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Rising natural gas costs and what they could mean for you

Posted on January 14, 2022July 23, 2024 by Rohan Sinha

Natural gas prices are the highest they have ever been in over 10 years. In New England especially, this has many worried about the obvious global energy shortage. We are deep into the winter season, where natural gas is critically important to heating homes and businesses. At this crucial juncture, why are gas prices surging, and what can you do to protect yourself and stay warm this winter?

What is the situation?

According to Forbes, natural gas provides upwards of 30% of all American electricity, especially in the wintertime, and has doubled in price year-over-year. In Europe, the situation is even more dire – where prices have peaked to the energy equivalent of paying $180 for a single barrel of oil. Exporting to Europe means our prices also domestically rise, since we end up with a shortage through covering their deficit. This CNN article states that in East Asia, natural gas prices have risen approximately 85% since the start of September 2021, equal to about $204 for a single barrel of oil. It is becoming globally apparent that with the variable weather conditions and the resurgence of demand going into winter, every country is scrambling to acquire enough resources.

It is clear that there is a global energy shortage. Increasing liquefied natural gas (LNG) exports are contributing to rising U.S. natural gas prices by reducing domestic supply, which could have a major effect on New England’s energy markets and reserves this winter, according to FERC staff. Although regions across the country have reserve margins of at least 26%, FERC Chairman Richard Glick warned that that metric of adequate power supply may no longer be valid in the face of extreme weather, which can knock large numbers of power plants offline. New England is particularly at risk in this shortage because it relies solely on one import port and no ground pipelines, which has been affected by global supply chain problems. There are very few gas import terminals, and if there are any issues with a terminal, places like New England, which is not served by a land pipeline and can only receive supply via its import terminal, are at particular risk.

Many energy companies that utilize natural gas are worried about their dwindling backup fuel reserves with the upcoming winter, especially considering the disastrous weather conditions in Texas last year. In 2020, companies had more natural gas storage inventory than in 2021 moving into the winter. This lack of inventory is the first time our supplies have been lower, year-over-year, going into winter.

How can district energy companies like Vicinity help?

While the global energy shortage will impact everyone, there are strong benefits to being part of a district energy system. Here are a few ways Vicinity’s status as a district energy provider will help serve its customers through this global challenge:

Vicinity can negotiate fixed prices and better rates due to its superior bargaining power as a participant in wholesale energy markets, compared to a single building purchasing gas for its own boilers.
Vicinity monitors customer usage carefully to ensure there are enough supplies to keep all our customers functioning at their normal levels, even during an extreme weather event or a shortage. This is a huge advantage over individual boilers, where building owners must try to anticipate their load and make sure to order enough on an individual basis.
Most Vicinity district systems are fuel-agnostic, meaning its generators (chillers, boilers, etc.) can utilize various fuels, including renewable and alternative fuels instead of being at the mercy of gas companies.
Vicinity uses a diverse fuel mix, including renewable biogenic fuel, so the company is not reliant on natural gas.
Furthermore, with the electric grid’s growing adoption of more renewable sources, Vicinity is working on electrifying its district systems – a move that will drastically reduce its use of natural gas and conventional fossil fuel use.

The global movement away from fossil fuels

Without a doubt, there are challenges ahead for all building owners that rely on natural gas – and not just in terms of cost. As reliance on fossil fuels continue to exacerbate climate related impacts and global leaders implement legislation to aggressively reduce carbon emissions, it’s clear that natural gas is not a progressive or healthy solution for our collective future.

However, despite the global energy shortage, Vicinity is well equipped to navigate these difficult times, unlike buildings with boilers that rely solely on natural gas. With multiple power supplies, back-up generation, and several water and fuel sources, district energy systems are reliable, robust, sustainable, and provide safeguards to ensure 24/7 energy delivery. Like Vicinity, many leading district energy systems (including those in Vancouver and Copenhagen), are implementing innovative strategies, like renewable fuels, heat pumps and electrification, to further reduce its use and reliance on fossil fuels.

The truth is, our society needs to pivot away from fossil fuel use, including natural gas. Fortunately, other much greener energy solutions and technologies exist for buildings. District energy provides a tremendous opportunity for building owners to not only benefit from energy reliability and cost, but also a lower carbon footprint.

VRF vs. district energy: the best way to heat and cool your facility

Posted on November 2, 2021April 10, 2024 by Bella Pace

Modern commercial building managers and landlords have more to consider than ever when it comes to selecting an HVAC solution for their facilities. While energy efficiency, reliability, and cost-effectiveness are still of major importance, factors like sustainability and maximizing circulation due to health concerns are critical considerations as well. In order to stay competitive and attract desirable tenants, facility owners and managers need to look at the full picture when choosing a temperature control solution for their properties.

Two of the most often-considered solutions for building space heating and cooling are Variable Refrigerant Flow (VRF) and district energy. They both offer unique strengths and risks, and a careful analysis of both is necessary to make the smartest decision for your specific situation.

Variable Refrigerant Flow (VRF) systems

VRF is a refrigerant based heating and cooling system that utilizes a central outdoor condenser to feed multiple indoor evaporators. There are two main reasons a developer might choose to go with a VRF system: zoning controls and ductwork. VRF allows for more precise zoning controls, meaning if you need to heat or cool rooms to drastically different temperatures, VRF might be a good choice. Because VRF uses a central outdoor condenser, it also means there is less indoor equipment needed, such as utilizing separate window AC units for every room. This also keeps things quieter indoors.

There are several considerations to keep in mind about VRF systems, however:

Capital costs: VRF systems require upfront capital costs to install. Additionally, the average life of a compressor is about 10-15 years, and they range in costs from $5k to $15k in commercial buildings. This means that every 10-15 years, you’ll need to invest more capital to replace multiple compressors.
Maintenance: VRF systems consist of multiple complex pieces of equipment which require qualified HVAC mechanics to repair and maintain. This means either keeping HVAC technicians on staff or hiring a vendor each time maintenance or repairs are required.
Electricity reliance: VRF systems require electricity to run, which exposes buildings to multiple risks:
- Buildings are at the mercy of sometimes volatile electricity rates and policy changes that may drive those rates up in the future.
- Many buildings are billed based on peak electricity usage rates – essentially usage during the hottest and coldest days of the year. VRF can drive up peak demand (and costs) dramatically.
- In the event of a loss of electricity, such as during a storm, the building would lose heating and cooling as well, which is dangerous to occupants, especially in very warm or cold climates, and could damage equipment and assets in the building.
Safety hazards: VRF systems require onsite use of potentially toxic refrigerants, which poses a safety risk to occupants of the building.
Space demand: VRF systems are normally housed on rooftops, which precludes that space from being used for building amenities, such as lounges, gardens, or rooftop pools. Additionally, there is a misconception that VRF systems do not require ductwork. Ductwork is certainly required to ensure safe air cycling in a building, especially as a result of COVID-inspired code changes to keep building occupants safe.
Reduced structural/building envelope integrity: VRF systems require roof penetration, which exposes the building to potential leaks or other structural issues.

District energy

District energy is a form of energy delivery in which steam and/or chilled water are generated at a central facility and then distributed through a network of underground pipes to buildings, rather than those buildings using onsite boilers or chillers that use fossil fuels. Entirely different from VRF technology, district energy has its own set of considerations when planning for your building’s heating and cooling needs.

There are several attributes to district energy that are worth considering:

Reliability: District systems are a great source of reliable energy, whether heating or cooling. The robust underground steel-encased pipes of a district network are reliable even in severe weather, and district energy systems maintain 99.99% uptime. Additionally, because its central facilities are fueled by multiple sources and have bult-in redundancies, reliable district energy cooling and heating is available even in the event of electrical losses. This is critical for the wellbeing of occupants and the protection of sensitive assets and equipment, especially for mission-critical facilities like hospitals, public safety facilities or laboratories.
No upfront capital costs: Because district energy does not require cooling or heating equipment onsite, there are typically no upfront costs associated with connecting to a district energy system – unlike the high upfront capital costs required for boilers, chillers, and cooling towers. Many district energy providers are even willing to invest in connecting a building to the district system and will cover the cost of any street repairs and beautification that comes up along the way. Often, existing ductwork in a commercial building can be retrofitted to accommodate district energy.
Scalability: District energy can be introduced gradually, if desired. Floors or areas of a building can be added one at a time. It is also possible to submeter for tenants, contrary to common misconception.
No rooftop penetration/space demand: District energy does not require rooftop chillers or compressors, freeing up rooftop space for amenities, a solar array, or other storage or equipment needs. This also means no rooftop penetration, which can reduce risk of damage due to a compromised building envelope.
Energy savings: Because district energy does not rely on electricity, building peak usage would be much lower than with VRF or installing electric units. That means that variable loads for heating or cooling would be drastically reduced, creating a flat load profile with lower demand charges.
Environmental (and financial) benefits: The reduced electricity demand would make a building eligible for more rebates and tax incentives. In some cases, the U.S. Green Building Council also assigns more LEED points to buildings that use district energy.

To summarize, it’s important to consider your reliability needs, ability to make an upfront capital investment, long-term maintenance needs, and sustainability/incentive goals when selecting the right HVAC system for your commercial building space. If you’re looking for some inspiration, click here to check out how other facilities are approaching their heating and cooling needs, from museums, to hospitals, to laboratories, and beyond.

The green way for the bay state to keep warm – and it’s right under our feet

Posted on October 6, 2021June 13, 2024 by Sara DeMille

Massachusetts’ new commission on clean heat doesn’t need to look far for a carbon-cutting solution

On the occasion of Climate Week, the Baker Administration made a landmark, first-in-the-nation move to establish a Commission on Clean Heat. Furthering Massachusetts’ national leadership position in pursuit of zero carbon emissions, the Commission’s aim is to greatly reduce emissions from heating fuels. This is a critical task, as nearly 70% of the Commonwealth’s greenhouse gas emissions come from buildings.

While Massachusetts has some of the most ambitious carbon-slashing plans in the U.S., a specific action plan for how to execute these plans remains a hotly debated topic. Electrification, which eliminates onsite fuel combustion in buildings, is the main goal of the new Commission. But there is a large gap between the hundreds of buildings currently converted to electric heat each year, and the stated goal of hundreds of thousands converted each year. It’s no small task for the new Commission on Clean Heat to advise the state on how to reach its ambitious, important carbon reduction plans without burdening residents or building owners with costly retrofits to their properties.

However, there is an accessible pathway to electrification that currently exists under Bostonians’ feet: district energy. District energy is a form of energy delivery in which steam is generated at a central facility and then distributed through a network of underground pipes to buildings, rather than those buildings using onsite boilers, individually combusting, to produce heat. Much of Boston and Cambridge’s most densely populated urban areas are already served by district energy steam. In fact, Vicinity Energy, Boston’s district energy provider, has existing infrastructure that serves 65 million square feet of buildings. Vicinity is currently pursuing its own aggressive electrification plan at its centralized facility in Kendall Square, which could instantly convert all connected buildings to low-emission heating solutions without any new equipment or infrastructure. This is an easy, fast, and cost-effective alternative to retrofitting hundreds of buildings with electric heat pumps.

“It is important for the Commission to consider all options when making their recommendations to Governor Baker next November,” said Bob Rio, Senior Vice President of Government Affairs at Associated Industries of Massachusetts, the state‘s largest business group. “Retrofitting thousands of buildings individually could take decades, and would be a costly burden for business and industrial customers. District energy can be an important tool to help us achieve our goals and it should be a big topic of discussion for the Commission.”

Vicinity has long been working with city and state legislators and stakeholders to educate and build awareness of this critical resource to rapid greening of the region’s heating operations; the benefits are substantial. Hundreds of property owners would not have to invest in re-equipping their facilities, and decades of construction could be avoided.

In the wake of Climate Week, there’s no better time to work together to move closer to the Commonwealth’s important climate goals. Luckily, with existing infrastructure, the way to achieve these goals might already lie right under our feet.

The path to a greener future: electrifying district energy in Boston and Cambridge

Posted on September 27, 2021June 12, 2024 by Sara DeMille

Massachusetts is estimated to experience more and more 90+°F days each year, along with increased precipitation, flooding, and rising sea levels. This kind of drastic climate change threatens the health, safety and long-term well-being of our communities.

Recognizing that climate related impacts are directly tied to conventional fossil fuel use and rising greenhouse gas emissions, Massachusetts has bold plans in place to dramatically cut carbon. One of the Commonwealth’s biggest initiatives in its decarbonization roadmap is electrification – a move to leverage the electric grid’s growing adoption of more renewable sources (like offshore wind and solar) to power, heat and cool commercial buildings.

Electrification: the key to achieving Massachusetts’ carbon reduction goals

As part of its Clean Energy and Climate Plan (CECP), the Commonwealth of Massachusetts has a goal to decarbonize and reduce greenhouse gas emissions by 50% of its 1990 baseline by 2030 and reach net carbon zero by 2050. Electrification has been identified as the key tactic to meet this goal, and Boston aims to electrify 300-400 million square feet of commercial space.

However, substituting combustion-fueled technologies (like on site gas boilers and chillers) for electric technologies in commercial buildings is an expensive and time-consuming endeavor. So how can the Commonwealth’s goals be achieved quickly without incurring huge financial burdens on individual building owners? Thankfully, Massachusetts has a tool in its carbon-cutting toolbox: district energy.

Beneath the streets of both Boston and Cambridge, a robust network of pipes is delivering clean steam to over 230 commercial buildings, totaling 65 million square feet of building space – the equivalent of 54 Prudential Towers. Owned and operated by Vicinity Energy, the Boston/Cambridge district energy system generates and distributes clean, low-carbon steam used for heating, cooling, hot water, humidification and sterilization to some of the area’s premier hospitals, biotechnology and pharmaceutical companies, universities, hotels and entertainment venues, commercial space, and government facilities.

Through its Kendall Square cogeneration facility – the largest combined heat and power (CHP) plant in the New England area – Vicinity’s operations are already avoiding over 165,000 tons of CO ₂ emissions annually – the equivalent of removing 35,000 cars from the roads each year. While this is certainly a big contribution, the company wants to do even more to reduce its carbon footprint. In line with the Commonwealth’s goal, Vicinity has a commitment to achieve net zero carbon emissions across its operations by 2050.

Vicinity recently integrated biogenic fuel into its fuel mix and is also exploring and testing large-scale use of batteries, hydrogen, and other low-carbon options which will have an immediate effect on the carbon footprint of the businesses we serve. Vicinity has also invested over $110 million in a series of green steam projects to improve efficiencies and further reduce environmental impacts in the Boston and Cambridge area.

While Vicinity’s district energy system is already highly efficient, the company is uniquely positioned to make an even greater positive impact on Massachusetts’ carbon goals. The solution is simple: install large-scale electric boilers and consume renewable energy from the grid as it becomes more readily available. Doing this will benefit each and every building connected to the district energy loop at a fraction of the cost to building owners. Representing 20% of the cities’ total electrification target, thermal electrification of the district system is the solution for rapid and cost-effective building decarbonization. By electrifying our systems, we can – in one swoop – bring Boston and Cambridge much closer to their goal.

The next energy inflection point

“The time to act on electrification is now… A new customer is added to the U.S. gas distribution system every minute – more than 400,000 new gas customers per year. U.S. utilities are adding approximately 10,000 miles of new pipelines and replacing 5,600 miles of existing gas mains annually. These new investments are being amortized over the next 30-80 years, long after we need to stop burning fossil fuels.” –Stephanie Greene, Principal, Building Electrification at Rocky Mountain Institute

The biggest opportunity to green and decarbonize buildings in Boston and Cambridge is to electrify the district energy system. Since the inception of district energy in the late 1800s, district energy systems have routinely migrated to cleaner, more efficient fuel sources. Now we’re at another inflection point and district energy is uniquely positioned to lead through this next energy transition to clean, renewable fuels.

The use of electric boilers and heat pumps in district energy systems is a proven solution. Today, the Stockholm district energy system in Sweden, for instance, uses 660 MW of heat pumps and 300 MW of electric boilers to generate steam, which is distributed throughout the city. It is estimated that altogether, Stockholm’s district energy system has reduced sulfur oxide and particulate emissions by two-thirds since 1986. Vicinity is the first district energy company in the US to put forth a similar plan and intends to convert its existing natural gas infrastructure to electric at its central Kendall cogeneration facility. Sitting next to a major electric substation, Vicinity can import renewable electrons and instantly decarbonize its steam. It’s the “easy switch” for electrification.

Vicinity currently plans to install 100-150 MW of electric boiler capacity by 2028 at Kendall, which can serve up to 75% of its current steam production requirements, or 45 million square feet of building space in Boston and Cambridge. Vicinity’s electrification plan is multi-pronged and will include:

Using existing waste energy from heat or river water in order to electrify 10% of its steam load, which is equivalent to 6 million square feet;
Installing large-scale electric boilers at the Kendall facility that will convert electricity to steam; and
Constructing an additional pipe crossing under the Charles River to connect Boston’s peak winter heating demand with steam generated at the electrified Kendall facility.

This plan will not only support both cities’ goals, it will also eliminate the challenge of property owners needing to retrofit individual buildings. Vicinity’s existing network of 65 million square feet of buildings will automatically benefit from this “easy switch” – saving businesses significant capital and allowing them to instead invest in efficiency and growth.

Looking to the future

Vicinity’s goal, in alignment with the Commonwealth of Massachusetts, is to decarbonize. Electrifying the district energy system is the fastest and most cost-effective way to help achieve this shared goal. Fossil fuels are not sustainable. Through advances in policy and leveraging the unique assets we already have, the Commonwealth is poised to lead the charge in our Nation’s efforts to reduce carbon emissions.

How district energy is supporting the transition from empty offices to thriving laboratories

Posted on July 19, 2021June 25, 2024 by Sara DeMille

Office space may be cooling down, but lab space is heating up

The COVID-19 pandemic has had a seismic impact on professional office work environments. Before the pandemic, most workplaces were strictly in-office, but now, the majority have shifted to work from home or a hybrid formula. This transition seems to be sticking, which means many office buildings in urban centers are now standing empty.

One type of work that cannot shift to a ‘work from home’ or hybrid model is laboratory research. Lab technicians require specific equipment and ideal environments that are only available in a physical lab. While the demand for office space has plummeted, the need for lab space is higher than ever. As a result, building owners and developers are converting empty offices into labs at an accelerating rate.

Lab space conversions are increasingly popular in areas experiencing notable life science booms, like Boston, Cambridge, Philadelphia, San Francisco, and San Diego. From 2009 to the end of 2019, the amount of lab space in the U.S. grew from 17 million to 29 million square feet. Even smaller cities like New Haven are “desperate” for more lab space because of a huge influx of life science enterprises on the scene. Boston is expected to complete construction for 2 to 3 million sq. ft. of new lab space by 2024. Lab space vacancy in Boston is currently at a mere 4.5%, versus overall office space vacancy, which is as high as 23%. Rents for lab space in the Boston area price at over $100 per sq. ft., making conversions extremely profitable. Furthermore, lab leases are generally 10 to 15 years long, giving landlords assurance that the conversion investments are worth it.

Lab space has several unique requirements for building owners to consider

Labs require a whole host of structural and service considerations. Efficient, effective laboratories require appropriate ceiling heights for duct work and equipment, enhanced airflow for the safety of technicians, and viable interior wall and ceiling space for increased mechanical and utility requirements. Developers must also keep in mind that different building codes and zoning requirements may apply, as compared to general office space.   Perhaps most importantly, labs require high-quality and high-volume reliable 24/7 energy to provide power, cooling, heating, humidification and sterilization to ensure uninterrupted research, sanitized laboratory equipment and tools, and preservation of delicate procedures.

Evaluating your energy options

District energy

District energy is a great option to meet the unique requirements of lab space. Life science companies need huge volumes of high-quality, reliable thermal energy to support their critical operations, including specific ventilation, space temperature, humidity requirements, and the sterilization of laboratory tools and equipment. District steam energy has many advantages:
Without the burden of onsite combustion or maintaining chillers or boilers, district energy is a safer option than onsite infrastructure and also requires way less maintenance expense.

For sterilization and humidification, the CDC recommends steam sanitation over conventional sanitation methods.
District energy is more resilient and reliable even in the face of climate events.
District energy allows upper limits of heating to be adjusted, necessary for the specific conditions labs require.
A building can connect just a few floors to district energy if they only want to convert some floors to lab space.
District energy is a greener option and in cities where life sciences are booming, these same cities often have aggressive carbon emissions savings targets.
This energy solution also frees up valuable floor space, which allows life science companies to focus and leverage valuable square feet for their core operations.

Microgrids and distributed generation

A microgrid is an energy grid that typically provides power and thermal energy to a campus or group of buildings in close proximity to each other. In some cases, it makes sense for a research campus to develop an onsite independent energy solution to meet their critical energy needs. Microgrids can even store energy and use renewables. An independent energy developer with finance, engineering and construction management expertise can develop a custom distributed energy solution, from planning to implementation.

Alternatively, microgrids can also be integrated into district systems to provide even more energy resilience and reliability. Labs have extremely high thermal energy and power needs, making a microgrid solution (which provides both) a feasible and practical solution. Vicinity has developed and operates microgrids for multiple clients – including for a global biotechnology company.

Onsite boilers/chillers

Pairing onsite boilers and chillers for thermal energy and engaging a traditional power utility for electricity is often the first option that occurs to many commercial companies and building owners. However, most underestimate the cost and maintenance that goes along with such a decision or the risks to reliability. Onsite chillers and boilers require substantial upfront capital and ongoing maintenance costs. They take up valuable space in the building that easily could be used for core operations instead. Buildings with boilers also run the risk of insufficient steam pressure and poor steam quality. Labs require constant airflow in order to maintain a sterile environment – they need approximately five times more air changes than typical office buildings, which is why they tend to put more strain on the HVAC equipment to heat and cool all the fresh air being brought in. More air changes and ventilation requirements puts enormous pressure on boilers, especially in the winter, as it decreases the life of boilers, increases fuel costs, and means more repairs and maintenance. Not only does district energy or high-pressure steam from a microgrid provide humidification control, hot water, and heat, but it also allows for the sterilization of equipment. More sustainable energy solutions, like district energy and microgrids, often cost less from a lifecycle perspective and are more valuable in the long run.

Looking ahead

As office spaces turn into labs, an important component that life science companies must keep in mind are the carbon goals of the cities they operate in. Many cities have aggressive carbon reduction goals which must be taken into account when planning new commercial and industrial spaces.

Furthermore, many life sciences companies have goals for greening their own operations, sometimes above and beyond city and/or state guidelines. To attract life science companies and stay current with environmental policies, buildings must not only provide a reliable and cost-effective energy solution, but also one that can adapt to changing, and increasingly more stringent, sustainability requirements. This is a tricky matter when it comes to onsite energy generation, as any equipment would likely have to be expensively retrofitted in the future to meet greening initiatives. District energy, on the other hand, can rapidly green its operations with updates to its central plants, with all customers connected to the district system subsequently receiving cleaner energy. Incorporating district energy into any laboratory or office to lab conversion plan ensures not only that new life science tenants will have the HVAC, environmental and space conditions and capacities they need, but also that the building will continue to get greener over time – keeping up with corporate and government sustainability objectives well into the future.

Renewable biogenic fuels are bridging the clean energy gap and supporting local communities

Posted on April 15, 2021June 26, 2024 by Sara DeMille

As our world continues to evolve, innovate and move away from conventional fossil-fuel energy sources, new green alternatives are transforming the energy landscape. While wind and solar energy gained early traction in the market, these renewable sources are intermittent and not always available.

However, due to innovative technological advancements and a shift in attitude regarding waste management, the use of biogenic fuels to produce energy has become more prevalent and cost-effective as a viable green energy solution. But what exactly are biogenic fuels and why are they on the rise? Biogenic fuels can be defined broadly as any fuel derived from by living organisms, such as renewable plant and animal biomass.

The evolution of biogenic fuels

While a lot of effort and new technology is being devoted to biogenic fuel development, this energy source is not a new concept. The use of biogenic fuels has been around ever since human beings discovered fire and has since played a role throughout modern history. Did you know that some of the first automobiles models were developed to run entirely on peanut oil? While innovative, this use of organic matter to produce fuel use was quickly cast into the shadows by fossil-fuels, which boasted greater economic and performance benefits.

However, with experimentation, combined with innovation, this renewable energy source continues to evolve as biogenic fuel producers expand upon prior feedstocks, methods of processing this organic material and end-use applications. This constant development has led to a second-generation of biogenic fuels that differ in the overall sustainability of their feedstocks. And the source of that feedstock is important.

With our society’s rapidly increasing population and demand for power, critics argue that use of key biogenic fuel feedstocks for energy production, such as corn and soybean, would threaten food supplies. This delicate balance between energy needs and food demands is a real concern. However, some innovative biogenic fuel producers are getting more creative with how they’re sourcing their feedstock and transforming organic waste material into energy.

Innovative renewable biogenic fuel from organic waste

As a much cleaner-burning replacement for petroleum-based diesel fuel, one form of biogenic fuels in particular – LR100™– has even more potential to reduce waste, carbon impacts and competing food supply concerns. LR100™ is a one-of-a-kind, unique biogenic fuel derived from waste vegetable oil and fats discarded by the food service industry. While at first glance this biogenic fuel is often mistaken for biodiesel, LR100™ is in fact much different in terms of its carbon footprint, composition and how its developed. Because LR100™ is processed mechanically, it has a 10% lower carbon lifecycle than conventional biodiesel, which uses a chemical process. It also performs much better in boilers and heating systems.Once disposed as waste, used vegetable oil and fats discarded by the food service industry have become a viable feedstock for biogenic fuel producers. It’s estimated by the National Renderers Association that about 4.4 billion pounds of cooking oil is collected annually from restaurants and food service providers in the United States and Canada. Fortunately, a vast majority of this former waste stream is now being repurposed as a fuel source. By leveraging existing and recyclable feedstocks that don’t require additional animal or agricultural production, renewable biogenic fuels do not threaten food supplies. Renewable biogenic fuel also delivers other significant benefits, not only for food service establishments, but also for the environment and local communities.

How biogenic fuel from organic waste is helping the environment and local communities

As a cleaner burning fuel, biogenic fuels derived from used cooking oil and fats are providing cities with both a local, sustainable and circular energy solution that yields positive impacts across local communities and for our environment:

Renewable energy source

Derived from plant and animal products, biogenic fuel is a viable alternative to our dependence on fossil-fuels. Its organic properties make it non-toxic and biodegradable, further reducing the risk of spills and mishandling of the fuel.
Through renewable biogenic fuel use, we can extend the longevity of our earth’s finite fossil fuel resources, while we continue the transition to other renewable sources.

Environmental

Producing renewable energy with this organic food waste significantly reduces greenhouse gas emissions and improves local air quality through reductions in nitrogen oxides, sulfur oxides and particulate emissions, compared to traditional heavy fuel oils.
If not disposed of properly, used oil can severely damage municipal water and sewage infrastructure. This oil can create blockages and system degradation and/or spoil local water resources.
If this used oil gets into local waterways, it can negatively impact local wildlife and aquatic habitats, leading to habitat destruction.
Transforming food waste into renewable fuel offers a closed loop recycling solution for communities and reduces the consumption of finite resources.

Economic

Restaurants are often compensated for their used cooking oil, dependent on market demand and quality. Once regarded as a waste byproduct, the food industry is now incentivized to recycle its used cooking oil, while also benefitting from an additional source of income and/or cost savings.
Biogenic fuels can often be seamlessly integrated into existing mechanical systems, eliminating the need to replace capital-intensive mechanical equipment that previously used petroleum fuel oil.

Domestic production & job creation

Increased use of renewable biogenic fuel can help to limit our energy dependence on foreign nations for finite fossil-fuel based resources.
Leveraging local and organic feedstocks to produce renewable biogenic fuel, generates synergistic opportunities for local food industry businesses and the communities in which these businesses operate, including jobs and environmental benefits.
According to the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy, “A robust bioeconomy will create domestic high-paying jobs while reducing U.S. dependence on foreign oil and revitalizing rural America,” and create cascading benefits for the transportation, manufacturing, and agricultural sectors.

Although biogenic fuels have existed for thousands of years, the technological advances and environmental demands of today are leading to a resurgence of this type of renewable fuel. While the world’s competing energy needs and sustainability challenges will not be solved with a single renewable fuel source, biogenic fuels are helping to bridge the gap. This circular solution is helping communities adopt better waste management approaches, source renewable energy solutions from their own former waste streams and forge the path forward towards our society’s continued transition to a more sustainable tomorrow.

How the energy industry is forging the path to net zero

Posted on March 10, 2021July 23, 2024 by Sara DeMille

In 2018, 33.1 gigatons of energy-related carbon dioxide (CO₂) were emitted globally, underscoring the need for immediate action to reduce this staggering number. Put another way, that’s 33.1 billion metric tons, a collective mass equal to 66 times that of all humans on earth.

As greenhouse gas emissions have continued to increase, energy utilities have sought to reduce the amount of CO₂ that is released into the atmosphere, as a result of burning traditional fossil fuels.

To combat the rising CO₂ levels, many utilities have committed to reach net-zero carbon emissions by either 2030 or 2050. For some, switching to fuel alternatives with lower emissions, such as natural gas, is an interim step to get there, while others look to renewable energy sources, such as wind and solar. While there are many possible paths to reach net zero, one thing is clear: time is of the essence.

But what exactly does net zero carbon emissions mean, and which method of energy production will yield the greatest environmental benefits? Let’s take a closer look.

What is net zero?

The term “net” zero does not mean there are no carbon emissions emitted. At the moment, all fuel-burning energy generation methods emit some carbon. However, after these emissions have been reduced as much as possible, companies can offset the remaining emissions by investing in assets that absorb carbon, such as forests, carbon capture, or other emerging technologies. Those assets effectively cancel out the carbon emissions being produced, resulting in net zero carbon.

Harnessing the power of renewables

Recognizing this need for change, energy utilities have sought alternatives to traditional generation sources to enable continued provision of their essential services. Unlike fossil fuels, such as coal and oil, renewable energy resources are neither extractive, nor reliant on a single resource that depletes over time. Wind, solar, and biofuels are all renewable resources that utilities are investing in to reduce their carbon footprint.

One method for reducing CO₂ emissions that can already be utilized is combined heat and power (CHP). Unlike traditional power plants that take excess heat produced during power generation and discard it, CHP efficiently harnesses that excess heat as thermal energy that can be used to keep buildings warm or cool, humidify the air or sterilize equipment. By taking advantage of this resource, utilities can conserve fuel, rather than burn more to produce heat, effectively cutting CO₂production dramatically.

Perhaps what is most exciting about this energy source is that CHP generators can also burn biofuels, such as waste vegetable oil from restaurants or organic matter. By fueling CHP with biofuels, the total amount of carbon emissions produced during energy generation can be additionally decreased.

No matter the method, utilities that choose to utilize the energy potential of renewable resources will see a reduction in carbon emissions. When renewables are combined with generation methods such as CHP systems integrated with biofuels, even greater benefits can be achieved.

The road to net zero

A broad swath of energy generators are shifting to renewables to replace natural gas, especially utilities. Challenges remain, however, especially when it comes to transforming the entire grid to be more environmentally beneficial.

While wind and solar are good renewable resources, they are reliant on ideal weather conditions to produce at maximum efficiency. When there is no wind or sunlight, utilities must turn to other energy sources, such as natural gas, to continue supplying power to the facilities they serve. Although a cleaner resource than burning coal, natural gas does emit CO₂ and still contributes to greenhouse gas buildup. Regardless of weather conditions, customers must continue to receive services, and falling back on traditional fuel sources that will produce emissions while providing necessary services is a challenge to decarbonization efforts.

Another obstacle that utilities face is upgrading existing infrastructure. For many utilities, their incumbent grid technology is outdated and ill equipped to accommodate alternative fuel sources that previously were not used or available during the original infrastructure’s development. Because of this, utilities are tasked with not only transitioning to renewables, but also updating systems that have known no other fuel source and were designed for a one-way distribution path. Utilities also have to take into consideration that the majority of U.S. communities leverage onsite boilers for residences and buildings, which means every end user will need to have their infrastructure updated to convert to greener fuels and generation methods as well. The hurdle is a high one – accompanied by a price tag that utilities will have to take into account.

Other facilities have turned to natural gas as a bridge fuel as they shift away from fossil fuels to greener solutions. Though as previously mentioned, natural gas is not carbon-free, although it has a lower carbon footprint than coal or fuel oil. Additionally, those who employ natural gas as a main energy resource may consider transitioning completely away from it to be a daunting challenge. Similar to electric utilities, these organizations will need to seek alternative fuel sources, while also upgrading existing infrastructure, in order to reach net zero.

In contrast, district energy companies can more quickly transition to renewable fuels and technologies through upgrades at their central plants. Unlike other conventional utilities, upgrades to the distribution system are not required. The improvements made at these central plants, whether this is integrating renewable fuels or converting boilers to renewable electricity, will then benefit all the buildings connected to the district system, dramatically reducing carbon emissions. By nature, district energy is typically found in urban environments, which eliminates the need to transport energy over long distances to customers. It is highly reliable, cost-effective and cuts the amount of fuel that is required by individual buildings using onsite generation. Utilizing renewable resources, energy efficient equipment and green technology at the central plant means that all connected buildings connected to the district become greener. In effect, a district energy system can dramatically reduce the carbon footprints of entire cities relatively quickly and easily.

A greener path

Time is often an overlooked resource, as it is easily spent, but it can never be recouped. As we look to the mid-century, it is crucial that energy utilities explore and implement renewable strategies to reach net zero carbon goals. It is already estimated that global carbon emissions are expected to increase by 0.6% per year until 2050, underscoring the battle against time itself. That equates to more than half a billion additional metric tons per year above 2018 levels.

By harnessing the power of renewable resources, energy providers can dramatically cut carbon emissions and diminish the climate impact of their operations, ushering in a healthier, greener world for generations to come.

The many benefits of CHP for a low-carbon future

Posted on November 4, 2020June 25, 2024 by Bella Pace

When people think about green energy, they often think of renewables like solar or wind power. While harnessing the earth’s natural elements to generate energy is an excellent strategy, these sources are intermittent and not always available. Also, space constraints in urban cores often make these technologies challenging to implement. Integration of wind and solar will certainly be a component of a greener future, but there are many other ways we can reduce emissions, save on fuel, and keep energy affordable by tackling the huge amount of energy wasted under current production conditions.

The United States squanders an incredible amount of energy through wasted heat. This heat, which is a byproduct of traditional energy generation processes, is vented to the atmosphere or released into bodies of water. Traditional generation and the electric grid itself are responsible for the majority of the thermal energy wasted. In fact, the United States loses more energy in wasted heat each year than is consumed by the entire nation of Japan.

One of the best ways to combat this issue is with CHP. By capturing heat that would have otherwise been wasted, CHP systems result in the most efficient use of fuel to produce clean, low carbon steam over traditional generation sources. Let’s take a look at what CHP is, how it works, and how it can help turn waste heat into usable energy to help reduce carbon emissions.

Understanding the CHP process

CHP stands for combined heat and power and is also referred to as cogeneration. CHP is an efficient process that combines the production of thermal energy (used for both heating and cooling) and electricity into one process. Unlike a traditional power plant that discards excess heat produced from its power generation process as carbon emissions, CHP harnesses this waste heat and puts this energy to good use. There are two common CHP processes that are used most often:

In the first, fuel is combusted in a prime mover, like a gas turbine or engine. Then, a generator connected to the prime mover produces electricity. The energy normally lost in this process as heat exhaust is recaptured in a heat recovery boiler to generate thermal energy.
In the second, a boiler burns fuel and produces high pressure steam, which feeds a steam turbine and thereby creates electricity. Upon exiting the turbine at a lower pressure, the steam is captured and used for thermal energy.

Benefits of CHP

There are many considerable advantages to CHP, both to individual buildings, campuses and society at large. CHP systems have an average efficiency of about 75%, but can exceed 80% efficiency when using steam turbines. This is versus the 50% efficiency yielded by traditional systems via separate boilers and generators. Greater efficiency means better fuel utilization. Better fuel utilization both reduces emissions and reduces costs.

Additionally, unlike many new technologies, CHP systems can be deployed quickly, and have few geographic limitations, making it easier for buildings within a district or campus to take advantage of the benefits of CHP and quickly lower their environmental impact. At the same time, CHP offers more resilient energy, especially when configured as part of an advanced microgrid. This was clearly evidenced in 2012 when Super Storm Sandy plunged New York City into darkness with its destruction of the local electric grid. But one campus stayed lit and heated – New York University’s Washington Square campus, which is powered by a 13.4-megawatt CHP plant.

Furthermore, CHP supports local economic growth by cutting energy costs and freeing up funds for other investments. According to the U.S. Department of Energy and the Environmental Protection Agency, Installing 40 GW of new CHP capacity would save U.S. businesses and industries $10 billion each year in energy costs and shave one percent off of the overall national energy demand. Such an investment would cost about $40 to $80 billion and could pay for itself within four to eight years, these agencies estimate.

A low-carbon future

So, CHP is more efficient, more affordable, and spurs economic growth. What about the environment? For starters, CHP often uses domestic natural gas, which is cleaner than coal and superior to oil from an energy independence perspective. What’s more, opportunity fuels like biofuels and wood waste are also options for CHP systems, offering an even greener approach to CHP. CHP overall, and its ability to integrate green fuels, provides cities with a tremendous opportunity to reduce carbon emissions on a massive scale. By pairing CHP with district energy networks, low carbon thermal energy can be delivered to a broad swath of buildings and generate significant carbon reduction benefits.

CHP’s emissions are inherently lower than alternative technologies, and can meet even the most stringent U.S. emissions regulations. This is partly due to its aforementioned greater fuel efficiency, which reduces greenhouse gas emissions, including carbon dioxide (CO₂) and air pollutants such as nitrogen oxides (NO_x) and sulfur dioxide (SO₂), according to the EPA.

How much of an impact can CHP have on emissions? Let’s put it in perspective. The Department of Energy estimates that the U.S.’s current CHP deployment saves about 1.8 quads of energy annually, and reduces U.S. carbon dioxide emissions by 240 million metric tons. That’s the equivalent of taking 40 million cars off of the road. The DOE goes on to suggest that deploying an additional 40 GW of CHP could decrease CO₂ emissions by an additional 150 million tons each year, which is like removing 25 million more cars from the road. In other words, CHP can have a massive positive impact on our environment and pay for itself.

CHP in action

With so many benefits and comparatively little cost to implement, it’s not surprising that in their recent Market Data: Combined Heat and Power in Microgrids report, Guidehouse Insights reported that they expect 11.3 GW of new CHP capacity to be added in microgrids globally over the next ten years.

Unfortunately, most of that implementation continues to be outside of the U.S. As with many progressive energy moves, Scandinavia leads the way. CHP accounts for 50% of Denmark’s power production and more than 30% in Finland and the Netherlands.

However, CHP only represents about 8% of the U.S.’s total generation capacity. That means that there’s enormous potential for growth. Some major U.S. cities are already reaping the benefits of CHP, including Boston, Cambridge and Philadelphia. In these communities, CHP is integrated with local district energy networks, delivering low carbon thermal energy to buildings and campuses across these cities’ urban core. In fact, CHP driven district energy has been so successful at reducing carbon emissions, its specifically tied to these cities’ climate action plans. By leveraging existing district energy infrastructure and CHP, these cities are leading the way in America’s adoption of this powerful technology and forging ahead towards a zero-carbon future.

Hospitals and healthcare facilities turn to district energy

Posted on October 1, 2020July 23, 2024 by Sara DeMille

Why district energy has become the optimal energy choice

Hospital administrators have one key concern that drives all decision-making: how to provide the highest quality care to their patients cost effectively and efficiently. Each and every business decision a hospital makes reflects this objective and a bad one can truly mean life or death – especially in today’s challenging COVID-19 environment when cash is tight, and margins are thin. Hospital leadership is feeling the pressure to think creatively of ways to reduce costs, while also maintaining high standards of patient care and safety.

So why is this leading more hospitals to turn to district energy? In short, hospitals need to look for trustworthy partners, vendors and service providers so they can outsource non-core functions and focus on what they do best – caring for our communities. By relying on district energy experts to manage energy infrastructure and ensure an uninterrupted thermal energy supply, healthcare providers can focus on their core priorities and trust that their energy needs are being met. There are many more reasons why district energy has become the preferred energy solution for healthcare facilities.

How district energy frees up cash and operating budgets

First, with rising costs and shrinking margins, especially during this unprecedented global pandemic, hospitals need to look for each and every potential opportunity to save money without compromising care. Cash flow is a top priority for healthcare executives and there is a growing and perceptible urgency for cost control. Not to mention, making the wrong energy choice can be expensive, especially when your area of expertise is running a hospital and not a power plant. Hospitals are the second most energy-intensive commercial building type in the US according to the US Energy Information Administration (EIA), so without proper management from a reliable partner, energy can be a big line item expense and a major drag on budgets.

One of the primary financial benefits of district energy is the avoidance of operating and maintenance (O&M) costs associated with onsite mechanical rooms, boilers and chillers. This can save hospitals up to 30 percent per year in their operating budgets. In addition to operating expenses, investing in energy infrastructure can cost millions in upfront capital. If hospitals have cash on hand, they have to make tough decisions, weighing opportunity costs and choosing between patient care equipment or other infrastructure investments related to energy or otherwise. Without cash on hand, healthcare facilities are faced with borrowing costs that put pressure on the returns of their investments. With district energy, not only do hospitals save on operating expenses, but many district energy companies are also willing to invest alongside their customers, reducing or eliminating any upfront costs of connecting to the system.

With 99.99% reliability, district energy supports optimal patient care

Second, hospitals have unique energy needs. Not only do they operate 24 hours a day, 365 days a year, but they also require thermal energy for heating, cooling, and, importantly, sterilization to ensure patient safety. This means they need ultra-reliable energy they can count on. While service interruptions are a disturbance to any business, any disruption to energy delivery to a hospital can have dire consequences. Here is what Bob Biggio, the Boston Medical Center’s Vice President of Facilities and Support Services, had to say about the importance of reliability:

“As a medical campus treating a diverse range of healthcare needs, it is absolutely vital for Boston Medical Center to maintain continuous and consistent heating, sterilization and comfort levels. After careful analysis of all of our potential options, it became clear that district energy would not only best support our operations, but will also help us to achieve our aggressive sustainability goals.”

District energy is 99.99% reliable, better than any other alternative, particularly during unexpected grid outages due to extreme weather events. With onsite fuel storage, the ability to integrate various fuel types, and multiple generating assets, district energy systems have redundancies built in to support 24/7 energy delivery, even in the event of a black-out. This flexibility and redundancy contributes to the energy security of hospitals and in turn, the communities served by district energy. In addition, most operators of district systems have the ability to isolate sections of their network to perform maintenance or protect the broader system in the event of an emergency. This is reliability that hospitals require.

How district energy is supporting sustainability goals

And finally, district energy has the added benefit of being efficient, low carbon, and sustainable. While most hospitals today are hyper focused on patient care and costs, many, like the Boston Medical Center, are also staying committed to their sustainability targets. District energy is fuel agnostic and leverages many different and diverse sources to generate the thermal energy that serve hospitals’ heating, cooling and sterilization needs. For example, many district energy systems leverage combined heat and power (CHP) plants, which not only generate electricity, but the by-product (steam) is then utilized for thermal energy. This recycled “green steam” is a cost-efficient, reliable way for hospitals to stay true to their carbon reduction objectives without compromise.

For these reasons, hospitals are more and more frequently turning away from natural gas and on-site mechanical rooms and relying on resilient district energy to supply their thermal energy needs, save millions in upfront capital costs and direct their operational focus to patient care.

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A low-carbon future

CHP in action

Why district energy has become the optimal energy choice

How district energy frees up cash and operating budgets

With 99.99% reliability, district energy supports optimal patient care

How district energy is supporting sustainability goals

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