CAE dared to think differently. Faced with an aging HVAC system, CAE could have simply replaced their equipment with more of the same—instead, they chose to take this opportunity to rethink their systems and opt for a project that generates guaranteed long-term value. And their decision paid off. With highly efficient systems, not only has CAE’s energy bill dropped, they were also recognized as industry leaders for their energy efficiency initiative.
On May 17, CAE received a Leadership Award from CIPEC (Canadian Industry Program for Energy Conservation). These awards highlight innovation and major achievements in energy efficiency in the industrial sector. CAE won in the category “Process and Technology Improvements” and the award was presented in Niagara Falls at the Energy Summit 2016.
From the initial stages, CAE was interested in the advantages offered by energy performance companies: guaranteed results and incentives, project profitability, and reduced greenhouse gas emissions. Energy performance projects are evaluated based on net present value (NPV), which indicates the long-term value that a project will generate. CAE partnered with Ecosystem to implement a project that took a capital expense and turned it into an investment opportunity.
With guaranteed incentives of $3.1M and guaranteed annual savings of $909,500, the project will pay for itself in less than 7 years. Energy consumption has dropped by 33% and greenhouse gas emissions are down by 309 metric tons per year.
Learn more about the technical aspects of the CAE project.
The project was carried out using an integrated approach. A multidisciplinary project team with experts from Ecosystem and CAE collaborated from project start to finish. They worked together to ensure that CAE’s day-to-day activities were uninterrupted during project delivery. CAE also appreciated the focus on health and safety, ongoing communication, and employee engagement.
Another important factor that contributed to the success of the project was Ecosystem’s business model. For over 20 years, Ecosystem has delivered projects with contractual guarantees, including construction costs, energy performance, and environmental performance. These projects also address asset renewal needs. While asset renewal is inevitable in any industrial building, it can be costly when carried out using a traditional approach (simply replacing equipment), yet can generate a return on investment when delivered using an integrated approach with guarantees.