On December 30, 2015, Hyatt Regency Greenwich in Connecticut significantly reduced its dependence on the electric grid.
This is when the hotel started up a 500-kilowatt (kW), natural gas-powered fuel cell system to supply up to 75% of its electric load. The fuel cell is expected to generate significant cost savings for the facility and cut carbon emissions by up to 40% compared with buying electricity from the local utility.
Hyatt has been looking at innovative energy generation technologies for some time and has implemented solar photovoltaic and solar thermal installations at several facilities.
“At Hyatt, we are committed to minimizing our footprint on the environment and our 2020 Sustainability Vision guides us on our journey to reduce our impact,” said Brigitta Witt, Hyatt’s global head of corporate responsibility. “This investment in fuel cell technology is reflective of our company’s commitment to both environmental stewardship and innovation.”
Fuel cells produce power electrochemically, without combustion, and have an emissions profile so low they are typically exempt from air permitting requirements. Some facilities also use the fuel cell’s byproduct heat for heating and cooling, or steam for their daily processes.
Fuel cells can be scaled to fit any need, from watts to megawatts (MW). Small fuel cells can provide power to remote sites, like railroad crossings and cell phone towers. Large fuel cells, like the one at Hyatt Regency Greenwich, act as power plants, providing power to large buildings, office complexes, and manufacturing facilities.
Witt added that their fuel cells can be considered “silent,” which is essential from a guest and neighbor perspective. The noise from a fuel cell is typically less than 70 decibels, about the level of normal conversation.
These attributes allow many fuel cells to be located indoors or out, sited on rooftops, in basements, or adjacent to buildings. Hyatt Regency in Greenwich’s fuel cell system, located outside the facility, requires much less space compared with other alternative energy sources such as solar photovoltaics or wind turbines.
The U.S. Department of Energy encourages the deployment of fuel cells since they provide a broad range of benefits for the environment, as well as for our energy security and domestic economy. Benefits include reduced greenhouse gas emissions and oil consumption, expanded use of renewable power, highly efficient energy conversion, fuel flexibility and highly reliable grid support.
Fuel cells for onsite power generation are available for purchase today from several manufacturers. Tax credits and new financial models are available to make fuel cells more attractive to businesses, universities and government customers to meet their energy needs.
Manufacturers offer power purchase agreements (PPAs), which require no upfront capital investment by the customer, allowing the end-user to purchase power and (optionally) byproduct heat from a third-party owner and operator of the fuel cell system. PPAs specify a pre-defined price for electricity for up to 20-year periods, providing the customer with budget certainty and protection against fluctuating energy prices, and eliminating the need for an upfront capital investment. Fuel cell companies may also be able to structure direct capital acquisitions, tax equity financing, operating leases, or capital leases to meet specific customer needs.
In addition, a U.S. federal fuel cell tax credit of up to US$3,000/kW is available until end of 2016. State-level incentives can also offset a portion of the cost of fuel cells, helping to make a strong business case for the technology. A number of states encourage deployment of fuel cell technology due to their reliability and emissions reduction capabilities.
For companies like Hyatt that are looking to expand their renewable power generation, fuel cells have become a doable option. “It is quite an exciting time to be a part of the hotel team and help propel the company’s goals forward,” said Shaheryar Adil, general manager of Hyatt Regency Greenwich. “Using fuel cells will greatly reduce our carbon footprint in Greenwich and is a step forward in helping to create sustainable communities around the world.”
Contributed by Sandra Curtin, research and communications manager, Fuel Cell and Hydrogen and Energy Association, Washington, D.C.