How the energy industry is forging the path to net zero

In 2018, 33.1 gigatons of energy-related carbon dioxide (CO2) were emitted globally, underscoring the need for immediate action to reduce this staggering number. Put another way, that’s 33.1 billion metric tons, a collective mass equal to 66 times that of all humans on earth.

As greenhouse gas emissions have continued to increase, energy utilities have sought to reduce the amount of CO2 that is released into the atmosphere, as a result of burning traditional fossil fuels.

To combat the rising CO2 levels, many utilities have committed to reach net-zero carbon emissions by either 2030 or 2050. For some, switching to fuel alternatives with lower emissions, such as natural gas, is an interim step to get there, while others look to renewable energy sources, such as wind and solar. While there are many possible paths to reach net zero, one thing is clear: time is of the essence.

But what exactly does net zero carbon emissions mean, and which method of energy production will yield the greatest environmental benefits? Let’s take a closer look.

What is net zero?

The term “net” zero does not mean there are no carbon emissions emitted. At the moment, all fuel-burning energy generation methods emit some carbon. However, after these emissions have been reduced as much as possible, companies can offset the remaining emissions by investing in assets that absorb carbon, such as forests, carbon capture, or other emerging technologies. Those assets effectively cancel out the carbon emissions being produced, resulting in net zero carbon.

Harnessing the power of renewables

Recognizing this need for change, energy utilities have sought alternatives to traditional generation sources to enable continued provision of their essential services. Unlike fossil fuels, such as coal and oil, renewable energy resources are neither extractive, nor reliant on a single resource that depletes over time. Wind, solar, and biofuels are all renewable resources that utilities are investing in to reduce their carbon footprint.

One method for reducing CO2 emissions that can already be utilized is combined heat and power (CHP). Unlike traditional power plants that take excess heat produced during power generation and discard it, CHP efficiently harnesses that excess heat as thermal energy that can be used to keep buildings warm or cool, humidify the air or sterilize equipment. By taking advantage of this resource, utilities can conserve fuel, rather than burn more to produce heat, effectively cutting CO2 production dramatically.

Perhaps what is most exciting about this energy source is that CHP generators can also burn biofuels, such as waste vegetable oil from restaurants or organic matter. By fueling CHP with biofuels, the total amount of carbon emissions produced during energy generation can be additionally decreased.

No matter the method, utilities that choose to utilize the energy potential of renewable resources will see a reduction in carbon emissions. When renewables are combined with generation methods such as CHP systems integrated with biofuels, even greater benefits can be achieved.

The road to net zero

A broad swath of energy generators are shifting to renewables to replace natural gas, especially utilities. Challenges remain, however, especially when it comes to transforming the entire grid to be more environmentally beneficial.

While wind and solar are good renewable resources, they are reliant on ideal weather conditions to produce at maximum efficiency. When there is no wind or sunlight, utilities must turn to other energy sources, such as natural gas, to continue supplying power to the facilities they serve. Although a cleaner resource than burning coal, natural gas does emit CO2 and still contributes to greenhouse gas buildup. Regardless of weather conditions, customers must continue to receive services, and falling back on traditional fuel sources that will produce emissions while providing necessary services is a challenge to decarbonization efforts.

Another obstacle that utilities face is upgrading existing infrastructure. For many utilities, their incumbent grid technology is outdated and ill equipped to accommodate alternative fuel sources that previously were not used or available during the original infrastructure’s development. Because of this, utilities are tasked with not only transitioning to renewables, but also updating systems that have known no other fuel source and were designed for a one-way distribution path. Utilities also have to take into consideration that the majority of U.S. communities leverage onsite boilers for residences and buildings, which means every end user will need to have their infrastructure updated to convert to greener fuels and generation methods as well. The hurdle is a high one – accompanied by a price tag that utilities will have to take into account.

Other facilities have turned to natural gas as a bridge fuel as they shift away from fossil fuels to greener solutions. Though as previously mentioned, natural gas is not carbon-free, although it has a lower carbon footprint than coal or fuel oil. Additionally, those who employ natural gas as a main energy resource may consider transitioning completely away from it to be a daunting challenge. Similar to electric utilities, these organizations will need to seek alternative fuel sources, while also upgrading existing infrastructure, in order to reach net zero. 

In contrast, district energy companies can more quickly transition to renewable fuels and technologies through upgrades at their central plants. Unlike other conventional utilities, upgrades to the distribution system are not required. The improvements made at these central plants, whether this is integrating renewable fuels or converting boilers to renewable electricity, will then benefit all the buildings connected to the district system, dramatically reducing carbon emissions. By nature, district energy is typically found in urban environments, which eliminates the need to transport energy over long distances to customers. It is highly reliable, cost-effective and cuts the amount of fuel that is required by individual buildings using onsite generation. Utilizing renewable resources, energy efficient equipment and green technology at the central plant means that all connected buildings connected to the district become greener. In effect, a district energy system can dramatically reduce the carbon footprints of entire cities relatively quickly and easily.

A greener path

Time is often an overlooked resource, as it is easily spent, but it can never be recouped. As we look to the mid-century, it is crucial that energy utilities explore and implement renewable strategies to reach net zero carbon goals. It is already estimated that global carbon emissions are expected to increase by 0.6% per year until 2050, underscoring the battle against time itself. That equates to more than half a billion additional metric tons per year above 2018 levels.

By harnessing the power of renewable resources, energy providers can dramatically cut carbon emissions and diminish the climate impact of their operations, ushering in a healthier, greener world for generations to come.

Hospitals and healthcare facilities turn to district energy

Why district energy has become the optimal energy choice

Hospital administrators have one key concern that drives all decision-making: how to provide the highest quality care to their patients cost effectively and efficiently. Each and every business decision a hospital makes reflects this objective and a bad one can truly mean life or death – especially in today’s challenging COVID-19 environment when cash is tight, and margins are thin. Hospital leadership is feeling the pressure to think creatively of ways to reduce costs, while also maintaining high standards of patient care and safety.

So why is this leading more hospitals to turn to district energy? In short, hospitals need to look for trustworthy partners, vendors and service providers so they can outsource non-core functions and focus on what they do best – caring for our communities. By relying on district energy experts to manage energy infrastructure and ensure an uninterrupted thermal energy supply, healthcare providers can focus on their core priorities and trust that their energy needs are being met. There are many more reasons why district energy has become the preferred energy solution for healthcare facilities.

How district energy frees up cash and operating budgets

First, with rising costs and shrinking margins, especially during this unprecedented global pandemic, hospitals need to look for each and every potential opportunity to save money without compromising care. Cash flow is a top priority for healthcare executives and there is a growing and perceptible urgency for cost control. Not to mention, making the wrong energy choice can be expensive, especially when your area of expertise is running a hospital and not a power plant. Hospitals are the second most energy-intensive commercial building type in the US according to the US Energy Information Administration (EIA), so without proper management from a reliable partner, energy can be a big line item expense and a major drag on budgets.

One of the primary financial benefits of district energy is the avoidance of operating and maintenance (O&M) costs associated with onsite mechanical rooms, boilers and chillers. This can save hospitals up to 30 percent per year in their operating budgets. In addition to operating expenses, investing in energy infrastructure can cost millions in upfront capital. If hospitals have cash on hand, they have to make tough decisions, weighing opportunity costs and choosing between patient care equipment or other infrastructure investments related to energy or otherwise. Without cash on hand, healthcare facilities are faced with borrowing costs that put pressure on the returns of their investments. With district energy, not only do hospitals save on operating expenses, but many district energy companies are also willing to invest alongside their customers, reducing or eliminating any upfront costs of connecting to the system.

With 99.99% reliability, district energy supports optimal patient care

Second, hospitals have unique energy needs. Not only do they operate 24 hours a day, 365 days a year, but they also require thermal energy for heating, cooling, and, importantly, sterilization to ensure patient safety. This means they need ultra-reliable energy they can count on. While service interruptions are a disturbance to any business, any disruption to energy delivery to a hospital can have dire consequences. Here is what Bob Biggio, the Boston Medical Center’s Vice President of Facilities and Support Services, had to say about the importance of reliability:

“As a medical campus treating a diverse range of healthcare needs, it is absolutely vital for Boston Medical Center to maintain continuous and consistent heating, sterilization and comfort levels. After careful analysis of all of our potential options, it became clear that district energy would not only best support our operations, but will also help us to achieve our aggressive sustainability goals.”

District energy is 99.99% reliable, better than any other alternative, particularly during unexpected grid outages due to extreme weather events. With onsite fuel storage, the ability to integrate various fuel types, and multiple generating assets, district energy systems have redundancies built in to support 24/7 energy delivery, even in the event of a black-out. This flexibility and redundancy contributes to the energy security of hospitals and in turn, the communities served by district energy. In addition, most operators of district systems have the ability to isolate sections of their network to perform maintenance or protect the broader system in the event of an emergency. This is reliability that hospitals require.

How district energy is supporting sustainability goals

And finally, district energy has the added benefit of being efficient, low carbon, and sustainable. While most hospitals today are hyper focused on patient care and costs, many, like the Boston Medical Center, are also staying committed to their sustainability targets. District energy is fuel agnostic and leverages many different and diverse sources to generate the thermal energy that serve hospitals’ heating, cooling and sterilization needs. For example, many district energy systems leverage combined heat and power (CHP) plants, which not only generate electricity, but the by-product (steam) is then utilized for thermal energy. This recycled “green steam” is a cost-efficient, reliable way for hospitals to stay true to their carbon reduction objectives without compromise.

For these reasons, hospitals are more and more frequently turning away from natural gas and on-site mechanical rooms and relying on resilient district energy to supply their thermal energy needs, save millions in upfront capital costs and direct their operational focus to patient care.