DOE's Idaho National Laboratory Awards NORESCO $33 Million Energy Savings Performance Contract to Meet Its Energy Reduction Goals.

WESTBOROUGH, Mass. -- Idaho National Laboratory (INL), the nation's leading center for nuclear energy research and development, will benefit from NORESCO's leadership in energy solutions and services through a landmark $33 million infrastructure improvement project. The project was announced as part of the U.S. Department of Energy's (DOE) Transformational Energy Action Management (TEAM) Initiative.

The project will be constructed at the Materials and Fuels Complex, a primary work area at INL, and will reduce energy consumption by $1.7 million annually. Savings realized from reduced energy consumption will repay project costs and are guaranteed by NORESCO. The contracting vehicle, called an Energy Savings Performance Contract (ESPC), is an alternative financing method that reduces the need for government spending.

"At one stroke, we are meeting aggressive DOE energy reduction goals, making a much needed investment in INL infrastructure, and using private sector funding to do so," said Dwayne Coburn, INL Director of Facilities & Site Services.

The project includes converting the energy source for boilers from fuel oil to electricity, which will reduce annual fuel oil purchases from more than 580,000 gallons to zero. Hydropower, a clean energy resource, is a significant source of electricity in Idaho. All told, the annual carbon reduction and energy savings for the project will be equivalent to removing 1,120 cars from the road.

Moreover, the project reaches INL's short-range milestones for meeting the energy reduction requirements of the Energy Policy Act of 2005 and the TEAM Initiative by reducing annual energy use by more than 5 percent and annual carbon dioxide emissions by 12.8 million pounds. By 2015, the TEAM Initiative seeks to reduce energy intensity across DOE's nationwide complex by at least 30 percent and water consumption intensity by at least 16 percent. By 2010, it seeks to acquire at least 7.5 percent of all energy across the complex from renewable sources.

"The INL project is an excellent example of how the federal government is transforming its use of energy," said Neil Petchers, President and Chief Executive Officer of NORESCO. "Our project will provide substantial energy and cost savings to taxpayers, reduce our dependence on foreign oil, and reduce harmful emissions and greenhouse gases. We are committed to our partnership with INL and look forward to a very successful project."

Infrastructure upgrades will also improve the reliability of mechanical systems, enhance occupant comfort, and provide a safer working environment. The measures that will produce these benefits include upgrades to heating and air conditioning controls, replacement of numerous air handling units, upgrades to lighting systems, and installation of passive solar walls. The project will also eliminate underground and steam condensate lines, which have historically been the more maintenance-intensive parts of the site's steam system.

NORESCO is one of the largest U.S. energy service companies specializing in the development, design, construction, financing, and operation of energy and environmental efficiency projects, performance contracting, and central energy plants. Its clients include various departments of the U.S. government, public housing agencies, school districts, universities, state and local governments, and industrial and commercial businesses. Over the past two decades, NORESCO has implemented more than $2.5 billion in energy projects at more than 2,000 sites throughout the U.S. and abroad.