9/15/2012 Innovative Purchasing for Substitution of Fossile Heating in Schools in Oslo - PowerPoint Presentation

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9/15/2012

Innovative Purchasing for Substitution of Fossile Heating in Schools in Oslo

Bjørn Antonsen, Head

of Section for Energy and

Environment, Undervisningsbygg Oslo KF September 19.-21. 2012, SCI-Network meeting/

EcoProcura

,

Malmö

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Bjørn Antonsen

 -

Head of Section for Energy and Environment

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With the Undertaking since February 2008Engineering construction, civil engineeringEconomic geography / environmental and resource geographyDidacticsTechnology, innovation, environmentCompetence and strategy developmentRelations and confidence development

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Agenda:

Briefly about UBF

Project for supplier development, in cooperation with NHO and OREEC

…and if time permits, which is not all that likely…

Presentation of the award winning contributions to our competition for innovative approaches to substitution of fossile fuels3

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Undervisningsbygg Oslo KF – UBF

Municipal Undertaking for Educational Buildings and Property

Established January 1st, 2002

Ownership and operational responsibility for all school buildings in Oslo

1,4 million m2177 schools (162 owned, 15 leased)>770 buildings, approx. 46 000 roomsApprox. 88 000 students and staff4

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Key Figures

Book value approx

.

19,4

billion NOKInvestment in 2012 approx. 2,8 billion NOKOperating revenues 2010 approx. 3,2 billion NOK160 employees + 50 temporarily hired staff in office facilities Helsfyr, Oslo

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Preset conditions on energy and environment:

 Certified to ISO 14001 by January 2010

There will be established

17 600 new student seats until 2022

, built and rehabilitated approx. 30 000 student seats in the next 10 yearsOil based heating as base load was completely phased out by the end of 2011All use of fossile fuels for heating will be phased out before 2020Average energy consumption for all buildings will be reduced by 10 kWh/m2yr each year to 130 kWh/m2yr by 2013Passive house standards will be implemented as standard for all new municipal buildings from 20146

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Project for Supplier Development,

inCooperation with NHO, LuHo and OREEC

Being a demanding customer

Achieving green progress through innovative procurement

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Supplier Development Project

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Confederation of Norwegian Enterprise

Oslo Renewable Energy and Environment Cluster

In close and useful cooperation with:

Supplier Development Capital Region

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Supplier Development

– an Initiative to Promote Innovation

Supplier Development is an instrument for increasing innovation in and through public procurement

Supplier Development can be understood as an interaction between the public sector and its providers, which facilitates public procurement processes that challenge and develop suppliers' competitiveness, so they may become more able to meet the client's future needs and ensure better utilization of community resources

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Public Procurement and Innovation

As a large and important customer, municipal and government sectors are able to stimulate innovation among suppliers by being a demanding customer

This requires a progressive approach to procurement processes for goods as well as services.

The key word is "planning"

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Public Procurement and Innovation –

Challenges and Potential

Lack of knowledge of rules, regulations and methodologies regarding ways of organizing public procurement is often a challenge which has to be overcome in order to achieve more innovation in public procurement.

Environmental and economical challenges make it crucial that innovation is achieved in all sectors and on all levels, in order to make society, economy and welfare sustainable.

The potential for more innovative public procurement is significant.Public procurement of goods and services in Norway represents 15 % of GNP and is equivalent to 40 % of total public expenditure (2008).11

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Planning for innovation – early birds…

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Innovation is most easily achieved during the early stages of any process, and at the lowest cost

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UBF’s specific challenge

Ground heat pumps not functioning optimally

More than 3 million NOK spent on improvement measures

Decision in Oslo City Council to phase out fossile fuel for heating by end of 2011

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Identifying

Expectations for new and innovative ways of communicating with the supplier market in order to achieve better solutions technically and otherwise

UBF wished to focus on a wider and more open approach to the procurement process in order to access more progressive solutions to the matter at hand

UBF wanted and gained approval for inclusion as a pilot project in Supplier Development Capital Region (LuHo)

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Organizing

Target of the purchase, risk assessment, possible barriers and the financial side was approved by leaders to the highest level in the undertaking

Sufficient time, more time than one would normally reserve, and extra resources was incorporated into planning in order to make room for a more comprehensive dialogue with advisors/consultants and suppliers

In order to achieve a more open and comprehensive process, it was crucial for the City of Oslo to involve all relevant groups of academic, professional and commercial stakeholders, as well as leaders and maintenance technicians at the schools at an early stage

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Dialogue and Description, Dialogue part 1

UBF wanted to establish dialogue with supplier market.

Open Dialogue Conference staged on

March 10

th, 2009Needs of UBF and specific challenge to supplier market was presented and there was an opportunity for questions and discussionDuring discussion the idea of a competition between suppliers on innovative approaches was launched and generally accepted by suppliers 16

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Dialogue and Description, Dialogue part 2

Competition on Innovative Approaches to Planning and Design was announced on “Doffin” on March 27

th,

2009

The purpose was to obtain innovative suggestions for over-all-solutions, both technically and otherwise to cover the total need for heating from non-fossile energy sourcesIndustry Cluster (OREEC) mobilized suppliers and staged a workshop for suppliers.Twelve supplier companies contributed suggestions, some of them in cooperation with others. Four winners were chosen in June 2009, and awarded NOK 50 000,- each.Financial support was made available from different sources for the development of the ideas/suggestions, and three of them were implemented in 2010 and 2011 and are working very well. The fourth will be implemented in near future. 18

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Criteria for evaluating innovative suggestions.

Competitiveness in a life cycle perspective

Investment cost

Cost of management, operation and maintenance

Lifetime expectationsReliabilityDegree of innovationPositive gains for the environmentPossible implementation challenges and risksPossible transferable value for other schools and other buildings 19

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Dialogue and Description, Description

UBF implemented all winning ideas fully or partially in later purchases for schools were fossile oil furnaces were being phased out

The challenge was to maintain and implement new knowledge and recognition gained through the dialogue conference, the competition for innovative approaches and the developing projects, in a way that did not exclude competition in the market, and at the same time respected the regulatory demands for equal opportunities for all suppliers

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Implementation and Evaluation, Implementation

Ideas from the competition, and results for

the

developing

projects were implemented in many purchases for substituting fossile fuels at the schools in 2010 and 2011UBF was able to phase out all use of fossile fuel as base load for heating in schools in Oslo before the end of 2011 21

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Implementation and Evaluation, Evaluation

Conclusion from externally performed evaluation:

Early dialogue is crucial to creating new, innovative solutions

Access to technical solutions that would not likely have come out of an ordinary purchasing process

Competition for innovative approaches is a good and appropriate measureWorkshops organized by the industry itself made way for new and fertile constellations of cooperation and partnering between suppliersApproval on highest level of leadership is important for changing current practice within the organization 22

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Presentation of Award Winning Contributions to our

Competition for Innovative Approachesto

Substitution of Fossile Fuels

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15.09.2012

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One Public Research and Development Contract

One project developed with financial support from Oslo Municipality Energy Saving Fund

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Main Elements to Contribution

Deep well based energy storage and shallow ground heat collector

Smart Skolevarme på Kringsjå/Nordberg skole

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The school always uses the heat source with favorable temperature - either deep well based energy storage or shallow ground collectors Deep well based energy storage loaded with heat from shallow ground collector (soccer field) during summer

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Biogas for heating – Ris

lower secondary school26

Sewage from Oslo

Existing heat distribution

Biogas burning in furnace

Delivering compressed biogas

Production and upgrading of biogas

Happy and warm children

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Environmental Advantages related to Biogas

CO2 neutral.

Cleaner air, less NOx, no particles and only marginal SO2 emission.

Contributes

to the development of infrastructure for biogas, and contributes to increased development of biogas production.Eliminates methane emission, thus reducing greenhouse effect by at least 75 % from processed sewage.

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….and the possibilities?

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Partners in project

Ivar Lærum AS:Plumbing Company specialized towards creation and professional operation of heating systems.

SGP Varmeteknikk AS:

Leading

supplier of medium-sized heating systems for wood, wood chips and pellets, and solar heating solutions.Matene AS:Entrepreneur Company that develops a unique silo / screw feeder technology that delivers better space utilizationBio8 AS:Supplier of bio-oil products

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3-phased conversion

Phase 1:

Convertion

to Bio-oil

(2-6 Weeks)Phase 2:Investment in future heat production system(2-4 months)

Phase 3:

Operation of facilities

Conversion of existing oil-fired boilers to bio-oil for swift conversion.

This involves a relatively small intervention in the current system (cleaning of oil tanks and replacement of oil burner) and can be completed in very short time.

Renovation of the boiler room establishing base-load based on pellets (and solar heat where relevant) to a large accumulator.

The project will utilize a newly developed screw feeder to ensure accessibility, and a new pellet silo for minimal disturbance to the school.

There will be installed one of the most advanced, automated pellet boilers to ensure low operating costs.

Operating contract to ensure optimal operation of the facility and reduce strain on the janitors.

The operating concept is different from heat delivery contracts in that the customer has ownership of the equipment. The customer maintains bargaining power and may continue to enjoy minimal energy costs in the future. A heat delivery contract will over time give away much of the gain to the heat provider.

Adequate operation is the most important success factor for any bio-heat facility.

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Phase 2 – future heat production system

Prepared for:

Solar heat

Heat pump

New energy sources(i.e. fuel cells)

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What has been achieved?

Innovation

Phasing out of fossile fuel for heating in compliance to City Council decision

Improved competence in the industry

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http://www.undervisningsbygg.oslo.kommune.no/

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9/15/2012

Thank you very much

for your

attention!

Maybe, we’ll meet in Oslo!http://www.undervisningsbygg.oslo.kommune.no/