SNC-Lavalin Building |
Where:
Calgary, Alberta, Canada
What:
Approached to provide and implement a ready-to-use solution for both heat and power, Power Ecosystems equipped the SNC-Lavalin building with a combined heat and power (CHP) system. Producing 706,309 BTU heat per hour for space heating, the system simultaneously produces 139 kW of electricity to power the building.
Purpose:
The building owner needed a system that would save tenants on electricity costs while Increasing revenues for the owner thereby increasing building value. The CHP system would save approximately 5 -14% on electricity costs for tenants while producing green energy. Between 500 and 700 tonnes of greenhouse gas emissions per year would be avoided using a CHP system compared to conventional heating and power applications.
Primary choice factors:
Cummins Power Generations proven track record combined with the state-of-the-art product from Power Ecosystems / Ener.G formed the backbone of the decision making process for building owners. Assisted by positive comments from thousands of references sites and the expertise and financing options provided by Power Ecosystems.
The Case StudyIncreased building value and reduced electricity costs; all added benefits for the tenants and owners of the SNC-Lavalin building when using the cogeneration boiler
The 106.000 square foot, 10story SNC-Lavalin building was built In 1979 to accommodate the Calgary offices of world renowned engineering firm SNC-Lavalin. SNC is a company dedicated to environmental responsibility and that dedication extends from Its operations to its facilities. After considering buying green electricity at a premium rate, SNC became aware of alternative green electricity systems with costs considerably below conventional from Power Ecosystems. At no upfront cost to the tenants, Power Ecosystems installed the CHP system in the building. The cogeneration boiler isa highly sophisticated system consisting of a generator set, heat recovery equipment and control/monitoring systems essential to maximum efficiency operation. The unit isthe lead boiler on the building. using natural gas to produce electricity and heat simultaneously for powering and heating the building. The Power Ecosystem enclosure technologies ensure that the unit is extremely quiet, well under regulatory requirements, and there is no vibration making it virtually disturbance free.
Our boiler produces green electricity almost for free.
| CHP Efficiency | Conventional Efficiency | |
|---|---|---|
| Boiler | 50% | 80% |
| Electricity | 30% | 23% |
| Combined Efficiency | 80% | 51.5% |
Studies show thermal power generation uses about 25 gallons fresh water per kWh produced with coal. The Power Ecosystems CHP system uses virtually no water while reducing greenhouse gas emissions by the equivalent of removing approximately 158 cars from the road or planting 660 acres of forest.
Click here to open the PDF version of the Case Study
ECONOMICSBenefit Calculations
| Delivered costs at time of decision: | |
|---|---|
| Green: | $.15/kWh |
| Conventional: | $.14/kWh |
| Natural gas: | $8/GJ |
| Electricity output of CHP: | 139 kW/h |
| Heat output: | 706,309 BTU |
| Fuel input: | 1.6 GJ/hr |
| All in Project Cost: | $394,324 |
| Maintenance cost: | $.018/kWh |
Conventional Cost:
Value of electricity from the grid:
139 kW @ $.14/kWh = $19.46
Value of boiler produced heat:
230 kW = .828 GJ @ 70% efficiency = 1.18
1.18 @ $8/GJ = $9.44
Total: $26.12/hour
CHP Cost:
Fuel for CHP:
1.6 GJ @ $8/GJ = $12.80
Maintenance:
139 @ $.018/kWh = $2.50
Total: $15.30/hour
Total savings: $10.82/hour
Greenhouse gas (GHG) potential:
776 tonnes/year @ $18/tonne = $13,968/year
Total savings per year:
$10.82 X 7,271 operating hours (Sept to June)
plus GHG = $90,312
Simple Payback: 4.37 years
Power Ecosystems charges tenant $.12/kWh and rent revenue shares 25% with building owner (approximately $2,500–$3,000/month)
$30,000/year new revenue divided by 8% cap rate less capital expenditure ($0) equals $375,000 building valuation increase.
Capital purchase estimated yearly savings = $90,312
DEP estimated yearly savings = $23,703