Youngstown - Background
Steam service has been supplied to downtown Youngstown for about 100 years
now with the initial system starting about 1895. The system was acquired
from Ohio Edison in 1980. Steam service has been supplied by Youngstown
Thermal during the last fourteen years. Youngstown's district heating system
was modernized in the 1980s with $7 million of improvements.
The system grew rapidly after the 1980 acquisition through its first
few years and now serves approximately 85 percent of the occupied downtown
buildings (by square footage).
Current heating customers include the Youngstown State University, South
Side Medical Center, National Uniform Service, City of Youngstown, Mahoning
County and the majority of downtown office and commercial buildings. About
70% of our customers are for not-for-profit institutions.
Altogether, Youngstown Thermal heats about 5,859,000 square feet of
buildings in downtown Youngstown.
Since acquiring the business from Ohio Edison 14 years ago, Youngstown
Thermal has provided heating service that has benefited Youngstown in many
ways. The overall system efficiency has increased by about 80%. We are
now heating almost twice the square footage of building space with the
same amount of fuel as in the early 1970s.
Along with this dramatic increase in efficient use of energy, we have
cut air emissions by 95% and have eliminated water waste from our partial
closed-loop distribution system. We also have added natural gas to our
fuel options.
The district heating system's 5-year reliability record exceeds 99.9
percent based on customer-hours, a product of total number of hours of
desired service.
These accomplishments position the company to do even better in the
decades to come. We are currently testing and developing the use of biomass
from urban waste wood, such as tree trimmings and discarded pallets, as
a boiler fuel.
District Cooling Takes Center Stage
Youngstown Thermal began discussing district cooling in the late 1980s.
Again, as with the district heating system, the primary driving force was
meeting the energy, environmental and economic concerns and needs of the
Youngstown community.
But the company is now in a different place than it was in the early
1980s. Youngstown Thermal has largely saturated the heating market with
nearly 85 percent of the downtown market and is seeking new opportunities
for growth and efficiency.
Faced with mounting environmental challenges, huge capital investments
to replace on-site chillers, and great uncertainty and risks for the future,
district cooling is a wise alternative for downtown Youngstown buildings.
In the past, many Youngstown buildings were cooled with once-through
city water, a practice that wasted millions of gallons of water. This practice
has become costly, and it puts unnecessary flow to the sewer system.
Many other buildings are cooled by old inefficient on-site chillers
with environmentally damaging chloroflurocarbon (CFC) based refrigerants.
These refrigerants are being phased out globally due to depletion of the
ozone and global warming.
Recognizing the need for district cooling, Thermal began taking steps
to implement a system. Last year, Youngstown Thermal Cooling was incorporated
as a subsidiary of the company to develop and install a new district cooling
system.
This new company was formed to ensure existing heating customers that
cross-subsidization would not occur between the heating and cooling companies.
The City Council gave the new company the right to use the streets by granting
it a franchise this summer.
After some false starts and delays in securing initial customer contracts,
the cooling system will begin operation in spring 1995 with an estimated
five customers on-line.
Prior to project implementation, the primary obstacle was convincing
customers to make a 20-year commitment to something that didn't yet exist.
That has been made somewhat easier because of a strong record of efficient
heating system operation and Thermal's nearby cooling system in Pittsburgh
that serves hospitals, a college, and commercial buildings. Yet Thermal
still has had to clearly and objectively demonstrate to building owners
and design engineers the true total cost and risk of ownership of on-site
chiller systems, including design, installation, operation, maintenance
and ultimate replacement.
A typical cost comparision is shown below.
Typical Cooling Cost Comparision
Electric Chiller
(500 Ton)
Electric Chillers Purchased
(500 Ton) Cooling
1 Capital $210,000/763,888 ton hr. $0.055 -
5 year simple payback
2 Maintenance $9,500/763,888 ton hr. $0.012 -
3 Electricity 1.5 kwhr/ton hr x $0.17/kwhr $0.255 -
4 Water, supplies, etc. $0.030 -
5 Purchased Cooling ________________$0.22___
6 Summary: Unit price $/ton hr $0.352 $0.22
Total $ $268,888 $172,455
Savings $ Base $96, 432
After the last year of marketing, the response to the advantages of district
cooling has been overwhelmingly positive. Youngstown Thermal Cooling now
has long-term commitments with enough buildings, to get the system started.
Thermal is listening carefully to prospective customers' needs and then
tailoring its proposals accordingly. Offerings will include phased-in demands,
base-load demands, technical and financial assistance with conversions,
and buy-outs of purchased on-site chillers. Owners will be signing long-term
cooling agreements in lieu of installing new chillers to replace old units,
most use CFCs.
Technologies Team with Communications
With a centralized cooling system, a variety of cooling technologies and
alternatives can be utilized to maximize the technical, environmental and
economic synergies of combined district heating and district cooling. The
project will include fuel flexibility. In Youngstown, these may include
conventional electric-driven chillers in combination with chilled-water
storage and plans for absorption chillers and steam-turbine-driven chillers
in combination.
One of the most important available technologies is a chilled-water
storage system. With this type system, Youngstown Thermal could make chilled
water at night, with off-peak electricity, store it in a storage tank (measuring
100 feet in diameter and 70 feet high with a capacity of 4,000 peak tons
and 30,000 ton-hours), and then pump it out to buildings during the daytime
for peak cooling requirements.
The storage system would create significant advantages to our customers
as well as to the local electric utility. For our customers, this system
would produce low-cost cooling with lower initial capital as well as lower
ongoing energy and operating and maintenance costs with excellent reliability.
For the local utility and the community at large, we would take megawatts
of electricity off-peak. This important reduction of on-peak electric demand
could help defer or eliminate the need for new power plants and help improve
the efficiency and environmental record of existing power plants.
Over the next three years we will be constructing nearly 12,000 trench
feet of welded steel direct bury twin cooling pipes in central downtown
Youngstown. The key to success of this construction effort will be early
and frequent communication to those affected. This communication effort
will include personal contact with building owners and businesses along
the construction route as well as letters and frequent news releases.
We will tell people what we're going to do and when we're going to do
it and then make every effort to stick to it!
Through district cooling we will successfully expand our overall thermal
energy business while enhancing the already established heating business.
We will be able to significantly expand the utilization of our existing
equipment with the addition of steam absorption chillers.
Most importantly, we have strengthened our customer relationships by
effectively meeting a very real customer need for a cost-effective, reliable
and safe air-conditioning source that will help customers collectively
solve a common problem with respect to meeting the need to replace CFCs
with an EPA-approved alternate.
Youngstown will be able to boast that it is among a select number of
cities that can offer district heating and cooling as an economic development
tool for its central business district.
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