Unique performance contract helps finance upgrades though guaranteed energy savings
Memorial University and Honeywell Building Solutions signed a unique $13 million energy savings and facility renewal project last winter.
What makes it unique? Memorial is financing the work from the energy and operational savings the improvements will generate. Honeywell guarantees those savings — projected to be approximately $1.5 million per year over the next 14 years — under a performance contract with the university. This ensures the project will be self funded and will not place an additional burden on the university’s budgets.
This new kind of funding arrangement required provincial cabinet approval.
The project is aimed at offsetting the impact of rising energy costs while reducing maintenance costs and improving comfort for students, faculty and staff.
Focused on eight buildings on the 250 acre campus, the work includes infrastructure upgrades such as new lighting and heating, ventilation and cooling and upgrades to building automation systems to optimize energy management across the university.
Wherever possible, energy efficient technologies will replace older, less efficient systems – reducing electricity, fuel consumption and related costs. The project will also decrease carbon emissions by about 15 per cent per year, which is equivalent to removing 1,150 cars from the road.