WALTHAM, MASS.—American DG Energy Inc., a leading on-site utility offering electricity, heat, hot water and cooling to hospitality facilities, has entered into a 15-year agreement to supply low-cost energy to the Hotel Indigo Boston–Newton Riverside, a branded boutique hotel located in Newton, Mass.
Under the terms of the agreement, Hotel Indigo will soon receive a substantial portion of its electricity, space heat, swimming pool heat and domestic hot water directly from an on-site cogeneration facility, providing 100 kW and 732,000 btu’s per hour of energy while offsetting up to 328 tons of CO2 gas each year. American DG Energy will own, install and maintain the equipment and sell the energy produced at a rate lower than the local utility. Hotel Indigo will avoid the capital expenditure and pay a lower energy bill each month. The value of the agreement to American DG Energy is expected to be approximately $2.5 million over the program term.
“While redesigning our property, we were seeking innovative sustainable technology that blended with the Hotel Indigo experience,” says Paul Ferreira, managing director of Blue Hawk Investments, co-owner of Hotel Indigo with Normandy Real Estate Partners. “We will now be able to lower our energy costs and provide a true benefit to the environment. American DG Energy provides the capital, technology and operations to make it all happen.”
System Also Provides Backup Power
With its On-Site Utility energy solution, American DG Energy will produce energy in the form of electricity, space heat, swimming pool heat and domestic hot water and sell it to Hotel Indigo at a price guaranteed to be lower than the local utility. Hotel Indigo will pay for the energy used, but not for any capital or operating costs. The energy will be produced with small-scale, combined heat and power (CHP) equipment, specifically the Tecogen CM-100 cogeneration unit, located at the property site, but owned, installed and operated by American DG Energy. The CM-100 will also provide convenience power for equipment such as computers and boilers when there is a power outage.
American DG Energy’s On-Site Utility energy solution also has significant environmental benefits. The system planned for Hotel Indigo, which is expected to be fully operational during the first quarter of 2008, could offset up to 328 tons of CO2 gas each year; that’s the equivalent of planting 89 acres of trees or eliminating the emissions of 56 cars.
American DG Energy’s operations group will manage all aspects of the installation of the On-Site Utility energy solution and handle all service, maintenance and repair of the system for the duration of the agreement. Hotel Indigo will not need any manpower to support the equipment. In addition, the equipment will reduce the reliance on the boiler plant, which will extend the life of the boiler and reduce its annual operating costs.
Go to American DG Energy.
