Reducing cost through biomass ESCo s: opportunities and requirements

Transcription

1 Reducing cost through biomass ESCo s: opportunities and requirements Inchydoney Island Resort, Co. Cork 09 th October 2009 Presented by: Mike Shelly, Bioenergy Manager

2 CONTENTS 1. Introduction to Clearpower 1. ESCo s What is an ESCo? 1. ESCo s Opportunities and requirements 1. ESCO pricing and flexibility 1. Conclusion - 2 -

3 INTRODUCTION TO CLEARPOWER Energy Solutions: Wood Energy Sales or ESCO ( heat by the hour ). Biomass heating and Biomass CHP Design, build, operate, finance and maintain wood heating systems for Commercial and Industrial clients including district heating Exclusive agencies for leading European equipment manufacturers (KOB, Heizomat, Mawera and Compte) Delivering stable, secure fuelling and maintenance contracts, focused on applications in the 100KW 15MW range 70 installations, 35,000KW installed capacity to date UK and Ireland focus Renewable fuel sales: Production and nationwide delivery of wood chip fuel from a network of 12 depots Supply of EU Standard wood pellet fuel Organic waste management: Collection of organic waste products (sludges, liquids, pellets) from waste water treatment plants, water purification plants and industrial facilities Re-use as a fertilizer over predominantly non-food plantations under EPA/Council licence Focus on spreading to biomass energy plantations - 3 -

4 CLEARPOWER BOILER AND FUEL DEPOT LOCATIONS 12 Clearpower fuel depots Clearpower Fuel Supply Division deliver top quality biomass fuel via a network of wood fuel depots across Ireland Clearpower manufacture wood chip We can securely deliver Bulk wood chip Recycled wood chip Bulk wood pellets Bagged wood pellets Wood briquettes - 4 -

5 CLEARPOWER PARTNER OF CHOICE FOR LEADING CLIENTS Cofely: London Olympics, Kings Yard Energy Centre 2 x 3 MW Woodchip biomass boiler including walking floor delivery system Dromoland Castle: Ireland s most prestigious 5 star hotel 850 kw Heizomat boiler system and fuel silo DH loop, 2 km of underground pipes serving six separate heat user points Elm Park: large mixed use development 2.5 MW wood chip boiler plant, integrated with 6 MW gas boilers and CHP DH loop serving 400 apartments, 10,000 m 2 office space and day care centre Charlestown: large mixed use development Designed and installed 1.25 MW wood boiler as part of broader energy centre and district heating solution University College Dublin 1MW wood boiler on large campus wide district heating loop 7 year ESCo deal, complete remote monitoring/control Ritz Carlton hotel, Powerscourt 3 x 1.25 MW wood boilers, with 5 MW of oil boilers as back up Clearpower responsible for all onsite O&M and billing, with remote monitoring Ikea: First Irish store 650 kw system incorporating waste wood shredding - 5 -

6 CONTENTS 1. Introduction to Clearpower 1. ESCo s What is an ESCo? 1. ESCo s Opportunities and requirements 1. ESCO pricing and flexibility 1. Conclusion - 6 -

7 WHAT IS AN ESCO? Contract for energy not equipment! ESCo provider responsible for: Design Finance Install Maintain Operate Client pays for the supply of energy: on a per unit basis e.g. 5c/kWh On a regular fee e.g. 1,200/month Can be to a single user (e.g. Hotel, factory, hospital) or multiple users (e.g District Heating) - 7 -

8 ESCO SERVICES SUMMARY OF SERVICES Fuel Supply Maintenance Operation and Administration - 8 -

9 ESCO SERVICES FUEL SUPPLY Fuel Purchasing Natural gas Biomass Oil/LPG Logistics Delivery setup Day to day delivery - 9 -

10 ESCO SERVICES MAINTENANCE Preventative Maintenance Daily Remote monitoring of systems to ensure optimum performance of plant with control and adjustment from our central control system Scheduled preventative maintenance programs for all items of plant Monthly reports on all preventative and re-active maintenance works on system Corrective Maintenance 24/7 on-call support with automated alarm systems for fault notification 24/7 Call out support if required

11 ESCO SERVICES OPERATIONS AND ADMINISTRATION Remote Meter reading or physical Meter reading if only option Billing Calculation Billing Collection Direct debit Cheque Credit card Late payment issues Payment plan

12 THE SLIDING SCALE OF CONTRACT OPTIONS

13 CONTENTS 1. Introduction to Clearpower 1. ESCo s What is an ESCo? 1. ESCo s Opportunities and requirements 1. ESCO pricing and flexibility 1. Conclusion

14 BIOMASS ESCO OPPORTUNITIES Reduced upfront cost Capital Cost can be amortised over duration of contract Excellent Grant Opportunities Economy of scale 1 central energy centre replaces multiple individual boilers Increased space for units Reduced Operating Costs Only pay for what you use Economies of Scale (Equipment/Energy Purchasing) Operational Expertise/Risk Transfer Typically clients core expertise is not energy centres/bioenergy systems All operational risk of technology transfers to service provider Maintenance and remote monitoring done by experts Further Development Carbon benefits

15 BIOMASS ESCO REQUIREMENTS Large Steady Heat Load Hospitals, Hotels, DH schemes all have good steady use of heat over the year Peaky Loads are harder Minimum Heat Usage Reduces unit cost when spreading capital payback Reduces unit cost when spreading maintenance costs Company Risk Profile This may be an issue for full ESCo s Service provider typically has to finance ESCo and needs to evaluate client business risk

16 CONTENTS 1. Introduction to Clearpower 1. ESCo s What is an ESCo? 1. ESCo s Opportunities and requirements 1. ESCO pricing and flexibility 1. Conclusion

17 HOW IS BIOMASS ESCO PRICED Annual Energy Usage Capital Cost Energy Load Profile Fuel Type & cost Maintenance Costs ESCo Price /kwh /kwh + management fee Contract Length Client Contribution

18 CLEARPOWER PAID BY MANAGEMENT COMPANY Clearpower supply heat via management company Apartments/units Management Company No need for heat metering Heat price incorporated into management fee Fixed price per sqm Any over or under charging recouped / paid back at end of year

19 CLEARPOWER PAID BY INDIVIDUAL USER Clearpower supply heat directly to end users Apartments/units Direct heat metering Direct billing of users, paid by direct debit Fixed price per kwh Annual review of pricing

20 CLEARPOWER ENERGY MANAGEMENT SYSTEM Overview of M-Bus master system Clearpower Office with proprietary administration and Energy management system Individual user bills and energy usage reports Remote connection to PC On-site laptop/pc connected to m-bus master in plant room Hard Wired connection to PC M-bus master in plant room connected to heat meters Heat meter in end user apartment/unit Heat meter in end user apartment/unit Heat meter in end user apartment/unit Heat meter in end user apartment/unit Heat meter in end user apartment/unit Heat meter in end user apartment/unit

21 SOME TIPS Design your ESCO for operations 4-6 mth build, 20 year operations: Heat meters are a good idea Wireless heat meters are better than wired Even with meters, it may be fine to estimate readings and use meters to validate and correct Monthly billing reduces working capital but significantly increases administration cost Consider strongly the Ryanair model only dd payments, only communication. Can also be changed later Get the contract structure correct right from day 1, ie BEFORE you market the properties: PM company billing customers they need dd details and contract relationship set up at time of contract exchange ESCO company billing customers need new owners of tenants to sign relationship with ESCO provider at contract exchange

22 EXAMPLES OF CLEARPOWER ESCOs Watermint apartments Biomass base fuel Oil back-up 20 year contract Direct fixed payment by DD by management company each month University College Dublin Biomass only 7 year contract Monthly billing based on remote heat meter readings Elm Park Apartments 220 apartments Biomass with back up gas heating and gas chp Fixed payments by each apartment London DH Developments: 289 apartments Meter reading, billing and Collection services Small scale biomass fuel

23 CONTENTS 1. Introduction to Clearpower 1. ESCo s What is an ESCo? 1. ESCo s Opportunities and requirements 1. ESCO pricing and flexibility 1. Conclusion

24 CONCLUSIONS ESCO s offer a good opportunity for businesses and developers ESCo design is very flexible the contract can be adjusted to the situation Including biomass as a component of an ESCo energy centre provides optimal mixture of sustainability and economic benefit Consumers pay for electricity and gas by bill why not heat?

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26 BACKUP

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28 ELM PARK INSTALLATION

29 MONART HOTEL & SPA, WEXFORD 540kw Kob Pyrot fuelled by chip

30 Example Bill