When our client, a Global Real Estate Investor and Operator, wanted to implement strategies to meet specific targets for Energy savings and carbon reductions, they looked to Arguson to help facilitate that.  With ESG (Environmental, Social and Governance) being an increasingly hot topic and the Federal Government implementing mandates of achieving net zero by 2050, our client realized the importance of starting that process as early as possible, to try and meet those targets.

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The initial strategy, was as simple as changing all the existing fluorescent lamps to LED throughout their Portfolio and updating the fixtures in selected applications.  This was done in 2017 and has achieved cumulative energy savings of +/- $5 million in energy to date.

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That portion of the strategy was relatively simple, in that it was fairly unintrusive, achieved substantial energy savings, provided a better working environment and increased the intervals between lamp replacement.  With available municipal rebates our client was able to reduce the initial up-front costs and shorten the “simple payback” period.  Simple payback being the time period required to achieve enough savings, to offset the upfront costs.

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The next phase of the plan was more complicated and involved more strategy, capital planning, engineering and utility data analysis, to understand what the best bang for the buck would be.  

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Arguson established that this phase should involve exploring utility savings from Natural gas and water, with the use of incentives and other rebates.  We also reviewed what opportunities were available with respect to Building Automation Systems (BAS) and major plant upgrades.  In-conjunction with the client’s capital budgets, Arguson established that a number of chillers and boilers were close to the end of the usable life and would either need replacing, or refurbishing.  In addition, Arguson pinpointed buildings that would be suitable candidates for a BAS upgrade, or replacement.  To add extra benefit to our client, we also reviewed available incentives and introduced them to a municipal loan program, that could provide very low interest loans, therefore reducing the upfront costs to our client.  

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Over the period of 2019 to 2022, we implemented the following:

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• Building Automation replacement using non-proprietary systems that provide additional controllability and monitoring.  We always recommend non-proprietary systems, so that our clients are not tied to a specific service provider for the life of the system
• Boiler and Chiller replacements – utility data analysis and engineering allowed us in many cases to reduce the size of the existing plant, to ensure that the equipment was properly sized and that the building was running at its optimum capacity
• Created an integrated project team to ensure collaboration and buy in from all parties; the client, property management and our team
• Implemented training sessions for the building operation teams and in-conjunction with our BAS partner provided recommendations to increase functionality and efficiency in operations
• Established better monitoring of the building systems to achieve overall efficiencies
• Took advantage of energy incentive programs, rebates and municipal loans to provide real monetary savings for out client

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So, what impact has this made?

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• Using 2018 as the baseline, savings in Electricity and Natural Gas to 2021 equate to +/- $965,000.00.
• Overall GHG tCO2e (Greenhouse Gas Tonnage) has reduced from 5,131 tons in 2018 to 3,998 tons in 2021, an overall saving of 1,132 tons
• The Equivalent Kilo-Watt Hours (ekWh) cost per Square Foot has substantially reduced across the entire portfolio.  From $32.55 /SF in 2018, to $24.90 /SF in 2021, or a 24% reduction
• ekWH usage has reduced by 26% and natural gas consumption has reduced by 21%
• The client has been able to update significant plant and systems and was able to take advantage of programs that helped reduce the upfront costs and expedite their capital programs

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We do have to acknowledge that reduced office occupancy will have had a contribution to the savings achieved, but nevertheless the cumulative savings since 2016 are impressive

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So, what’s next on this journey?

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Now, that the relatively “low hanging fruit” has been removed, its time to attack different parts of the buildings that have the greatest impact to GHG reductions and return on investment.  Current programs include:

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• Investigate and apply for Federal, Provincial and Municipal incentive and loan programs that can provide financial contributions, grants and low interest loans
• Look closely at building envelope opportunities, window replacement, upgrade to double/triple panes, exterior panel replacement, or overclad and insulation upgrades
• Investigating Heat Recovery technologies to minimize the use of Natural Gas and reduce GHG tCO2e
• Review the associated impacts of each project to establish the knock-on effects i.e., a more efficient envelope allows the building plant and systems to run more efficiently, increasing the potential to reengineer and resize the building plant
• Looking at Heat Recovery technologies to minimize the use of Natural Gas and reduce GHG tCO2e

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So, in a nutshell!

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There are lots of opportunities to maximize your building, or portfolios energy efficiency and reduce both your overall operating costs and set a road map to Net-Zero emissions.

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If you are interested in speaking to us about your Energy & Sustainability projects, please do not hesitate to reach out.

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