Case Study

Melrose & Noll St. Apartments

Thermal network to support decarbonization of affordable housing

This case study was chosen as part of the Empire Building Challenge competition. Click here to learn more about the Empire Building Challenge competition.

Noll Apartments, located at 43 Central Avenue, and Melrose Apartments, located at 63 Central Avenue, are neighboring buildings in Brooklyn, New York. The buildings are 6 stories and total 131,865 square feet with 98 affordable apartment units. The decarbonization retrofit planned for these buildings includes a package of measures that will:

  • Combine all mechanical equipment into a single central plant serving both buildings which will facilitate thermal energy recovery, allow for the integration of future decarbonized thermal energy sources, and reduce first- and ongoing maintenance costs. 
  • Electrify, and recover energy for, loads currently served by fossil fuels (heating and domestic hot water). 
  • Improve the energy efficiency of the buildings by reducing thermal loads through ventilation energy recovery and envelope improvements
  • Reduce construction costs by avoiding the staggering of measure implementation where possible.

Creating resilient and sustainable communities are key components of RiseBoro’s mission. The principles of energy efficiency, improved health outcomes, reduced consumption, and responsible use of natural resources are core beliefs of the organization.

Melrose & Noll Apartments
Lessons Learned

The project used the Resource Efficient Decarbonization (RED) methodology to consider various technical and financial options and determine the optimal decarbonization pathway.

Lessons Learned

The project utilizes existing technology in a creative new application to greatly reduce the initial costs of electrification.

Emissions Reductions

61%

A displacement strategy approach was developed to maximize cost-efficacy of decarbonization without burdening affordable housing residents and operators, resulting in a 61% projected energy use reduction for the building by the end of the Empire Building Challenge project.

A baseline assessment is key to understanding current systems and performance, then identifying conditions, requirements or events that will trigger a decarbonization effort. The assessment looks across technical systems, asset strategy and sectoral factors.

Building System Conditions
  • Equipment nearing end-of-life
  • New heat source potential
  • Comfort improvements
  • Indoor air quality improvements
  • Facade maintenance
  • Efficiency improvements
Asset Conditions
  • Capital event cycles
  • Owner sustainability goals
Market Conditions
  • Technology improves
  • Market supply changes

Noll Apartments and Melrose Apartment contain the original HVAC equipment from their construction in the early- and mid-2000s that is nearing the end of its useful life. This aging equipment, considered alongside a recent recapitalization event, presents an opportunity to focus on improving energy efficiency and reducing carbon emissions. Additionally, these buildings are part of a tranche of buildings in the RiseBoro portfolio constructed prior to the adoption of more aggressive energy efficiency approaches. Implementation of the decarbonization retrofits will not only lower the buildings’ emissions, but will also bring energy performance up to, or higher than, other buildings in the portfolio. The Empire Building Challenge program provided a unique opportunity at a convenient time to create a holistic roadmap and retrofit plan.

Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

Existing Conditions

This diagram illustrates the building prior to the initiation of Strategic Decarbonization planning by the owners and their teams.

Click through the measures under “Building After” to understand the components of the building’s energy transition.

Sequence of Measures

2027

Building System Affected

  • heating
  • cooling
  • ventilation
Melrose & Noll Apartments before
Melrose & Noll Apartments after
Central Mechanical Plant
Active Thermal Connector (ATC)
Central AWHPs and HACs
Terminal Unit Replacement
Wastewater Heat Recovery Heat Pumps for DHW
Envelope Upgrades
Ventilation Upgrades
Electrical Upgrades and Grid-Interactive Controls
Solar PV on new roof canopy
Future Thermal Energy Netwrok (TEN) Connection
Additional Electrical Upgrades
Cooking Ranges & Commercial Dryer Electrification

Making a business case for strategic decarbonization requires thinking beyond a traditional energy audit approach or simple payback analysis. It assesses business-as-usual costs and risks against the costs and added value of phased decarbonization investments in the long-term.

Retrofit Costs

Decarbonization Costs

$19.4M

Avoided Risks

Business-as-Usual Costs

$755,000 + $74,000 / YR

Energy cost savings: 74k / YR.

Repairs and maintenance savings: Minimal

BAU cost of system replacement/upgrades: 755k.

Avoided Risks

Business-as-Usual Risks

$0

Added Value

Decarbonization Value

$7M

Incentives: ~7M (estimated).

Net Present Value

-$11.5M

The business case for decarbonization is centered around the buildings’ recapitalization cycles and a reduction in operating expenses.

The buildings currently face no potential penalties under Local Law 97 (since they are affordable housing covered under Article 321) and the operational savings are not commensurate with the cost of the Roadmap.

This is a typical situation in multifamily buildings, especially affordable housing, where the discounted cash flow analysis shows a negative present value compared to business as usual. High initial costs and the high cost per-unit of electricity compared to gas in New York City both push paybacks in an unattractive direction. A building will typically see only a handful of opportunities to fund capital projects. Incentives and tax credits are critical in making the business case for decarbonization.

An emissions decarbonization roadmap helps building owners visualize their future emissions reductions by outlining the CO2 reductions from selected energy conservation measures. This roadmap is designed with a phased approach, considering a 20- or 30-year timeline, and incorporates the evolving benefits of grid decarbonization, ensuring a comprehensive view of long-term environmental impact.

Strategic Decarbonization Roadmap

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