Johnson Controls, DOE to save $264 million at Oak Ridge lab

Washington, D.C., July 25, 2012 — The U.S. Department of Energy expects to save more than $264 million and reduce fossil fuel use by 72 percent at its Oak Ridge National Laboratory through energy and operational efficiency measures over the 25-year performance period.

Through an energy savings performance contract with Johnson Controls, the global leader in delivering energy solutions, the project is expected to deliver these results through the installation of a new biomass steam plant and seven additional conservation measures.

The steam plant uses wood chips collected within 50 miles of Oak Ridge, Tenn. to supply 60,000 pounds of steam every hour for the campus. In addition to the steam plant, seven other energy conservation measures were implemented including a mechanical equipment upgrade, steam system upgrades, digital metering, lighting upgrades, building management system improvement, domestic water conservation and a plant air system upgrade.

ORNL's greenhouse gas emissions are expected to be reduced annually by almost 50,000 metric tons of carbon dioxide.

Thousands of projects across North America, including the project at the ORNL are financed through performance contracts with Johnson Controls. Performance contracting allows a customer to make system improvements that are self-funded via cost savings.

Under such a contract, the cost of the upgrades are paid over a specified number of years by the energy, water, and operational cost savings the project generates. Johnson Controls guarantees all or a portion of these savings under the terms of the contract.

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