January-February 2010

HVAC Retrofit Biggest Losers

Renewables-based designs are tapping federal dollars to slim-down on utility gas and electricity usage, 40–90%.

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Photo: Hannaford Brothers Co.
Newly opened Hannaford Brothers Co. grocery in Augusta, ME, combines multiple renewable energy sources to provide year-round cooling and heating, with little or no use of natural gas.

By David Engle

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Lending in disarray, an economy in recession, natural gas rates in a free-fall—obviously 2009 was not the year for buying energy-efficient retrofits for onsite power, HVAC … or spending much on anything else.

Actually, although that situation was certainly true at first, the market for things energy conservation related began “ramping up pretty markedly” in the summer, reports Ron Blagus, who is energy market director for Honeywell Building Solutions, near Minneapolis, MN.

This turnabout came, thanks to a number of fortunate developments—mainly, federal government largesse, turbo-charged with passage last spring of the American Recovery and Reinvestment Act (ARRA). Funding and commitments began pumping into markets by mid-year and soon began launching HVAC projects all over the country, especially for municipalities and counties and especially for those willing to convert to renewables-based onsite power. 

Michael T. Loth, director for solutions marketing and strategy at Milwaukee, WI-based Johnson Controls, explains that the Recovery Act produced “a number of funding vehicles … designed to create efficiency projects, including HVAC renovations … lighting improvements, renewable energy, and central plant applications.” Johnson Controls’ business encompasses all of these, nationwide.

Photo: Hannaford Brothers Co.
Ground-source heat pumps provide heating and cooling, ductwork captures warm air from refrigeration chillers to circulate storewide, and a rooftop solar photovoltaic array furnishes the electricity.
Photo: Hannaford Brothers Co.
When it opened in mid-2009, Hannaford received platinum LEED certification.

A prime funding vehicle has been the Energy Efficiency and Conservation Block Grant (EECBG) program. Created in 2007, it remained unfunded until ARRA came along rather serendipitously, two years after the fact, to pour in about $3.2 billion. Payouts were authorized as direct allocations, on a per-capita proportional basis, “to any municipality or county with a population above 100,000,” says Loth.

A simple six-question grant application has delivered money quickly, “for anything from school districts to private-sector companies … either to spend the money on their own buildings or to set up programs—all with an eye towards promoting energy efficiency,” says Loth.

Another money stream is channeled to state-level programs, and revolving fund accounting structures suggest to him that the flow of investment capital could become steady and long-term.

The most fund worthy projects are energy and HVAC ones linked specifically to renewable energy. These yield not only a practical return on investment, but for cities, desirable political symbolism for green community constituencies. As of late September 2009, 973 US mayors had signed the US Conference of Mayors Climate Protection Agreement; this obligates them to lowering carbon footprints—a noble aim that they can now begin to accomplish, thanks to newly arrived federal monetary help. 

Concurrently, too, throughout the decade, state and federal governments and utilities have incentivized renewable and energy-conserving projects. Wind and solar projects, in particular, have been mushrooming around the nation at 10%-plus growth annually this decade; solar photovoltaic (PV) alone soared 56% higher in 2007, according to the Renewable Energy Policy Network for the 21st Century.

Beginning that year, too, notes Blagus, Honeywell’s renewables-based retrofitting—consisting of solar PV, solar thermal, geothermal, wind, biomass thermal, and biomass electric—“has been the biggest growth in our energy business.”

In this regard, he points out, there’s been a kind of battle going among renewable resource candidates. “Solar photovoltaic always comes to everybody’s mind first,” but this thinking, he says, is too limiting and confining. So, in June 2008, the firm introduced a systematic method for analyzing the full gamut of renewables, specific to any given locality. Variables, like fuel availability, heating and cooling loads, utility rates, current rebates, and tax incentives, are factored together. The resulting recommendation often suggests that other non-solar energy inputs, and often multiple solutions, make business sense.

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A couple of recent cases illustrate:

In 2009, geothermal heat pumps were   installed at public housing projects in Denver and Pittsburgh to reduce reliance on natural gas. In the latter city, a $25.1-million investment in efficiency retrofits matched with geothermal got underway. Geothermal wells the length of football field were dug; they’re now negating the cost of about $800,000 a year, formerly spent on gas, and eliminating the need to replace old boiler plants. All told, such measures are saving the Housing Authority about $3.2 million annually. This is guaranteed for 12 years.  Next Page >

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