Northern Power, a subsidiary of Distributed Energy Systems Corp. (Nasdaq: DESC), has been awarded a $3.4 million contract to design, install and commission a 1.1 megawatt (MW) combined heat and power (CHP) system for the landmark Transamerica Pyramid at 600 Montgomery Street in San Francisco, California.
The 48-story building, managed by Lowe Enterprises, is known as the “Pyramid,” and is located in the heart of San Francisco’s financial district.
The contract is from AEGON USA Realty Advisors, a unit of Netherlands-based Aegon NV (NYSE/ADR: AEG). Aegon is one of the top five commercial lenders in the US. System Details
Northern Power’s CHP system will consist of two 560 kW natural gas-fired reciprocating engine generators, which will operate in parallel with the utility’s downtown network grid. The two generators are designed to provide approximately 70% of the electrical requirements of the 530,000 square foot commercial office building. Recovered waste heat from the engines will be used to heat the building, displacing 100% of the steam currently purchased for heating purposes. Additionally, waste heat will drive a 320-ton absorption chiller that will be installed to create chilled water for the building.
By recovering waste heat from the engine’s exhaust system and using it to meet the building’s heating and cooling needs, the power system’s overall efficiency will increase substantially. The higher fuel efficiencies to be realized by the CHP system qualify it for an incentive rebate from the Self- Generation Incentive Program of the California Public Utility Commission (CPUC) that would reduce the installed cost of the system by over 15%. Established in 2001, the Program encourages on-site generation in order to reduce peak demand and avoid rolling blackouts such as those experienced by California in recent years.
Mark Novack at AEGON USA stated: “We expect Northern Power’s CHP system to help us achieve three key objectives: to strengthen our environmental commitment, deliver annual energy savings, and increase the competitiveness of AEGON’s property in the downtown commercial office market.” Novack added, “We chose Northern Power to design and implement the system due to their excellent reputation in California for providing reliable cogeneration systems.”