Location: New York
Author: Ken Silverstein, EnergyBiz Insider, Editor-in-Chief
Date: Thursday, August 7, 2008
Global communications company Nokia wants to spread the word. It had dozens of offices and campuses around the world that used a ton of energy and in the process, released lots of greenhouse gases. In 2003, though, it set out to do something about it. It consolidated campuses and improved ventilation and lighting processes. Altogether, it says that its energy consumption has dropped 7 percent in five years.
Pressure is mounting on all businesses to cut their heat trapping emissions. It's particularly true of commercial buildings that are responsible for 38 percent of those releases. Awareness is growing. But confusion persists as to how to deal with the problem. The fact is that many enterprises can save money by implementing some sensible conservation features and by applying new operating procedures. Businesses can't control energy prices. But they can manage how much power they use.
"Most companies today cannot measure their carbon footprints let alone say how they will go about reducing them," says George Ahn, chief executive of Las Vegas-based TRIRIGA, which specializes in helping companies calculate their energy consumption and then control their greenhouse gas emissions. He adds that the benefits begin to outweigh the costs once the energy savings kick in -- bonuses that will add up as businesses market their efforts to the public.
In a typical energy audit, consumption patterns are surveyed before a strategy is developed to cut usage. Companies that are able to illustrate and quantify their fuel reductions will furthermore benefit once state and federal governments enact tougher standards to limit building emissions. California, in fact, just issued new standards that it hopes will cut emissions from buildings by 15 percent -- all in accordance with state initiatives to reduce greenhouse gases by 30 percent over 12 years.
According to the U.S. Green Building Council, offices consume 70 percent of the electricity load in the United States. They account for roughly 38 percent of all greenhouse gas emissions here and over the next 25 years, carbon dioxide emissions from those structures are projected to grow faster than any other sector, at 1.8 percent a year.
That's why the organization has, in conjunction with like-minded organizations, issued a memorandum asking building owners to make their properties carbon-neutral by 2030. Those buildings would use no energy from external power grids. They could be built and operated at fair market values, it adds, noting that the average building that is certified under the council's standards uses 32 percent less energy.
Simple moves for offices might include cycling the air conditioning so that it turns off at night or does not go full blast if rooms are only sparsely populated. Or, in the case of a manufacturing complex, processes could include using combined heat and power that captures the steam and then reuses it to heat or cool a building.
Fruitful Investments
SAP Americas is shooting for the stars. It hosted a groundbreaking ceremony last year for its new green building expansion in Newtown Square, Pa. that will cost $105 million. The first phase of construction will be 202,000 square feet that will be completed in two years. The second phase will double the size of the project and will be completed in 2012.
The software vendor says that as a business leader it not only felt the need to create a positive working environment for its employees, but also that it had to do its part to deal with climate change and ecological preservation. While it has chosen to take major steps, the company emphasizes that others may make small gestures ranging from choosing ecologically sensitive copy paper to using energy efficient light bulbs.
Meanwhile, New York's Marriott Marquis is doing its part. The hotel is cutting energy consumption by upgrading lighting in non-guest areas through lamp and ballast replacement, as well as fixture replacement. It's all part of an effort by the local utility, Con Edison, to cut power demand during peak times because the local distribution network is nearing capacity.
Con Edison says that public entities account for most of the upgrades and retrofits today, noting that they are less inclined to worry about fast pay-back times. The industrial and commercial sectors, on the other hand, typically like to earn a return on their investments within three years. Essentially, they have been more concerned with increasing capacity at their plants as opposed to creating new efficiencies. The exception is when a utility or government authority gives them incentives to offset the initial capital costs.
That is changing, however, with all the attention given to reducing global warming emissions. According to the Green Building Council, the market for green building products will be $30 billion to $40 billion by 2010. That investment will involve nearly all of corporate America of which 20 percent will be the most aggressive.
"Over the past decade we've seen an exponential increase in public and private client interest in integrating energy efficient designs and equipment, and sustainable practices and materials into their projects," says Rich Barnes, president of KEMA Services. "Coast to coast, building owners and key tenants increasingly want to take concrete steps to increase the value of their properties, lower the cost of occupancy, and reduce the overall environmental impacts of new construction and renovation projects."
Escalating energy prices are contributing to the uncertain business climate. But such times require innovative thinking -- ideas that can ultimately give enterprises a competitive advantage. Green initiatives are taking off and becoming fruitful investments that can reward customers, communities and shareholders
Copyright © 1996-2006 by CyberTech, Inc. All rights reserved.