Innovative Approach to Decentralised Energy System Pays ...

How Armstrong Helped the UK Police Arrest Their Energy Losses

Innovative Approach to Decentralised Energy System Pays Huge Dividends

NHS Sustainability Event – February 2012

MBS Retrofit Case Study


MBS Retrofit Case Study

Lancashire Constabulary

- established in 1839

- covers an area of 1189 sq miles

- population of 1,500,000

Hutton Hall County HQ

Police Training Centre- Firing Range and Sports Hall

- Teaching Blocks

- Accomodation Blocks

- Canteens

National Police Computer Database HQ


Starting Conditions

Old centralised oil fired heating plant

Oversized

Very inefficient

Expensive to run

- Fuel consumption averaged 417,000 litre/yr or £293,000 yr

- Maintenance costs were huge

Unreliable


Project Challenges

A new system was required but...

the site couldn’t be closed or disrupted in any way

heating and hot water generation had to continue 24/7

the new solution had to be cost effective – max 3 year payback

the new solutions had to be environmentally friendly –Lancashire Constabulary were committed to reducing their carbon emissions


Options

a) Change fuel from oil to gas but retain

existing boilers

b) Change fuel from oil to gas and replace boilers

and associated plant

c) Decentralise the system and install new plant

close to the demand


Options

a) Change fuel from oil to gas but retain existing boilers

Pros

Relatively inexpensive to do

Relatively quick to do

Result in fuel cost savings of around 50%

Payback around 2 years

Cons

Boiler shells over 30 years old and well past normal life cycle

System still oversized and thus inefficient

Ageing underground distribution piping would remain

System energy losses would still be high

Maintenance costs would still be high

Could only be done one at a time during the summer


Options

b) Change fuel from oil to gas and replace boilers and associated plant

Pros


Payback around 3 years

Boilers could be “right sized” to suit the reduced demand

Boiler/burner maintenance costs would be reduced

Cons

Ageing underground distribution piping would remain

System energy losses would still be high

Maintenance costs for the distribution piping would still be high

Could only be done one at a time during the summer


Options

c) Decentralise the system and install new plant closer to the demand

Pros


Payback around 2.5 years

Boilers could be “right sized” to suit the reduced demand

Plant maintenance costs would be greatly reduced

New plant should mean frequent breakdowns were a thing of the past

Underground distribution piping would be eliminated

Cons

Could only be done during the summer


Advanced 3D Design


Solution Elements

4 – MBS Integrated Plant Rooms

1) 160kW serving the firing range and sports hall

2) 320kW serving the Lancastrian

building – HQ offices and canteen

3) 320kW serving the Ellis building –

training rooms and lecture theatres

4) 240kW serving the Langdale building –

training rooms


Installation


Project Benefits

Energy Consumption and Cost

Environmental

Construction


Project Benefits

Energy Consumption and Cost

Consumption reduced from 4,503,600kWh pa to 2,550,730kWh pa. A saving of 1,952,870kWh or 43%

Cost saving of kWh reduction of £126,937 in first full year of operation

Cost saving on change of fuel £118,696

Total energy cost saving of £245,633 in the first full year alone

based upon an oil cost of £0.065 per litre and natural gas at £0.02 per kWh


Project Benefits

Environmental

Carbon emissions (based on kWh reduction) reduced by 525 tonnes pa

Carbon emissions (based on change of fuel (217 tonnes pa)

Total carbon savings 744 tonnes per year

Best in Class low Nox emissions – less than 20mg/kWh


Project Benefits

ConstructionTimescale: MBS systems assembled offsite concurrently with

excavations and installation of gas network cutting 3 months off the programme

Disruption: Existing plant could continue to function during the new installation programme ensuring continuous heating and hot water availability

Safety: Manufacturing the plant rooms in a purpose designed factory minimised the health and safety risks associated with site work

Security: Offsite manufacture meant that 15 less personnelwere required on a sensitive site

Environment: Offsite manufacture reduced the number of site deliveries by over 40 %


Customer Satisfaction

What Ed said about the project...

“It was only when we analysed the energy consumption at the end of the first year that we realised just how much money the packaged plant rooms had saved the taxpayer. The equipment has paid for itself in just a year, and will continue to deliver cost savings throughout it’s life.”

“If a new system isn’t commissioned properly, all of the inherent energy efficiency of the system can be lost. But I was really impressed with the Armstrong engineers’ ability to get the equipment working at it’s full potential – right from the beginning.”


Industry Acknowledgment

Energy Manager of the Year Award 2008

“Innovation and imagination were two key qualities that helped Ed Palmer, Energy Manager for Lancashire Constabulary, win this year’s Energy Manager of the Year Award. Sponsored by the Energy Services & Technology Association (ESTA), this annual award recognises outstanding achievement in saving energy and reducing carbon emissions.”

ESTA press release May 2008


Key Success Factors

48% of the energy savings were due to the change in fuel –relatively easy and obvious fix.

52% of the energy savings were due to the change in the system – something worthy of a little more investigation.


Energy Insights

HEATING

IS

A

PART LOAD

APPLICATION


Energy Insights

For 36% of the heating season the system is running at only 15% of the load

for 45% of the heating season the system is running at only 30% of the load

for only 19% of the heating season the system is running at 100% of the load

Source: Part L of the UK Building Regulations 2010

ȠOSBE = 0.36Ƞ15% + 0.45Ƞ30% + 0.19Ƞ100%


Energy Insights

300kW boiler system running at 30% of the load


Energy Insights


Energy Insights

300kW boiler system running at 30% of the load


Energy Insights

Weather compensation or outdoor reset

Variable primary pumping

Integrated gas meter with digital outputs

Remote alarms functions

Building Automation System (BAS) ready

All from one source, taking total responsibility


Installation Highlights

Completed on time

On budget

Exceeded savings and payback predictions

Installation proceeded without causing disruption to the site

Savings from change of fuel easily won

System savings only possible through the integrations of modern technologies


Armstrong Capital Assist- Ed Rowe


What is Capital Assist?

§ Enables you to spread the cost of Armstrong Solutions for periods 3 – 10 years.

§ Shifts capital expenditure to your revenue budget.

§ Aims to be self-funding via energy/maint savings.

§ Utilises money already being spent on inefficient plant.

§ Enables you to upgrade/ retrofit immediately.

§ First payment can be deferred until new Financial Year


NHS – The Challenge?

§ Ageing & inefficient plant

§ Substantial carbon reduction targets.

§ Insufficient Capital resources to invest in new plant.

§ Estates often loses out to clinical demands for capital allocation.

§ How to improve energy efficiency whilst retaining clinical demand as top priority for available capital.


Implications

§ Increasing energy & maintenance costs as systems age.

§ Increased risk of failure.

§ Difficulty in achieving carbon reduction targets.

§ Significant amounts being wasted from operating budgets on inefficient plant.


The Solution?

§ Upgrade / Retrofit with new energy efficient Armstrong Solutions – without the need for capital

§ Spread cost over appropriate period ( 3 to 10 years ).

§ Use energy & maintenance savings to cover monthly payments.

§ Monthly payments from operating budget ( Revenue ).

§ Use ARMSTRONG CAPITAL ASSIST.


Benefits

§ Realise immediate energy & maintenance savings.

§ No capital outlay required.

§ Use savings to fund monthly payments.

§ Monthly costs fixed for easier budgeting.

§ Avoid obsolete plant.

§ Reduce backlog maintenance.

§ Improve site efficiency & lifecycle costs.


CAPITAL ASSIST EXAMPLE for Lancashire Constabulary MBS retrofit over 3 years

Capital cost of works £359,000

Rental period 3 years

Monthly rental (fixed) £11,000

Est. annual energy savings £245,633

Est. net savings over rental period £340,899

Payback period 2.72yrs (33mths)

Est. net savings over 10 years £2,060,330


CAPITAL ASSIST EXAMPLE for Lancashire Constabulary MBS Retrofit over 5 years with 1st

payment deferred for 12 months


Rental period 5 years in arrears

Monthly rental (fixed) £7,479



Payback period 4yrs (48mths)

Est. net savings over 10 years £2,007,590


CAPITAL ASSIST EXAMPLE for Upgrade to Optivisor all variable plant controller


Rental period 3 years

Monthly rental (fixed) £2597



Payback period 2.15 yrs (26 mths)

Est. net savings over 10 years £576,268


Thank you

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