass
gasification technolo-
gy. Commissioned in
July 2009, the system
enables Dockside
Green to self-generate
clean, low-cost heat
using locally sourced
wood fuel to help
achieve the develop-
ers goal of carbon
neutrality.The biomass
gasification plant has
been instrumental in
bringing a great deal
of national and inter-
national recognition
to Dockside Green,
including selection by
the Clinton Climate
Dejan Sparica,Vice President and Chief Engineer, Nexterra Systems Corp.
The first two residential phases of Victorias Dockside Green are now occupied. The first phase, encom-
passing four buildings, earned LEED Platinum with a world-record-setting 63 out of 70 possible points.
Courtesy Nexterra Systems Corp.
munity.The first construction phase of Dockside Green, called
Synergy, has already made good on that promise, earning LEED
Platinum with the highest rating ever achieved for that level of
certification. Completed in March 2008, this phase comprises two
mid-rise residential towers with commercial units on the ground
floor plus two townhome complexes.
Phase 2, called Balance, was completed in May 2009 and
comprises two towers with 171 suites. Seven additional residential
phases are planned that include mid-rise buildings with one- and
two-bedroom suites and penthouses, plus luxury and affordable
townhomes.
In addition to the biomass gasification plant, Dockside Green
features such other eco-friendly components as its own wastewater
treatment and reclamation system; green roofs on many buildings;
solar-powered street lights and garbage compactors; and a car-
sharing program and bike racks to encourage less use of car trans-
portation.
Dockside has been such an important project for the city,
said Mayor Dean Fortin.We inherited the site from the province,
and it needed extensive remediation. Now we have a wonderful
combination of market and social housing, bike paths and water
features in a community that the world is coming to see.
C
o
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t
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.
Site remediation work started shortly thereafter.This involved
taking soil off the site, thermally treating it and mixing it with
biosolids, then using it to reclaim an old copper mine; some of
the soil was also capped.These remediation efforts were incorpo-
rated into the projects financials by designing the master plan
around the areas where the soil could be capped.
Dockside Greens master plan encompasses 26 buildings
totaling 1.3 million sq ft of mixed residential, office, retail and
light industrial space (fig. 1). By 2015, the community will be
home to approximately 2,500 residents in three neighborhoods.
Project construction began in early 2006.
Van Belleghem was so committed to making the project a
model for green living that he had promised to pay the city CA$1
million (about $919,000) if he didnt achieve LEED Platinum status
on each of the eligible buildings within the master-planned com-
Figure 1. A Rendering of Dockside Greens Master Plan.
Dockside Greens biomass gasification system showing fuel feed (far left) to
gasifier (background); oxidizer and hot water heater are in foreground.
C
o
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Initiative as a founding member community in its Climate Positive
Development Program.
From Concept to Renewable Reality
The concept of building an eco-friendly, sustainable community
on Victorias harborfront emerged in the early 2000s when the
city was looking for a triple bottom line development one
whose success is measured in social and environmental as well
as economic terms.After the city issued a request for proposals
in 2004, Joe Van Belleghem, the visionary behind Dockside and a
partner with development company Windmill West, responded to
the call with a complete conceptual design one that mirrored
the actual design of the community today.A master development
agreement was signed in May 2005 between the city and Dockside
Green Ltd., formed by Windmill West and Vancity Capital, which is
an investment subsidiary of Vancity, Canadas largest credit union.
THE BIOMASS GASIFICATION PLANT HAS BEEN
INSTRUMENTAL IN BRINGING A GREAT DEAL OF
NATIONAL AND INTERNATIONAL RECOGNITION
TO DOCKSIDE GREEN.
Existing Technology, Scaled for Future
The biomass gasification system serving Dockside Green was
developed and built by Vancouver-based Nexterra Systems Corp.
The plant itself is owned by Dockside Green Energy LLP, a micro
energy utility created by Terasen Energy Services,Vancity Capital,
Windmill Developments and Corix Utilities, with additional financial
support from BC Hydro, the provincial government and the city
of Victoria.
The system takes urban wood fuel and converts it to low-
emission synthetic gas, or syngas.The syngas is directed through
an oxidizer and then a boiler, which in turn provides hot water
that is piped to Docksides various buildings and used for space
heating and domestic hot water (90 degrees F).The solution pro-
vides a cleaner, quieter alternative to traditional combustion with
lower emissions, greater fuel flexibility and higher turndown.
Gasification differs from conventional combustion because it
uses just 20 percent to 30 percent of the oxygen needed for com-
plete fuel combustion.The process consists of heating wood in an
oxygen-starved environment until volatile gases (carbon dioxide
and hydrogen) are released from the wood.The gases are mixed
with air in a secondary combustion chamber, the oxidizer, where
they are burned to complete the combustion process. Hot flue
gas leaving the oxidizer can then be directed into energy recov-
ery equipment or fired directly into boilers to produce hot water,
steam and/or electricity.
The gasifier at Dockside is based on a fixed-bed, updraft
design. Biomass fuel, sized to 3 inches in diameter, is bottom-fed
into the center of a cylindrical, refractory-lined gasifier.
Combustion air, steam and/or oxygen are introduced into the
base of the fuel pile. Partial oxidation, pyrolysis and gasification
occur at 1,500-1,800 F, and the fuel is converted into syngas and
noncombustible ash.
The fuel-bed temperature is tightly controlled to prevent the
bed from exceeding the fuels ash melting point.This prevents
the ash from forming clinker, which is a challenge for conven-
tional combustion systems. Instead, the ash remains granular, free-
flowing and is discharged intermittently through the gasifier base
into a single ash bin.The mineral-rich ash generated at the
Dockside facility is actually collected by the fuel supplier and
recycled as compost.
The principles of gasification have been well-known for
more than 200 years, but biomass gasification has not seen com-
mercial success until recently. Scaling the technology to handle
larger-capacity loads is an area that has shown great promise.
While Docksides system generates 7 MMBtu/hr of net usable
heat, a 72 MMBtu/hr system using the same gasification technology
is operating on University of South Carolinas (USC) Columbia
campus.
The USC biomass gasification cogeneration facility converts
wood residue supplied by local sawmills into clean renewable
energy and significantly reduces campus greenhouse gas emissions.
At peak capacity the plant generates 60,000 lb/hr of steam to heat
the campus, as well as 1.38 MW of electricity sold to the grid. On-site
power generation is also planned for Dockside Green in the future,
using syngas produced at the biomass gasification plant and con-
veying it into a high-efficiency internal combustion engine (see
sidebar).
Gasification also offers flexibility both in terms of the fuel
used Docksides system can handle anywhere between 10 percent
and 55 percent moisture content and the reduced need for
complex after-treatment systems, due to the technologys inher-
ent cleanliness.
When operating at peak capacity, the Dockside plant requires
delivery of approximately one truckload of wood fuel every two
days. (The system also has a natural gas boiler to provide backup
service during scheduled maintenance intervals.) This fuel is
material that would otherwise be destined for a landfill: wood
waste derived from land-clearing activities, municipal tree trim-
mings, the remains of construction two-by-fours and used pallets.
There is more than an ample supply of this locally sourced wood,
THE PRINCIPLES OF GASIFICATION HAVE BEEN
WELL-KNOWN FOR MORE THAN 200 YEARS,
BUT BIOMASS GASIFICATION HAS NOT SEEN
COMMERCIAL SUCCESS UNTIL RECENTLY.
Docksides biomass gasification plant is undoubtedly an anchor
for the developments sustainable pedigree. Another unique
component of the community that sets it apart is its on-site
sewage/wastewater treatment plant. One hundred percent of
the treated effluent and reclaimed water at Dockside is used
in toilets, rooftops gardens and irrigation systems for the
entire site. The minimal amount of sludge left over from the
sewage treatment process is compacted and can be used as
fuel in the biomass gasification plant.
Nexterra recently began testing biosolids (wastewater residu-
als) supplied by Metro Vancouver as a new fuel source at its
Product Development Centre in Kamloops, B.C. This new fuel
has the potential to provide a renewable energy source for
drying, heat or power generation at wastewater treatment
facilities.
According to the U.S. EPA, there are more than 16,000 waste-
water treatment facilities in the U.S., with many owned and
operated by municipalities. Traditional methods for the dispos-
al of biosolids involve trucking to landfills or using as land
spread. However many municipalities would like to discontin-
ue these practices due to rising fuel and disposal costs, green-
house gas emissions and concerns about landfill capacity.
Leaving Nothing to Waste
The Dockside Green biomass plant is housed in an architecturally designed
building that blends in with the neighborhood.
C
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provided by waste management company Alpine Group, to meet
ongoing plant requirements.
Why Biomass Gasification?
Van Belleghem and his team chose biomass gasification tech-
nology for its promise to deliver a combination of superior per-
formance and operational benefits over those of conventional
combustion including design simplicity, fuel versatility, low
emissions and cost.
Cyclists cruising past the biomass plant would certainly have
a hard time distinguishing the facility as an industrial operation.
The plant is housed in an architecturally designed building that
blends in with the surrounding neighborhood, and the plants
operation is imperceptible from a noise, dust and emissions per-
spective.
The emissions profile of biomass gasification systems as it
pertains to particulate matter has been shown to be comparable
to that of natural gas, using a carbon-neutral, renewable fuel
source. In addition, emissions of both carbon dioxide and volatile
organic compounds are significantly lower than the guidelines set
by the U.S. Environmental Protection Agency as compared to
levels resulting from the burning of natural gas. Biomass is
considered carbon-neutral by key monitoring agencies, which
distinguish renewable energy sources like wood which
recirculates CO
2
already in the biospheres carbon cycle from
the fossil fuels that add more CO
2
to that in active circulation.
PRIMARILY DUE TO ITS RENEWABLE ENERGY
USE, DOCKSIDE GREEN IS ON TRACK TO BE
CARBON-NEUTRAL.
The choice of biomass gasification for the central heating plant
has enabled the project to take concrete action toward reducing
greenhouse gas emissions. Once the development is completed,
heating with syngas produced from biomass instead of burning
natural gas will cut CO
2
emissions by 3,460 tonnes per year at
Dockside Green the equivalent of taking 850 cars off the road.
These benefits are not lost on Dockside residents, who state
that the on-site creation and use of green energy is an appealing
aspect that makes them feel good about where they live.I am
really excited that the developers of Dockside Green are being so
proactive about energy and environmental issues, says resident
Taylor Kennedy.The fact that we have excess capacity for others
in our community is an added bonus. Its great knowing that our
heating system will help keep carbon out of the atmosphere,
while also reducing my heating bills.
Dockside Green is, in fact, on track to be carbon-neutral, pri-
marily due to its renewable energy use. By generating surplus
renewable energy in the form of heat that can be sold off site, the
development will be able to compensate for the greenhouse
gases generated on site through electricity and the delivery of the
waste wood biomass to the plant.The community also began to
earn carbon credits this fall when the biomass plant was connected
to serve a nearby hotel.
Certainly the projects renewable energy system seems tailor-
made for British Columbia, where greenhouse gas emissions
reduction strategies and targets are required in all official commu-
nity plans and regional growth strategies.The province has estab-
lished legally binding greenhouse gas reduction targets of 33 percent
from 2007 levels by 2020 and 80 percent by 2050. But the corner-
stone of British Columbias climate action plan is a revenue-neutral
carbon tax starting at CA$10 ($9.19) per tonne in 2008 rising to
CA$30 ($27.57) per tonne in 2012. It has also established Pacific
CarbonTrust to sell carbon offsets at CA$25 ($22.98) per tonne.
B.C. Premier Gordon Campbell announced that municipalities
will be given the power to waive development cost charges as a
way to encourage green developments such as Dockside Green.
All public institutions in the province must be carbon-neutral by
2010, and any new government buildings or facilities shall be built
to a minimum LEED Gold or equivalent certification.
A Climate Positive Community
Docksides on-site biomass heat generation plant was a key
factor in the communitys selection by the Clinton Climate
Since 2003, Nexterra Energy Corp. has been developing a
fixed-bed, updraft gasification technology that converts wood
residuals such as bark, sawdust and shavings into syngas. The
first generation of this technology has been successfully com-
mercially deployed for heat and steam applications at
Dockside Green; Tolko Industries in Kamloops, B.C.; and the
University of South Carolina in Columbia.
The second stage of technology development involves convey-
ing and directly firing the syngas into rotary kiln and boiler
burners. The company has performed successful trials of this
application at pilot scale and is currently working to commer-
cialize this solution. The first installation will startup later this
year at the Kruger Products tissue mill in New Westminster, B.C.
The company is now embarked on the third generation of bio-
mass gasification technology in collaboration with GE Energy
and its gas engine division, GE Jenbacher. It is developing an
advanced combined heat and power system, ranging from 2 to
10 MWe, that involves direct-firing syngas into GEs Ecomagination-
certified Jenbacher internal combustion engines. Pilot testing
of the technology is being conducted at the companys Product
Development Centre, where a 250 kWe Jenbacher is being
installed. This next-phase gasification system has also been pro-
posed for installation at Dockside Green when it becomes
commercially available.
In late August, the company announced that it had received
CA$7.7 million ($7.08 million) in funding to support the com-
mercialization of the new biomass power system. Funding
sources include the BC Bionenergy Network, Sustainable
Development Technology Canada, the National Research
Council Canada Industrial Research Assistance Program and
Ethanol BC.
Advancing the Technology
BC, a Ministry of Environment Arbor Vitae Award and an Excellence
in Urban Sustainability Award from the Globe Foundations Awards
for Environmental Excellence.
The wide recognition that Dockside Green has received may
help spur the demand for similar sustainable developments.It
has been a pleasure working with the Dockside Green team on a
project that is establishing a new standard of urban living, design
and sustainability, says Belleghem.
Jonathan Rhone, Nexterras president and chief executive
officer, notes that the company is seeinga tremendous amount of
interest from energy providers, customers and all levels of govern-
ment to consider proj-
ects like Dockside
Green.Indeed, as
Belleghem observes,
Dockside Green is
proof that the chal-
lenges associated
with global warming
can be converted into
powerful economic
opportunities
through the adoption
of clean energy solu-
tions that meet both
economic and envi-
ronmental objectives.
The biomass plant also played a key role in helping Dockside
Green garner nearly two dozen national and international honors,
including a BC Green Cities Partnership Award from LiveSmart
Initiative (CCI), a project of the William J. Clinton Foundation, as
one of 16 founding member communities from around the world
in its Climate Positive Development Program.The program was
created in collaboration with the U.S. Green Building Council to
set a new global benchmark for large-scale urban developments,
to demonstrate that communities and cities can grow in ways
that are climate positive.
Elee Muslin, CCI director, said real estate developments like
Dockside will strive to reduce the amount of net on-site CO
2
emissions to below zero. Muslin said the goal can be achieved
through the implementation of economically viable innovations
including clean energy generation, integrated waste management
and energy-efficient strategies.The biomass heat generation plant
at Dockside Green is a strong example of the kind of innovation
that communities around the world need to adopt as we forge a
new path towards the creation of climate positive communities,
Muslin said.
Dejan Sparica is vice president
and chief engineer of Vancouver-
based Nexterra Systems Corp.,
which supplied the gasification
system as well as heat recovery
and hot water circulation system
for Dockside Green. An engineer for more
than 25 years, Sparica has more than 15 years
experience designing and implementing indus-
trial-scale combustion systems. He previously
served as contract department manager at
Salton Fabrication Ltd., where he was responsi-
ble for design and project management of
large-scale energy system projects for numerous
major manufacturers of pulp and paper and
other forest products. Sparica can be reached
at dsparica@nexterra.ca.
THE BIOMASS PLANT PLAYED A KEY ROLE IN
HELPING DOCKSIDE GREEN GARNER NEARLY
TWO DOZEN HONORS.
Visit the IDEA web site www.districtenergy.org/calendar.htm for
program updates and registration information or call (508) 366-9339.
The workshop features a roundtable format emphasizing peer
exchange and open dialogue on the challenges of:
I building, operating and maintaining reliable thermal networks
I employee and public safety and emergency response
I new tools and techniques for higher efficiency, etc.
I technical tours of local campus system on Monday afternoon
IDEAs 2010 Distribution Workshop
Dont miss this opportunity to network
and learn from your peers!
Workshop will take place before
the Campus Energy Conference
Monday & Tuesday
February 8 9, 2010
The Peppermill Hotel
Reno, Nevada
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www.fvbenergy.com
District Cooling
Thermal Energy Storage
Combined Heat and Power
Deep Water Cooling
District Heating
Geothermal Energy
Biomass Energy
Carbon Recycling:
An alternative to carbon
capture and storage
Rowan Oloman, Vancouver, B.C.
Feature
Story
Editors Note: This article sans graphics
has appeared on the Internet, but is
reprinted here with sidebar commentary
from District Energys Technical Editor
Tony Mirabella.
C
arbon capture and storage (CCS)
is being hailed as the answer to
the globes most pressing question:
What to do with the 27 billion metric
tons of carbon dioxide emitted yearly
from the burning of fossil fuels? Touted
as the most promising interim solution
to deal with the greenhouse gas respon-
sible for global warming, CCS still remains
unproven, costly and will not be com-
mercially available for another 10-20 years.
Meanwhile scientists are exploring alter-
natives to CCS by capitalizing on CO
2
as
a commodity instead of treating it as a
waste.
Twenty-seven billion tons of CO
2
is
already a hefty number, but energy-
related CO
2
emissions are projected to
reach 43 billion metric tons per year by
2030, an increase of 60 percent. A new
report by the International Energy Agency
(IEA) estimates that growing energy
demands from emerging giants like
China and India, coupled with a lack of
cost-effective alternatives to fossil fuels
means that by 2050, 77 percent of the
worlds power will still be derived from
fossil fuels.
"We will require immediate policy
action and a technological transition on
an unprecedented scale, IEA Executive
Director Nobuo Tanaka said in Tokyo
after releasing the report.
Carbon capture and storage, the
process of capturing CO
2
and storing it
in deep geological formations in the
ocean or as mineral carbonates, is being
promoted by the IEA and others as the
most promising technology to deal with
fossil fuel-derived emissions. Not negat-
ing the role of alternative energies, the
IEA is merely realistic about the endur-
ing use of fossil fuels and the urgent
need to deal with the resulting CO
2
On May 15, 2009, U.S. Secretary of
Energy Steven Chu announced at the
National Coal Council that $2.4 billion
from the American Recovery and
Reinvestment Act will be used to expand
and accelerate the commercial deploy-
ment of CCS technology, including
financing to train a generation of engi-
neers and geologists to work in the field.
Chu said, To prevent the worst
effects of climate change, we must
accelerate our efforts to capture and
store carbon in a safe and cost-effective
way. Governments in Europe, Australia,
Canada and China are also strongly
investing in the technology.
Nevertheless, several massive hurdles
still stand in the way of full-scale CCS
deployment.
U.K. consulting firm McKinsey figures
that adding CCS to the next generation
of European power plants could lift their
price by up to $1.3 billion each. Their
thorough analysis (www.mckinsey.com)
shows that the typical cost of a demon-
stration project is likely to be in the
range of $80-$120 per tonne of CO2
sequestered.
Legally, there are concerns over
whether CO
2
transport and long-term
storage present human or ecosystem-
related risks and who is ultimately
responsible if a leak occurs. While progress
is under way in some countries, no
country has yet developed the compre-
hensive, detailed legal and regulatory
framework that is necessary to effectively
govern the use of CCS.
In fact, no full-scale CCS project
Several massive hurdles still
stand in the way of full-scale
CCS deployment.
Figure 1. Electro-reduction of CO
2
(ERC) schematic: an electrochemical process.
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that captures and sequesters CO
2
from
a coal-fired power plant as of yet exists.
The IEA is hopeful that 10 full-scale
demonstration plants will be up and
running globally by 2015, meaning it
may be 10 to 20 years before CCS tech-
nology is readily available.
So why expensively transport and
store the CO
2
underground when it could
be profitably recycled post-capture?
Researchers and startup companies are
now investigating a wide range of CO
2
conversion methods.
The market is open for innovation,
states Larry Kristof, CEO of Mantra
Energy, a company gaining international
recognition in the field of carbon recy-
cling. It is likely that governments will
soon legally mandate carbon capture
from industrial plants and there needs to
be a cost-effective way to implement it.
Mantras technology, named the
electro-reduction of CO
2
(ERC), aims to
take CO
2
directly from industrial waste
gases and convert it to formate salts
and/or formic acid, both valuable chem-
icals used in a variety of industrial
applications. (See fig. 1.) Formic acid
also has the potential to play a leading
role in fuel cell development, both as a
direct fuel and as a fuel storage material
for on-demand release of hydrogen. The
ERC technology could provide a net rev-
enue of up to $700 per tonne of CO
2
recycled, with a return on investment
previously forecast at 20 percent per
year, depending on local costs.
Compared with CCS, the ERC pro-
vides a positive ROI, not an unrecover-
able cost. Plus a demonstration ERC unit
could be installed at a clients premises
within a year and a commercial plant
within two years, much faster than for CCS.
In a speech to the U.S. Senate, Margie
Tatro, director of fuel and water sys-
tems at Sandia National Laboratories, a
U.S. Department of Energy-run research
center formed to develop science-based
technologies that support national secu-
rity, advocated that carbon recycling is
the way of the future.
We must act now to stimulate this
area of research and development. Other
countries are exploring reuse and recy-
cling of CO2
, and it would be unfortunate
if the U.S. became dependent on imported
technology in this critical area, said Tatro.
Over the past several months, the U.S. Department of Energy has committed more
than $60 million for studies and education programs to further knowledge on how
to store carbon captured from fossil fuel-burning power plants. The research grants
include characterization studies of geologic formations for carbon dioxide storage
and funds for universities to develop research programs and geophysical models.
Most of todays research is directed towards carbon capture and storage (CSS).
There are three main scenarios under consideration:
Pre-combustion capture This concept removes the carbon from the fuel before
combustion takes place. The resultant fuel is basically hydrogen gas. The carbon,
most likely in the form of CO
2
, is then piped (like natural gas) cross-country to
underground geologic storage locations. Reforming natural gas to hydrogen and
CO
2
is common in the fueling of fuel cells, notably the United Technologies PC-25
fuel cell.
Post-combustion capture As the name states, this concept removes the CO
2
from the flue gas stream, compresses the CO
2
, and then transports it to storage.
Oxyfuel combustion capture In this technique, which is primarily aimed at
coal-burning power plants, combustion air is replaced with essentially pure oxygen. The
flue gas resulting from combustion is basically pure CO
2
, absent water
vapor and nitrogen, and requires no post-combustion separation. The CO
2
is then
compressed and piped to storage.
All of the above scenarios are in the early stages of development, and all can be
expensive to implement. Capital costs as well as operating costs could drive up the
costs of producing electricity while at the same time increasing the demand for elec-
tricity to operate the additional CO
2
separation equipment.
As described in the accompanying article, the alternative to CCS is carbon recy-
cling. This technique differs from CCS in that it uses the waste gas stream from fossil
fuel combustion as raw material to produce a commodity of value. This approach
may not offer any upfront cost savings but may generate revenues to help provide a
return on the investment in additional plant equipment.
Although its too soon to tell how or whether carbon recycling and CCS will
find application in the district energy industry, system owners and operators should
take note that these technologies are in development. At the very least, they provide
us a glimpse of what our kids and grandkids may be working on implementing in
the future.
A Glimpse Into Our Future
Tony Mirabella, Technical Editor, District Energy
Carbon recycling options being
developed globally vary considerably.
The range includes the biochemical con-
version of CO
2
into algal biofuel, the
thermochemical conversion into
methanol and the biocatalytic or solar
photocatalytic conversion of CO
2
to
fuels. Each has its own set of advan-
tages and disadvantages, and some are
more believable than others.
At this stage, what sets Mantra (and
a handful of others) apart is that it has a
publicly disclosed patent application,
backed up by several technical articles in
reputable journals and has already estab-
lished market interest for its products.
As fear of climate change grips the
globe, businesses and governments are
desperate to find an answer to our CO
2
problem. Relying solely on CCS is an
incredibly risky and in many places
unworkably expensive solution. More
imaginative thinking shows us that the
27 billion metric tons of CO
2
per year
may actually represent a business
opportunity. (See fig. 2 for potential
resulting uses.)
A budding industry, carbon recycling
for profit offers an exciting and viable
alternative to CCS programs. Without a
doubt, as a portfolio of solutions will
have to be developed to address climate
change, carbon recycling is destined to
be at the forefront.
Rowan Oloman is a freelance
writer living in Vancouver, B.C.,
Canada. She holds a masters
degree in environmental manage-
ment from the University of New
South Wales and a bachelor of
arts degree in environmental geography from
the University of Sydney. Oloman works as the
director of several international conservation
projects and as a researcher for green tech
solutions.
Figure 2. Diagram of carbon recycling (ERC) from exhaust gas to uses of formic acid.
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contact communications
@
euroheat.org or visit www.copenhagenenergysummit.org
A View From Veolia:
Q&A with Stewart Wood
Feature
Story
Editors Note: In 2007 Veolia Energy
North America acquired Thermal North
America, Inc. and its Trigen district heating
and cooling systems, some of the nations
largest. District Energy checked in with
Stewart A. Wood, Veolia Energy North
America president and chief executive
officer, for an update on the systems and
his thoughts about the industry.
Q. It has been almost two years since
Veolia Energy North America completed
its acquisition of the Trigen systems.
Please provide a brief update on the
systems and any new initiatives that
may be under way in those locations.
A. Since we acquired Thermal North
America, Inc. (TNAI) in late 2007, we have
made a concerted effort to ensure that
the Trigen district energy systems owned
by TNAI are managed to the highest
industry standards and that much-needed
maintenance work was carried out, as we
had committed to regulators. In addition,
we have invested capital to upgrade the
multiple systems with two clear objectives:
improve safety or improve efficiency. As
a result, the systems are more efficient
and effective for our customers first and
foremost, but we have also greatly
improved the working environment.
Our commitment to improvement
also extends to facilities we have added
since the TNAI acquisition. At our Grand
Rapids network, which we acquired in
late 2008, we are undergoing a series of
upgrades and have overhauled the opera-
tional process to increase overall system
efficiency (see p. 31). Our core business is
energy efficiency, and our efforts in
Grand Rapids and elsewhere will help
ensure competitive rates for our customers
as well as reduce the carbon footprint.
Throughout the U.S. market, we have
continued to add new customers to exist-
ing networks, enabling us to expand our
reach and ensure the cost-effectiveness
of our services. Here are some recent
examples: In Baltimore, we are working
with H&S Properties to provide district
energy services to the developers new
Four Seasons Hotel and Legg Mason towers.
In Boston, we recently added the new
Equinox Fitness club to our downtown
network. In Tulsa, we have renewed and
expanded our contract with the Williams
Center Towers, two of the citys most
prominent skyscrapers, and connected
the new 19,000-seat sports and entertain-
ment BOK Center.
Q. What type of work is the company
performing beyond the meter in cus-
tomer buildings? And what are the bene-
fits to the systems and their customers?
A. Beyond-the-meter services are also
part of our core business. While we often
lead with the production and distribution
of thermal energy, our solutions are
designed to enhance the economic, tech-
nical and environmental performance of
all complex systems and equipment within
buildings. Energy optimization requires a
Stewart A. Wood, president and chief executive
officer, Veolia Energy North America.
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holistic view of a facility. It requires diligent
on-site management of HVAC systems,
process chilling equipment, backup gen-
eration, electrical distribution systems,
and interior and exterior lighting. It also
requires performing preventive, predic-
tive and corrective maintenance to ensure
that equipment remains in pristine con-
dition and operates at peak effectiveness.
The company takes responsibility for
these functions around the world, so we
have seen every operating environment
possible and are able to leverage best
practices that have been developed in the
field for the benefit of our customers.
In terms of the process of managing
a customer building, a given opportunity
may begin with a comprehensive energy
audit. Our energy auditors have rigorous
in-house training, and most hold a variety
of certifications from professional engi-
neer to registered architect to certified
energy manager and LEED (Leadership
in Energy and Environmental Design)
accredited professional. Our auditors
measure and recommend energy usage
improvements in a variety of building
areas, from lighting to heating to cooling.
Not only do these audits help customers
gain a better understanding of their build-
ings and facilities, but they allow us to
integrate our district energy, combined
heat and power, and facility operations
and management services to develop a
custom solution that addresses any sub-
optimal performance areas highlighted
through these audits.
Our solutions also encompass general
building maintenance services such as
plumbing, carpentry, filter replacement,
etc., so that building owners can focus
on the business functions that generate
their earnings secure in the knowledge
that their buildings are receiving high-
quality services with lower operating costs.
Q. How many of your district energy
systems currently utilize CHP? What is
the future of CHP in the U.S., and how
does that compare to how youve seen
CHP develop in Europe?
A. We manage more than 4,900 MW of
power production capacity from CHP
around the world. With 800 urban and
local district energy systems, 4,200 indus-
trial facilities, and more than 110,000
energy facilities managed globally, CHP is
definitely a sweet spot for us.
Here in the U.S., most of our district
energy systems utilize either cogenera-
tion or trigeneration technology. Most
significantly, in Philadelphia, we own and
operate the Grays Ferry cogeneration
station, which is a 170 MW CHP facility
with a 120 MW combustion turbine and a
50 MW extraction and condensing steam
turbine. We also own and operate a num-
ber of other smaller CHP systems. Two
examples of U.S. CHP assets that we oper-
ate, but do not own, are a plant dedicat-
ed to the corporate campus of a leading
biotech company in Cambridge, Mass.,
and a plant installed in a large building
in Manhattan.
CHP undoubtedly has a huge future
in the U.S. marketplace, given that it is
known, practical technology. In Northern
and Eastern Europe, CHP plays a large
role in energy production because it is
utilized in combination with district
heating systems. While we do not foresee
the large-scale adoption of new district
energy systems in the U.S. to the same
degree as in Europe, we do believe that
there is a bright future for CHP in this
country.
With the pressures for higher effi-
The Veolia Energy central cooling facility at The Venetian in Las Vegas, Nev.
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Veolia Energy personnel provide on-site O&M services at the cogeneration plant of a biotechnology
customer in Cambridge, Mass.
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ciency and greater reliability as well as
significant price volatility, industry has
long been a proponent of CHP. University
and large hospital campuses represent
other sectors that have embraced CHP, as
the campuses are essentially mini-cities
with thermal needs so they can effective-
ly use their heat sink for maximum effi-
ciency. Finally, as the economic climate
recovers and the new mixed-use real
estate developments are finally built,
these developments will also be prime
candidates for CHP.
Q. What role do you see district energy
and CHP playing in addressing climate
change? What impact do these technolo-
gies have in reducing the overall carbon
footprint of a building or district energy
system?
A. District energy and CHP will play a
necessary and crucial role in addressing
climate change. The objective is to reduce
our reliance on fossil fuels, and new tech-
nologies and renewable energy are all only
partial solutions. There is no single silver
bullet for climate change, only silver
buckshot; district energy and CHP must
be encouraged and deployed in concert
with other solutions.
The less good news is that district
energy and CHP are sometimes overlooked
in favor of more futuristic solutions; the
good news is district energy and CHP are
proven technologies that are available
today while some futuristic technologies
are decades away from commercialization
and few are as efficient overall.
On a global basis, our company col-
lects statistics that demonstrate the
impact of our energy optimization efforts.
For instance, in 2008, customers that uti-
lized our solutions reduced their carbon
dioxide emissions by 6.2 million tons. This
material carbon footprint reduction was
enabled by a single company, globally.
Imagine what we could do as a nation if
we made a similar commitment to energy
efficiency.
An increased emphasis on the use of
renewable fuels to fire or co-fire CHP and
district energy systems can also help
address climate change in a meaningful
way. On an ongoing basis, we assess
opportunities for our customers and our
company to introduce renewable fuels to
the energy mix and further reduce fossil
fuel consumption.
Q. Earlier this year IDEA tried to get
$1.6 billion appropriated for district
energy/CHP through the federal stimu-
lus bill. Although that request was not
approved, the U.S. Department of Energy
set aside $156 million of stimulus
funding for CHP and district energy
and asked district energy/CHP systems
to apply for the funds. We understand
DOE was overwhelmed by the number
of applications received. We feel that
demonstrates the incredible potential
that the industry holds. What are your
thoughts on the need for federal funding?
A. The stimulus funding was an extraor-
dinary event that involved stakeholders
across virtually every sector. With all of
the competing interests vying for funding,
it is not surprising that our industry did
not receive everything it requested. But I
must confess the final sum allocated made
little sense in light of the good that could
have been achieved with additional funding.
It is a positive sign that the DOE has
been flooded with applications, and we
agree that this demonstrates the indus-
trys potential. I also think it an oversight
not to allow the replacement of ancient
insulation with modern materials as a
candidate for stimulus funding.
We obviously agree that any federal
money directed toward district energy
and CHP is well-spent. Additional fund-
ing will come if we can demonstrate the
Veolia Energy takes a long-term view of the district energy systems it owns and
operates, including the steam system in Grand Rapids, Mich., which the company
acquired from Kent County in late 2008. In Grand Rapids and at all its plants, Veolia
is committed to making continuous operational improvements that will drive eco-
nomic growth, increase environmental benefits and increase energy efficiency. To
date, we have plans to implement the following major improvements to the Grand
Rapids system:
G
Install a condensing heat exchanger This will recover heat from the exhaust
stacks to preheat water being fed to the boilers, reducing the volume of fuel
consumed by approximately 5 percent. Reduced fossil fuel consumption means
a reduced carbon footprint and lower cost per pound of steam produced.
G
Reinsulate piping in manholes Reinsulating piping in manholes will reduce
heat loss to the atmosphere, thereby lowering the variable cost of steam to
customers.
G
Reduce distribution system leaks The Grand Rapids steam distribution net-
work consists of nearly 4 miles of high-pressure (135 psi) and 1.5 miles of low-
pressure (8 psi) mains. The low-pressure system is old, results in more heat loss
and requires significant maintenance expenditure. Veolia will replace the low-
pressure system with high-pressure
over the next three years, beginning
with more than three blocks on
Ionia Avenue this past summer.
Eliminating portions of the low-pressure
distribution steam system, without adversely
affecting customers, will also improve the
system efficiency and reduce the cost to
customers. Improving the distribution system
has a positive impact on maintenance, low-
ers the percentage of wasted steam and
reduces the companys carbon footprint.
Snapshot: Veolia Energy Grand Rapids LLC
Veolia Energys Grand Rapids system provides
steam to more than 130 downtown customers,
including hospitals, college campuses, cultural
and exhibition centers, commercial offices and
retail stores.
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impact that the $156 million has on the
economy and the environment. However,
in the long term, federal funding is not
as critical for the industry as is legisla-
tion and regulatory rule making that create
a fair and equitable environment. Most of
the industrys loudest voices have a finan-
cial disincentive to encourage energy effi-
ciency within their customer base. If we
shift to the creation of incentives for energy
efficiency, then there will be increased
demand for district energy and CHP.
Q. One of the challenges facing the
district energy industry is an aging
workforce. What are your thoughts on
this situation, and how do we move from
a mature position to one that appeals
to vibrant and youthful workers at all
levels?
A. The energy industrys aging work-
force is indeed of concern. I recently read
that the U.S. Department of Labor report-
ed that the energy utility industry has
the second-highest average employee age
among dozens of industries studied.
Nearly 20 percent of industry workers
are five to seven years away from retire-
ment. This clearly demonstrates the
importance of attracting young workers
in the coming years. Since technical oper-
ations expertise is honed through decades
of on-the-job experience, we need to get
younger workers in the queue sooner
rather than later.
Perhaps the best way to appeal to
young workers is to emphasize the green
aspects of the business, as the younger
generation is generally environmentally
aware and engaged. Our industry uses
existing technologies that can improve
the nations carbon footprint, and we can
also increase the emphasis on new tech-
nologies under development.
Programs such as the Clean Energy
Service Corps engage thousands of young
people in moving America toward energy
independence, along with a greater empha-
sis on green education. Positioning district
energy and CHP as subsets of greener
technology has great potential to attract
younger people to this industry. We do
not have to perpetuate the traditional
image of energy as a stodgy commodity
business.
Furthermore, we have to demonstrate
that the industry offers a meaningful
career opportunity and improve the
facilities that we expect our staff to work
in. In terms of what my company does
specifically, we have taken our recruit-
ment messages directly to colleges and
schools to show the next generation they
can play a satisfying, meaningful role in
business and energy production.
The company offers employment
opportunities in the full range of envi-
ronmental services management of
energy, water, waste and surface passenger
transportation. Employees have a range
of options throughout their careers,
moving between divisions, to different
cities and from country to country. In
addition, we operate our own training
centers, Campus Veolia, in multiple coun-
tries. It is important not only to attract
staff, but to provide them with the tools
to perform, a better place to work, and a
view of the big picture, so that they can
understand why their work is important
and how they can be part of the solution.
Q. What are you most looking forward
to as a new member of IDEAs board of
directors? What challenges and oppor-
tunities do you feel lie ahead?
A. First of all, let me acknowledge how
honored I am to become an IDEA board
member. I am excited to commence my
three-year term, and I am confident that I
will be able to leverage my decades of
experience in energy services for the
organizations benefit. I hope to con-
tribute by lending the perspective of a
business that operates a portfolio of
systems not only in the U.S. but around
the world.
The industrys most immediate chal-
lenges include the economic crisis and
the difficulty of being heard by legisla-
tors. However, both of these are also
opportunities, along with climate change.
The economic crisis has highlighted the
need for businesses and cities to lower
their operating expenses, and district
energy and CHP are clearly viable, imme-
diate solutions. Furthermore, we have a
compelling argument to make to the leg-
islators and regulatory rule makers. Just
as we were able to convince stakeholders
to provide stimulus funding, I am confi-
dent that we will continue to gain support
as rules and laws evolve.
I look forward to doing my part with
my board member colleagues to raise
awareness of IDEA, district energy, CHP
and the energy efficiency of the products
we produce.
TURN TO
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Hosted by
IDEAs 101st Annual
Conference & Trade Show
C A L L F O R P A P E R S
The International District
Energy Association is pleased
to open the call for presenta-
tions for its 101st Annual
Conference & Trade Show.
Presentations should aim
to reinforce the conference
theme, Creating an Efficient
Energy Future.
June 13-16, 2010
Westin Indianapolis and the Indianapolis Convention Center
Indianapolis, Indiana
Suggested presentation topics for submissions include:
Master Planning, System Expansion & Infrastructure Renewal
Combined Heat and Power/Cogeneration
Renewable Energy Applications (Geothermal, Wind, Solar Electric
and Thermal)
Carbon Strategies
LEED Buildings
Biofuels and Fuel Flexibility
Managing Loads, System Optimization & Efficiency
Case Studies of Central Plants (military bases, municipal, state
and federal government buildings)
Mission Critical Cooling for Data Centers, Airports, Medical Centers
Cooling and Thermal Energy Storage
Controls, Monitoring & Metering
Operations, Maintenance, Safety, Training and Development
Please submit a 75 word summary abstract outlining your presentation
to Laxmi Rao, laxmi.idea@districtenergy.org, by January 15, 2010.
For exhibitor and sponsorship information, please contact Tanya Kozel at
tanya.idea@districtenergy.org or call 410-518-6676.
Technical Chair
Jamie Dillard, Citizens Thermal
Industry
News
Biomass Plant Proposed
for Vail
According to a July 31 article in The
Colorado Independent, paper products
manufacturer Hayden Cary & King Co. has
proposed building a 28 MW combined heat
and power plant in Vail, Colo. The Darien,
Conn.-based company estimated that 6
MW would be sold to the local rural power
co-op, Holy Cross Energy, in Glenwood
Springs. The Vail Valley Medical Center, Vail
Resorts, which operates the ski area and
several large hotels, and the town of Vail
would likely purchase the thermal energy to
heat buildings and provide street snow melt.
To be constructed on 3 acres of town-
owned land, the plant would burn chipped
wood waste from thousands of surrounding
acres of lodgepole pine trees killed by a bark
beetle infestation. Vail has spent more than
$600,000 in tree removal to establish a
defensible space around the town where
firefighters will be able to combat wildfires;
but currently there is no local market for
the waste wood and the trees must be
transported by truck at great expense to
lumber mills or wood pellet plants hundreds
of miles away.
Hayden Cary & King is seeking $30
million in federal U.S. Department of
Energy funding for the project. The plant
would help the resort community lower its
carbon emissions and energy use to 20
percent below 2006 levels by 2020 despite
rapid development.
The nearby town of Avon, at the base
of Beaver Creek ski area, has also been
considering biomass power.
Aspen Explores Geothermal
District Energy
An Aug. 31 Aspen Times article reported
that Aspen, Colo., is looking into the possi-
bility of tapping geothermal energy for a
district energy system. The system, which
would supply heating and cooling to build-
ings and snowmelt sidewalks, would reduce
carbon dioxide emissions by 13,500 tons
annually.
The Aspen city council is applying for a
U.S. Department of Energy grant to help
pay for the $3.5 million project. If the grant
is awarded, the city could begin test drilling
early next year. The goal would be to find
enough geothermal energy to heat 1 million
sq ft the equivalent of 10 large hotels,
which would cut Aspens natural gas use
by about 15 percent.
The council also awarded a contract
to a consultant to prepare a report for the
state water court, which has the authority
to allow the city to move forward with test
drilling and be granted water rights to tap
into the geothermal heat. The citys water
rights application makes Aspen the first
municipality to apply under the new
Colorado Geothermal Act. A ruling on
Aspens water rights is expected Jan. 15.
Calgary Cogeneration
Plant Under Way
Enmax Energy Corp. has announced
plans to build and operate a 165 MW
cogeneration facility in southeast Calgary,
Alberta. The proposed Bonnybrook Energy
Centre will produce electricity and capture
waste heat for use by Canada Malting Co.
Ltd. and potentially other local businesses.
Canada Malting will use the waste heat in
its steeping, germination and drying process-
es. Future plans also include connecting the
Bonnybrook facility to the Downtown District
Energy Centre, providing more heat for
downtown Calgary.
The proposed project will be completed
in two phases. Phase I will consist of the
installation of two 40 MW General Electric
LM6000 combined-cycle natural gas-fired
turbines, two heat recovery steam generators
and one steam turbine. In Phase II, one
additional 40 MW turbine and a comple-
mentary heat recovery steam generator will
be installed.
Preliminary engineering and design of
the project is under way. Pending regulatory
approvals, construction of the facility will start
in fourth quarter 2010 with commercial oper-
ation beginning in fourth quarter 2011.
Danfoss Expands Control
Valve Line
Danfoss has expanded its AB-QM line
of pressure-independent control valves (PICVs)
with new 1-1/2-inch and 2-inch valves
offering maximum flows of 35 gpm and 55
gpm, respectively. The company will soon
announce an additional expansion of the
line to include 6-inch valves.
Danfoss AB-QM PICVs combine a
control valve with a differential-pressure
controller. The latter compensates or balances
differential pressures in the circuit, so that
the required volumetric flow always reaches
the heat exchanger. This keeps the ambient
temperature stable and the comfort level
high, ensuring that there is neither oversupply
nor waste of energy and that operating
costs are reduced.
With a wide range of actuators avail-
able, the Danfoss AB-QM valve can be used
in all hydronic cooling and heating applica-
tions. The valve is an ideal choice for con-
trolling terminal units such as fan coils,
water-source heat pumps, chilled ceilings
and air-handling units. For more information,
visit www.ABQM.us.
AB-QM PICV
District Heating for UK
Residential Development
The Press and Journal reported Aug.
11 that developer Bancon Homes will use
district heating to heat homes at its Forestside
development in Banchory, Scotland. This
new system, in conjunction with Hill of
Banchory Energy Services Co. Ltd., will pro-
Less heat loss with
Reduce operating costs and CO
emissions by as much as 50%.
2
Logstor TwinPipe with diffusion barrier sets new
standards in energy efficiency for district heating.
See www.urecon.com/TwinPipe for more information.
Over 80 years of combined experience
in hot water district heating pipe systems.
www.urecon.com
Logstor district heating pipe is distributed in North America by Urecon Ltd.
and
apply and incorporate its on-site research
and skills in the overall Birmingham system.
This will see an additional 1 MW CHP plant
built at Aston a test facility that will explore
a range of alternative energies including
how waste products from sewage, algae,
agricultural and municipal waste, and crops
on marginal land can be converted into
energy for heat and electricity.
PannErgy to Build Plant
in Hungary
According to an Aug. 7 Budapest
Business Journal article, the alternative
energy company PannErgy has set up a
joint venture with the Miskolc, Hungary,
local council-owned district heating com-
pany Miskolci Hoszolgaltato to build a 50
million-euro ($73 million) geothermal
power plant in the city. The plant would
provide almost all the necessary district
heating for Miskolc. The joint venture,
called Miskolci Geotermia, will drill to a
depth of 2,000-2,500 m (6,562-8,202 ft)
power. The plant was expected to be oper-
ational in October.
When fully operational, the Aston
system will reduce carbon dioxide emis-
sions by 4,400 tonnes a year. It will enable
even more university buildings to benefit
from sustainable energy, including the
new Halls of Residence set for completion
next year.
The CHP plant will eventually link to
other phases of Birminghams expanding
energy network that Utilicom and the city
council are developing across the city center
and beyond. The universitys commitment
as a partner of the Birmingham District
Energy Scheme will allow that system to
expand into the wider Eastside area. The
Aston-based CHP plant is already earmarked
to serve several new developments including
the Magistrates Courts at Masshouse Plaza.
Along with the new energy system, a
ground-breaking partnership has also been
developed with Aston Universitys prestigious
European Bio-Energy Research Institute to
Industry
News
vide space heating and domestic hot water
to all new homes in Phase II of the devel-
opment. The system will initially use a natural
gas-fired boiler, which will be replaced with
a wood-fueled boiler in the future.
Building regulations will require new
houses in the area to be carbon-zero by
2016, i.e., produce zero net emissions of
carbon dioxide from all energy use in the
home.
Aston University to
Expand CHP
Aston University, in Birmingham, U.K.,
will be installing a new combined heat and
power plant to help power its campus and
the citys new Eastside redevelopment proj-
ects. The 2 MWe CHP engine is set to
become the largest one installed within
Birminghams acclaimed low-carbon district
energy system. Located in Astons newly
refurbished energy center, the CHP installa-
tion will combine with Astons existing CHP
operation to produce a total of 3 MW of
Industry
News
to extract water for the production of 170
MW of heat energy. The plant is expected
to start operation in two years.
COGEN Europe: Break
Impasse on Climate Talks
In an Aug. 11 statement, COGEN
Europe called on industrialized countries
participating in the United Nations climate
talks in Bonn, Germany, to break the impasse
created by their lack of progress. The group
called for Europe and developed economies
to tackle the overdue issue of their energy
waste and poor energy efficiency to demon-
strate sincerity to the global community and
to buy time for other technologies to mature.
According to Yvo de Boer, executive
secretary of the UN Framework Convention
on Climate Change, one of the most
important issues at the Bonn talks was
how rich countries are going to show
leadership to reduce their emissions.
Time is running out, de Boer said. We
are absolutely not on track to stay below
two degrees Celsius.
COGEN Europe emphasizes that energy
efficiency is central to fighting climate change
and that cogeneration is making an impor-
tant contribution to meeting global heat and
electricity demand a contribution that
could be even greater with increased political
focus. The organization maintains the eco-
nomic potential exists to double cogenera-
tion in Europe from the existing 11 percent
to 22 percent of the total electricity supplied.
Petratherm to Finalize
Madrid Geothermal Plans
The BusinessGreen Web site reported
Aug. 19 that Australia-based geothermal
energy specialist Petratherm has signed a
partnership deal with the Spanish federal
and Madrid regional governments to draw
up plans for a large-scale geothermal district
heating project in the Spanish capital.
Petratherm is preparing to build an 8 MW
geothermal district heating operation north
of the city to provide heat for local buildings.
Under the terms of the agreement,
Petratherm and the two governments are
to form a joint committee to complete the
project planning stage. The committee will
secure customers for the supply of heat,
including from government offices; identify
subsidy options for the project; secure sup-
pliers and contractors; and obtain the nec-
essary environmental permits for drilling
and development.
The Spanish government said it would
also provide 87,000 euros ($128,000) in
funding from the Institute of Renewable
Energy and Energy Efficiency toward the
feasibility assessment to be completed by
the end of the year.
Petratherm is planning similar geot-
hermal plants in Barcelona and has secured
a geothermal exploration license on the
volcanic island of Tenerife.
State of Californias Plant
On Line
California state officials and local con-
struction workers gathered in Sacramento
Aug. 24 to celebrate the opening of the
new central plant that heats and cools the
capitol and 22 state office buildings. The
78,000-sq-ft facility is the largest of its kind
in the western United States and will operate
on 90 percent less water than its predecessor.
The new plants progressive green design
will help the state reduce energy costs, cut
water usage and provide better reliability
to state buildings. The old central plant,
built in 1968, was to be demolished in
October. Much of the demolition material
is to be recycled.
The Department of General Services
built the new facility to meet or exceed
the goals set by Gov. Schwarzenegger in
his 2004 executive order that directed the
greening of state buildings. The new cen-
tral plant is expected to achieve LEED
(Leadership in Energy and Environmental

Design) Gold certification next year. A second
phase of the project will include construction
of a 140-ft-tall, 4.25 million-gallon thermal
energy storage tank to store reserves of
chilled water produced during off-peak
energy demand times for use during the
heat of the day. Solar panels will also be
installed on the new facility to power the
energy needs of the office space within it.
Innova-Sonic
Model 205 meter

Sierra Debuts Ultrasonic
Thermal Energy Meter
Sierra Instruments has introduced its
new Innova-Sonic
Model 205 thermal

energy flow meter, a transit-time ultrasonic
meter designed to measure the thermal
energy flow rate and totalized energy con-
sumption in liquid heating and cooling
applications. Applications include HVAC,
office buildings, large condominium or
apartment developments, solar thermal
heating and geothermal projects.
The unit offers high accuracy (+/-0.5
percent of reading), enabling custody trans-
fer of thermal energy. Built-in totalizers and
data loggers are used to record daily, monthly
and yearly totalized energy usage and report
total energy used. These functions make it
easy to account for energy usage and accu-
rately allocate costs to end-users. A built-in
secure digital card and a supplied data-
analysis and graphing program allow for
convenient storage and analysis of collect-
ed data.
The Model 205 thermal energy meter
includes ultrasonic transducers, remote
electronics and two PT100 resistance tem-
perature detectors (RTDs) supplied by Sierra.
The two RTDs (either insertion or surface-
mounted) measure the temperature of the
supply and return flow. The meters elec-
tronics then uses these inputs, along with
the measured flow rate from the ultrasonic
transducers, to calculate the thermal energy
flow rate in user-defined units (Btu per
hour or kilojoules per hour, for example).
For more details, visit www.sierrainstru
ments.com.
their regulated targets. In addition, other
parties, such as small businesses and indi-
viduals, will be able to acquire and use these
credits to voluntarily offset the greenhouse
gas emissions from their activities.
The two draft guides published June 12
in the Canada Gazette propose rules and
guidance on the requirements and processes
used to generate offset credits and to verify
the eligible greenhouse gas reductions
achieved from a registered project; interested
parties had 60 days to comment on these
guidance documents. The release of these
two draft guides follows the publication of
the first draft guide in August 2008, which
proposed the rules and guidance to quantify
greenhouse gas reductions for projects in
Canadas Offset System.
Publication of the final versions of all
three Offset System guides was planned
for fall 2009 after all comments had been
reviewed.
Kelowna, B.C., Looks at
District Energy
The Web site Kelowna.com reported
July 28 that the Kelowna, B.C., city council
had approved spending $20,000 from the
citys energy reserve to study the feasibility
of district energy systems in the citys
downtown area. The study will include an
examination of the potential for district
energy in Central Green and the Pandosy
Town Centre both areas of the Kelowna
with the density needed to make the sys-
tems work. The council also approved
applying for a $10,000 grant from the
B.C. Ministry of Community Development
toward the project.
GE Engines Power Cogen
Plant for Greenhouses
Canadian government and business
leaders gathered July 10 near Lake Erie in
southern Ontario for the grand opening of
North Americas first General Electric-
designed greenhouse cogeneration plant,
installed to generate more reliable on-site
power and heat for commercial greenhouses.
Great Northern Hydroponics, a division of
Detroit-based Soave Enterprises, installed
the 12 MW commercial greenhouse power
plant at Soaves 55-acre tomato greenhouse
complex in Kingsville, Ont.
The high-efficiency power plant, pow-
ered by four of GE Energys Jenbacher gas
cogeneration modules, was among seven
natural gas-fueled combined heat and power
systems approved by the Ontario Power
Authority in 2006 to showcase how advanced
cogeneration technologies could help make
industrial plants more energy-independent,
improve local grid reliability and support
Canadas clean and renewable energy goals.
Surplus power from the greenhouse
power plant is being sold to the local grid
under a 20-year contract with the Ontario
Power Authority. The plant supplies enough
electricity to Ontarios transmission grid to
power 12,000-15,000 Canadian homes
annually. In addition to generating power
and heat to support greenhouse operations,
the power plant also treats the gas engines
exhaust, enabling carbon dioxide from the
exhaust to be recycled and applied as a
special fertilizer to enhance greenhouse
crop production.
The cogeneration plant allows Soave
to control its greenhouse operating expenses
and improve its competitive position against
other growers in North America. The project
also will support Ontarios renewable energy
goals as a high-efficiency, dispatchable
cogeneration project that is helping to inte-
grate renewable energy projects into the grid.
The special CO
2
fertilization/cogen-
eration system was developed by GE Energys
Jenbacher gas engine business, which
operates a global horticultural applications
center of excellence in The Netherlands.
Second Round of U.K. District
Heating Funding
As reported Aug. 26 by Green
Building Press, a second round of funding
from the U.K.s Homes and Communities
Agency has been allocated to seven dis-
trict heating system projects. The total of
8.8 million ($13.9 million) in funding,
aimed at supporting the development of
low-carbon infrastructure, is the result of
a partnership with the Department of
Energy and Climate Change and Communi-
ties and Local Government.
Industry
News
Corner Brook District Heating
Project Moving Forward
With assistance of CA$125,000
($115,000) from the Newfoundland and
Labrador Green Fund, an engineering study
will bring Corner Brook, Nfld., another step
closer to a district energy system for the city.
This study represents the second phase of
the district heating project, following an
earlier feasibility study.
The initial feasibility study identified
Corner Brook Pulp and Paper Ltd. as the
prime energy source for the district heating
system. A large quantity of steam is released
through several processes at the mill. There
is also the opportunity to use steam directly
from the No. 7 boiler/cogeneration unit.
According to the study, there is spare boiler
and turbine generator capacity of 12.8 MW
of heat available for the district heating
system. The proposed project also has the
potential to reduce greenhouse gases by
approximately 10,000 tonnes per year.
The Newfoundland and Labrador Green
Fund is a three-year, CA$25 million ($22.9
million) program supported by both the
federal and provincial governments. The
funding it provides supports projects geared
toward environmental sustainability and
reducing greenhouse gas emissions.
Canada Moves Toward
Offset System
Canadas Environment Minister Jim
Prentice announced June 10 that the gov-
ernment is taking an important step toward
setting up a carbon market in Canada by
moving forward with its Offset System for
Greenhouse Gases. The Offset System will
establish tradable credits and encourage
cost-effective domestic greenhouse gas
reductions in areas that will not be covered
by planned federal greenhouse gas regula-
tions, like the forestry and agricultural sectors.
Potential offset projects could include, for
example, methane capture and destruction
from landfill gas, the creation of new forests
or agricultural soil management.
Companies subject to the greenhouse
gas emissions regulations will be able to
purchase offset credits on the carbon market
and use these credits for compliance with
Successful bidders for the funding
include projects in Hackney, London;
Greenwich, London; Rowner, Gosport;
Hanham Hall, South Gloucestershire; Manton
and Reynolds Towers, Birmingham; Wood
End, Henley Green and Manor Farm estates,
Coventry; and Yarn Street, Aire Valley in
Leeds. Their projects range from connecting
multistory buildings to a new biomass energy
system to building a community energy
center that will use ground source heat
pump technology.
E.ON Inaugurates New
Plant in Malm
In August, E.ON opened its new state-
of-the-art combined heat and power plant
in Malm, Sweden. The 440 MW gas-fired
plant, resundsverket, has an efficiency as
high as 90 percent at full cogeneration. It
will produce 3 billion kWh of electricity for
Industry
News
the southern Swedish market and 1 billion
kWh of district heat for Malm, meeting
40 percent of the citys heating needs. The
plants electricity production will replace
older coal-fired generation, thereby reducing
emissions of carbon dioxide by 1 million
tons per year.
The total investment figure for the
project was 300 million euros ($437 million),
IEA Publishes New District
Energy Brochure
The International Energy Agency has
issued a new brochure overviewing its
Implementing Agreement on District Heating
and Cooling (IEA-DHC) a research and
development program to advance the
application of district heating and cooling
and combined heat and power technologies.
Titled Bringing Countries Together to
Research, Innovate and Grow District
Heating and Cooling, Including CHP, the
brochure also outlines the IEA-DHCs
Annex IX research projects conducted in
the three-year period between May 2008
and May 2011. The brochure may be
downloaded at www.iea-dhc.org.
Germanys Cartel
Office Examines
District Heating Sector
Germanys Federal Cartel Office, the
Bundeskartellamt, announced Sept. 14
that it has launched an inquiry into the
competitiveness of the countrys district
heating sector. The office, which has
requested information from 30 district
heating suppliers, says its aim is to create
more transparency in price and structure
in the district heating markets.
The cartel office has initiated the inquiry
because district heating suppliers have a
Industry
News
monopoly position that is often legally pro-
tected by compulsory connection and use
and gives district heating companies certain
room to set prices. The inquiry will cover
the years 2007 and 2008. A comparative
analysis will identify which companies are
particularly expensive and which are par-
ticularly low-priced.
The cartel office is not targeting any
individual companies with this inquiry; it
has conducted similar inquiries into other
sectors in the past. If any individual district
heating suppliers are found to be abusing
their market positions, however, further
investigations into those companies are
possible.
District heating supplies around 5 million
households in Germany, accounting for 13
percent of the countrys heating market.
Germanys annual household consumption
of district heating is around 80 billion kWh.
Project Burns Railway
Ties as Fuel
The Energy & Environmental Research
Center (EERC) at the University of North
Dakota in Grand Forks has begun a demon-
stration of a new clean energy technology
that converts used railroad ties into heat and
power. The demonstration unit is located
inside the EERCs National Center for
Hydrogen Technology demonstration facility.
The EERC is working with the Winnipeg-
based Aboriginal Cogeneration Corp. (ACC)
to convert biomass to energy in environmen-
tally friendly ways. The company will install
two 1 MW commercial clean power systems
at its demonstration site northeast of
Vancouver in Kamloops, B.C.
In conjunction with ACC, the EERC
has reached a major milestone in generat-
ing power from waste ties via a proprietary
EERC process that meets the stringent
environmental regulations of British
Columbia. The EERC process also reduces
emissions to well below levels stipulated
by U.S. federal regulations.
According to Nikhil Patel, EERC project
manager and research scientist, Railroad
ties treated with creosote are some of the
most difficult biomass feedstocks to process
safely because they contain significant
amounts of coal tar. The U.S. Environmental
Protection Agency has placed severe restric-
tions on the disposal of the railroad ties
because the tar can be harmful to humans.
Each year 25 million railroad ties are disposed
of in North America.
The EERCs power system can process
about 35-40 lb/hr of railroad ties, which are
chipped before being fed into the system.
The system operates at a much lower pres-
sure and flow rate than other systems of
this type, making it much easier to operate
and integrate with other commercially
available technologies for generating heat
and power.
College Students Protest
Campus Coal Use
Students at several college campuses
nationwide are urging their schools to stop
burning coal at on-site power plants in
favor of using cleaner energy sources. On
Sept. 16, students at the University of
Missouri and other campuses launched
a coal-free campus campaign led by the
Sierra Club and the Sierra Student Coalition.
The campaign began the same day a
group of more than 130 college presidents
and other leaders in education rallied in
Washington in support of strong climate
and clean energy legislation.
The Sierra Club kicked off the campaign
with the release of its report Breaking Coals
Grip on Our Future: Moving Campuses
Beyond Coal.
Cornell Unveils Climate
Action Plan
Cornell University released its Climate
Action Plan Sept. 15, mapping out how the
campus will achieve its goal of climate neu-
trality. Presented entirely online in a paper-
less format, the plan aims to enhance
Cornells mission of academics, research
and outreach while cutting net carbon
emissions to zero by 2050. The plan includes
19 specific actions across five key areas: green
development, energy conservation, fuel mix
and renewable energy, transportation, and
carbon offsetting actions.
The plan fulfills the American College
and University Presidents Climate Commit-
ment that Cornell President David Skorton
signed in 2007. It will incur no extra cost
for the university and could save hundreds
of millions of dollars over the next 40 years.
Forty-two percent of Cornells carbon
savings could come from upgrading steam-
turbine electric generators, using wood
instead of coal for boiler fuel and converting
from coal to natural gas, among other actions.
Cornells combined heat and power plant
will switch to natural gas this winter, which
will already reduce the universitys carbon
footprint by 20 percent. The plan also calls
for incorporating other renewable energy
sources like wind, biomass-to-energy and
geothermal technologies.
UNH Completes
EcoLine
Project
The University of New Hampshire
(UNH) earlier this year completed EcoLine,
a landfill gas-to-energy project that uses
purified methane gas from a nearby landfill
to power the campus. The 5 million-sq-ft
campus will receive up to 85 percent of its
electricity and heat from purified natural gas,
making UNH the first university in the nation
to use landfill gas as its primary fuel source.
After the gas is purified and compressed
at a new UNH processing plant at Waste
Managements Turnkey Recycling and
Environmental Enterprise landfill in Rochester,
it travels through a 12.7-mile pipeline to
UNHs combined heat and power plant.
EcoLine is a partnership with Waste
Managements Turnkey Recycling and
Environmental Enterprise in Rochester, N.H.,
where the naturally occurring by-product of
landfill decomposition is collected, purified and
compressed before traveling via a 12.7-mile
pipeline to the University of New Hampshire.
Total cost of the project, including
construction of the pipeline and the pro-
cessing plant, was $49 million. Through
2012, UNH will sell renewable energy cer-
tificates (RECs) generated by using landfill
gas to help finance the overall project cost
and to invest in additional campus energy
efficiency projects. Selling RECs will help
UNH further fund its climate action plan,
which aims to lower campus greenhouse
emissions 50 percent by 2020 and 80 per-
cent by 2080.
Universities, Industry Form
Midwest Energy Research
Center
The University of Wisconsin-Milwaukee
(UWM), Marquette University and the
Milwaukee School of Engineering (MSOE),
in collaboration with the U.S. Department
of Energys National Energy Technology Lab
(NETL) and several regional companies and
foundations, announced in August the
formation of the Southeastern Wisconsin
Energy Research Technology Center
(SWETRC).
The formation of SWETRC is historic
on multiple fronts. It not only marks the
first time that the colleges of engineering
at the UWM, Marquette and MSOE are
collaborating on a major initiative, but it is
also the first time that NETL is sponsoring a
major university-based research initiative in
the Midwest. With primary facilities in
Pittsburgh, Pa., and Morgantown, W.Va.,
NETL supports DOEs mission of advancing
the national, economic and energy security
of the U.S. through implementing a broad
spectrum of energy and environmental
research and development programs.
The mission of SWETRC is to develop
an internationally recognized energy research
center within southeastern Wisconsin. The
centers goals are to create an infrastructure
and enterprise capable of competing at a
national level for large-scale energy research
funds, to perform cutting-edge research
projects that will lead to breakthroughs in
the energy field and to develop state-of-the-
art technology that will lead to new products
and processes that foster economic growth
of regional companies.
Led by a contract from NETL, nearly
$700,000 has been raised for seed research
projects that will be used to launch SWETRC.
In addition to NETL, several regional indus-
tries and foundations are providing funding
for the center.
SWETRC researchers will collaborate
on research projects in the areas of carbon
recycling and sequestration via algae growth
with coal-fueled power plant flue gas, ultra-
efficient nanomaterials for cogeneration,
wind power, new materials for rechargeable
batteries, sustainable building retrofitting,
integration of renewable energy and cutting
nitrogen oxide emissions.
Detroit Thermal, Incinerator
in Contract Talks
The Detroit Free Press reported Sept. 5
that Detroit Thermal had stopped buying
steam from the Greater Detroit Resource
Recovery Authority, the citys trash-to-energy
incinerator, after the companys contract
with the incinerator expired June 30. Detroit
Thermal has since been making all the steam
it needs using natural gas.
Industry
News
Victor Koppang, president of Detroit
Thermal, said he was in contract talks with
incinerator operators and would consider a
new agreement with them if steam from
the incinerator were made available at a
price competitive with natural gas. The fact
that one of the incinerators top customers
is getting by without its steam is raising
questions about the trash burners future
viability. Critics of the incinerator have
called for it to be shut down in favor of
expanded recycling programs.
To read the Detroit Free Press article,
Detroit incinerator pact in limbo, go to
http://tinyurl.com/yem5vad.
University of Liverpool
Completes New CHP Plant
Emcor Group in the United Kingdom
reached a milestone in its major infrastruc-
ture upgrade project at the University of
Liverpool in northwest England, with a July
29 topping-out ceremony for the newly
constructed 14 million ($22.2 million)
combined heat and power-based energy
center. A 47-meter (154-ft) chimney was
installed during the event the highest
point of the development.
The heating infrastructure project
comprises both a new energy center and
the upgrade of the existing campus energy
infrastructure. The new energy center will
produce power for the University of Liverpool
at a more economical rate than buying it
commercially and will supply heat to most
campus buildings. The installation of a gas-
powered CHP unit and associated combina-
tion boiler will provide electricity and primary
high-temperature heat as well as enable
effective reuse of high- and low-grade waste
heat generated from electricity production.
The new energy center will reduce the
institutions annual energy consumption by
more than 13,000 MWh and carbon dioxide
emissions by more than 1,500 tonnes,
equivalent to taking 477 cars off the road
each year.
The partnership between Emcor and
the university has allowed the construction
project to become an on-campus educational
resource. It provided the universitys civil
engineering students with the opportunity
to experience a live construction environment
and engage with Emcors project team to
learn about various aspects of construction
including environmental impact, planning
constraints and sustainable construction
methods.
Macalester College Opens
First Green Building
Macalester College in St. Paul, Minn.,
is dedicating its new Markim Hall in October.
The 17,000-sq-ft facility is one of only two
campus buildings in the state and only 12
nationwide to earn LEED
(Leadership in
Energy and Environmental Design) Platinum
certification. Markim Hall is connected to
the campuss central plant for chilled water
and steam.
The new building houses the Institute
of Global Citizenship, a program educating
and engaging students to become global
citizen-leaders. The buildings many green
features include energy-efficient windows;
locally produced, recycled building materials;
a super-insulated envelope; low water use
(45 percent below what is typical); and a
heating and cooling system that uses radiant
ceiling panels and a radiant floor in the atrium.
Markim Hall has won a Building of
America Award and is scheduled to be fea-
tured in the upcoming Green Building of
America-Midwest Green edition publication.
Green Light for Cheshire
Waste-Fueled Power Station
A new 95 MW power plant to be built
at Ince in Cheshire, U.K., in August received
government approval to proceed. The plant
is capable of turning 600,000 tonnes of
waste each year into electricity and heat.
The waste, which would have otherwise
Industry
News
Macalesters Markim Hall
gone to a landfill, will instead be used to
generate electricity to power a new Resource
Recovery Park; excess electricity will be
exported to the national grid. The approval
follows a public inquiry held into both the
power plant and the Resource Recovery
Park, which recommended that consent be
granted for the construction and operation
of the plant and also that planning permis-
sion be given for the Resource Recovery Park.
Mini-CHP System for
UK Retirement Village
One of the U.K.s most desirable retire-
ment developments, Bramshott Place Village
at Liphook in Hampshire, has installed an
SAV LoadTracker combined heat and power
system. Electricity, space heating and hot
water for domestic services in the villages
main building are all generated by the gas-
fired CHP system.
At the heart of the system is an XRGi-
15G mini-CHP machine, part of the EC
Power range marketed in the U.K. by SAV
Systems. This machine can provide 6-15
kW of electricity and 17-30 kW of heating.
Bramshott Place has a round-the-
clock energy requirement, although
demand reduces at night. Electricity gen-
eration matches load over each 24-hour
period with the unique modulating system
ensuring that the power generated never
exceeds demand.
Waste heat generated by the mini-
CHP unit is fed through a special heat
exchanger and used to heat water, which
is stored in a thermal store at around 80
degrees C (176 F). Water from the store
can be drawn off to provide heating and
domestic hot water services as required.
The CHP plant also makes a contribution to
heating the water in the clubhouse swim-
ming pool.
Dalkia to Build, Operate
Systems in Barcelona
Dalkia announced in July that it has
won the international call for tenders to
build and operate for 30 years the energy
generation plant and a new heating and
cooling system for south Barcelona. The
system will serve La Marina, the Marcabarna
the article down to nine, pushing the value
to $4 billion from $5 billion.
Per the article, Frost and Sullivan cites
district cooling as the most viable cooling
solution in the Middle East. Industry ana-
lysts said the regions district cooling mar-
ket, which earned revenues of $580 million
in 2008, will reach $2 billion in 2013 at a
compound annual growth rate of 28 per-
cent. Despite these forecasts, district cool-
ing projects in the UAE have cooled off due
to lack of financing sources. The value of
projects dropped by 30 percent from
$5 billion to $3.5 billion, while the number
of projects halved from 19 to nine.
To read the full Emirates Business
24/7 article, go to http://tinyurl.com/
yaoxmy6.
Tabreed Cools
Expansion Plans
The National reported Aug. 18 that
Tabreed has rescheduled more than 25 per-
cent of its future district cooling plants as
wholesale market, the international exhibition
center (Fira) in Gran Va de L'Hospitalet and
the City Metropolitana. It will be the first
district heating and cooling network to
provide centralized air conditioning for
domestic use. Over the project lifetime, the
energy plants will produce more than 2.9
million MWh of power, 56 percent of this
amount from renewable or recycled energy
sources.
Chosen by the Barcelona City Hall, the
project will significantly reduce carbon dioxide
emissions and will emit very few suspended
particles. The Barcelona City Hall, Enags,
the Institute for Diversification and Saving
of Energy and the Catalan Energy Institute
are all partners in the operation.
The project is based on recovering and
recycling cold energy from the Enags
regasification plant and on energy recovery
from the thermal treatment of vegetation
residue from the parks and gardens of
Barcelona. With this proposed solution, Dalkia
will reduce primary energy consumption of
fossil fuels by 67,000 MWh per year, equiv-
alent to the consumption of a city of 60,000
people, and cut CO
2
emissions by 13,400
metric tons per year.
Initially Dalkia will build a cogeneration
plant using biomass from the parks and
gardens of Barcelona. In the La Marina
district, it will build a power plant and local
district heating and cooling system to supply
the first clients, especially in the La Marina
residential neighborhood as well as the new
pavilions for La Fira (Barcelona International
Fair), the Porta Firal buildings and the
Mercabrana wholesale market.
For phase two, Dalkia will build the
Zona Franca power plant, the district heating
and cooling system, the cold energy recovery
unit for the Enags regasification plant
and the cold transmission network
(byproduct cold).
NTCC Wins Jeddah Contract
National Trigeneration CHP Co. (NTCC)
has been awarded a major contract to pro-
vide district cooling and power generation
services to Jeddah 2nd Industrial City. The
NTCC system will provide around 100,000
tonnes of district cooling services, as well
as about 80 MW of power. The project,
awarded by Saudi Industrial Property
Authority (MODON) is earmarked to be
completed by the end of 2011. The 8 mil-
lion-sq-m (86.1 million-sq-ft) Jeddah 2nd
Industrial City is one of 18 existing industrial
cities overseen by MODON.
UAE Energy and Industrial
Investments Drop in Value
An Aug. 23 article in the Emirates
Business 24/7 online newsletter noted
that the value of energy and industrial
investments in the United Arab Emirates
had dropped by 17 percent in the first
seven months of 2009, due to continuous
liquidity problems and investors low risk
appetite. The publications analysis of data
from ProLeads reveals that the value of
projects plummeted from $213 billion
(781.7 billion dirhams) for 245 projects in
January to $175 billion for 193 projects in
July. The 19 industrial projects, which mostly
involve district cooling, were at the time of
Industry
News
Industry
News
Abu Dhabi developers delay projects in
response to the property downtown.
According to Sujit Parhar, the companys
chief executive at the time, Tabreed plans
to complete 16 plants this year, but expan-
sion plans for next year and later are being
scaled back. Nothing is cancelled, but we
are changing the schedule of plants that
havent been built after discussions with
developers, he said.
This article can be read in its entirety
at http://tinyurl.com/y8rkfvq.
Desalination Advocate:
District Cooling Systems
Must Recycle Wastewater
District cooling companies must find
alternatives to desalinated water, and their
only option is to recycle wastewater,
according to Fady Juez, managing director,
Metito, and chairman of the International
Desalination Association organizing com-
mittee. Juez made the comment during an
interview published Aug. 19 in Emirates
Business 24/7 online newsletter.
Juez was asked whether he had seen
an increase in compliance by district cooling
companies to ban the use of desalinated
water, which they have already been warned
to do by authorities such as DEWA (Dubai
Electricity and Water Authority). He replied,
I think they have no option. They cannot
continue taking water from the sea, purify
it and use it for cooling towers. You cannot
continue to do that. They have to find
alternatives to desalinated water. The only
option they have is wastewater recycling.
This can be done. We can make water
exactly the same quality as bottled water
from a wastewater. [sic]
Juez said that producing drinking water
from wastewater is 20 percent to 30 percent
cheaper than producing from seawater. He
said he believes the UAE has taken a first
big step toward conserving the environ-
ment by treating liquid waste from humans
and industry. The second step is to recycle
the water, and the UAE is doing just that
by recycling it into irrigation. The next step,
he pointed out, is moving into the next
phase, which is using wastewater for district
cooling.
In the United Arab Emirates, much of
the ground water is not only too high in
nitrates, it is also too saline to meet drinking
water standards which is why desalinated
seawater is the main source of drinking water,
supplying 95 percent of total requirements.
The entire interview with Juez may be
read at http://tinyurl.com/ye3hj46.
Quick Start Feature
for York Chillers
Johnson Controls has introduced the
Quick Start feature for its York
centrifugal
chillers equipped with OptiSpeed vari-
able-speed drives. Designed to reduce time
for chiller restart after power failure by as
much as 75 percent the feature rapidly
re-establishes chilled-water temperature,
keeps process equipment cooled and
reduces the risk of expensive downtime.
Quickly restarting a chiller can avoid the
catastrophic consequences of data loss,
equipment damage from overheating and
operational downtime. In addition to mini-
mizing chiller restart time, the Quick Start
feature also reduces the time required to
return to the specified leaving chilled-water
temperature (LCHWT). Re-establishing LCHWT
is a function of load, compressor size and
specified temperatures. For a 500-ton
chiller at low load without the Quick Start
feature enabled, a chiller can re-establish
LCHWT in about 10 minutes, while a chiller
with the Quick Start feature takes approxi-
mately three minutes 70 percent faster.
Available as an option for 250- to
3,000-ton York centrifugal chillers, the
Quick Start feature requires a York OptiSpeed
drive. The variable-speed drive, with its
patented adaptive capacity control, remem-
bers optimum speeds for various operating
conditions, reducing annual chiller energy
consumption and lowering carbon dioxide
emissions by as much as 30 percent.
K-State Uses Stimulus
for Steam Pipes
Kansas State University in Manhattan,
Kan., has been awarded $2.3 million in
federal stimulus funds for 2009, which it
plans to invest in long-deferred infrastruc-
ture projects. The K-State News Insider
reported Sept. 23 that the first project to
be undertaken with the funds will be
replacement of the 80-year-old pipes that
supply the campus with steam for space
heating in winter and hot water through-
out the year.
K-State officials would like to get the
work done before the pipes deteriorate to
the point that the education mission of the
university is affected. The project is one
from a long list of maintenance work
deferred over the years because of inade-
quate state funding of Kansas Board of
Regents' institutions. The project could
start as early as spring 2010.
Interruption in the flow of steam to
facilities located in the southwest corner of
our campus could stop scheduled teaching,
research and other educational programs
planned for those buildings, said Abe
Fattaey, K-State's director of facilities plan-
ning and university architect.
The project consists of replacing long
lengths of pipe that stretch from roughly
the Power Plant down to the K-State
Student Union and Memorial Stadium.
Buildings served by this project include
Durland, Fiedler, Rathbone and Seaton
Halls; Ahearn Field House and the
Natatorium; the K-State Student Union;
and the offices and classrooms in East and
West Stadium.
K-State is scheduled to receive an
additional $5.6 million in stimulus funds to
work on more critical infrastructure projects
in 2010.
Cooling With
Snow in Sweden
According to the Advantage Environ-
ment Web site, one Swedish company is
taking a novel approach to meeting the
growing demand for district cooling by
utilizing snow, found in abundance in
northern Sweden. In an article published in
September on the site, Snowpower AB is
using a 60,000-cu-m (2.1 million-cu-ft) pile
of stored winter snow to cool the Sundsvall
Hospital in summer.
During a normal winter, Stockholms
street clearing crews dump about a million
cu m (35.3 million cu ft) of snow in the
The NECN interview can be viewed at
http://tinyurl.com/DiCroce.
SRE Receives Order for Three
New Plants
Svensk Rkgasenergi (SRE), a sub-
sidiary of Opcon AB, has received an order
via its partner, Axis, for three more district
heating plants in Lithuania. The overall
order value for SRE is around 20 million
Swedish crowns ($2.9 million). The agree-
ment covers delivery of three complete
plants for flue gas condensation, purifica-
tion and water treatment in order to utilize
waste heat and increase the efficiency of
incineration of biomass at the district heat-
ing plants in Naujoj Vilnia, Alytus and
Marijampole. At the same time, emissions
to the environment will be cut significantly.
In all three deliveries, the end customer is
Litesko, a wholly owned subsidiary of
Dalkia. The deliveries are planned for 2009
and 2010.
SRE is part of Opcons growing renew-
able energy business area and its activities
within waste-to-value with a special focus
on waste heat recovery and bioenergy. SRE
delivers systems for, among other applica-
tions, treatment and improved energy effi-
ciency at district heating plants powered by
biomass, sawmills, pellets producers and
commercial greenhouses.
EPA Finalizes Rule on
Mandatory Emissions
Reporting
The U.S. Environmental Protection
Agency (EPA) issued a final rule Sept. 22
establishing an economy-wide system for
mandatory reporting of greenhouse gas
emissions (Reporting Rule). Proposed in
April 2009, the Reporting Rule is expected
to apply to approximately 10,000 facilities
across a broad spectrum of economic sectors,
accounting for approximately 85 percent of
greenhouse gas emissions in the United
States. Facilities subject to the Reporting
Rule are required to begin emissions moni-
toring in January 2010 and submit detailed
annual reports to EPA beginning in 2011.
The Reporting Rule does not require affected
facilities to implement greenhouse gas
Industry
News
citys waterways, while in Russia, St.
Petersburg tips as much as 25 million cu m
(882.9 million cu ft) into the Neva River.
Both cities are looking into ways they can
use snow for district cooling. Similar studies
are under way in Turkey, Canada, Japan
and other Russian cities.
Water is a lot easier to cool with snow
than air, according to Kjell Skogsberg, chief
executive officer for Snowpower.
The installation at Sundsvall Hospital is
an important case study for district cooling.
The basic principles are simple, with the
snow bank stored near the hospital and
insulated with a layer of wood chips. As
the snow melts, the runoff water is filtered
and pumped via a heat exchanger to hospi-
tal buildings. Then the warmed water is
routed back to the snow bank to be chilled
again.
The Sundsvall plant uses a combina-
tion of natural and artificial snow made by
cannons. The Sundsvall installation shows
that the technology works, and that we
can save money by using snow for cool-
ing, Skogsberg explains. The best
approach, though, would be to have the
snow stored in an underground bunker.
Studies at LTU have looked at the envi-
ronmental impacts of snow cooling systems
compared with traditional approaches. The
technology for snow cooling is simple: a
lined pit in the ground is filled with winter
snow and covered with an insulating layer.
Melt water, just above the freezing temper-
ature, is collected at the bottom, filtered
and pumped via underground pipes to the
customer.
Comparative studies show that the
primary impacts from both snow cooling
and traditional air-conditioning systems
occur during operation. Snow cooling is a
clear winner, however, for its lower impact
on climate, acidification and excess fertiliza-
tion of waterways.
District Heating Development
Center in Denmark
The Danish district heating industry is
soon to establish a development center,
reported the Danish Energy Association in
its daily newsletter. The announcement
comes after 60 leading players from the
industry and the educational sector recently
paved the way by founding the District
Heating Development Centre Association,
which will form the basis of the center.
Anders Hanberg Srensen, who has
chaired the working group of the District
Heating Development Centre, said, This is
a vital step for the district heating industry.
There is giant potential both concerning cli-
mate-related gains and job creation in the
long term. Srensen is also the rector of
the Aarhus School of Marine and Technical
Engineering, where the new center is
planned to be located.
The District Heating Development
Centre aims to support research, develop-
ment, testing and training in an industry
that generates annual revenues of more
than 16 billion Danish crowns ($3.16 bil-
lion). Grundfos, Danfoss, Logstor, the
Aarhus School of Engineering, the Danish
District Heating Association and the Aarhus
School of Marine and Technical Engineering
are among the many companies, organiza-
tions and institutions supporting the project.
Veolia COO Interviewed
About District Energy
Bill DiCroce, chief operating officer of
Veolia Energy North America, was inter-
viewed recently by business reporters from
the New England Cable News (NECN) net-
work about district energy, cogeneration
and how they are changing the way cities,
universities and businesses get their energy.
A video interview was posted Oct. 4 on
The Boston Globe Web site.
After explaining the fundamentals of
district energy and cogeneration technolo-
gies, DiCroce discussed the future of the
U.S. energy industry, which he said would
include greater use of cogeneration,
renewable energy sources such as solar and
wind, and clean coal, as well as further
development of nuclear energy. He
addressed the impact federal stimulus
funding will have on district energy, saying
that the incentive of available of federal
money may be the tipping point that will
compel projects to decide in favor of dis-
trict energy technology.
IDEA welcomes your industry
and people news. Please
email to
idea@districtenergy.org.
emission controls or reductions.
Specific greenhouse gases that must
be reported under the Reporting Rule
include carbon dioxide, methane, nitrous
oxide and fluorinated greenhouse gases.
The Reporting Rule generally applies to
facilities that emit at least 25,000 tons
CO
2
-equivalent (CO
2
-e) per year; however,
some facility types (such as electric-generat-
ing facilities and petrochemical facilities) are
covered by the Reporting Rule regardless of
their emissions level.
Although most facilities subject to the
Reporting Rule are electric utilities or indus-
trial installations, the Reporting Rule also
reaches any nonindustrial facility that
operates a combustion device emitting at
least 25,000 tons CO
2
-e per year; large
landfills and manure management systems;
and other emitting facilities. The Rule also
reaches upstream suppliers of fossil fuels
and industrial gases that are greenhouse
gases.
Although EPA has previously required
reporting of greenhouse gas emissions
from electric-generation facilities, the
Reporting Rule is significant because of its
broad scope and high level of detail. More
detail on the Reporting Rule is available in
the Oct. 5 Issue Alert published by law
firm Van Ness Feldman. To view this alert,
go to http://tinyurl.com/Reporting-Rule.
Audi to Tap District Heating
German carmaker Audi AG has taken
one big step toward its corporate energy
efficiency goals by signing a district heating
contract for its main plant in Ingolstadt,
Germany. The tapping of 120,000 MWh of
previously unused waste heat allows the
plant to double its waste heat utilization
and benefits the environment by reducing
annual carbon dioxide emissions by 26,000
metric tons in Ingolstadt alone.
Audi AG is bolstering its commitment
to environmental protection in other ways
as well. The company has established the
Audi Environmental Foundation, which has
an endowment of 5 million euros ($7.4 mil-
lion). This foundation will focus exclusively
on environmentally minded pursuits for the
common good, and will strive to protect
the natural livelihood of people, animals
and plants. Financial assistance will be allo-
cated to measures and research activities
that encourage the development of envi-
ronmentally compatible nonautomotive
technologies.
The preamble of the Audi environmen-
tal policy already commits the company to
continuously enhance the environmental
compatibility of products and production
sites and to ensure eco-friendly use of nat-
ural resources.
Big Oil and Waste Heat
Geothermal
The Clean Technica Web site reported
Oct. 4 that the U.S. Department of Energy
is going to show the traditional energy
industry how to tap the energy potential of
hot waste fluids produced by the process
of oil extraction.
Every barrel of oil extracted in the U.S.
also produces 10 barrels of hot fluids in
addition to oil. The DOEs Geothermal
Technologies Program at the Office of
Energy Efficiency and Renewable Energy
(EERE) will collaborate with Office of Fossil
Energy to make low-temperature geother-
mal power from the waste drilling fluids
using a waste heat geothermal unit. The
EERE is buying the waste heat geothermal
unit from Ormat Technologies to do the
demo; Ormat makes both geothermal and
combined heat and power units.
The electricity produced would be
used to power field production equipment,
which would offset purchased electricity.
Because this would reduce the fossil energy
needed to extract each barrel of oil, this
would reduce the pollution costs the tradi-
tional oil industry would be liable for under
new legislation pending.
Empower Commissions
District Cooling Plant
Emirates Central Cooling Systems
Corporation (Empower) announced in early
October that it has commissioned the
45,000-tonne district cooling plant for the
Business Bay Executive Towers, a mixed-use
community development within Business
Bay in Dubai. The world-class plant started
supplying chilled water to the area in June.
Ahmed Bin Shafar, CEO of Empower,
said Business Bay Executive Towers is
expected to be one of the busiest and
dynamic business spots of Dubai.
International quality standards were adopt-
ed in commissioning this significant plant.
The plant will supply not only the 11 tow-
ers of this development, but also other
phase one and two developments in
Business Bay through a 6-7 km network.
Bin Shafar noted that Commissioning
is vital to ensure a seamless implementa-
tion of the project until the completion
phase. It is a matter of pride that this proj-
ect will be completed in time and within
budget and this where commissioning fits
in. Effective commissioning was essential to
provide clarity to the required jobs and
exactly what everyone needs to do. The
commissioning process was well-defined
and simple for everyone involved. We kept
up-to-date records of the progress, which
helps the contractors focus on issues that
need attention.
Comprising 11 towers including 9 resi-
dential towers, a commercial development,
and the Business Bay Hotel, The Executive
Towers is the first phase that has been
launched in the multi-billion dollar Business
Bay development.
Empower, a joint venture between
TECOM Investments and Dubai Electricity
and Water Authority (DEWA), provides
energy-efficient district cooling services to
large-scale real estate developments. It cur-
rently provides 250,000 tonnes to a wide
array of projects in Dubai, including Dubai
International Financial Center, Dubai Health-
care City, Jumeirah Beach Residence and
City Of Arabia, in addition to Business Bay.
Industry
News
People In
the News
Sofame Technologies Inc. announced
in May the addition of Michel Brisson to
the executive team as president and chief
executive officer. For more than 20 years,
Brisson has been a sales and management
executive, most notably serving as presi-
dent and chief executive officer of SAP
Canada. In his new role, he will focus on
building the Sofame direct sales team in
addition to expanding the sales network of
representatives across North America.
Concurrent with the appointment of
Brisson, Sofame announced that John
Gocek, previously the corporation's presi-
dent and chief executive officer, will take
up the newly created position of chief
operating officer. Gocek's role will be to
continue strengthening Sofame's manufac-
turing operations, market position and
engineering capabilities.
IDEA legal counsel
Joel L. Greene, an
attorney with the law
firm Jennings Strouss &
Salmon, was selected
for inclusion in Best
Lawyers in America
2010, published by
Woodard/White Inc. of Aiken, S.C. For
more than two decades, Best Lawyers has
been regarded by both the legal profession
and the public as the definitive guide to
legal excellence in the United States.
Lawyers are chosen for inclusion based
solely on a vote of their peers. A total of 31
lawyers with Jennings Strouss & Salmon
more than half the firms equity members
were included in this years Best Lawyers
list. Greene, who practices in the area of
energy law, is based at Jennings Strouss &
Salmons office in Washington, D.C.
Patrick Appleby has been named
vice president industry sales at Danfoss
Drives. In this new role, he will be responsi-
ble for industrial OEM and distribution
sales. Appleby comes to Danfoss with more
than 20 years experience at General
Electric in a variety of capacities. Most
recently, he was the North American distri-
bution sales manager for GE motors. Prior
to that, he held the
positions of national
account manager and
industrial OEM market
manager. Appleby has
a bachelor of science
degree in sales and
marketing from New
York University. His office is located at
Danfoss Drives Milwaukee facility.
IDEA board mem-
ber Stewart A. Wood,
president and chief
executive officer of
Veolia Energy North
America, has been
elected to the board of
directors of the French-
American Chamber of Commerce, New
England Chapter (FACCNE). Wood will
serve for a two-year term on the 18-mem-
ber FACCNE board. The French-American
Chamber of Commerce contributes to the
development and improvement of economic,
commercial and financial relations between
France and the United States. Wood has
served in a number of executive capacities
with Veolia Energy over 11 years. Prior to
his current position, he served internation-
ally with the Dalkia Group, working in
executive management and board positions
in Australia, Sweden, Norway, France and
the United Kingdom.
William Bill
DiCroce was named
chief operating officer
of Veolia Energy North
America in September
2009. DiCroce is now
responsible for the
company's operational
and financial performance, as well as
charged with driving growth across the
country. He joined Veolia Energy North
America as senior vice president - East
region in June 2008. Before joining Veolia
Energy, DiCroce was the president and
COO of Advanced Energy Systems Inc., a
subsidiary of NSTAR Electric and Gas Co.,
which owned and operated district energy
systems in the Boston area. Previously he
worked at General Electric, Boston Edison
and Entergy.
USPS Statement
Tax Incentives:
How public institutions can
reap benefits
Elizabeth Teuwen, Attorney, Jennings Strouss & Salmon PLC; and Nancy Pohl,
Attorney, Jennings Strouss & Salmon PLC
From a Legal
Perspective
Editor's Note: From a Legal Perspective is
a new column for District Energy magazine.
It will appear in each edition to address
legal issues of current importance to the
district energy industry. It is intended for
educational purposes only and does not
constitute legal advice.
M
anaging greenhouse gas emis-
sions is an inescapable reality in
todays world. Whether mandat-
ed by law or voluntarily committed, many
public institutions served by district energy
systems are looking for ways to reduce
their carbon footprint. For example, a
number of IDEAs university members have
signed onto the American College &
University Presidents Climate Commitment,
requiring them to take immediate steps
towards becoming carbon-neutral. On a
regional level, hospitals, local governments
and other nonprofit entities are making
similar commitments.
Unfortunately, the recent economic
downturn has meant budget cuts and lim-
ited financing opportunities, making it
harder to meet these capital-intensive cli-
mate change goals. Tax incentives have
been used since the 1960s to promote
energy conservation and encourage invest-
ment in alternative energy resources.
Recent legislation has expanded the appli-
cation of these tax incentives to combined
heat and power systems and a number of
renewable energy technologies. For many
businesses, these tax credits make invest-
ments in green projects possible. But what
about tax-exempt organizations? Local
governments, universities, hospitals and
other nonprofit organizations may not
have the tax liabilities against which to
claim these credits.
The ability to monetize tax incentives
through partnership with private develop-
ers may provide tax-exempt IDEA mem-
bers an alternative means of funding
investments in energy efficiency and
renewable energy projects. This column
will provide a brief overview of the tax
incentives available and business struc-
tures that have been used to pass those
incentives on to tax-exempt organizations.
Energy Investment
Tax Credits
Investment tax credits are available
for business investment in energy prop-
erty, which include CHP systems and
equipment that uses solar energy to gen-
erate electricity, heat or cool buildings, or
provide heat for industrial processes.
These credits also apply to geothermal,
wind, fuel cell and other renewable tech-
nologies. Under the American Recovery
and Reinvestment Act of 2009 (ARRA),
Congress increased the credit to 30 per-
cent of the equipment cost (up from 10
percent) for projects installed before Jan.
1, 2017. The credit vests at a rate of 20
percent per year; if a taxpayer disposes of
the property within five years of utilizing
the credit, the IRS will recapture the
unvested portion of the credit.
The ARRA also provides grants in lieu
of the tax credit described above. Instead
of the tax credit, businesses receive an
upfront cash payment from the U.S. Treasury.
However, any entity partnering with a
local government or tax-exempt organiza-
tion is not eligible to receive this grant.
Additionally, as with the investment tax
credit, the grant is subject to recapture if
the property is sold within five years of
the grant.
Another tax benefit applicable to cer-
tain renewable energy projects is the ability
to accelerate depreciation. CHP facilities
and some renewable technologies are
deemed to be five-year properties, mean-
ing the applicable recovery period for
depreciation purposes is only five years.
Energy Efficiency
Tax Deductions
Building owners are also able to claim
a federal tax deduction of $1.80 per square
foot for reducing a commercial buildings
energy consumption by 50 percent or
more. The deduction is available for modi-
fications to heating, cooling, ventilation
and hot water systems, as well as other
improvements to the building envelope
and interior lighting. For publicly owned
buildings, these tax deductions can be
passed on to the person primarily responsi-
ble for designing the property.
State Incentives
A number of individual states have
also enacted tax incentives for both
renewable energy projects and energy
efficiency initiatives. The Database of State
Incentives for Renewables and Efficiency
contains a comprehensive list of the tax
Monetizing tax incentives
through partnership with
private developers may help
tax-exempt IDEA members
fund energy efficiency and
renewable energy investments.
incentives available in each state (see
www.dsireusa.org).
Monetizing Tax Credits
Over the years, private developers
have utilized an assortment of business
models to entice capital investment in
renewable energy projects by monetizing
tax incentives. For example, under the
sale-leaseback model, the developer sells
the project to investors, and the investors
in turn lease the equipment back to the
developer to operate and maintain the
system. As the owner of the project, the
investors are allocated the tax credits.
In a partnership flip, the developer
and investor form a partnership to own
the project, and a majority of the income
and loss of the project, along with the tax
credits, are allocated to the investor. At
some point in the future (generally at least
five years after the property is placed in
service so that there are no recapture issues
for investment tax credits), the interests
are flipped, causing the partners interests
in the allocation of profits and losses of
the partnership to shift.
While tax-exempt entities might take
advantage of these models, there are
some limitations. For instance, sale-lease-
back transactions generally cannot involve
tax-exempt property. Likewise, state law
may limit participation in partnership flips,
and risks could include a revocation of
tax-exempt status.
The Third-Party Alternative
Another structure gaining in popularity
is the third-party ownership and manage-
ment of renewable and efficiency projects
through the use of power purchase agree-
ments or performance contracts. This
model may be easier to implement than
those described above.
The power purchase agreement (PPA)
model has typically been used for solar
panel systems, although it could apply to
other renewable technologies. A developer
installs the system on the customers prop-
erty, owns and operates the facilities, and
is responsible for all maintenance. The
developer then sells the energy produced
by the system to the customer under the
PPA, and the tax benefits are realized
through a reduced price for the energy.
Similar to the PPA, the performance
contract model is often used to implement
energy efficiency projects. Here, the cus-
tomer contracts with a private energy service
company (ESCO) for retrofits and other
energy-saving equipment. This might include
adjusting HVAC systems, installing energy
management control systems or modifying
boilers and chillers. The customer pays the
ESCO to design, install and maintain the
equipment. The ESCO is responsible for
financing the project and usually guaran-
tees a level of energy savings over the
term of the contract. Again, the tax credits
available to the private ESCO could be
reflected in the price paid for services
under the performance contract.
These third-party contracting models
have both benefits and potential draw-
backs. On the plus side, there is no upfront
cost to the customer. The developer owns
the equipment and is responsible for its
operation and maintenance. However,
there are still transactional and operational
costs involved in these projects. There is
also some risk in allowing a third-party
access to the premises and to on-site facilities.
No Silver Bullet
Business structures do exist to allow
public institutions to realize the benefit of
tax incentives though partnership with pri-
vate entities. However, there is no silver
bullet any deal will have its benefits and
potential downsides.
Third-party contracting arrangements
are probably the easiest to implement.
There are a number of issues to consider
when negotiating these deals: What hap-
pens to the equipment at the end of the
contract term? How do you manage the
risk of providing the contractors access to
your facilities? What, if any, coordination
with the local utility is necessary? How do
the savings compare to the cost of financ-
ing and constructing the project on your
own? These, and other factors, may influ-
ence the ultimate viability of these third-
party options.
Elizabeth Teuwen is an
energy lawyer with Jennings
Strouss & Salmon PLC in
Washington, D.C. Her prac-
tice focuses on the electric
and natural gas sectors of
the energy industry. She
represents municipal utili-
ties and rural cooperatives before the Federal
Energy Regulatory Commission and advises
clients on electric industry restructuring,
renewable energy development, power sup-
ply arrangements and transmission issues.
Teuwen can be reached at eteuwen@
jsslaw.com.
Nancy Pohl is a tax and
estate planning attorney in
Jennings Strouss & Salmons
office in Phoenix, Ariz. She
handles corporate and part-
nership tax planning, estate
planning, tax-exempt organ-
izations, general business
planning and federal and
state tax litigation. Pohls transactional tax-
planning practice includes structuring part-
nerships and limited liability companies,
mergers and acquisitions, reorganizations,
spin-offs and restructuring transactions. She
can be contacted at npohl@jsslaw.com.
Third-party contracting arrange-
ments are probably the easiest
to implement.
FOR
RENT
Its time to reserve
magazine advertising
space for 2010.
Contact Tanya Kozel,
(410) 518-6676, tanya.idea@
districtenergy.org
Fundamental commissioning is actually
a prerequisite for LEED certification and
one that does not confer any points toward
that goal, which reflects how important it
is to the USGBC. As defined by the LEED
rating system, fundamental commissioning
requires the project team to designate a
commissioning authority to lead the process,
review the owners project requirements and
the designers basis of design, develop and
incorporate commissioning requirements
into the construction documents, develop
and implement a commissioning plan, verify
the installation and performance of the
systems to be commissioned, and complete
a summary commissioning report.
The USGBC also encourages project
teams to pursue enhanced commissioning
activities by assigning these activities points
equal to 5 percent of the total points needed
for basic certification. Enhanced commis-
sioning, as defined by the LEED rating system,
requires the commissioning authority to be
independent of the design and construction
team. That commissioning authority, or
agent, must also begin design reviews before
the midpoint of construction document
development, review contractor submittals
of systems to be commissioned, create a
systems manual that provides future oper-
ating staff the information needed to opti-
mally operate the systems, verify training
requirements have been completed, and
perform a warranty review 10 months after
substantial completion.
How About the Plant?
During the first 10 years of the LEED
program, little guidance was provided as
to how to apply commissioning require-
ments to a district energy plant that serves
a LEED-applicant building. The lack of
guidance created much confusion with
regard to commissioning. For instance, if
utility services are generated within the
LEED-applicants building (e.g., steam from
boilers, chilled water from chillers), com-
missioning of the generation equipment
has always been required; if generated off
site in a central plant, the commissioning
requirement for generation equipment
was unclear. Prior to issuing its first district
energy guidance document in spring
2008, however, the USGBC came to a
consensus on this issue and provided clari-
fication within that document.
On the matter of commissioning, the
USGBC determined it did not want an
applicant building to be prevented from
getting LEED certification just because it
What Do You Mean I
Need to Commission
My Plant?
Answering the call
Tim Griffin, PE, IDEA USGBC Liaison
Editor's Note: LEED
+ District Energy
is a quarterly column providing information
about the U.S. Green Building Councils
LEED
rating system and how it applies to

district energy systems and the buildings
they serve.
W
hat do you mean you
cant get your building
certified as green if you
connect into my plant? you shout into
the phone. My district energy plant is
efficient! And what does commissioning
my plant have to do with your building?
you continue.
Calls like this one are occurring across
our industry. Developers, colleges and uni-
versities, Fortune 500 companies and others
are all trying to certify their construction
projects through the U.S. Green Building
Councils LEED
(Leadership in Energy and

Environmental Design) Green Building Rating
System. There is much confusion about
how the guidelines are to be applied when
a building receives district energy service
especially in the area of commissioning.
Can a building project be prevented from
obtaining LEED certification by connecting
into your plant just because the plant has
not been commissioned? The answer is a
resounding maybe. Let me explain.
The What and Why
of Commissioning
Commissioning is a quality assurance
process designed to help owners get the
facilities they envisioned. Fundamentally, the
process is designed to provide plant owners
and operators with an understanding of how
all of a buildings systems are supposed to
interact; ensure that the owners vision does
not get compromised during design, con-
struction or turnover; and test all system
interaction to ensure proper functionality
under all possible operating conditions.
The USGBCs goal with the LEED pro-
gram is to encourage the development and
operation of energy-efficient buildings. What
the council discovered, however, is if a
building is designed to be energy-efficient
but is not commissioned, it will not operate
that way. So early on, commissioning became
a requirement within the LEED rating system.
LEED
+
District Energy
Fundamental commissioning is
actually a prerequisite for LEED
certification.
was connecting into a district energy plant
that itself might not be commissioned.
As a result, it clarified in 2008 that only
the components of a district energy system
within the LEED-applicant building itself
(i.e., the heat exchanger, building tertiary
pump, controls, etc.) have to be commis-
sioned to meet the prerequisite requirements.
These, of course, represent systems and
equipment building owners can control
within their own facilities.
However, while keeping the guidelines
from penalizing projects connecting into
district energy, the USGBC also did not want
to reward projects extra points unless they
took the district energy plant into consider-
ation. Therefore, if a LEED-applicant building
wants to pursue additional points through
enhanced commissioning, the plant systems
associated with the utility-provided chilled
water, steam, hot water, etc., must also meet
the enhanced commissioning requirements.
So, back to our original question: Does
the plant have to be commissioned in order
to allow the connecting building to gain LEED
certification? The answer is no. However,
building owners often want to pursue
enhanced commissioning because it is a
high-value-added service to their project
that easily gains two points toward LEED
certification. In addition, the steps for satis-
fying LEEDs enhanced plant commission-
ing requirements are straightforward and
relatively easy to achieve. Often these points
are crucial in getting a project to its target-
ed rating level. As a result, enhanced com-
missioning is normally targeted by project
teams pursuing LEED certification.
Act Strategically
Lets dig deeper into the requirement
for enhanced commissioning. There are
situations where even if the LEED-applicant
building is pursuing the two points associ-
ated with enhanced commissioning, the
district energy plant does not have to be
commissioned. Those situations include
whenever the building project is less than
50,000 gross sq ft and when the energy
supplied to the building represents less
than 20 percent of its total annual energy
use. However, for most district energy sys-
tems there is too much risk associated with
hoping a potential customer will fit these
narrowly defined exceptions or will not need
the additional two points for enhanced
commissioning.
Therefore, it is prudent to be prepared
in advance to answer your potential cus-
tomers question affirmatively: Yes, sir, if
you are pursuing LEED certification and
connecting into our plants distribution net-
work, I can assure you there will be no
problems meeting the prerequisite and
enhanced commissioning goals for your
project because of our plant. To be able
to make this statement with confidence,
you need to do the following:
G
New Plants: If you are developing a new
district energy plant on your campus or in
a municipality, include enhanced commis-
sioning as part of the planning, design
and construction process. Most important,
dont think of commissioning as something
you only do to check it off your list to satisfy
future LEED requirements. Commissioning
is an investment. As such, there is a return
associated with this investment. Focus on
the value that you can get out of com-
missioning and not the cost. (For more on
commissionings benefits, see the article
Commissioning: Delivering a central plant
that works in this issue of District Energy.)
G
Fairly New Plants (less than five years
old): The LEED district energy guidance
document requires plants or equipment in
plants that are less than five years old to be
commissioned through the same process as
a new plant. If your plant was not com-
missioned when built, bring in a commis-
sioning team to do so now. Again, focus
on the value you will gain from commis-
sioning activities. Ask the team what it is
going to do to improve plant operation as
a part of the commissioning process.
G
Existing Plants: If your plant is more than
five years old, you now fall under the
retrocommissioning requirements described
in the 2009 LEED for Existing Buildings:
Operations & Maintenance Energy and
Atmosphere Credit 2.2 or 2.3. Basically,
the process of retrocommissioning involves
bringing your plant back to the level of
operation that was originally intended,
which includes incorporating the goals of
all plant upgrades and enhancements that
have occurred through the years. The goal
of retrocommissioning is the same as that
of traditional commissioning. A successful
retrocommissioning project should have a
solid payback. Some of the many studies
on retrocommissioning have shown pay-
backs of less than a year.
In all cases, new building commissioning
or retrocommissioning must have occurred
within five years of the date of an applicant
building projects substantial completion in
order to meet the enhanced commissioning
requirements for LEED certification. As an
option to retrocommissioning, you can estab-
lish a continuous commissioning process in
your plant. This involves demonstrating that
preventive and continuous maintenance
plans and efficiency-monitoring programs
are in place to ensure (1) that ongoing
system efficiencies meet the original design
intent and (2) that energy efficiency per-
formance has been tested and recorded
under these programs during the five years
before the applicant building projects sub-
stantial completion.
No matter who your customer may
be public, private, institutional or indus-
trial be prepared for their call when it
comes. Determine now what you need to
do to have the right answers and align
those answers with the best opportunities
to improve your plants energy perform-
ance in the process.
Tim Griffin, PE, is IDEAs
liaison with the U.S. Green
Building Council. He is a
principal and branch man-
ager with RMF Engineering
Inc., a firm specializing in
district energy system
design and commissioning.
A registered engineer and a LEED Accredited
Professional, Griffin has a bachelor of science
degree in mechanical engineering from North
Carolina State University and a master of
business administration degree from Colorado
State University. He authored the book Winning
With Millennials: How to Attract, Retain, and
Empower Todays Generation of Design Pro-
fessionals. He may be reached at tgriffin@
rmf.com.
The steps for satisfying LEEDs
enhanced plant commissioning
requirements are straightfor-
ward and relatively easy
to achieve.
IDEAs new district energy industry video Nows the Time debuted at the 100th
annual conference in June.
You can view it on YouTube at http://tinyurl.com/IDEAvideo and even embed it on
your own Web site.
The full-length video and special excerpted segments are available in QuickTime
format at www.districtenergy.org/video.htm if you want to share them with others
or integrate them into existing presentations.
If you would like to customize the video to meet your particular needs, please
contact IDEAs video producer Peter Myers at 651.291.5449 or pmyers@myersgroup.net.
He can guide you through the customization process and ensure you meet the videos
copyright parameters.
Questions? Contact Rob Thornton, IDEA, 508.366.9339, rob.idea@districtenergy.org.
You Can Leverage IDEAs New Industry Video
District Energy
Nows the Time
District Energy
Nows the Time
Horizontal or
Vertical:
Whats your angle?
Steve Tredinnick, PE, Vice President of Energy Services, Syska Hennessy Group
Inside
Insights
Editors Note: Inside Insights is a
column designed to address ongoing
issues of interest to building owners,
managers and operating engineers who
use district energy services.
R
ecently I came across what I think to
be one of the engineering worlds
perennial dilemmas. You know, the
type of quandaries along the lines of,
What came first, the chicken or the egg?
Dark ale or light beer? Tastes great or less
filling? Apple pie or pumpkin pie? Vikings
or Packers? Or the perpetual argument in
our household, Do nuts really belong in
brownies?
My engineering dilemma reference is,
What angle do you prefer horizontal or
vertical? And no, Im not playing an angle
here. I am specifically referring to pumps.
Just like brownies and pies, pumps
come in several flavors and colors, as well
as different orientations with respect to a
horizontal or vertical axis. Horizontally ori-
ented pumps are parallel to the horizontal
axis and usually are supported on an isola-
tion base; vertically oriented pumps are
parallel to the vertical axis and typically
supported by piping, or the pump casing
may extend to the floor, depending on the
manufacturer.
In recent years, I have seen both con-
figurations installed at central plants that I
have had the opportunity to visit either
for project-related reasons or as part of the
great tours provided by IDEA during con-
ferences. From these visits, I get the
impression that there is a clandestine
movement by engineers or contractors to
use the vertical configuration for distribu-
tion pumps.
Since I have never used the vertical
in-line for large distribution pumps, I have
often wondered, What am I missing on
this issue? Hence, I decided it was time to
do some research and get smarter on the
subject. If you need a refresher course or
an illustration for these pumps, please
refer to figure 1 for a typical double-suc-
tion horizontal pump and figure 2 for a
double-suction vertical pump.
In general, the published literature for
the vertical pumps claims many advantages
over traditional horizontal split case-type
pumps, including savings in the areas of
installation costs, floor space and mainte-
nance. Those advantages sound great, but
do they apply everywhere? As you may
surmise, I am pessimistic about that. For
some reason, vertical pump configurations
just seem to bug me they seem like
somebody wimped out when fighting for
space. Its a bit like putting ketchup on a
chili dog: It just doesnt seem right. However,
the pumping industry obviously felt there
was a need for vertical configurations,
since it seems to be filling that gap. So
what is the big deal? Lets look at the pros
and cons of a large vertical distribution
pump, outlined in table 1.
To further illustrate my viewpoint: We
recently had a project to replace four exist-
ing chilled-water distribution pumps with
three larger ones. The new pumps are
10,000 gpm and 400 HP each. We selected
both horizontal and vertical pumps and
then laid them out in the available space
Figure 1. Bell & Gossett Horizontal Pump (VSC).
C
o
u
r
t
e
s
y
B
e
l
l
&
G
o
s
s
e
t
t
.
Figure 2. Armstrong Vertical Pump (Series 4300).
C
o
u
r
t
e
s
y
A
r
m
s
t
r
o
n
g
P
u
m
p
s
.
Figure 3. Pump Room Layout Using Three
Horizontal Pumps.
C
o
u
r
t
e
s
y
S
y
s
k
a
H
e
n
n
e
s
s
y
G
r
o
u
p
.
Based in Madison, Wis.,
Steve Tredinnick, PE, is
vice president of energy
services for Syska Hennessy
Group, which has more than
16 locations across the U.S.
He has more than 26 years
experience related to build-
ing heating, ventilation and air-conditioning
systems. The past 15 years of his work have
been focused on district energy systems.
Tredinnick is a graduate of Pennsylvania State
University with a degree in architectural engi-
neering. He is a member of IDEA and
ASHRAE and is currently immediate past chair
of ASHRAE TC 6.2 District Energy. Tredinnick
currently serves on IDEAs board of directors.
He may be reached at stredinnick@syska.com.
Table 1. Vertical Pumps: Not all theyre cracked up to be?
(figs. 3 and 4). While the vertical pumps
did appear to fit better, we were able to
add horizontal pumps in a similar floor
space using Bell & Gossetts VSC pump
that has two vertical connections.
What ultimately won us over on the
horizontal pump were the following facts:
1. The project was located in a California
seismic zone, and a 400 HP motor
weighs more than 3,000 lb (if you
can, envision more than the weight
of a VW Beetle above the impellor).
While there are structural bracing
solutions, during a seismic event I
would be crushed like a beetle if I
were standing next to the pump, and
it decided to let loose after moving
from its center of gravity and picking
up some oscillating momentum!
2. Any entrained air within the chilled-
water system could naturally migrate
to the top of the impellor casing,
creating an air pocket and keeping
the pump seals dry, which would
accelerate their wear.
One last note not related to our
project and more specific to a heating
water pump installation is that the heat
rising from the pump casing will detract
from the cooling of the electric motor
above the pump casing, thus affecting its
life and effectiveness. While this sounds all
gloom and doom for the vertical pump, I
think it still has its place in the toolbox,
since in retrofit applications it may be the
only solution that will fit especially in
smaller pumps. I would also like to hear
from readers and IDEA members who
think otherwise or have different experi-
ences or viewpoints from my own.
With my current research complete, it
must be time to settle back into my Lazy
Boy recliner and assume my favorite angle
for watching a weekend of football on
TV horizontal. Maybe I will enjoy some
brownies without nuts! and catch a
wink or two of shuteye at half time. Oh,
and the answers to the other questions:
heavy ales, tastes great, apple pie and the
Vikings (even if I do live in Wisconsin), of
course! I will leave the chicken-and-egg
dilemma for another day.
They have advantages but
Installation
G
Eliminate inertia bases and springs since pump is
G
Piping alone might not be a good method of supporting
integral to piping a large pump, especially for seismic conditions.
G
Eliminate flexible connections
G
Eliminate field grouting of base
Floor Space
G
Offer potential to save space over horizontal
G
Floor savings is mostly achieved by using suction diffusers
split-case pumps that have suction and discharge and triple- duty valves that also act as elbows.
connections at the 3 and 9 oclock positions due to
long radius elbows
Maintenance G
Need pump seals replaced about every two years
G
Split couplings are a great idea, but truly a necessity due
for clean water applications to the weight of larger motors.
G
Have split spacer coupling to access pump seals
G
Once the coupling is disassembled to access seals, the
without removing motor impellor is unsupported and will slip to bottom of volute.
G
Have no bearings to service, thus save maintenance On large pumps it will take several strong adults to
reattach the split coupling by hand, thus increasing
maintenance costs and offsetting any potential
first cost savings.
G
Some horizontal pumps have maintenance-free bearings.
Figure 4. Pump Room Layout Using Three
Vertical Pumps.
C
o
u
r
t
e
s
y
S
y
s
k
a
H
e
n
n
e
s
s
y
G
r
o
u
p
.
Not Yet a
Member?
For more than 100 years, IDEA has been connecting,
informing and advancing the district energy industry.
Become a member today. Contact Len Phillips, (508)
366-9339, len.idea@districtenergy.org.
Is District Energy
for Everyone?
David W. Wade, PE, President, RDA Engineering Inc.
Members
Speak Out
Editor's Note: "Members Speak Out" runs
in each issue of District Energy magazine.
Its purpose is for a member to briefly share
his/her district energy experiences and opin-
ions and obtain feedback from fellow
members. Please email comments to David
Wade at dww@rdaeng.com.
David W. Wade, PE, is pres-
ident of RDA Engineering Inc.
in Atlanta and has been an
IDEA member for more than
25 years. He has served on
IDEA's board and is a past
chair of ASHRAE's national
technical committees dealing
with building steam and hot water systems and
district heating and cooling. Wade may be
reached at dww@rdaeng.com.
I
s district energy for everyone? As an
advocate for district energy, my initial
response is Y-E-S. After all, we know
that district energy is cost-effective, uses
less energy than conventional systems and
is both locally and globally good for the
environment. With all those positive attrib-
utes, district energy should be for everyone.
But everyone doesnt use district energy,
despite its advantages, and the industry
should explore why and what can be
done about it. District energy systems are
capital-intensive, require high building
densities, must be planned in advance
and require the commitment of a develop-
er-operator for long-term success. That
means poorer countries are less likely to
adopt the technology, and areas where
energy use is low and buildings are spread
out will not find district energy attractive.
Even in the United States, where we con-
sider ourselves advanced, our economic
system encourages individual developers
and profit-driven finance, which reduce
the likelihood that district energy systems
will be implemented.
Much of the world, however, lives in
cities with high building density and planned
development. Shouldnt the benefits of
energy efficiency and environmental benefits
lead them to wide-scale adoption of district
energy technology?
My firm recently participated in a pro-
posal to a government redevelopment
authority located in the Far East. With
numerous large development projects in
the planning stages, the authority sought
confirmation that district energy should be
adopted as the heating and cooling energy
source for millions of square meters of
residential, office and community buildings.
Cost is certainly a consideration; but beyond
cost, questions about district energys energy
efficiency, energy resource utilization and
long-term environmental impact also need to
be answered before a commitment is made.
When putting together the proposal,
I was surprised at how little information is
available comparing individual building
heating and cooling plants versus a district
energy system. Certainly a substantial body
of information exists in ASHRAE and the
U.S. Department of Energy on building
energy use, but almost no definitive guid-
ance is available to help a decision maker
quantify a district energy systems benefits.
Our industrys claims of energy efficiency
and environmental benefits dont seem to
be backed up by cold, hard facts.
In 2008 IDEA participated in the Inter-
national Energy Agency report Assessing
the Actual Energy Efficiency of Building
Scale Cooling Systems. This effort is a
start but leaves much to be answered when
assessing the actual energy savings that
can be achieved by a district energy system.
Even less information is available on real-
world operating efficiencies of central
energy plants. Our own industrys collection
and publication of industry statistics seems
to have taken a back seat to other pressing
issues. With billions of dollars being com-
mitted to future energy systems in the fields
of solar, wind, biomass, etc., I believe it is
important that our industry establish a
firm basis for district energys benefits and
use that information to influence decisions
being made now that will affect us all in
coming decades.
Now is the time for IDEA to reach out
with our colleagues ASHRAE, APPA, BOMA
and numerous organizations promoting
energy efficiency to seek funding from
DOE to establish the actual performance
of district energy systems and compare it
to the best individual building systems being
designed and constructed today. Information
that could be gathered, analyzed and pub-
lished in a short time period can provide a
firm foundation for increased adoption of
district energy technologies.
With so much at stake in the future,
how can we afford to make decisions
without all the facts? And without more
quantifiable information, how can we most
effectively promote the growth of our
industry at home and abroad?
Questions about district energys
energy efficiency, energy
resource utilization and long-
term environmental impact
also need to be answered.
Reducing CO
2
Emissions:
How much can
district energy help?
Mark Spurr, IDEA Legislative Director
Energy and
Environmental
Policy
Based on U.S. EIA data,
Commercial and Industrial CHP
emit half the CO
2
per MWh
compared with all U.S. gener-
ating plants including nuclear.
D
istrict energy has already helped
reduce greenhouse gas emissions
worldwide. As the U.S. Congress
continues its work on climate change leg-
islation, this is a good time to tackle the
question, How much can district energy
contribute to achieving future U.S. carbon
dioxide emission reductions?
A Look at U.S. Emissions
First, lets look at the total U.S. green-
house gas picture. According to the U.S.
Energy Information Administration (EIA),
greenhouse gas emissions totaled 7,147
million metric tons of carbon dioxide
equivalent (MMTCO
2
E) in 2005. Of this
total, 5,945 MMTCO
2
E, or 83 percent,
were energy-related CO
2
emissions, with
the remainder other greenhouse gases.
Power generation accounts for 40 percent
of energy-related CO
2
emissions. As shown
in figure 1, with only 31 percent of power
plant fuel converted to useful electric energy,
power generation waste heat represents a
startling 27 percent of total CO
2
emissions!
How CHP Has Already
Reduced Emissions
Combined heat and power is a demon-
strated strategy for reducing greenhouse
gas emissions by recycling the heat that is
normally wasted in power-only generating
plants. CHP provided 8.2 percent of all U.S.
electricity generated in 2005. As shown in
figure 2, of the total 325,000 MWh of CHP
power generated in 2005, 56 percent was
generated in facilities classified by the North
American Industry Classification System as
NAICS-22, defined as plants whose primary
business is to sell electricity and heat to the
public. Industrial and Commercial CHP
accounted for 41 percent and 2 percent,
respectively. These facilities are classified as
using CHP primarily for own-use genera-
tion, but which may also sell some power
to the grid. A small portion (1 percent)
of CHP generation was by Electric Utilities.
Total district energy CHP electricity
production is estimated to be 26 million
MWh, or 8.2 percent of all CHP generation.
The majority of district energy CHP is clas-
sified as Commercial NAICS, with the bal-
ance split between NAICS-22 and Electric
Utilities.
CHP has already contributed signifi-
cantly to holding greenhouse gas emissions
down. Based on detailed analysis of EIA
data on more than 9,000 power generation
units, figure 3 shows that Commercial and
Industrial CHP emit half the CO
2
per MWh
compared with all U.S. generating plants
including nuclear, and only 41 percent of
the emissions compared with non-nuclear
plants. NAICS-22 CHP plants, which are
designed primarily for power sales, are less
efficient but still significantly better than
power-only plants.
Figure 1. Electricity Generation Waste Heat as Percentage of Total Energy-Related Greenhouse Gas
Emissions, United States, 2005.
27% Electricity
generation
waste heat
Other energy-
related GHG 60%
13% Delivered
electricity
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Annual U.S. greenhouse gas emis-
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E higher if
the 325 million MWh generated by CHP
were instead generated with a typical fos-
sil-fueled, power-only power plant. These
savings exceeded 2 percent of total U.S.
energy-related emissions in 2005.
District Energy Today
District energy systems represent a
substantial heat sink for further CHP
Figure 3. Carbon Dioxide Emissions per MWh of Electricity by Facility Type, United States, 2005.
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Figure 2. Combined Heat and Power Generation by Entity Type, United States, 2005.
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41% Industrial
56% NAICS-22
Electric Utility 1%
Commercial 2%
opportunities. Before addressing this, I will
step back and characterize the total U.S.
district energy sector as it exists today. This
characterization is based on analysis of a
wide range of studies undertaken by
government agencies and IDEA.
We estimate that there are more than
2,500 district energy systems in the country
serving 8.4 billion sq ft of building space,
equal to 12 percent of total commercial
floor space. About 13 percent of district
energy systems incorporate CHP. Because
it is the larger systems that tend to install
CHP, these sources provide a higher per-
centage (20 percent) of the countrys total
district heat production.
Figure 4 summarizes district energy
fuel consumption in the U.S. The predomi-
nant fuel is natural gas, providing 77 percent
of total fuel, with coal a distant second at
15 percent. Oil, biomass and other fuels
are currently minor sources, collectively
providing 8 percent. We estimate that
greenhouse gas emissions by district energy
systems total 57 MMTCO
2
E, or 1 percent
of total U.S. energy-related greenhouse
gas emissions.
District Energy in 2020
With supportive policies, district energy
can make significant further contributions
to greenhouse gas reduction. Total district
energy output could grow 5 percent
annually through 2020, resulting in a total
growth of about 80 percent over 2008.
An additional 8,000 MW of CHP capacity
could be integrated into existing district
energy systems to displace currently used
fossil fuels and to support growth.
Bioenergy, including biomass combustion
to displace current coal use and biogas
and bioliquids to displace natural gas and
fuel oil, will be an important element in
reducing the carbon footprint of a growing
district energy industry.
During the next 10 years, energy sources
for district heating can move from the
current mix depicted in figure 5 to the mix
shown in figure 6. Greenhouse gas reduc-
tions resulting from this shift would exceed
45 million metric tons of CO
2
. At the 2020
emission allowance price projected by the
U.S. Environmental Protection Agency
($16 per metric ton CO
2
), these reductions
would be worth $720 million annually.
The Right Policies
What will it take to realize this potential?
It is critically important that the pending
climate change legislation adjust provisions
regarding allowance surrender obligations
for CHP facilities. In addition, the climate
bill and other energy policy legislation
should include district energy and CHP in
provisions that create incentives for energy
efficiency and renewable energy, including
the Renewable Electricity Standard and
other programs.
CHP Allowance Surrender
In both the House-passed American
Clean Energy and Security Act and the
Senate Clean Energy Jobs and American
Power Act, electricity sources with utility
units are required to surrender allowances.
Recognizing the ability of CHP to contribute
to greenhouse gas emission reductions,
these bills appropriately exempt CHP from
the definition of utility unit. Without this
exemption, cap-and-trade would create
perverse results by discouraging rather
than encouraging this energy-efficient,
environmentally beneficial approach. These
results would occur because CHP signifi-
cantly decreases total societal emissions
but increases emissions at the CHP site.
Unfortunately, the exemption only
applies to CHP units that sell under 25
MW and that sell under one-third of their
electrical output. We estimate that this
exemption criterion will be met by more
than 75 percent of district energy campus
CHP power production but less than 25
Figure 4. District Energy Fuel Sources, United States, 2006.
5% Oil
3% Biomass & other
15% Coal
Natural gas 77%
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Figure 5. Current Sources of District Heat, United States, 2006.
77% Heat-only
fossil fuel boilers
Renewable
energy 3%
CHP 20%
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Figure 6. Potential Sources of District Heat in the United States in 2020 With Supportive Policies.
41% CHP
28% Renewable
energy
Heat-only fossil
fuel boilers 31%
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percent of commercial utility CHP production.
Policy makers must remember that the
environmental benefits of CHP are unrelat-
ed to size; in fact, the larger CHP systems
generally provide relatively more greenhouse
gas reduction. Nor does the particular
contractual arrangement for electricity sales
have any relationship to greenhouse gas
reductions. Further, the exemption provision
does not address efficiency, which is the
key driver for achieving the goals of the
overall legislation: greenhouse gas emis-
sion reductions.
Except for qualified cogeneration
facilities, as narrowly defined in the Federal
Power Act, CHP plants that have a direct
compliance obligation but do not receive
allowances will be placed at a significant
competitive disadvantage.
For example, the marginal emissions
of a combined-cycle gas turbine CHP (i.e.,
the additional emissions compared with
producing only heat) are only 0.25 metric
tons of CO
2
per MWh of electricity gener-
ated. In contrast, a coal-fired merchant
power plant emits about 1.11 metric tons
CO
2
per MWh. The additional cost of
allowances for the CHP system would
equal 15 percent of the average 2007
wholesale power price ($57 per MWh) at
the $16 per metric ton allowance price
projected by EPA for 2020. In contrast,
the merchant coal plant will have a green-
house gas allowance cost of only 5 percent
of the average 2007 wholesale power
price because allowances will be allocated
for nearly all (83 percent) of its emissions.
Faced with this significant competitive
disadvantage in the marginal cost of power
generation, some existing CHP facilities
will shut down, and construction of new
CHP systems will be choked off.
The exemption threshold for CHP should
be raised to at least 90 MW with efficiency
standards but no restrictions relative to
sales. This will help enable almost all cam-
pus CHP potential to be realized and cover
an estimated 60 percent of commercial
utility CHP potential. Commercial district
heating systems, especially those without
integrated district cooling systems, typically
have very little internal power demand, but
their heating load can support a substan-
tial high-efficiency CHP power generation
capacity.
Renewable Electricity Standard
In addition, other pending legislative
provisions for a Renewable Electricity
Standard should ensure appropriate recog-
nition for energy savings from CHP. Both
the climate bill passed by the House, the
American Clean Energy Security Act (the
Waxman-Markey bill), and the American
Clean Energy Leadership Act (ACELA)
introduced in the Senate recognize the
ability of CHP to contribute to energy sav-
ings by identifying CHP as a means of
compliance with the Renewable Electricity
Standard. However, the Waxman-Markey
The exemption threshold for
CHP should be raised to at
least 90 MW with efficiency
standards but no restrictions
relative to sales.
savings. IDEA has proposed a series of
amendments to both bills that would
incorporate CHP and district energy systems
into the relevant provisions. If accepted, these
amendments should help ensure that district
energy can continue to make further
contributions to reduce CO
2
emissions.
Mark Spurr is legislative
director of IDEA. He also is
president of FVB Energy Inc.,
a U.S. consulting firm special-
izing in district energy and
CHP business development,
engineering and marketing,
with offices in Minneapolis,
Minn., and Bahrain. In addition, FVB has
offices in Edmonton, Toronto and Vancouver,
Canada; and in Stockholm, Vsters and other
cities in Sweden. Spurr represents the United
States on the executive committee of the
International Energy Agency Implementing
Agreement on District Heating and Cooling,
including Implementation of CHP. He may be
reached at mspurr@fvbenergy.com.
definition of combined heat and power
system constrains complying CHP systems
to those with a low amount of net sales
of electricity, and the ACELA contains no
definition of CHP systems at all.
The primary criterion should be energy
efficiency, not size or sales. Accordingly,
we recommend using a threshold criterion
for CHP that is the same as we recom-
mend for the cap-and-trade legislation.
Funding Support for District Energy
and CHP
Senators Bernie Sanders, I-Vt., and
Jeff Merkley, D-Ore., have introduced the
Thermal Energy Efficiency Act (S.1621),
which would dedicate 2 percent of rev-
enues from cap-and-trade legislation in
the form of an allowance set-aside to
fund district energy and CHP systems. As
a result of advocacy of S.1621, the recently
released version of the Senate climate
change bill (the Senate Environment and
Public Works Committees Chairmans
Mark) would dedicate 10 percent of State
Energy and Environment Development
program funding from emissions allowance
revenue generated by cap-and-trade legis-
lation in the form of an allowance set-
aside to fund district energy and CHP
systems. Based on various estimates, this
could create funding of approximately
$150 million per year for clean energy
infrastructure. IDEA strongly supports
S.1621, and we encourage more extensive
incorporation of its provisions into the
final climate change legislation.
Efficiency and Renewables Programs
Both the House and Senate climate
bills, as well ACELA and other energy policy
legislation, contain numerous provisions
aimed at promoting and creating incen-
tives for energy efficiency activities. Yet, a
large number of those provisions inexpli-
cably omit CHP and district energy systems,
notwithstanding the enormous contribu-
tion such facilities can make to energy
As you know, district energy is about aggregating thermal loads to
achieve economies of scale. The same applies to fund-raising for lobbying
activities. We need to aggregate the resources of all IDEA members to
achieve the scale needed for an effective lobbying campaign in Washington, D.C.,
and we are asking for your contribution today.
Federal energy and climate change legislation is being written that
will have a profound impact on our industry. IDEA needs dedicated
resources for advocacy efforts to ensure the legislation fairly treats district
energy and CHP.
Our current advocacy efforts on federal climate legislation are focused
on an important emissions allowance exemption for CHP district energy
systems and on the Thermal Energy Efficiency Act, which will direct 10 percent
of State Energy and Environment Development emissions allowance revenue
(approx. $150 million per year) to fund district energy deployment.
If successful, these two measures alone could financially benefit all
IDEA members from consultants to suppliers to operators. However, we
have now reached a critical juncture making it essential that we garner
additional financial resources to continue advocacy at an effective level.
Please answer the call with a robust pledge. If each IDEA member
does his or her part, we will all be better for it. As Benjamin Franklin said
when signing the Declaration of Independence, We must all hang together
or most assuredly, we will all hang separately.
Contact Rob Thornton, IDEA, (508) 366-9339, rob.idea@districtenergy.org,
to make your pledge today!
Its time to answer the call.
IDEA
Expect More Than Specs.
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Architecture
Strategic Advisory Services
Commissioning
Information Systems
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Jacobs is there before the start and after the finish, with utility master
planning, facilities management, commissioning, training even
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and specs, youre seriously missing out on working with a single-source
provider. Before you break ground on your next project,
e-mail us for these services and more. Our trusted team
is here to lighten your load and help make sure that your
next project goes smoothly long before the start,
well beyond the finish.
Prescription for Reliability:
District energy heats and cools
Detroit Medical Center
of valuable space. Instead the DMC contracted with Detroit Thermal
at a price that is consistent with what self-generation would have
cost without the disadvantages of building its own plant.
The medical center concluded that district energy made good
business sense, including for the newest hospital to be connected
to steam service. According to David Timm, the DMCs director of
facility engineering and construction, One of the main advantages of
the new contract for the Rehabilitation Institute is that our steam cost
will be predictable, which will allow us to budget more effectively.
But given the critical care provided to patients in its various
institutions, the DMC considers reliability to be the most important
benefit of being a steam customer: Any unplanned interruption of
steam service would clearly cause major problems in its hospitals
and facilities. One of the ways Detroit Thermal ensures reliability that
is steam service can be provided to the campus via three separate sup-
ply lines. The DMC named Detroit Thermals history of reliability and
customer service as key factors in its decision to sign another steam
contract. The DMCs choice of district energy also supports the efforts
of its facility director group, whose objectives include finding ways
to reduce the centers carbon footprint.
As the DMC continues its mission of delivering excellent medical
care, Detroit Thermal is proud to serve such an esteemed institution.
The company views its installation of the new pipeline serving the
DMC as another investment in the steam systems future and a
part of fulfilling its own mission to provide reliable, safe and worry-free
district energy services throughout downtown Detroit.
For more information, please contact Vic Koppang at
vkoppang@detroitthermal.com.
The DMCs Rehabilitation Institute of Michigan houses numerous inno-
vative programs, including the Southeastern Michigan Traumatic Brain
Injury System and the Center for Spinal Cord Injury Recovery. The hos-
pital comes online as a steam customer this fall.
C
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.
To view other Customer Closeup profiles, visit District Energy
magazine online at http://tinyurl.com/2q09DEmag and search
Customer Closeup in all issues.
For more than six years, Detroit Thermal has counted the largest
health care provider in southeast Michigan among its customers.
The Detroit Medical Center (DMC) draws patients from metropolitan
Detroit and as far away as the Middle East to its nine world-class
specialty hospitals, which total more than 2,000 licensed beds and
3,000 physicians. The DMC relies on Detroit Thermal to supply steam
for space heating, domestic hot water, medical equipment sterilization,
air conditioning and kitchen processes.
During first quarter 2009, the DMC again gave Detroit Thermal
its vote of confidence, signing a new 10-year, $80 million agreement
that will keep the steam flowing to the three facilities previously on
the system plus add a major new building to the mix.
The three DMC institutions already served by Detroit Thermal
include the following:
G Childrens Hospital of Michigan Founded in 1886, the hospital is
an international leader in pediatric and adolescent medicine and
the regions only pediatric Level I Trauma Center, equipped to
handle the most severe injuries and illnesses.
G Harper University Hospital This specialty referral hospital created
the first mechanical heart bypass pump and is still known as a
technology leader. Also covered under the steam contract are the
Wertz Clinical Cancer Center, a part of Harper University Hospital;
Harper Hospital Professional Office Building; and Harper Hospital
Medical Apartments.
G Hutzel Womens Hospital Michigans first and only hospital for
women, it was established more than 137 years ago and ranks as
the number one hospital in the nation in research awards for its
obstetric/gynecology physicians.
This fall the 280,000-sq-ft Rehabilitation Institute of Michigan
is slated to become the fourth major DMC hospital on the Detroit
Thermal network; it previously maintained its own four-boiler oper-
ation. This facility helps people rebuild their lives after a serious illness
or injury as one of the nations largest hospitals specializing in
rehabilitation medicine and research. The Rehabilitation Institute is
renowned for its expertise in spinal cord and brain injuries, complex
trauma, and orthopedics and catastrophic injuries. With 30 outpatient
sites throughout southeast Michigan, the institute is also a center of
choice for people including athletes at all levels of participation
recovering from sports and orthopedic injuries.
Since the Rehabilitation Institute was not formerly on the Detroit
Thermal system, the building had to be connected to a large under-
ground steam line that feeds other parts of the DMC. The job required
excavation and installation of approximately 350 ft of new pipe
from the feeder line into the building, plus installation of a service
valve, a steam flow meter and a pressure-regulating valve.
Before renewing and expanding its contract with Detroit Thermal,
the DMC studied other options for meeting its energy needs. The
health system had considered building its own steam generation
plant an operation that would have taken two to three years to
complete, obligated extensive capital resources and occupied a lot
Inside FLEXIM AMERICAS Corporation
Back Izzy Rivera
Cover (631) 492-2300
irivera@flexim.com
www.flexim.com
24 FVB Energy Inc.
Mark Spurr
(612) 338-4489
info@fvbenergy.com
www.fvbenergy.com
23 IDE Technologies Ltd.
Moshe Tessel
+972 9 8929830
info@ide-tech.com
www.ide-tech.com
39 Indeck Power Equipment Company
Lisa Lindell
(847) 541-8300
llindell@indeck-power.com
www.indeck.com
61 Jacobs
Scott Clark, PE, CEM
(817) 735.6038
scott.p.clark@jacobs.com
www.jacobs.com
12 NRG Thermal LLC
Jerry Pittman
(612) 436-4108
jerry.pittman@nrgenergy.com
www.nrgthermal.com
Page 16 Advanced Thermal
Systems, Inc.
Bill Krause
(716) 681-1800
ats@advancedthermal.net
www.advancedthermal.net
17 ADC Energy Systems
Mohammad Abusaa
+971 4 341 9110
mabusaa@adcenergysystems.com
www.adcenergysystems.com
32 Dresser-Rand
Tim Jameson
(888) 614-9168
turbineinfo@dresser-rand.com
www.dresser-rand.com
Outside DriTherm International, Inc.
Back Jared Sandman, M.E.
Cover (973) 808-2255 ext. 705
jsandman@dritherm.com
www.DriTherm.com
6 Enwave
Dennis Fotinos
(416) 338-8912
dfotinos@enwave.com
www.enwave.com
28 Euroheat & Power
Sabine Froning
+32 (0)2 740 21 10
communications@euroheat.org
www.euroheat.org
48 ONICON Incorporated
Rob Neumann
(727) 447-6140
rneumann@onicon.com
www.onicon.com
43 Perma-Pipe, Inc.
Robert Maffei
(847) 966-2235
maffeib@permapipe.com
11 RMF Engineering, Inc.
Bob Smith
(800) 938-5760
rdsmith@rmf.com
www.rmf.com
27 Thermacor Process, L.P.
Jennifer Clendaniel
(817) 847-7300 x 634
jec@thermacor.com
www.thermacor.com
41 Tricon Piping Systems Inc.
Hugh Roszel
(315) 697-8787
hroszel@triconpiping.com
www.triconpiping.com
36 Urecon Ltd.
Jean Laganiere
(450) 455-0961
j.laganiere@urecon.com
www.urecon.com
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Combating Climate Change Competitively
CHPA Annual Conference and Awards Dinner
Nov. 25, 2009
One Great George Street
Westminster, London, U.K.
Contact: chpa@se-2.co.uk
COP 15 Copenhagen 2009
United Nations Climate Change Conference
Dec. 7-18, 2009
Bella Center
Copenhagen, Denmark
Contact: www.cop15.dk/en
Annual Distribution Workshop
Feb. 8-9, 2010
Peppermill Hotel
Reno, Nev.
Hosted by University of Nevada, Reno
23rd Annual Campus Energy Conference
Feb. 9-12, 2010
Peppermill Hotel
Reno, Nev.
Hosted by University of Nevada, Reno
World Geothermal Congress
April 25-30, 2010
Bali International Convention Center
Nusa Dua, Bali, Indonesia
Contact: www.wgc2010.org
Solar 2010: Connect in the Desert
American Solar Energy Society National Solar Conference
May 17-22, 2010
Phoenix Convention Center West Building
Phoenix, Ariz.
Contact: http://tinyurl.com/solar2010
District Energy/CHP 2010: 101st Annual
Conference & Trade Show
June 13-16, 2010
Westin Indianapolis and Indiana
Convention Center
Indianapolis, Ind.
15th Annual Conference and Exhibition
Canadian District Energy Association
June 23-25, 2010
Pinnacle Hotel at the Pier
North Vancouver, B.C., Canada
Contact: www.cdea.org
World Energy Congress
World Energy Council
Sept. 12-16, 2010
Montreal, Que., Canada
Contact: (514) 397-1474,
www.wecmontreal2010.ca
District Energy/CHP 2011: 102nd Annual Conference
& Trade Show
June 26-29, 2011
Westin Harbour Castle
Toronto, Ont., Canada
All entries in color are IDEA events. Questions? (508) 366-9339 or visit www.districtenergy.org/calendar.htm.
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