Funding Energy Efficiency and
Recovery through Grants and Savings
Agenda
• What is LOTT Clean Water Alliance? • The catalyst for the cogen and blower projects • The Energy Savings Performance Contract
(ESPC) program and process • The project details • End results
• State of WA Finance options
Mission Statement
Preserve and protect public health and the
environment by cleaning and restoring
water resources for our communities
Sewered Residential Population 103,309 Sewered Employee Population 92,498
LOTT Alliance
• The LOTT Alliance is a non-profit corporation formed by the Cities of Lacey, Olympia, and Tumwater, and Thurston County
• LOTT provides wastewater treatment and reclaimed water production services for approximately 90,000 people.
• LOTT owns and operates facilities in all four
partner jurisdictions
The Catalyst
• LOTT desired a Design Build process to have more control of the project and with a guaranteed outcome
• Politics of gas flare-environmental responsibility
• Oversized system ran inefficiently
• Improved digester circulation in 2010 which improved gas production
• Maximize available incentive and grant dollars
Laying the foundation of partnership
• Wanted a design build process where they had better control over the project
• Equipment Selection in LOTT’s control (335 kW generator)
• Request for proposal (RFP) for a WA State approved Energy Services Company (ESCO) for a cogen project
• LOTT found a partner with TRANE in developing the right project to fulfill their needs
• This meant including HDR as a critical team member • WA State Department of General Administration Energy
Performance Contract
Trane’s Role • Design Build Energy Services Contractor • LOTT was integrated throughout the process and
encouraged to shape the project through equipment selection, contractors, design and solutions.
• LOTT selected Trane because we partnered with them to make it their project.
• Providing Guaranteed Maximum Cost and Guaranteed Minimum Savings
ESPC Process
A Washington State Department of General Administration Energy Performance Contract was used to procure services associated with the design and installation of the two projects.
• LOTT only has one contract which is with the WA State General Admistration for the entire project(s).
• This is an option that provides a method for organizations
to manage and optimize their energy use, utilizing a performance contract allows them to leverage energy use and operational savings to support strategic business objectives.
ESPC Process
• Preliminary Audit • IGA – Investment Grade Audit • Final proposal • Implementation/construction • Monitoring and Verification (M & V) (3 Year Guarantee) • Successful completion
The Project
Before collaborating with Trane, LOTT’s Budd Inlet Treatment Plant flared most of its methane gas, a by-product of the wastewater treatment process, into the atmosphere.
This loss of energy was costly AND
harmful to the environment.
Projects
• Cogeneration System • Blower retrofit
Cogen Project Goals • Achieve the best overall utilization of the
available digester gas • Address existing system needs • Eliminate flaring of unused digester gas • Reduce LOTT’s pollutants and emissions • Maximize available energy conservation
incentives from Puget Sound Energy
Cogen Project Goals
• Coordinate design and development proactively with regulatory agencies
• Support LEED certification of new Regional Services Center building
• Complete project in time to support the new Regional Services Center building
Overall Cogen Project Results
• Provides sufficient heating energy to serve the site as a “district” heating plant
• Eliminates need to flare excess digester gas
• Achieves savings of nearly $228,000 per year in electricity costs
• The combined projects save more than 2.8 million kilowatt-hours (kWh) per year, enough to power more than 210 Thurston County homes.
• Funded with assistance from PSE energy conservation incentives totaling 70% of the project cost
Demoli/on of Former H2S Scrubbers
Demoli/on of Former H2S Scrubbers
Demoli/on of Former H2S Scrubbers
Demoli/on of Former H2S Scrubbers
Demoli/on of Former H2S Scrubbers
Demoli/on of Former H2S Scrubbers
Demoli/on of Former H2S Scrubbers
Demoli/on of Old Methane Boiler
Demoli/on of Old Blowers
Installa/on of New H2S Scrubbers
Installa/on of New H2S Scrubbers
INSTALLATION OF NEW H2S SCRUBBERS Installa/on of
New H2S Scrubbers
Installa/on of New H2S Scrubbers
Installa/on of New H2S Scrubbers
Installa/on of New H2S Scrubbers
Installa/on of New H2S Scrubbers
Installa/on of New H2S Scrubbers
Installa/on of New H2S Scrubbers
Installa/on of New H2S Scrubbers
Installa/on of New H2S Scrubbers
Installa/on of New H2S Scrubbers
Installation of New Gas
Conditioning Unit
Installa/on of New Siloxane Scrubbers
Installation of New Gas Conditioning
Unit
Installation of New Gas
Conditioning Unit
Installation of New Gas Conditioning Unit
Installation of New Gas Conditioning Unit
Installation of New Gas
Conditioning Unit
Installation of New Gas Conditioning
Unit
Installation of New Heat
Recovery Unit
Installation of New Heat
Recovery Unit
Installation of New Heat
Recovery Unit
Installation of Chiller Unit
Installation of Chiller Unit
Installation of Chiller Unit
Metso Control Unit
Auxiliary Natural Gas
Boilers
Auxiliary Natural Gas
Boilers
Auxiliary Natural Gas
Boilers
Electrical Breaker Box
Path to Substation
Path to Substation
Path to Substation
Path to Substation
Path to Substation
Installation of Engine Generator
Installation of Engine Generator
Installation of Engine Generator
Installation of Engine Generator
Installation of Engine Generator
Installation of Engine Generator
Installation of Engine Generator
Installation of Engine Generator
Installation of Engine Generator
Installation of Engine Generator
Project
Phase 2 Blower Retrofit
• Replaced 20 year old 500hp Roots blower with a dual core 200hp Neuros Turbo Blower with VFD
• How is it working?
• HDR helped with design installation and warranty issues
Project July, 2011: 72.2% used in cogen, 5% reused in boiler, 22.8% flared. 221,405 kWh, $15,941.00 – 29 days Aug, 2011: 39% used in cogen, 26.6% reused in boiler, 34.4% flared. 113,843 kWh, $8,200.00 – 17 days Sept, 2011: 70% used in cogen, 11% reused in boiler, 19% flared. 186,176 kWh, $13,404.70 – 24 days Oct, 2011: 81% used in cogen, 0% reused in boiler, 19% flared. 316,138 kWh, $22,762.00 – 31 days Nov, 2011: 81% used in cogen, 0% reused in boiler, 19% flared. 238,027 kWh, $17,137.94 – 30 days Dec, 2011: 68% used in cogen, 0% reused in boiler, 32% flared. 225,721 kWh, $16,251.91 – 31 days Jan, 2012: 74% used in cogen, 0% reused in boiler, 26% flared. 225,054 kWh, $16,204.00 – 31 days Feb, 2012: 63% used in cogen, 0% reused in boiler, 37% flared. 201,939 kWh, $14,539.00 – 25 days Mar, 2012: 70% used in cogen, 3% reused in boiler, 27% flared. 225,054 kWh, $16,204.00 – 29 days April, 2012: 70% used in cogen, 18% reused in boiler, 12% flared. 225,054 kWh, $16,204.00 – 30 days May, 2012: 83% used in cogen, 3% reused in boiler, 14% flared. 243,454 kWh, $17,285.00 – 29 days June, 2012: 92% used in cogen, 4% reused in boiler, 4% flared. 237,754 kWh, $16,881.00 – 29 days July, 2012: 71.5% used in cogen, 3.2% reused in boiler, 25.3% flared. 189,136 kWh, $13,429.00 – 27 days Aug, 2012: 72% used in cogen, 3% reused in boiler, 25% flared. 134,395 kWh, $9,542.00 – 27
Results of the two phased project
• Two phases • Cogeneration System • Blower retrofit
• Total Project value $3,200,000 • Utility (PSE) rebates of $2,000,000
(combined) • Annual guaranteed savings $230,000/year
Funding Options
• Department of Commerce Energy Efficiency
Grants for Local Governments • Energy/water efficiency loan through the Public
Works Trust Fund • Utility incentives (this project)
• Self funded through operational & energy savings
Questions?