Energy Deals Enables New Boston Hotel to Go Green
WALTHAM, Mass. - Boston's Hotel Indigo will soon receive a substantial portion of its electricity, space heat, swimming pool heat and domestic hot water directly from an on-site cogeneration facility, providing 100 kW and 732,000 btu's per hour of energy while offsetting up to 328 tons of CO2 gas each year.
It's all part fo a deal between the hotel and American DG Energy, a utility. The utility will own, install and maintain the equipment and sell the energy produced at a rate lower than the local utility. Hotel Indigo will avoid the capital expenditure and pay a lower energy bill each month. The value of the agreement to American DG Energy is expected to be approximately $2.5 million over the program term of 15 years.
"While re-designing our property, we were seeking innovative sustainable technology that blended with the Hotel Indigo experience," stated Paul Ferreira, Managing Director of Blue Hawk Investments, co-owner of Hotel Indigo with Normandy Real Estate Partners. "We will now be able to lower our energy costs and provide a true benefit to the environment. American DG Energy provides the capital, technology and operations to make it all happen."
With its On-Site Utility energy solution, American DG Energy will produce energy in the form of electricity, space heat, swimming pool heat and domestic hot water and sell it to Hotel Indigo at a price guaranteed to be lower than the local utility. Hotel Indigo will pay for the energy used, but not for any capital or operating costs. The energy will be produced with small-scale, combined heat and power (CHP) equipment, specifically the Tecogen CM-100 cogeneration unit, located at the property site, but owned, installed and operated by American DG Energy. The CM-100 will also provide convenience power for equipment such as computers and boilers when there is a power outage.
American DG Energy's On-Site Utility energy solution also has significant environmental benefits. The system planned for Hotel Indigo, which is expected to be fully operational during the first quarter of 2008, could offset up to 328 tons of CO2 gas each year; that's the equivalent of planting 89 acres of trees or eliminating the emissions of 56 cars.
American DG Energy's operations group will manage all aspects of the installation of the On-Site Utility energy solution and handle all service, maintenance and repair of the system for the duration of the agreement. Hotel Indigo will not need any manpower to support the equipment. In addition, the equipment will reduce the reliance on the boiler plant, which will extend the life of the boiler and reduce its annual operating costs.
About American DG Energy
American DG Energy (BULLETIN BOARD: ADGE) supplies low-cost energy to its customers through distributed power generating systems. The company is committed to providing institutional, commercial, and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities - without any capital or start-up costs to the energy user. American DG Energy is headquartered in Waltham, Massachusetts. More information can be found at www.americandg.com.
Source: American DG Energy Inc.