Generously supported by: Produced by:

Moderator:

Tom Rand

MaRS BEST PRACTICES SERIES Part of the

Date:

July 9, 2009

Cleantech Practice Lead, MaRS

LESSONS FROM BUILDING NORTH AMERICA’S GREENEST HOTEL IN TORONTO

Carbon Reduction and Climate Change:

“climate change … could alter the way we live in the most Fundamental way. … It is life itself that we battle to preserve.”, Margaret Thatcher, 1989, Address to U.N. General Assembly

Global Targets: as Political Responses align with Scientific Realism …

50% - 80% reductions by 2030 – 2050.

Buildings: 50%-75% of carbon emissions in large urban centers, 40% overall.

( What about Water? - only 2.4% of Toronto’s electrical consumption is used for water treatment and delivery. )

“Green”: Reduction in energy use, carbon emissions.

Cleantech = Third Industrial Revolution

Our Target: 75% reduction in carbon emissions (BAU) on an on-going basis – sustainable operations.

The Basic Lessons … Technologies exist, that stand on economic merits.

( If we can do this, anyone can do this. ) The problems are soft, not hard (people, process, capital)

Existing Standards: LEED BOMA TRCA

Introducing: The “ no-CaRbon.As.by.Product.” Model Platinum: no carbon at all.

Gold: Planet Traveler.

Fail: Green Hotel Association.

Pragmatism: Avoid “paralysis by analysis”: Use existing case studies as first-order feasibility study.

Us: Existing shell, limited south exposure.

Partnering with the City of Toronto

Opening up the Laneways and Parks

Savings: 50-70% of heating/cooling

20% of hot water

Entire building’s lighting = a two-slice toaster.

10 kw system: All electrical power, except the heat pumps. Easily 10% of total power.

Technology Energy Reductions

Geo-exchange 40 %

Solar Thermal 7.5 %

Solar PV 15% (up to 25%)

Power-pipetm 7.5%

LED Lighting/switching 5%

Total: 77.5% (Up to 85%)

Cost: < $200,000 = 5% of buildings value Monthly Savings: $ 2500 / 15% return / 6.5 year payback

Three Ways to Estimate (besides guessing …):

1. Comparable Building, Comparable Use.

2. Measure performance of equipment. eg. Ground loop, Solar Thermal, Power-pipe

3. Model the building’s energy use. eg. City of Toronto Efficiency grant $2500

“Green” Hotels Association, Membership requirements (greenhotels.com) : - Occupancy sensors to control lights, AC/heat, TV - Linens changed between guests or on request only (towels on floor or in tub)

Estimated carbon savings: 5-10%

The Hotel Association of Canada's (HAC) Green Key Eco-Rating Program Their audit is “administered entirely online” Awarded your key “within minutes!”

Estimated carbon savings: ??

If you’re not reducing carbon use – significantly – it’s just ‘feel-good’ marketing.

Economic Disconnect # 1: Carbon is still free to emit.

Solution: Put a price on carbon.

Economic Disconnect # 2: Developers do not pay energy bills.

Solution: Incentivize a new Geo-Utility, or Retrofit-Utility.

Education: If you don’t know about it, you can’t install it.

Solution: Strong third-party support of “best practices” (eg. Manitoba Hydro) Technology support, not vendor support. Visible public advocacy.

Capital: Need lots of patient capital.

Solution 1: Unlock 5% of property value in a mortgage.

Solution 2: Green Bonds! Like a Canada Savings Bonds, backed by government. Money earmarked for building retrofits, Interest paid with savings, Administered by commercial banks.

See www.greenbonds.ca

Tap 5% of real estate value across the country: - Reduce Canada’s carbon emissions by 30% -

- Create jobs and build a Canadian Cleantech industry - (Clean Energy Developments, Enerworks, Power-pipe, Morgan Solar…)

Powering Canada’s Cleantech Industry and Economic recovery.