Utlility Reduction Case Study

Subject Facility:
Five Diamond Luxury Hotel

Facility Owner:
Forest City Enterprises

Subject Location:
Downtown Cleveland, Ohio

Project Goal:
Identify Potential Methods of Reducing Utility Costs for the Production of Process/Domestic Hot Water and Steam.

Summary:
The fuel conversion project from city steam to natural gas fired proprietary water heating and steam boiler system was successfully implemented with no facility disruption. The turnkey project cost of $235,000.00 resulted in an annual utility reduction in the amount of $121,795.00.The return on investment of 52% yielded a simple payback of 1.9 years.

Narrative:
Forest City Enterprises contracted with Delta Hydronics, Inc. to investigate the financial and mechanical feasibility of reducing the 208 Room Hotel’s abnormally high utility costs for the production of process/domestic hot water and steam.

Facility Survey:
The survey of the facility’s mechanical processes for the production of domestic hot water for showers, process hot water for laundry and kitchen usage, as well as steam for the onsite dry cleaning plant yielded the following: The facility was originally designed and built to utilize high pressure steam from the local city steam plant. Steam was supplied from underground piping up through welded steam pipe to the 12th floor rooftop mechanical room where domestic hot water was generated. Steam was also piped to the below grade level mechanical room where process hot water and live steam for the dry cleaning equipment was generated. Steam to water heat exchangers were utilized in both locations for the conversion of steam to potable hot water.

Utility Cost Evaluation:
Evaluation of the facility’s steam bills and investigation of alternative fuel sources yielded the following:

The facility’s annual utility cost for the production of hot water and steam (only), was 166,560.00. This was due to paying $18.93 per 1,000,000 btu/hr of useable energy purchased from the city steam plant.
The facility had natural gas available at the cost of $5.41 per 1,000,000 btu/hr of useable energy. Analysis of hot water and steam consumption revealed a projected annual utility reduction in the amount of $121,795.00.

Engineering Analysis:
Upon completion of sizing of the new natural gas fired equipment as well as negotiations with the gas utility for rates and service fees, equipment manufacturers were selected based on physical sizes, efficiencies, costs, etc. Extensive installation drawings were produced for permitting and installation compliance.

Project Implementation:
To insure project cost effectiveness, as well as meeting the owners’ return on investment criteria, solutions were found for difficult implementation obstacles as follows: Due to facility aesthetic concerns, the existing interior welded steel steam supply piping was converted to natural gas supply piping for new water heaters and boilers in both mechanical room locations. Innovative induced draft technology was utilized for fresh air supply and combustion exhaust for the under street level mechanical room.