CASE STUDY FOR NEWCASTLE UNITED ENERGY MANAGEMENT PROGRAM
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1 CASE STUDY FOR NEWCASTLE UNITED ENERGY MANAGEMENT PROGRAM
2 WHAT THE CLUB HAS TO SAY With the introduction of the Carbon Reduction Commitment (CRC), rising energy prices and the corporate need to be more responsible regarding our environment, the board at Newcastle United decided to set achievable targets to reduce the clubs environmental impact. We engaged the services of a reputable consultancy in GET Solutions, as we found their business model very attractive and refreshing. By utilising funds from our energy contracts, they were able to invest considerable amounts into the Sports Direct Arena and realised energy savings from day one. After completing our initial energy audits, we began to make informed decisions on how to make small changes that did not affect our operational requirements but reduced our energy consumption. With the introduction of the Burner Management units into our heating system, we experienced immediate gas reduction and we now have several other projects completed and many more planned over the coming months. GET Solutions energy management software package (Energy Impact) has given us full visibility on our day to day consumption and this has allowed us to focus on areas of abnormal and unnecessary consumption. This has enabled us to ensure the Building Management System (BMS) is optimised and meets the operational patterns of the building on a daily basis, again bringing savings. Working with GET Solutions, we have devised a five year plan for Newcastle United and we are confident that we will meet and probably exceed our targets set both internally and by the CRC. Our goal is now to achieve the Carbon Trust standard to make the Sports Direct Arena and Newcastle United as energy efficient as possible. Eddie Rutherford Facilities Manager, Newcastle United FC
3 CONTENTS Contents OUR PROGRAM 4 HOW WE VE PERFORMED 5 HOW WE GENERATED FUNDS 6 HISTORY AND CHALLENGES 7 PUTTING STRATEGY IN TO PRACTICE 8 PROFASI 9 ENERGY SAVING PROJECTS 11 TRAINING GROUND BOREHOLE 13 CARBON REDUCTION COMMITMENT (CRC) 14 CARBON TRUST STANDARD ACCREDITATION 15 WHAT THE FUTURE HOLDS 16
4 OUR PROGRAM Our new energy management program is designed to lower energy consumption and its associated operational costs, with little or no capital expenditure. Our consultants believe that by declaring the revenue generated by placing energy supply contracts, we can create a Green fund, implement longer term energy efficiency programmes and realise savings for ourselves without the normal budgetary restrictions. See below how we achieved this: Data Collections - Obtain all billing information for a complete and comprehensive review. Produce a visibility report on historic and current usage trends, thus allowing energy management. Renegotiation of all Utility Contracts - We are able to secure commercially competitive contracts through our consultants rigorous procurement processes, whilst harnessing their bulk buying position within the energy market. Continuous monitoring of the current and historic market trends enables us to effectively manage a longer term procurement strategy. Energy Impact - Input electricity data into Energy Impact for all sites. Generate reports to highlight areas of concern and to fully understand usage patterns. Develop consumption profiles and implement exception reporting. Remote Energy Study - Conduct comprehensive remote site audits identifying areas for improvement and where appropriate taking immediate action to reduce utility consumption. Provide reports detailing observations and developing best practice. In Depth Physical Study of all Properties - Review the performance of all sites, emphasising on the poorer performing facilities first. Conduct detailed audits, identify areas of improvement and develop best practice. Escalate findings and proposed actions to higher management for board reporting. Qualified Recommendation of Various Energy Saving Technologies and Practices - Delivery of recommendations within a qualified, monitored and controlled environment. Reporting on results and demonstrating a good return on investment. Continuous Monitoring and Targeting of Energy Consumptions - Through our consultants web based software package, energy consumption data is reviewed. Where immediate action is required, alarms are automatically generated to inform site personnel of excessive energy use and required solutions.
5 HOW WE VE PERFORMED Newcastle United s total savings of gas and electricity 2008 to 2011.
6 HOW WE GENERATED FUNDS The chart below is for demonstration purposes only: Revenue generated from 6 Year Historic Review (estimated). Commissions paid from placement of NUFC energy contracts to GET by the energy supplier. Initial investment gained from the procurement of the Gas and Electricity (additional funds can be generated from other procurement agreements). NUFC s return on investment at an agreed ratio of 50% back to future projects. Project fees secured from GET and NUFC s self-funding initiatives. Accumulative balance gained from energy savings initiatives (Balance brought forward less fee) + Gas and Electricity Saving. Accumulative project fund from energy saving initiatives.
7 HISTORY AND CHALLENGES Our Journey Over the past few years Newcastle United has been challenged with selecting suitable technologies and services, tailored to meet the needs of our energy management requirements. The diagram above shows the journey we have taken and with many more projects planned for 2012 we are well on our way to meeting our targets!
8 PUTTING STRATEGY IN TO PRACTICE What is Energy Impact? Energy Impact is a web based software package that provides clients with clear, concise information about their electricity, gas and water consumption*. It provides the client with a management information suite enabling both cost and consumption comparisons over specified time periods. Using daily profiles, usage over the previous 24 hours is compared to the same day of the previous year or to a 24 hour usage profile determined by the client. Alarms If the daily profile is exceeded, the periods of higher consumption generate alarms to the client, detailing the additional expenditure and the potential cost per annum if the trend is repeated each day. The client is then prompted to respond, detailing reasons for the over spend. The immediacy of D+1 enables the client to identify the reason for any exceptional usage. By alerting the client to any over usage or anomalies, they have a highly effective cost and performance management tool. Profiles and Comparisons The Profile and Comparison graphs display usage by site and or utility over a given time span. Comparison reports compare usage over 2+ sites, by utility and over a specified time period. Both of these provide comprehensive M.I. and enable site performance to be measures against similar sites or defined timescales. Reports A comprehensive suite of reports including Daily Cost and Annual Comparison Daily Cost and Overspend Degree Days Monthly CO2 Comparison Monthly Cost and Forecast Monthly Savings The reports provide invaluable tools to measure and manage performance, set targets and validate energy efficiency measures by way of historical cost comparison.
9 PROFASI The Future of Effective Facilities Management Asset Management Maintenance Scheduling Data Collection & Storage Virtual Plant Locator Site Familiarisation Reporting Web Based Energy Management Adding outstanding value to your facilities management business, PROFASI can help reduce the cost of traditional maintenance significantly while greatly improving service quality. Customers need to employ cutting edge technology to enable a modern building to run efficiently and ensure its systems operate at their optimum performance. PROFASI is a unique Condition Monitoring Maintenance regime, it can maximise asset history, increase asset efficiency and reliability and extend asset lifetimes. PROFASI has the ability to save our clients millions of pounds on their maintenance budget and improve asset value. The innovative scheme reduces the cost of maintenance per square metre, thus enabling developers and building owners to set a more competitive service charge. This unique approach to facilities management represents the future of the industry. The demands made on buildings today are higher than ever. Energy efficiency and safe working environments are of paramount importance, but facilities operators can no longer afford costly planned preventative maintenance systems.
10 PROFASI The Future of Effective Facilities Management Condition based or predictive maintenance involves the measurement of various parameters that can deteriorate asset health, and allows managers to service or repair plant and equipment only when its condition demands. This system has been in used in the process and aircraft industry for many years and is a tried and proven method of predicting and avoiding major breakdown of assets. Predictive maintenance routines can also make savings of around 20-30% over planned preventative maintenance systems. Predictive maintenance depends on the continuing analysis of equipment during start-up, operation, and shutdown periods. PROFASI is particularly innovative in the use of non-invasive methods that avoid plant downtime and therefore improve business efficiency. Acoustic analysis enables all rotating and reciprocating plant to be monitored without shutdown or strip down. Thermal imaging allows all heat generating items of plant and equipment to be carefully monitored while sampling and analysis of combustion products, lubricating oil, coolant, wet system media and refrigerant provide valuable information without the need for shutdown. Whether the project is a single building or a multi-site operation, we deliver a comprehensive management and maintenance service within clients budgets and to the highest standards of best practice. The cost savings through reduced equipment downtime, less expensive breakdowns, lower labour costs and improved scheduling makes PROFASI a very attractive choice for cost-effective facilities management.
11 ENERGY SAVING PROJECTS Car Park Lighting We have replaced all of the existing T8 tube lighting in the multi storey car park with high frequency T5 lighting. By way of a retrofit plug and play AdapT5. This has secured a 50% reduction in running costs in this area. 5th & 6th Floor Lighting Projects We have replaced the existing CFL lighting system in the corridors on floors 5 and 6 as part of phase 1 of our LED lighting projects. This has secured a 70% reduction in running costs in this area. East Stand Hot Water Supply Upgrade Currently in the east stand, all hot water in kiosks and toilets are supplied by 117 individual electric water heaters that need to be maintained continuously at 60 to prevent the risk of Legionella. This means, powering these heaters 365 days per year, 24 hours per day. We will be replacing this method of heating water with a central gas system that is only required on match days. The anticipated annual savings of this project is 50%.
12 ENERGY SAVING PROJECTS Burner Management Units Description Based on the success of the previous BMU Project we are proposing addition BMU installations. Burner Management Units - Improve Insulation 16 to 20% Savings Improves the burner firing pattern and is suitable for most gas/ oil boilers with outputs of 80KW or greater. It offers two unique benefits: Firstly it is the only energy saving product that is independently certified by The Building Research Establishment. Secondly it can download a Savings Report, making it unnecessary to complete lengthy and difficult through the meter tests. South Stand Project Cost - 4,800 Project Saving - 1,864 Payback - 24 Months Training Ground Project Cost - 4,800 Project Saving - 2,433 Payback - 18 Months Level 2 Plant Room Project Cost - 3,200 Project Saving - 5,922 Payback - 5 Months Valve Wrap Description Based on the success of the previous Valve Wrap Project we are proposing addition Valve Wrap installations. Valve Wrap - Improve Insulation 20 to 25% Savings Most plant-rooms are hot and all that heat is wasted. Rigid metal clad insulation is difficult to use on all fittings and because it is difficult to re-fit after maintenance it is often found on the floor of the plant-room. Most plant-rooms have up to 40 fittings unlagged and with each fitting being the equivalent 1.5m of pipe, this results in a lot of heat. Valve Wrap is a robust, flexible insulation that provides maximum heat retention and can be re-used indefinitely. Training Ground Project Cost Project Saving Payback - 21 Months
13 TRAINING GROUND BOREHOLE The Borehole Process As part of wider cost cutting measures, Newcastle United had a borehole drilled at their training ground in order to reduce their 40,000 a year water bill. The money saved is set to be reinvested in players and infrastructure and plans for a 350,000 under soil heating scheme at their training base. After an initial discussion, hydraulic drilling rigs are mobilised at the client s request. The appropriate diameter for drilling is decided by the demand of water required or the client s specifications. Drilling depths of over 400 meters are easily achievable in a short duration. Whilst drilling for water resources constant resource and volume assessment are possible resulting in appropriate depths being drilled to best achieve the volume demands. Rock strata is progressively assessed to form an accurate record of the borehole and to assess the rocks strengths to install appropriate amounts of casing to support the borehole so that its lasts well into the future. This is then reported to the British Geological Survey post borehole completion (required by law). The construction techniques minimise the risk to the environment whilst controlling the drilling and any water that is present in the rock.
14 CARBON REDUCTION COMMITMENT (CRC) Carbon Reduction Commitment (CRC) The CRC is a mandatory scheme aimed at improving energy efficiency and cutting carbon emissions in large public and private sector organisations. The scheme features a range of reputational, behavioural and financial drivers, which aim to encourage organisations to develop management strategies that promote a better understanding of energy usage. Following four public consultations, the CRC came into force on 1st April 2010 as a carbon trading scheme. Newcastle United Football Club is one of a handful of football clubs large enough to qualify for full participation in the CRC. This legislation has become notorious for its complexity and the CRC has provided significant challenges for numerous organisations. In addition, there are substantial financial and reputational penalties for non-compliance. In common with many organisations, Newcastle United FC decided to outsource the management of CRC to specialist consultants, thereby enabling them to focus on their core business activities. Having investigated a number of CRC consultancies we selected GET Solutions to provide a full CRC management service. We assessed the organisational structure within which Newcastle United FC and developed a suitable CRC strategy. One of the first goals was to complete the registration for the CRC. The necessary information was collated, validated and submitted well before the registration deadline. GET Solutions also developed a carbon trading strategy in preparation for the carbon trading part of the scheme. This proved to be an academic exercise when in October 2010 the Chancellor of the Exchequer modified the scheme to become a tax in all but name. The club s existing energy monitoring systems were utilised to provide the raw data for carbon emissions monitoring in line with the CRC regulations and historical energy usage data was analysed to generate a financial forecast. The potential for the CRC early action metric was reviewed and implemented where appropriate. A comprehensive CRC Evidence Pack has been developed and maintained in accordance with the legislation. CRC Footprint and Annual Reports were prepared, reviewed and signed off by the club s finance director following the CRC internal audit. GET Solutions has also liaised with the Environment Agency, the administrator of the CRC in England and Wales, to address software issues with CRC Registry. GET Solutions has provided regular updates to Newcastle United on the changes to the CRC and Newcastle United FC continue to retain GET Solution s full CRC management service.
15 CARBON TRUST STANDARD ACCREDITATION The Carbon Trust Standard was developed by the Carbon Trust in 2007/08 to encourage good practice in carbon measurement, management and reduction by businesses and public sector organisations. It is designed to provide a robust, objective and consistent methodology for assessing corporate carbon performance. The Standard specifies requirements in three key areas: - Carbon footprint measurement - Carbon management - Carbon reduction performance Assessment against the Standard is undertaken by independent third-party assessors. The assessment process is managed by the Carbon Trust Standard Company - a subsidiary of the Carbon Trust. The Carbon Trust Standard was launched in June It builds on other existing international Standards for the measurement of corporate carbon emissions: Greenhouse Gas Protocol Corporate Standard from the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) ISO :2006, which provides a specification (at the organization level) for quantification and reporting of greenhouse gas emissions and removals. The Standard was developed in consultation with leading businesses and public sector organisations. It is informed by the Carbon Trust s experience of working with thousands of UK businesses to implement effective carbon management strategies. The Standard also incorporates qualitative criteria developed by a predecessor scheme - the Energy Efficiency Accreditation Scheme. Newcastle United is committed to achieving the Carbon Trust Standard accreditation by 2013 in recognition of our commitment to reduce our environmental impact and to demonstrate our achievements so far.
16 WHAT THE FUTURE HOLDS Over the coming months, Newcastle United will continue to investigate improvements to our property portfolio for the sole purpose of reducing our Carbon emissions. We currently have studies underway to understand the economic feasibility of various improvements. Some are listed below: Combined Heat and Power (CHP) Voltage Optimisation Waste to Energy (Gasification) Wind Generation Plasma Lighting Rain Water Harvesting Solar Energy We would also like to encourage the visitors to our facilities to be aware of their own impact on our environment and help us by pledging to make small but significant changes to their daily routines by visiting our environment section to our main website.
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