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The 75%-5% Plan: Lessons from building North America's greenest hotel

 
Click to watch the video now

Click to watch the video now

Build an Ontario Cleantech industry, cut urban carbon emissions by a half, and it won’t cost a dime. Sound like I’m selling Florida swamp-land? Hold your fire. This is the real deal.

All of these lessons come from my own project: The Planet Traveler hostel, at 357 College, where we’re building the greenest hotel in North America. That means: 75% reduction in energy use from business as usual. And we’re doing it by economic argument alone (ie, we’re making money being green). We got no subsidies, no grants. If we can do it, anyone can.

Buildings are responsible for between one-half to three-quarters of carbon emissions in large urban centers. Retrofitting those buildings with Ontario-based, existing technologies can cut almost any buildings energy use by three-quarters. How much would it cost? About five per cent of the building’s value. Borrowing that money at market rates means the project is cash-flow positive from day one.

Bogged down by a fog of feasibility studies, lack of clear federal, provincial or city guidelines, we sit and stare at our cityscape. In the meantime our climate is starting to bake. Best management practices say you figure out payback periods to the second decimal place, before the CFO goes to the board. This is paralysis by analysis. Urgent action is required on the carbon front now, and we know enough to: Look as you Leap!

The following five technologies can be implemented in any building, and pay for themselves. Who cares if the payback is three years or six years? Borrow the capital and you’re making money from day one.

Geo-exchange: Heat and cool the building with the ground beneath your feet. Use city laneways and parks if you haven’t got a lawn. Savings? 50-75% off the heating/cooling bill. Supplier? Canadian company Clean Energy Developments (www.cleanenergydevelopments.com).

Solar thermal: Use the sun to pre-heat your hot water. Savings? 20-50% of hot water. Supplier? Canadian company Enerworks (www.enerworks.com).

Wastewater Heat Re-capture: Grab the heat going down the drain with the Powerpipe, a simple copper heat exchanger. Savings? 30-40% of hot water. Supplier? Renewability Energy (www.renewability.com)

LED Lighting: We can light up the entire building, inside and out, with the same energy as a two-slice toaster. Savings? 50-80% off lighting. Supplier? Haven’t picked one yet, but there are lots of Canadian players.

Solar PV: Under the Ontario Green Act, we can put solar PV cells on the roof and get paid enough to make it worth doing. We’ll put 10kw up there. Supplier? Haven’t picked one yet. (Read more on the Green Act here and here.)

Our total energy savings will be around 75%. Our incremental cost will be around $200,000. Monthly energy savings? Around $2500. Cost of borrowing the $200,000? A lot less than we save. The building’s worth about $4M, so it’s just five per cent of the building’s value.

How can you feel confident these technologies pay for themselves? Because they’re installed in hundreds of thousands of other buildings.

So get on with it Toronto. Get on with it Canada. Stop the dithering. Don’t be paralyzed by analysis.

The government’s role? If banks aren’t stepping up to let us tap the five per cent, then they should backstop the loans.

Build a Cleantech industry. Save money. Potential for Canada: A full 30% reduction in carbon emissions. And a whole lotta jobs.

Video and Presentation

Green or Green Wash? Lessons from building North America’s greenest hotel in Toronto from MaRS Discovery District on Vimeo.

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  • http://blog.marsdd.com webgoddesscathy @ MaRS

    Some really great commentary on the video/presentation here: http://www.vimeo.com/5573303

  • Andrew Sinclair

    Tom: Your talk was fantastic and thought provoking ! Anyone who missed it should take the time to watch the video. Your point that, “It is all about energy (and carbon footprint)” is so true. We all sit around feeling Green since we use re-usable canvas bags for groceries and bring our lunch in Tupperware containers. These are certainly admirable “sumbolic” actions, but will have negligible effects compared to the house we live in, how we heat/cool it, the car we drive (SUV when we could us transit), the cottage we own and drive to, the vacations we take, etc. I am not suggesting we need to stop recycling or doing the small things, but Energy is one or two orders of magnitudes more important, and we need to focus on the high impact actions we can take, not the symbolic Green activities that make us look & feel good. As you pointed out retrofitting building to be energy efficiency has a huge pay back from both a financial and Green (energy) perspective. If Governments guaranteed the loans on the retrofit investments energy consumption could drop a lot more than smart thermostats (which are a good but more modest solution). The problem is we want Government to do small symbolic feel good things (like 5 cent plastic bags) as opposed to something that would push us into our discomfort zone like Taxing Energy to the same level or more than Europe; where strangely they drive smaller more fuel efficiency cars.

  • Philip De Groot

    http://www.sandia.gov/news/resources/releases/2009/ews_2009.html

    Sandia sponsors Earth, Wind, and Sun conference
    July 21-22 event to feature keynote speakers, workshops, 60 booths

    ALBUQUERQUE, N.M. — Speakers, booths, tours and workshops on how to green buildings to conserve energy and water and to reduce the environmental impact of transportation will be part of the second annual Earth, Wind and Sun conference sponsored by Sandia National Laboratories and Kirtland Air Force Base. The conference will be held July 21-22 at the Steve Schiff Auditorium on the base.

    “Last year’s event was extremely popular, and we expect to have an even more exciting conference this year with an even larger attendance,” says Katrina Wagner, conference coordinator. “Living greener by conserving and using energy sources wisely is becoming an extremely important part of our everyday lives. This conference will offer tips on how to do so.”

  • http://www.pickcandu.ca/TAKEACTION/tabid/59/Default..aspx Jason

    Great to read sensible thinking around conservation and renewable options as a means to profit.

  • http://blog.marsdd.com webgoddesscathy @ MaRS

    One of our fave former MaRSians, Charmian Love, wrote a blog on the session over at the Volans website:

    “What impressed me the most about his discussion, however, was his refreshingly candid breakdown of the energy reduction, costs and expected payback of these features….

    Geothermal Exchange: energy reduction = 40%
    Solar Thermal: energy reduction = 7.5%
    Solar PV: energy reduction: energy reduction = 15% (up to 25%)
    PowerPipe: energy reduction = 7.5%
    LED Lights/Switches: energy reduction = 5%
    TOTAL energy reduction = 77.5%
    TOTAL cost = CA $200K (5% of building value)
    15% return with a 6.5 year payback”

    Read the rest of the blog: http://www.volans.com/?category_name=volans%20blog

  • Paul Wingate

    Tom,
    Good list.
    I agree – jump first and then plan your landing. It is not a dangerous jump.
    Just do it.
    Better insulation is the best way to mine the value of potential conservation. Might so reduce HVAC needs that complex and expensive geo-thermal systems can be obviated.
    My approach is based on careful and correct insulation installation and sealing of the Pressure barrier. Then fewer gizmos are needed. I love fancy, clever, efficient gizmos as much as the next guy. I also understand that there are more effective and cheaper ways to reduce energy loads. They are also less glamorous and not supported by lobbyists.
    More later,
    It was a delight to chat with you,
    Paul Wingate

  • Patricia Gonzalez

    Tom,
    You are always awesome! new ideas, new project, more intelligent every day.
    Saving energy!
    Congratulations! ….waiting to read you new book

  • https://www.jobsindubai.com/job_list.asp?lstIndustryID=15 Dubai Hotel Jobs

    I heard that they are thinking about the light weight construction which had been very popular on Thailand and had been developed in Europe 60 years ago

  • Dubai Hotel Jobs

    I heard that they are thinking about the light weight construction which had been very popular on Thailand and had been developed in Europe 60 years ago

  • Anonymous

    “If we can do it, anyone can.” This is another example of elite, business-as-usual, I-want-you-to-believe-I-am-making-a-difference activity that does nothing to change the state of affairs except make rich investors richer. We’re in a state of crisis. Unprecedented environmental damage is destroying the ecosystem. Unprecedented division between the rich and the poor is fueling angry uprisings around the world. Financial systems are falling apart at the seams. Millions of people are losing their jobs, their homes, they can’t feed their families, they have no access to basic healthcare…destruction is everywhere. Democracy for the people is in tatters. Corporations and Big Oil are controlling our government and the media. It’s happening right here, in Canada. Take a close look at the tar sands and what’s happening to the First Nations who live in Alberta and British Columbia. Our Canadian wilderness and air and drinking water is being destroyed. The Harper government refuses to take action on climate change. The tar sands is an unregulated time bomb. The tar sands will make a few people very rich and many people very poor. Wake up people. We don’t need green hotels. We need a revolution.

Tom Rand @ MaRS

Tom Rand @ MaRS

Tom leads MaRS’ role in the Canadian cleantech ecosystem and works with our Advisory Services group to support our growing portfolio of cleantech ventures.

 
 
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