State Buildings to be Powered More Efficiently

Contact: Kurt Weiss 517-335-0050

Agency: Technology, Management & Budget

April 12, 2012

Lansing - Michigan's Department of Technology, Management and Budget (DTMB) cut the ribbon today on a cogeneration power plant that transforms the way energy is provided to the 13 buildings at the state's secondary complex.  Two 1.2 megawatt natural gas fired turbine generators are now producing the steam and electricity to provide the heating and cooling for the complex. 
 
"This is an exciting step forward in the way the state is meeting its energy needs here at the secondary complex," said John Nixon, Director of DTMB, who participated in the grand opening event.  "This is now a state-of-the-art system that reduces our environmental emissions and saves the state money in future years."

By reducing the amount of power purchased from utility providers, the cost avoidance to the state results in approximately $1.6 million in savings annually.  The total cost of the cogeneration system project was $12.2 million, with $10.8 million funded through the American Recovery and Reinvestment Act.  A full return on investment occurs in just over seven years, and the new equipment has a 50-year lifespan.

Cogeneration will result in an annual reduction of 10.4 metric tons of dioxide.  This is equivalent to removing 1,700 cars off the road for one year or removing the carbon that would be absorbed by 2,100 acres of forest each year.

"This represents a significant departure from the use of boilers to provide the energy needed here at the complex," said Phil Jeffery, Chief Deputy Director for DTMB.  "The combustion efficiency of gas turbines is superior to the technology used by the old boilers."

Heat generated from the combustion process of the turbines is utilized to produce steam for heating.  Included in the new cogeneration system are two new absorption chillers, which use steam to generate chilled water for air conditioning.  The 2.4 megawatts of total power it produces is equivalent to powering 2,575 average Michigan homes per year

The Energy Center at the State Secondary Complex was built in 1975, with original construction utilizing electric chillers and gas fired boilers.  With the original boilers nearing the end of their life cycle, the energy center was a prime location for the new cogeneration system.

"This type of accomplishment doesn't happen without strong partnerships," concluded Nixon.  "I thank our many internal and external partners who helped make this possible."

DTMB partnered on the project with other state agencies that included the Michigan Economic Development Corporation, Department of Environmental Quality, and Licensing and Regulatory Affairs.  The list of external partnerships included: 

• C2AE
• The Christman Company
• Consumers Energy
• Early Equipment Procurement Package
• Eclipse, Inc.
• GRP Engineering Inc.
• General Electric Industrial Solutions
• Graham Construction, Inc.
• Horizon Environmental
•  John E. Green Company
• MAYOTTE Group Architects
• Michigan Cat Power Systems
• Patterson Pump
• Rentech Boiler Systems, Inc.
• Resource Engineering, Inc.
• Schematic Design
• Solar Turbines, Inc.
• Superior Electric
• Thermax Limited
• Trane
• Michigan State Employees Association

About Michigan DTMB
The mission of the Department of Technology, Management and Budget is to provide vital administrative and technology services and information to enable Michigan's reinvention, with a vision for making the State of Michigan one of the most innovative, efficient and responsive governments in the world.