Renewable Energy Overview. CleanMed 2012 Jeff Rich, Executive Director GL Envision, LLC 1

Transcription

1 Renewable Energy Overview CleanMed 2012 Jeff Rich, Executive Director GL Envision, LLC 1

2 The Renewable Energy Puzzle ITCs Renewable Energy Considerations Environmental Effects Depreciation Benefit Emissions Water Human Health Siting Regulatory Issues Carbon FERC / ISO State Permits EPA Roads State DNR Local Permits Safety / Rescue FAA 2

3 Who We Are Physician-led Integrated Delivery System Headquartered in La Crosse, WI Approximately 6,500 total employees 475 employed physicians 300 employed mid-level 325-bed tertiary medical center Level II trauma center 41 clinic locations Medical Foundation Residency and medical education programs Clinical research program Health Plan Provider-owned and -operated health insurance company A variety of affiliate organizations including EMS ambulance service, rural hospitals, nursing homes, hospice, etc. 3

4 Program Objectives 1. Energy Independence by Produce more power than Gundersen consumes from fossil fuel sources 2. Make healthcare more affordable to our patients by neutralizing the future cost of energy through energy production 3. Distinguish Gundersen and our community as a national leader in energy conservation and the development of renewable energy sources. 4

5 Why Should a Healthcare System Consider Energy/Environment? Pollutants from the burning of fossil fuels cause: Cancer, liver disease, kidney disease, reproductive issues Cardiovascular deaths and stroke 1 According to the Department of Energy, hospitals are 2.5 times more energy intensive than other commercial buildings 2 This is inconsistent with our mission we are responsible for contributing to disease through our wasteful consumption. Energy costs continue to escalate, making it more difficult to provide affordable care Reducing waste results in an improved bottom line 1 Source: American Heart Association Scientific Statement: DALLAS, May 10, Source: 5

6 Our Envision Program Energy Management Energy Efficiency Renewable Energy Waste Management and Control Recycling Sustainable Design of New Facilities Gundersen s Vision for Energy and Environmental Stewardship 6

7 Energy Status 7

8 Conservation Pros Cons Reduces waste Not sexy (boiler rooms, roofs) Opportunities exist everywhere Can t reduce ourselves to zero Best financial returns Easy to implement Quick success for momentum Can save 20%-30% of energy use Builds credibility of stewardship Lessens renewable energy investment 8

9 Solar Projects La Crosse Campus Underground Parking Garage Photovoltaic Supplies (75,000 kwh) for garage lighting First LEED certified parking garage in U.S. Installed in July 2008 On-site Day Care Center Solar Hot Water Supplies 85% of hot water needs Educational example for children and community Installed in April

10 Solar Pros & Cons ~$7,000 - $10,000 / KW Installed Pros Proven, viable technology Clean & emissions free Cheap fuel Quick installation Minimal regulatory hurdles Low maintenance costs Equipment life years Cons Intermittent / low production in WI Long paybacks 10

11 U.S. Solar Resource 11 Source:

12 City Brewery CHP Project Waste water biogas project generating electricity and heat Partnered with City Brewery 4 blocks from Medical Center (1,000,000 kwh) ~1% of total goal Started production in October

13 Biogas Pros & Cons ~$2,000 - $4,000 / KW Installed Pros Proven, viable technology Quicker paybacks than others High capacity factors CHP opportunities Waste products offer cheap fuel Available nearby Landfills Municipal WWTPs Paper Mills Food Processing Facilities Dairy / Hog Operations Cons Expensive to service Equipment useful life On-going maintenance Emissions permits Resource longevity Significant Safety Measures 13

14 Onalaska Campus Landfill Gas Project Landfill gas project on Onalaska, WI campus Partnered with La Crosse County Solid Waste Department Project will offset 100% of Onalaska campus energy needs (8,500,000 kwh + 12,000 MMBtu of gas) ~11% of total goal Started production in February

15 Onalaska Landfill Gas Project 15

16 U.S. Landfills 16 Source:

17 Dairy manure digester Dairy Digester Project Implementation Project will produce 11,000,000 kwh annually and achieve 9% of goal Fiber byproduct enhances revenue stream and removes phosphorous from groundwater Still under partnership negotiations 17

18 Source: U.S. Manure Methane 18

19 Lewiston, MN Wind Project GL Wind 4.95 MW Lewiston, MN project Project will produce 15,000,000 kwh ~7% of total energy independence goal Started production in December

20 Lewiston, MN Wind Project 20

21 4.995 MW Wind project Cashton, WI Wind Project Partnered with Organic Valley Project will produce 12,000,000 kwh and achieve ~5% of total goal Targeted production for April

22 Wind Power Pros & Cons ~$2,000 / KW Installed Pros Proven, viable technology Clean & emissions free Turbine lead times are good Turbine prices dropping Cheap fuel Available nearby Equipment life years Cons Intermittent production Long regulatory process (2 yrs.) Expensive to service Neighborhood resistance Wildlife interactions 22

23 80 Meter U.S. Wind Resource Map 23

24 Biomass Boiler Biomass Boiler Project 2012 Implementation 38% of energy independence goal (~150,000 MMBtu and 2,500,000 kwh) Will produce the majority of heat / steam used by the health system On-site electricity production with back pressure steam turbines Targeted production for October

25 Biomass Pros & Cons Pros Proven, viable technology Cheap fuel Available nearby Agri-residues (i.e. corn stover, etc.) Forest harvesting residues Sawmill chips, dust High pressure models can be used to cogenerate with turbines Cons Reliable fuel supply / longevity Trucking / hauling costs Fuel moisture & cleanliness Particulate & SO 2 emissions Fuel handling Ash disposal Alkalinity effects on boiler Boiler operating variability 25

26 Source: U.S. Forest Residues Wood Using Mills U.S. Crop Residues 26

27 Geothermal Heat Pump New Hospital Addition Two 150 ton heat pump chillers 156 geothermal 400 ft deep Provide Heating Domestic Hot Water VAV Reheats Radiant Panels Provide Cooling Data Closets Electric Vaults Medical Equipment Supplement Comfort Cooling Emergency Cooling to Hospital Expected Efficiency Improvement = kbtu/sqft 27

28 Geothermal Pros & Cons Pros Proven, viable technology Cheap energy source High capacity factor Heating and cooling benefits On-site availability Aesthetics Cons Soil conditions impact efficiency Pump electricity use Benefits vary by region Footprint 28

29 U.S. Geothermal Resource 29 Source: U.S. D.O.E.

30 U.S. Electricity Rates Dark Blue: Least Expensive Dark Brown: Most Expensive 30 Source:

31 U.S. Electricity Transmission Grid Interconnection costs Grid system impact studies and potential upgrade costs Projects < ~1.5MW exempt in most cases but still need local distribution capacity Distance to adequate interconnection point can significantly impact costs 31

32 Renewable Energy Project Partnerships (Value delivered & gained) Value Delivered Capital Investment Technical expertise Renewable energy resource Tax appetite Debt service O&M staff Experience Access to external funding Project management Legal guidance Job creation Value Gained Energy revenue Renewable Energy Credits (RECs) Renewable production tax credits Depreciation expense tax benefit Grants, loans, incentives Lease arrangements for resource Operating agreements Maintenance agreements Renewable fuel payments Public relations / marketing Technical training access Reduced risk / liability 32

33 Organizational Goals Fit Project A Project B 33

34 Key Points One size does not fit all in renewable energy Clearly define your organization goals and fit Use resources most readily available in your region Does not have to be located on your campus Conduct feasibility studies before making commitments Technical and financial Understand the value of the power you ll generate Contract with reputable and experienced firms Foster partnerships to enhance your benefits Ensure your organizational structure is appropriate Adequately plan for operations once constructed Perseverance It is a challenging but rewarding journey 34

35 Envision 35