District Energy - 2011 1st Quarter

Measuring Success

Real success sometimes is measured by the ability to make decisions mid-project that change the project’s course. In a project like this one, which was not a cookie cutter replica in any sense, this was even more the case. Every single step was analyzed to ensure everything was on track.

One important change was made to control acid gas emissions. As recommended by a University of Washington study, the company opted for a semidry absorption scrubber system rather than a bicarbonate injection system. The scrubber was deemed the best method to prevent the creation of a detached plume that could result from the interaction of ammonia, from urea injection to control NOx, and hydrochloric acid, formed by chlorine-contaminated wood (not uncommon in the Pacific Northwest forest), after the gases left the smokestack. This type of adjustment has helped optimize system operations and control emissions.

Positive changes were also made to the project’s debt. Completion of construction recently allowed Seattle Steam to replace the construction loan with a New Market Tax Credit (NMTC) structured debt. At closing, the NMTC debt raised more than $6 million in federal tax exemptions that were injected as equity into the project. This complex refinancing was possible because of the location of the steam service district in relation to qualified census tracts (those that showed average income below a defined level).

But what is the result of the overall project now that commissioning is drawing to a close? The project is meeting its financial goals without increasing costs to the customers, plus a good first year of operation has put Seattle Steam well on track to meeting its 60 percent carbon reduction goal.

Seattle Steam’s carbon emissions are monitored through The Climate Registry via annual audits conducted in September. Although the past year’s certified results won’t be available until early 2011, the results will immediately be made available to Seattle Steam’s customers, many of whom now track their carbon annually. They will each receive specific information about how much Seattle Steam reduced their respective carbon footprints over the past year.

The company is committed to a reliable, consistent operating
performance that will keep emissions down, carbon footprints reduced
and customers satisfied – a good path for others to follow.

Stanley Gent, P.Eng., joined Seattle Steam Co. as
president and chief executive officer in 2004. He
previously was president of Comfort Link, a district
cooling company located in Baltimore, Md. During the
1990s, when he was employed as vice president of
engineering and development for Chicago-based Unicom
Thermal Technologies, Gent became a leader in the
development of a variety of district cooling systems. He may be reached at
sgent@seattlesteam.com.

Recycling Goes Full Circle

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