As a partner of the Empire Building Challenge, BXP will complete a decarbonization pilot project at 601 Lexington Avenue. The 1.52 million square foot, 59-story, multi-tenant premier workplace in midtown Manhattan was constructed in 1977 and features building systems typical among commercial high-rises of a similar vintage. The innovative measures planned for implementation demonstrate a scalable and replicable decarbonization opportunity within a difficult-to-decarbonize building type.
As part of their demonstration project, BXP will install water-to-water heat pumps to transfer heat from the condenser water loop to secondary water systems. Recovered heat will then be used to offset perimeter heating loads. By deploying existing technology in a novel way, this project creates a thermal network which utilizes heat that would otherwise be rejected to the atmosphere from the building’s cooling system. BXP will reduce the building’s annual steam consumption by over 30% with this innovative thermal system.
BXP is a fully integrated real estate investment trust and is the largest publicly traded developer, owner, and manager of premier workplaces in the U.S. with a portfolio spanning 54.5 million square feet.
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.
BXP is committed to carbon-neutrality by 2025 for its actively managed occupied office buildings. Starting in 2010, BXP adopted a phased approach with a long-term goal of achieving low site energy use and reducing GHG emissions at 601 Lexington Ave. Compared to a 2010 baseline, BXP has reduced the building’s GHG Emissions by 47% and site EUI by 33%. The notable reduction in energy use was achieved through a series of targeted energy efficiency measures, including a building automation system upgrade, installation of Variable Speed Drives on all major HVAC equipment pumps and fans, lighting upgrades, modernization of the central chiller plant (replacing steam chillers with high efficiency variable speed electric chillers), and optimization of operational controls.
To accelerate decarbonization efforts, the next phase of retrofit projects should be geared to reduce district steam consumption within the building. This initiative aligns with BXP’s decarbonization strategy and energy efficiency objectives and positions the building on a path towards full compliance with Local Law 97.
The heat recovery project focuses on minimizing the dependence on district steam, a fossil-fuel sourced commodity. This project demonstrates a replicable decarbonization solution in existing commercial high-rise buildings and joins a list of energy conservation measures already deployed at the property.
To compare the energy and carbon reduction impact of the measure on a business-as-usual scenario, a comprehensive energy analysis was performed to establish a baseline operation and compare alternatives. The effort included review of existing HVAC systems, electrical infrastructure, space constraints, submetering of heating and cooling loads, potential for energy recovery to offset heat loads, and evaluation of energy use and costs.
The detailed energy analysis indicated a considerable reduction in energy and GHG emissions compared to baseline energy use and significant utility savings per year.
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.
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.
The project at 601 Lexington Avenue will deploy existing technology in a novel way, creating a thermal network that recovers and utilizes heat which is otherwise rejected by the cooling towers.
Through NYSERDA’s Empire Building Challenge, BXP will install water source heat pumps (WSHPs) that will capture waste heat from the condenser water loop. The recovered heat will be reused into the building’s perimeter heating.
Currently, the building condenser water system carries heat from base building and tenant cooling systems to the cooling towers, where it is rejected evaporatively to the atmosphere. In office buildings, this heat is often constant and available for recovery year-round. In the proposed measure, WSHPs will be installed. They will replace the function of the cooling towers during the heating season and will reclaim heat from the condenser water loop for beneficial use. An automated bypass valve will divert condenser water from the cooling towers, retaining as much heat in the building as possible for recovery by the WSHPs. The heat recovered will be reused in the building’s heating systems and will significantly offset reliance on fossil fuel-based steam. These measures will reduce annual steam consumption by an estimated 30%.
These measures partially electrify building heat sources while recovering waste heat for beneficial re-use. This results in reduced energy consumption and enhanced demand management. These measures are replicable for existing buildings, designed to be both space-efficient and cost-effective.
In addition to the WSHPs, air source heat pumps (ASHPs) may be installed in the future to produce low-temperature hot water to cover some of the remaining heating loads. The project team plans to continue investigating ASHP infrastructure within the physical space constraints of this occupied building to minimize reliance on steam heating.
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.
Capital costs of decarbonization.
Energy cost savings: 287k / YR.
Repairs & maintenance savings: 25k / YR.
LL97 avoidance from 2030-2034.
No fines in 2035+ assuming electric grid coefficient aligns with CLCPA goals.
Incentives.
Pursuing ConEd Rebates through the Clean Heat Rebate Program.
Net difference between the present value of cash inflows and outflows over a period of time.
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.
To advance the building’s broad decarbonization objectives, and through the reduce, recycle, electrify approach, the team studied energy and carbon emission reduction pathways for 601 Lexington Avenue through a robust, collaborative process with multiple stakeholders.
The decarbonization projects require a phase-in plan and a multi-step approach, which includes technical analysis, detailed design, procurement, and implementation. The preliminary technical analysis for the decarbonization roadmap was performed in Q4 of 2022 as part of the Empire Building Challenge application. The first phase of the decarbonization roadmap is the Condenser Water Heat Recovery project, which received NYSERDA funding through the Empire Building Challenge. The full design (DD and CD) of this project was completed in 2023 and construction is expected to be complete in 2025.
On-site decarbonization efforts may be furthered in a subsequent second phase implemented in 2034 with electrification of heating and DHW through air source heat pumps. It is anticipated that the heat pump technology and pricing will continue to improve; because of that, the energy and GHG reductions reflected in the carbon neutrality roadmap below are conservative estimates. As an interim phase, starting in 2025, the building will achieve Carbon Neutral Operations for Scope 1 and Scope 2 emissions by offsetting them through a combination of renewable energy and carbon credits procurements.
In Bronx, NY, the Amalgamated Housing Cooperative (AHC) embarked on a pioneering low carbon retrofit project at ‘The Towers,’ two 20-story buildings containing 316 affordable apartments across 425,000 square feet. Established in 1927, AHC is the oldest limited equity multifamily co-operative in the country.
The retrofit focuses on upgrading the heating and cooling infrastructure to enable simultaneous operation, diverging from the existing seasonal limitation. By introducing cutting-edge solutions including wastewater heat recovery and geothermal systems, AHC aims to harness energy from domestic water sources, thereby phasing out its reliance on cooling towers and decreasing fossil fuel consumption. This initiative not only promises enhanced thermal comfort and sustained affordability for its residents but also sets a benchmark for energy efficiency and climate resilience. The project’s success could potentially revolutionize energy management across similar multifamily complexes in New York State, demonstrating a scalable model for other buildings with similar heating and cooling system configurations– a total market estimated at 200 million square feet.
AHC’s commitment to its low-to-moderate income community underscores this ambitious venture, reinforcing its legacy and leadership in sustainable development.
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.
The Towers are two of 13 buildings that comprise AHC’s multifamily campus located in the Bronx. Many of the systems at the property, including the piping distribution system, are beyond their useful life and in poor condition, causing leaks and requiring continual repair and maintenance. The campus currently uses a central gas-powered boiler plant to produce steam for heating, cooling, and domestic hot water.
As part of its recapitalization cycle, the property is embarking on a decarbonization journey which will include a comprehensive retrofit of the heating, cooling, and domestic hot water systems, an envelope upgrade, and onsite renewable generation in the form of geothermal and solar PV.
This project will increase thermal comfort and secure utility affordability for its low-and-moderate income residents, as well as enhance the energy efficiency and climate resilience of the property.
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.
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.
Reduce Energy Load
Recover Wasted Heat
Full 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.
Capital costs of decarbonization.
BAU cost of system replacement.
Repairs & maintenance.
LL97 fines do not apply at this property.
Incentives.
Versus -$1.36M for BAU with difference of $3.33M.
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.
The measures used in our decarbonization strategy have been strategically planned based on priorities, as well as to optimize energy and carbon reduction. The approach is to reduce loads first to allow for reduced and properly sized new systems. This sequence enables implementation of the measures because it allows thermal loads to be reduced as soon as possible, before electrification of heating and cooling with the ground source heat pump (GSHP) system. Most critical to the success of the plan are the early implementation of the distribution system retrofit and installation of the wastewater energy transfer (WET) system for thermal energy recovery.
Due to the critical nature of the decarbonization work, AHC desires an aggressive implementation timeline for the measures. The work, specifically the piping and fan coil unit (FCU) replacement and WET system installation, is slated to occur 2024-2026. Then in 2026-2028 comes the critical steps of envelope improvements, submetering and control upgrades, and geothermal system installation. The geothermal measure will be a critical step for transitioning The Towers away from fossil fuels because the GSHP system will replace the steam supplied from the gas and oil fed central boiler plant for heating, cooling, and domestic hot water (DHW). This measure will allow the chiller, cooling tower, and steam piping to be fully decommissioned, thereby yielding additional operational and maintenance savings. In 2028-2030, installing the solar PV system will allow for further deep energy savings as it will enable The Towers to have a direct source of clean energy and rely less on the main electricity grid, which needs time to transition to clean energy. Lastly, in 2039-2034, electrifying the appliances will be the last component in completely transitioning The Towers away from on-site fossil fuels while also saving energy by installing high efficiency alternatives and providing health benefits to the residents by eliminating gas stoves.
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.
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.
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.
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.
Lessons from New York’s Empire Building Challenge
This article, published in NESEA’s BuildingEnergy magazine (Vol. 40 No. 1), addresses common “decarbonization blind spots” that impede progress and shares insights gained from the incremental methodology and integrated design process pioneered through NYSERDA’s Empire Building Challenge.
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.
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.
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.
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.
Large commercial and residential buildings must overcome various hurdles before implementing deep retrofits or capital projects that help achieve building decarbonization. This section addresses technical barriers and questions often faced by building owners and retrofit project developers.
Below are high temperature renewable resource alternatives to district steam. These alternatives are limited and face barriers to implementation due to cost, scalability, and other factors.
Building Electric Capacity Upgrades
Local Network Electric Capacity Upgrades
Gas Utility Earnings Adjustment Mechanisms (EAM) focused on System Peak Demand Reductions
Total Connected Loads and Peak Demand drive need for capacity upgrades
Thermal Storage
Geothermal (ambient temperature), Deep Bore Geothermal (high temperature) or Shared Loop District Energy Systems provide cooling and heating with lower peak demand than standard electric equipment
Other Energy Efficiency/Conservation Measures with proven/attractive economics (these measures are limited by lack of capital or knowledge)
Behavioral Modification
Submetering and billing, potentially creates split incentive between landlord and tenant
These include multi-purpose technology for heating, cooling, heat exchange and ventilation, filtration, and/or domestic hot water.
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.
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.
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.
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.
These playbooks summarize retrofit strategies that maximize occupant comfort and energy savings through a transition from fuel to electricity- based heating, cooling and hot water systems.
Playbooks are organized by building system— lighting & loads, envelope, ventilation, heating & cooling, and domestic hot water– detailing common existing systems, typical issues, and recommended measures.
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.
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.
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.
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.
Insights from Empire Building Challenge
It is clear today that the use of fossil fuel-fired equipment in buildings has a limited future due to technological advancements, policy changes, ESG requirements, and other externalities. As asset managers, sustainability managers, and their consultants pursue decarbonization plans, misconceptions about decarbonization arise that can delay action and progress. Below is a list of the misconceptions encountered by NYSERDA’s Empire Building Challenge team and our recommended approaches that debunk these inaccuracies.
Instead of looking for tangential ways to create value, energy efficiency and decarbonization projects repeatedly fall into the trap of using energy savings (and some may now include carbon emissions fines savings) to justify investments in energy conservation measures. Often, this linear thinking approach yields unattractive investment economics. Alternatively, conduct scenarios analyses including net present value calculations: The lowest net present cost or negative net present value (NPV) over the decarbonization period will help inform the prioritization and selection of energy conservation measures. Demonstrating the return on investment (ROI) and/or internal rate of return (IRR) on the incremental cost of action over a do-nothing baseline will help persuade real estate owners to prioritize these projects. Rather than a simple payback analysis that looks only at the decarbonization path, the analysis should focus on comparing a decarbonization path with a “business-as-usual” path. This approach helps isolate the incremental cost of decarbonization over a business-as-usual approach.
This type of analysis requires completing a Strategic Decarbonization Assessment (SDA), which is based on a Discounted Cash Flow (DCF) analysis over the decarbonization period. The SDA should include the complexities of a capital refresh, tenant improvements, and non-energy benefits. Asset investment should be in the context of a comprehensive decarbonization roadmap rather than simply reactive maintenance.
A one-to-one equipment swap with air source heat pumps, which is typically the first full-electrification option considered, may not be a realistic decarbonization strategy – particularly for owners of large buildings facing various constraints around thermal distribution systems, roof space, tenant disruption, and energy supply. In fact, it is advantageous to determine the building’s need for heat pumps toward the end of the decarbonization road mapping process to ensure that the heat pumps can run optimally. Significantly reducing loads, recovering and reusing heat wherever possible by enabling thermal networking, and using a cascading approach to decarbonizing easy-to-electrify loads are likely advantageous steps to take before installing heat pumps. Systems should be optimized to deliver heating or cooling efficiently over the integrated sum of the year’s diverse conditions, the vast majority of which are at part-load. Efforts to reduce and shift loads can help reduce peak capacity. However, electrification of more difficult peaks may require special consideration within the building’s roadmap and taking a rational approach to resilience and accounting for evolving electric grid or thermal network supply conditions. This is the foundation of Resource Efficient Decarbonization.
Perhaps because the electrification movement was born in mild-climate California, the cold-climate, tall-building narrative has been incomplete. Decarbonization skeptics suggest that if it doesn’t make sense to electrify everything in one simple move, then it doesn’t make sense to electrify anything. The reality is that tall buildings in cold climates like New York must overcome space constraints and distribution challenges to provide comfort at peak load conditions without straining the electric grid or requiring oversized, sticker-shock-inducing equipment capacity.
A more suitable slogan for Northeast electrification champions would be “Electrify Everything Efficiently.” Engineers should model building energy consumption data across granular temperature bins (see Figure below) and plan for electrification with “easy” loads like domestic hot water, then mild temperature loads (typically representing 80%+ of total loads), and finally for the extremes. This is the cascade approach. Until a viable solution emerges, a building owner might even keep a small gas-fired boiler and their steam radiators around as a reserve as they learn to grapple with resilient functionality at heating design conditions. Despite global average temperatures increasing, cold snaps may even become more extreme due to a collapsing winter Polar Vortex.
There are plenty of technology-neutral enabling steps to take prior to committing to a particular low-carbon retrofit technology. Buildings are constantly evolving and exist on a continuum unless demolition is planned. Reducing loads, enabling thermal recovery, sharing and networking, and implementing grid interactivity are all priority measures that might take place prior to electrifying heat sources. Consultants also must determine the value of inaction and the value at risk if a building owner decides to do nothing. Balancing this risk with the pace of technological innovation is a delicate analysis and is impossible to conduct without a Strategic Decarbonization Assessment. When in doubt, look to leverage existing infrastructure like using chilled water loops for heating to replace partial loads. Electrifying perimeter heating used during extreme temperatures may be a later priority or absent from the critical path on a strategic decarbonization roadmap. Look to the case studies emerging out of the Empire Building Challenge for more information on this strategy.
Consider the tangential benefits of pursuing decarbonization early. For example, more and more Class A tenants are demanding environmental action from landlords to comply with shareholder environmental, social, and corporate governance (ESG) requirements. Accelerating facade improvements may reduce the need for invasive and expensive maintenance down the line. Indoor air quality, improved comfort, and operability are emerging priorities among all tenant types.
Yes, but not for too much longer. States are legislating 100% carbon-free electric grids like New York did in the Climate Leadership and Community Protection Act (Climate Act). Modeling total emissions over time using declining electric grid carbon emissions coefficients across multiple decarbonization scenarios is an important task. Phasing in electrification over time and in a strategic way is the only pathway to eliminating on-site emissions.
Achieving carbon neutrality typically requires and benefits from a phased approach versus decarbonizing all at once. Incremental implementation of low-carbon retrofits across a continuum is critical to reaching building operations carbon neutrality in cold climates. Evaluate the cost-effectiveness of phasing and maintaining technology optionality and the risk mitigation benefits these efforts might deliver. Decarbonization efforts fall on a decision-making tree, which evolves as time elapses and technology, policy, or other conditions change; each branch of the decision-making tree is a new decision point. Sustainability and asset managers can plan these intervention points over the decarbonization period.
This case study was chosen as part of the Empire Building Challenge competition. Click here to learn more about the Empire Building Challenge competition.
59-17 Junction Boulevard, developed by LeFrak Commercial, highlights the crucial intersection between decarbonization and resiliency. The 454,645 square foot, 20-story commercial property located in Queens, NY was built in 1970 and features an inefficient 2-pipe heating and cooling system that has reached the end of its useful life, due in part to damage sustained by Hurricane Ida.
As part of their participation in the Empire Building Challenge, LeFrak will complete a significant decarbonization project valued at $19.7 million, resulting in the overall reduction of onsite fossil fuels by 2035. The measures aim to electrify and recover heat of thermal loads at the property, immediately reducing site energy use by over 33% from a 2021 baseline.
LeFrak is a preeminent, family-owned property company that owns and manages an extensive portfolio of real property concentrated in the New York/New Jersey metropolitan area, as well as South Florida, Los Angeles, and throughout the West Coast.
25.1 million
Total project investment to install retrofits enabling electrification and heat recovery of thermal loads at the property and reduce site energy use intensity by 33%.
Replacing fuel-fired absorption chillers with modular heat pump electric chillers enhances heating and cooling capabilities.
“LeFrak is proud to work in partnership with NYSERDA and the Empire Building Challenge to advance the real estate industry’s ability to decarbonize high-rise buildings. We recognize the importance of leading the path to carbon neutrality and are committed to working together to rethink our building environment.”
John Fitzsimmons
Senior Director, Head of Commercial Property Management
LeFrak Commercial
Installation of heat exchangers and critical re-piping enables the core and perimeter of the building to operate independently and provides heat recovery.
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.
The plan for decarbonization was developed with short- and long-term needs in mind and was prompted by heating and cooling equipment that has reached the end of its useful life, due in part to damage sustained by Hurricane Ida. This project highlights the intersection between decarbonization and resiliency, in which necessary upgrades can be leveraged to integrate low-carbon solutions and safeguard critical building systems from future climate impacts. The immediate capital work, slated for 2024-2025, has been structured to facilitate the elimination of on-site fossil fuel consumption by the end of the 2035 decarbonization period, with careful consideration given to constructability, importance of tenant disruption, and financial implications.
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.
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.
Reduce Energy Load
Recover Wasted Heat
The existing, inefficient 2-pipe system, which only allows the building to be in heating or cooling mode, will be re-piped to create two separate hydronic zones. This will allow the newly independent loops of the building to exchange rejected heat from the core to the perimeter zone as needed. This piping work will incorporate heat exchangers to possibly connect with adjacent buildings also owned by LeFrak that are mostly residential and create a community thermal network to share loads.
Partial Electrification
Beginning in 2024, the existing fossil fuel driven plant will be decommissioned, and a new plant that enables decarbonization will be installed, including modular electric heat pump chillers with cooling and future heating capabilities.
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.
Capital costs of Empire Building Challenge funded decarbonization measures: 9.7M.
Capital costs of other renovation work: 15.4M.
Energy cost savings: 8.5k / YR.
BAU cost of system replacement/upgrades (replacement in kind (non-electric chiller, estimated): 10.7M.
Avoided LL97 fines starting in 2030.
Empire Building Challenge Incentives: 3M.
Other incentives: 500k.
Net difference between the present value of cash inflows and outflows over a period of time.
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.
Due to external project requirements, this project had a particularly compressed implementation timeline compared to other decarbonization projects. The team evaluated various replacement options over the existing systems to reduce carbon emissions: at the end of the EBC Technical Assistance Phase, ownership reviewed the financial and technical analyses of the decarbonization roadmap options, ultimately deciding to electrify the cooling plant and enable heat recovery from the core zone to the perimeter zone. The central plant work meets the building’s immediate needs, while increasing the resilience of the central plant and allowing for future flexibility and decarbonization efforts.
On-site work to upgrade the central plants has already begun and will continue into 2025. This work includes:
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.
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.
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.
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.
The Empire Technology Prize is a $10 million competitive opportunity for global solution providers focused on advancing building technologies for low-carbon heating system retrofits in tall commercial and multifamily buildings across New York State. This NYSERDA initiative, administered by The Clean Fight with technical support from Rocky Mountain Institute, includes a $3 million sponsorship from Wells Fargo. Accelerating low-carbon building retrofits is fundamental to New York State’s national-leading Climate Act agenda, including the goal to achieve an 85% reduction in greenhouse gas emissions by 2050.
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.
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.
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.
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.
While each individual building has a unique capital improvement plan and timeline, retrofit projects or decarbonization interventions may be organized and grouped by similarity as property owners plan for the future. Below is the overarching hierarchy for decarbonization intervention points according to industry best practices:
Located in Yonkers, NY, Whitney Young Manor, is a notable affordable housing complex with 195 apartments across 234,000 square feet and 12 stories. Built in 1974, the housing complex is now undergoing a $22 million makeover focusing heavily on decarbonization upgrades. This renovation aims to modernize the buildings by improving insulation and introducing a new heating and cooling system that’s energy efficient. These changes are expected to lower the buildings’ carbon footprint, enhance living conditions, and reduce energy costs. The developer, Paths Development LLC, is leveraging the recapitalization cycle of the property to upgrade its infrastructure and include decarbonization measures to meet its climate goals.
12 million
of total investment allocated to bring Whitney Young Manor to carbon neutrality by 2035.
Project has potential replication across a portfolio of 51 existing affordable housing developments managed by Paths.
“The Empire Building Challenge is enabling Paths to pilot innovative approaches to decarbonization while at the same time helping to preserve affordable housing.”
Kenneth Spillberg
Head of Development
Paths Development LLC
This project prioritizes intensive load reduction through envelope improvements and hydronic distribution to improve resident comfort while reducing carbon emissions, utility spend and maintenance costs.
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.
Whitney Young Manor is an aging affordable housing complex with open balconies, inefficient electric resistance baseboard heating, electric wall sleeve AC units, and gas-fired domestic hot water heaters.
The project team believes that with care, planning, and the appropriate resources, retrofitting these residential buildings can better serve tenants, deliver environmental benefits, and prove financially feasible for owners. Paths leverages the recapitalization cycle of the property to upgrade its infrastructure and include decarbonization measures to meet its climate goals.
This project prioritizes intensive load reduction through envelope improvements and hydronic distribution to improve resident comfort while reducing carbon emissions, utility spending, and maintenance costs.
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.
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.
Reduce Energy Load
Whitney Young Manor demonstrates the benefits of over- cladding and hydronic distribution to enable heat pump technology:
Recover Wasted Heat
The project team plans to integrate different heat sources connected to the central hydronic piping. This includes centralized air source heat pumps, Wastewater Energy Transfer (WET) system and gas-fired condensing boilers as back-up.
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.
Capital costs of decarbonization measures.
Energy cost savings, repairs and maintenance savings, BAU cost of system replacement and upgrades.
LL97 emissions fines don’t apply at this property.
Incentives from Empire Building Challenge, Low-Carbon Pathways Program, and ConEd Clean Heat.
Net difference between the present value of cash inflows and outflows over a period of time.
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.
Energy conservation analysis at midtown tower
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