Hope soars at district cooling summit even before bid announcement. Story and photographs: B Surendar

With three district cooling conferences in Qatar in close periodicity to one another – the first took place in October and the second and the third in November – it would have been hard to imagine that the last in line would have attracted any interest, but that’s precisely what it did.

The crowd was thick, and the discussions were not hackneyed. Over 250 people converged on the Grand Hyatt Doha to attend the 2nd Annual Middle East District Cooling Summit, organised by Fleming Gulf Conferences.

The Summit ended just days before Qatar won the bid to host the 2022 FIFA World Cup and the subsequent sense of euphoria regarding the pot-of-gold opportunities for the construction industry, but as at the IDEA Conference, earlier in the month, much of the discussion still revolved around the exciting potential for district cooling in the peninsula and in Saudi Arabia. An additional focus was Kuwait, from where a sizeable contingent arrived to participate in the discussions.

As at recent conferences, though, the lingering downturn-induced mood was an imposing presence. The financial turmoil has had a chastening effect on the industry, and the discussions took place against that backdrop. During his presentation, Gaith Ghezawi of Nalco, for instance, made the wry remark that while the original forecast for the GCC (pre-downturn) was 15.6 million TR by 2015, the new forecast was five million TR.

Speaking of Qatar, a member of the audience pointed out to the real estate slowdown in Qatar (a situation that is now likely to change, given Qatar’s successful bid) and a lower demand for LNG and a reduction in prices, owing to an increase in production of shale gas in the US and other traditional markets for the peninsula. Hisham Hajaj of Stanley Consultants dismissed the lower demand for LNG as a temporary phenomenon and expressed optimism about Qatar’s growth prospects.

Expectedly, Hajaj pulled for district cooling to come through, as did several others at the conference, including its moderator, George Berbari of DC Pro Engineering. “One day, we will have 50% of all cooling in Qatar done by district cooling,” Berbari said. “I am hoping the Municipality will lay the piping network and take care of the transmission (of chilled water). I am hoping this dream will be possible 10 years down the line.”

Later, speaking as a presenter, Berbari said that the Government in Qatar, and end-users were seeing how district cooling was important to curb the ever-mounting power consumption. Green buildings and district cooling, he said, were two important elements for curbing power consumption, adding that Qatar and the UAE had large per capita consumption of power.

District cooling, he said, was important to Qatar from an economic security point of view, as well. Saying that Qatar consumed 24% of the total quantity of natural gas it produced (a lion’s share for producing power), Berbari said the peninsula would benefit by lowering power consumption, so it could export more of the gas and boost its revenues.

“Electricity generation is skyrocketing in Qatar,” he said. “The country’s expected power demand for 2011 is 8,707 MW. By 2020, the demand for electric power in Qatar will reach 10,000 MW or even 15,000 MW. In effect, the country is likely to consume 50% to 75% of the total natural gas it produces. This will not only impact the country’s revenue but also deprive the world of a major source of energy and create higher global competition to secure energy supply.”

The high power consumption, Berbari said in his presentation, was relevant to the district cooling industry, because 65% of the total electrical load went for running air conditioning systems.

The power situation in Qatar, Berbari said, was further complicated by the country’s electricity tariff and subsidies regimen. “The figure is of $530 per capita subsidy in Qatar,” he said. “This is a substantial subsidy figure. And if we increase the consumption of energy, this figure will grow. For a projected 800,000 TR demand, the estimated real load will not exceed 500,000 TR, where 60% will have thermal storage and 40% without. Electric demand of the 500,000 TR is 400 MW for district cooling, as compared to 825 MW, in the case of traditional air-cooled systems. In that scenario, we are looking at an annual power consumption of 1.710 GWh per year for district cooling, as compared to 2,850 GWh a year for a traditional air conditioning system.”

In his presentation, Berbari said that district cooling in Qatar could help in other areas, as well. For instance, he added, while it could be imposed on completely new areas with medium to high density, it could play an important role when it came to retrofitting old stock of buildings in a bid to make them greener. Extending the green theme, Berbari said district cooling could help in green building energy monitoring and performance. For all this to happen, though, he called for greater support from the government. For instance, he said, TSE (treated sewage effluent) usage should be prioritised for district cooling. “If TSE is used for the district cooling industry, it has four times the impact on GDP growth than irrigation,” he asserted. Berbari also called out to the authorities to make a service corridor available in all future master plans. “District cooling should be a part of all future master plans,” he said.

Speaking from a government perspective, Waleed M Al Emadi from Qatar’s Ministry of Environment, admitted that Qatar viewed district cooling as a benefit to the country. “Regarding the matter, we as the Ministry of Environment support all district cooling efforts in the State of Qatar as an environment protection issue,” Al Emadi said.

Shifting the attention to Saudi Arabia, Hajaj said that the picture in the Kingdom was looking very rosy, indeed. Saudi Arabia, he said, was booming. In the coming two years, he added, the country would be adding one million TR of district cooling. “All new projects are using district cooling in their developments,” he said. “They are working on 15 universities, each with a district cooling plant. So district cooling is here to stay.” Added Jeevan Joy of SPIG: “It is true that there are several institutional projects in Saudi Arabia, like hospitals and airports. So district cooling is sustainable.”

Like Saudi Arabia, delegates at the conference agreed, Kuwait was warming to district cooling. An indication of this was the sizeable presence, relatively speaking, of key players from Kuwait, including Fadhel Al Kazemi, the CEO of Kazema and Professor Abdullatif Ben-Nakhi, Member of the Board of Governors of ASHRAE’s Kuwait Chapter. Al Kazemi, in fact, used the occasion of the Summit to launch Tekneen District Cooling & Utilities. In the case of Kuwait, it is no longer a case of why but when to opt for district cooling. As Yaqoub Almatouq of the Environment Public Authority (National Ozone Unit), Kuwait, put it, the power demand in Kuwait was very high, which meant that for any major project, district cooling was the best alternative.

Pointing out to the fact that the residential sector in Kuwait consumes 60% of the power generated, Al Kazemi said that district cooling was the most viable option. In his rather detailed presentation, he spoke of a grand national purpose in Kuwait and of how many projects in Kuwait were going in the direction of a reduction in the use of power and an increase in the use of renewable alternative energy. “We need to maximise competency in using fossil fuel and alternative renewable energy in both the supply side and the demand side of energy,” Al Kazemi said. “We need to implement integration of power infrastructure to produce power and to allow people to sell the surplus to the grid.”

Almatouq said district cooling was invaluable also from the point of view of cutting down on emissions of greenhouse gases. Speaking as a refrigerant expert, Almatouq pointed out to the availability of several refrigerants which had a low global warming potential (GWP) but which were toxic or inflammable. These could, however, be used, he said, if they were controlled within an integrated plant room, under the constant supervision of competent and skilled supervisors. In that context, he said, district cooling was tailor-made for deploying the refrigerants for beneficial use.

Though upbeat about the prospects for district cooling in Qatar, Saudi Arabia and Kuwait, all delegates agreed that for district cooling to be fully accepted, there was a need for it to wash itself off its excesses. For one, some of the delegates said it was essential that district cooling as a business should have a proper financial structure.

For instance, Berbari said that while there was nothing more important than banks for the district cooling industry, banks had shied away and were looking for a solid structure. “Are we generating enough cash to repay the banks?” Berbari asked. “Banks are pushing district cooling to have signed agreements. The delay in using capacity is also affecting the banks.”

It was interesting that a representative from Doha Bank was present at the Summit. Speaking obviously from the other side of the fence, Dag K H Reichel, Head, of Wholesale Banking at Doha Bank, said that the bank did not have much experience in handling district cooling projects but that, at the end of the day, financing any project was the same approach as project financing. “We will consider looking at these financial opportunities from a project finance perspective,” he said, adding, “Project financing is clearly dependent on the underlying cash flow of the project.”

Responding to this, Abdulhamid Al Mansour, the CEO of Saudi Tabreed said that it was important for the industry to build better awareness among banks about district cooling. Banks, he added, should know that the district cooling industry was reliant on load and ambient temperature, so it was not as easy as project finance for other projects. “Banks are used to seeing a performance test and a reliability test,” he said. “They can, then, extrapolate from the tests that as long as the district cooling companies operate properly they will be in a position to pay their debt off.”

Speaking along the same lines as Al Mansour, Lars Hargö of Capital Cooling, said: “We engineers do not speak the same language as financial professionals. We need to create communication tools to bridge the gap.”

Hargö advocated a risk-management loop, which would run through the different phases of a project. “The business project is there, but the right work process and tools must be in place,” he said.

Governance and risk management are crucial, Hargö added. “For instance,” he said, “it is important to establish a risk-identification process, a risk-management system and risk-monitoring and control systems. It is also important to conduct a risk-informed investment analysis.”

Speaking on the subject, Ghezawi of Nalco, said that while a financial structure was important, it was clear that end users were not happy with district cooling. By way of hazarding a guess, he asked: “Was it overpricing? Was it greed by the private sector?”

Also, zeroing in on the challenges involved in coming up with a proper financial structure, Ghezawi said that if the state was already subsidising on water and electricity, what was district cooling going to save on, then? “Also, subsidies are heavily concentrated on the residential sector, be it in Saudi Arabia, Kuwait, Dubai or Abu Dhabi,” he said. “If they offer the industrial sector half of the subsidies they offer to the residential sector, we will be able to give lesser cost. Unless we see subsidies removed completely, we will not see appreciation for renewable energy and district cooling.” Added Hajaj: “The issue is also with the developers. They want the cake and eat it, as well.”

Ghezawi and Hajaj did not state it explicitly, but the purpose behind their statements was to call for a need for regulations. Al Kazemi also called for regulations and also for legislation. He said it was important to institute policies and legislation to, for instance, encourage thermal energy storage (TES) and to explore and adopt alternative renewable energy. “District cooling is an investment, and whatever rates are issued have to be based on fair business practices,” he said. “I have seen in some countries that the developer pays nothing and the tenants pay too much.”

Speaking for Kuwait, he revealed that the country had a long-term policy in place, whereby it was working on district cooling codes and acts. “Several district cooling projects are being planned for cities and universities,” he said. “Once the act is there, you will see more district cooling.”

Al Kazemi said it was crucial to have regulations in place. “It is the way forward,” he said. “Power companies will not invest if there are no regulations. Concession is not enough.” Al Kazemi added that the regulations should include reference to reputable bodies, like IDEA and ASHRAE. “IDEA’s goals should be our goals, as well,” he said.

Berbari said that regulations should cover the utilities, as well. Currently, he said, utilities are not favouring district cooling. Once they do, Berbari added, district cooling will favour end users.

Berbari said there was a lesson to be learnt from how some parts of Europe were successful in creating a level playing field for district cooling. The state, he said, initiated district cooling projects and, after establishing the business model that simultaneously took care of the welfare of the end users, passed on the responsibility to the private sector.

On cue from Berbari, Dr Joachim Paul, the Founder of Vortex Systemtechnik, said that there had been a lot of discussion in Brussels to create the level playing field. Paul said that authorities should help to promote and actually make it easier to establish a district cooling infrastructure system. “They should be more proactive in giving permission to put pipes in the ground,” he said. “This type of model is actually the same as the deregulation of electricity.”

In addition to better financial structuring, regulations and legislation, delegates said, there was a need for better project management to improve the health of the district cooling industry. Speaking on this subject, Hargö of Capital Cooling said there was a clear path ahead to reach project success, which, he added, included a solid business project management structure, a robust business project management process and a standardised and implemented business steering and control model.

Hargö told the audience at the Summit that it was important to have genuine knowledge about business project management, including about such aspects as the market, technique/engineering, finance and organisation.

A proper business project management process, Hargö said, increased efficiency in design, build, transfer and operation processes; increased finance profitability; and helped cut the realisation time.

For district cooling to be successful, delegates agreed, it was also important to look at the water side of things. As Ghezawi of Nalco put it, the current yearly water demand for district cooling (at 40% average load) was 40 million m3 a year for two million TR hours. In the medium term (2010-2015), it was projected at 100 million m3 a year and in the long term at 300 million m3 a year (for 15 million TR hours. After giving the figures, Ghezawi asked, “The big question is, do we have the water?”

Earlier, during his presentation, Berbari had spoken about the importance of TSE and the need for service corridors. At the Summit, two water-technology companies – GE and Nalco – took the discussions further by making detailed technical presentations on the subject. Another water-technology company, Modern Water spoke specifically on Manipulated Osmosis (more on this in subsequent issues of Climate Control Middle East).

In his presentation, Shereif Alsayed of GE said that by 2025, global treated wastewater could be a significant source of water. Challenges remained regarding TSE make-up, though, he said, including inconsistent water chemistry, specifically fluctuation of calcium hardness and alkalinity and variable ortho-phosphate content. “Further, if you are treating the water with zinc, then zinc phosphate is something you have to consider as a deposition,” Alsayed said.

In addition to inconsistent water chemistry, there were concerns regarding microbiological control, he said. The presence of organics and ammonia content were concerns, he added.

Availability of TSE was a third challenge, Alsayed said. This, he added, imposed limitations on cycles.

Alsayed said that GE had carried out an evaluation of TSE in an evaporative laboratory tower (ELT). In all, GE conducted four studies. The first study involved recycling TSE make up at 2.5 cycles at free pH. The second involved recycling TSE make up at 2.5 cycles with gradual increase in pH. The third involved recycling TSE make up at 2.5 cycles with the pH control at 8.1 and over an extended period. And the fourth involved monitoring alkalinity and chlorine demand variations. Based on the study, Alsayed said, GE arrived at the following conclusions: Circulating Dubai TSE at 2.5 cycles with pH free control resulted in calcium carbonate and calcium phosphate deposition. Gradual increase of pH resulted in calcium phosphate deposition at pH of 8.3. Circulating Dubai TSE at 2.5 cycles with pH controlled at 8.1 resulted in clean metal surfaces and corrosion rates of 2 mpy for CS and 0.2 mpy for copper. Alkalinity and chlorine demand are decreased at the same order of magnitude as ammonia is gradually stripped out of solution.

To a poser from the moderator, Berbari, as to if he would recommend to use 8.1 without polishing, Alsayed said that based on Dubai TSE, it was possible to operate at 2.5 cycles of concentration and pH controls. “For that, though, we have to pass through UF RO,” Alsayed added.

Ghezawi, in his presentation, said that TSE was indispensable to the success of district cooling, and all efforts must be pursued to secure the source. Ghezawi said that Saudi Arabia currently produced an estimated two million m3 a day of TSE, while the UAE produced 1.2 million m3 a day, Qatar 700,000 m3 a day, Kuwait 600,000 m3 a day, Oman 270,000 m3 a day and Bahrain 200,000 m3 a day.

All this, Ghezawi added, if not used properly, would be dumped into the sea, which would be akin to wasting a valuable resource.

Like Alsayed, he said there were several and significant challenges to the use of TSE, and called for a capable chemical and microbiological treatment programme to make the gains from TSE tangible and appealing. “Clearly, if we use TSE in cooling towers, we are at high risk of Legionella, so this is a point we have to address,” he said. Likewise, from a chemical point of view, one degree increase in the approach temperature could mean 1.5-2.5% increase in power consumption.”

With the increasing cost of electricity, solar cooling systems could be a more viable option, despite initial challenges, argues Muhammad Ali.

QUALITY AND QUANTITY OF SOLAR ENERGY

The sun is a continuous fusion reactor in which hydrogen is turned into helium. The total energy output from the sun is 3.8 x 1020 MW, which is equal to 63 MW/m2 of the sun’s surface.

The Earth receives only a tiny fraction of this emitted energy, which is equal to 1.74 x 1011 MW (or 341 W/ m2 average). However, it is estimated that 84 minutes of solar radiation reaching the Earth can satisfy the world energy demand for one year (about 900 EJoules).

The amount of solar energy available at any specified place depends upon three factors:

• Location (latitude and longitude)
• Date
• Time of the day

Solar radiation data for different locations:

Since availability of solar energy depends upon location, it is evident that solar radiation is different in different parts of the world. The Earth’s atmosphere is surrounded by different gases, particles and suspended solids. A large amount of solar radiation enters into the atmosphere and is either reflected back, scattered or absorbed into the atmosphere.

Some amount of this radiation reaches the Earth and is called diffused radiation. Whereas, the portion of radiation that reaches directly (without scattering) to the Earth is called direct or beam radiation. The location at the belt of maximum solar radiation, that is, the, Equator, receives maximum solar energy.

SOLAR ENERGY COLLECTION

Solar energy can be converted into chemical, electrical, and thermal processes. Solar energy is converted into electricity through photovoltaic conversion (sun to electricity). Solar thermal conversion in the form of hot water, steam or other heat transfer fluids can be used for space heating and cooling, domestic water heating, power generation, distillation and processes heating.

The major components of a solar thermal air conditioning system are the solar collectors. They are heat exchangers that absorb solar radiation energy, convert it into heat and transfer the heat to heat transfer fluids (air, water or oil).

Click on the table for larger view

The thermal energy, thus collected, can either be used directly for air conditioning or can be stored in thermal energy storage tanks for later use – at night when sunlight is not available.

There are two types of solar collectors: stationary or non-concentrating collectors and concentrating collectors.

A non-concentrating collector has the same intercepting and absorbing area, while the concentrating collector is typically a sun-tracker that uses concave reflecting surfaces to concentrate solar beams on to a small receiving area and increase the radiation flux to many times. This produces heat transfer fluids of high temperatures. (See table 2 at end of this story)

SOLAR COOLING TECHNOLOGY – OVERVIEW

Solar absorption air conditioning – system description:

The difference between solar absorption air conditioning and traditional fossil fuel-fired unit is that in solar absorption air conditioning systems, the energy supplied to the generator comes from solar-collector units. The heat from the sun can be used directly in the absorption machine or it can be first stored in a thermal storage tank and then used in the absorption machine.

Due to the intermittent nature of solar energy, it is a better option to use a thermal storage tank to store the heat for later use. This serves two purposes: first, the problem faced by the intermittent nature of solar energy can be overcome and second, the stored heat can be utilised at night when sunlight is not available or during peak load time for load shifting.

Absorption chillers available in the market require the following heat sources:

• Single effect: 98°C hot water (COP 0.75)
• Double effect: 180°C hot water (COP 1.4)
• Triple effect: 250°C steam at 40 bars (COP 1.8)

Solar absorption air conditioning systems can be configured in many different ways. The situation becomes more interesting when multiple heat source streams are used in conjunction with solar heat. But the alternatives must be evaluated very carefully so that they meet the specific needs and requirements of a project.

We can categorise solar absorption air conditioning systems broadly into the following options:

Option 1: Utilising solar energy as the primary heat source and auxiliary heater as the secondary heat source (hot water/steam-operated chillers).

Option 2: Utilising solar energy as the primary heat source and fossil fuel and/or waste heat as the secondary heat source (multi-energy units).

Option 3: Utilising two different absorption machines – one working with the solar hot water and the other, directly fossil-fired during the sun depleting hours. (hot water + direct-fired)

Option 4: Onsite power with cogeneration

What the options entail:

Option 1

Utilising solar energy as the primary heat source and auxiliary heater as the secondary heat source

Hot water-operated chillers:

• Single effect: 98°C hot water (COP 0.75)
• Double effect: 180°C hot water (COP 1.4)

The diagram, on the opposite page, represents a schematic depiction for a single-stage hot water-operated chiller. The hot water obtained from the solar collectors is stored first in the hot water thermal storage tank. This can help overcome the problem of the intermittent nature of the sun. Moreover, the hot water can be used when the sun is not available – cloudy days or at night.

The other advantage of using hot water storage is to utilise big Delta T (temperature difference) of hot water, as hot water storage takes less volume to store the same amount of energy than chilled water storage. (See “diagram 2” at the end of this story)

The other possible arrangement is to use hot water directly into the absorption machine. The advantage of such an arrangement is that higher hot water temperatures can be utilised directly into the generators, thus increasing the machine efficiency.

However, this system is not flexible enough to suit the operation when sunlight is not available. This shortcoming can be overcome by adding a chilled water thermal energy storage tank. In this way, the chilled water can be provided during evenings and cloudy days. But, again, the volume of chilled water storage for the same amount of stored energy is higher than hot water storage. Hot water storage, therefore, is a preferred arrangement.

Steam-operated chillers:

In this case, concentrated solar power (CSP) collectors are used to produce high temperature molten salts, air or oil. These can be used to produce steam.

The triple-effect absorption chillers require 250°C steam at 40 bars and assure a COP of 1.8. The CSP collectors can be used to produce this quality of steam.

The heat from the solar collectors can be stored in molten salt storage tanks that can be used during the non-sun hours. The concept is more suitable for power production, as it requires a large setup and big investments.

Option 2

Utilising solar energy as the primary heat source and fossil fuel and/or waste exhaust heat as the secondary heat source (multi-energy units)

In this case, the low temperature hot water (98°C) obtained from evacuated tube solar collectors can be used in low-temperature generators of double effect multi-energy type units, whereas, the fossil fuel or waste exhaust heat (500°C) can be used as the heat source for high-temperature generators. These types of units are more suitable for applications where a continuous supply of waste exhaust heat is assured.

Also, hot water storage would be required for solar-depleted hours to provide hot water for low-temperature generators.

The multi-energy type unit utilises standard proportions for fuel, like:

• 48% from fuel, 30% from exhaust and 22% from hot water.

However, the fuel proportions can be altered with custom-made units, meeting project requirements.

These can be:

• 48% or up to 100% cooling from fuel
• 22% or up to 100% cooling from hot water and
• 30% from exhaust.

(See “diagram 3” at the end of this story)

Option 3

Utilising two different absorption machines – one working with the solar hot water and the other, direct fossil fuel-fired for the sun-depleting hours. (hot water + direct fired)

This system is most suitable in case of 100% redundancy requirements. The hot water-operated chiller can be used during those hours of the day when the sun is available and the direct-fired chiller can be used during the sun-depleting hours.

The hot water-operated chiller can be a single-stage one, which can be provided with hot water from low-cost evacuated tube collectors.

Double-effect hot water operated chillers require hot water temperatures of 180°C. This is possible only with concentrating collectors.

An economical solution would be to use the single-stage hot water chiller with the double-effect direct-fired chiller. This assures good overall COP.

Option 4

Onsite power with cogeneration

Concentrated solar power (CSP) collectors are mainly used for power generation. These produce high temperatures of molten salts, air or oils. This, in turn, produces steam to run a steam turbine.

The condenser water of the steam turbine can be used to run an absorption chiller, and thus be assured of a cogeneration- chilled water system. (See “diagram 4” at the end of this story)

The auxiliary components and subsystems for solar-powered absorption air conditioning systems are:

1. Heat transfer fluids
2. Thermal energy storage (hot water, chilled water)
3. Heat exchangers
4. Expansion tanks
5. Pumps
6. Piping
7. Valves and gauges
8. Auxiliary heat source
9. Controls

Conclusion:

CHALLENGE

Intermittent supply of solar energy is the main challenge posed by solar cooling systems. But this can be overcome by energy-storage devices and financial incentives, respectively. Well-designed chilled water systems have the potential to save primary energy (40-60%). But higher first cost, that is, 2 to 2.5 times more than conventional electric chillers is another challenge. This can be obviated by:

• Higher standardisation
• Less effort involved??? in planning and design
• Lower component cost

In general, small capacity systems are required to penetrate the technology at all levels. Also, there is a need for an advanced operation and control system.

There are other barriers that might hinder the growth of the solar cooling system market. They are:

(Ref: European Solar Thermal Industry Federation)

Technical barriers – hardware

• Lack of units with small capacities (long-term technical alternative to split units needed)
• Lack of package solutions for residential and small commercial applications (domestic hot water, space heating, air conditioning)
• Only a few solar collectors for medium temperatures available (100-250°C), which can be used to drive double or even triple-effect chillers
• Low thermal efficiency (COP)
• Often need for wet cooling tower

Technical barriers – teething trouble

• Lack of skill among professionals (planners and installers)
• Lack of standardised designs of hydraulic systems
• Lack of suitable planning guidelines
• Lack of training and design tools for planners

Lack of awareness

There is lack of awareness about solar cooling systems as the concept is just emerging and the technology is still evolving. As solar cooling systems become more standardised, the lack of awareness among consumers and professionals will become a key barrier to growth.

Cost

The following challenges need to be addressed when working out the cost-effectiveness of the system:

• Higher initial investment costs compared with conventional cooling systems
• To date, not cost-efficient from a business point of view
• The sector is often neglected in today’s financial incentive schemes for solar thermal energy

ECONOMIC ANALYSIS

Now, that the other aspects of the concept of solar cooling systems have been analysed, it is time to look at the financial fine print.

Privately owned buildings require a payback period of two to three years. Five to seven years is sometimes acceptable, but if it is over 10 years, it is economically not attractive.

The case is different for publicly owned buildings such as schools and government offices, where an extended payback period might be justified.

Solar air conditioning system can be a cost-effective solution compared to traditional vapour compression systems in following cases:

• In areas of high solar radiations
• In areas of high cooling demands
• In areas of high electricity rates
• Where government incentives and subsidies are available

In conclusion, one can say that with electricity and natural gas becoming increasingly more expensive, the concept of solar cooling will become a more economically attractive option, as it can result in less peak load on grids. But the fact remains that it requires financial support schemes at the national level in order to overcome the initial cost barrier, improving market penetration and exploiting the economies of scale.

Financing can come from multiple sources, including upfront equity, debt financing, incentive schemes, including subsidies, low-interest rate loans, grants and tax incentives. It is interesting to note that despite it being economically not a very attractive option, we have seen 100 new solar cooling projects in 2009. This is, indeed, an encouraging figure.

The writer is Senior Mechanical Engineer, ADC Energy Systems, Dubai, UAE. He can be contacted at: mali@ADCEnergySystems.com

Tables & Illustrations

Diagram 2

Diagram 3

Diagram 4

Jaap Kalkman, the Head of Asset-Based Investments for the MENASA region at Arcapita, made a presentation, titled ‘Exploring financial viability of district cooling projects. Excerpts…

Financing for district cooling is a theme for a conference in itself. The challenges for providing finance for district cooling are many. If you look at project finance, if you look at standalone projects, these are small in profile. When there is a $20-billion nuclear plant, few people are interested in a $50-million project. So you have to look at local banks, which have to understand that project finance is different from other finance.

Every bank understands project finance, but they need to understand district cooling, which is not complicated. The district cooling community has to crack the financing nut. Saudi Tabreed got finance on the Saudi Aramco project, but again, it is not a typical district cooling project – you have 100% off-take from Saudi Aramco.

It is unlikely governments are going to finance a district cooling programme. District cooling saves electricity and water and offers other benefits. So how do you get it going? A lot of district cooling companies have learnt lessons from the crisis on how to structure district cooling projects. So this presentation is on how to do that…

Most advanced developers are sympathetic to these new structures.

Arcapita is a private equity company. It is a GCC-based investment firm, which has handled 75 deals worth $28 billion.

Now the question is, why should the private sector be interested in district cooling? And are the risks manageable? The answer is ‘yes’. Construction risk is manageable through good governance and operational risk through good governance. As for collection risk, there is the option to bill buildings and not individual companies or families. In dubai, a district cooling company ran into trouble by going to individuals, because there was variance in behaviour. As for revenue-cost mismatch, the solution is to structure tariff properly. And as for demand risk, the way out is to ensure that buildings are coming up before construction starts.

Now, let us look at the ideal tariff structure for district cooling services. I would recommend a three-part tariff to mitigate revenue-cost mismatch:

• One-time connection fee that covers ETS investment at the customer location
• Monthly consumption fee
• Monthly capacity fee

At this juncture, let us look at how to mitigate demand risk. It is possible to achieve this by letting the project developer/sponsor build the network. I am talking of an upfront investment, up to 30% of the total cost. The developer should put the pipes underground, because he believes in his project, correct? Also, you can’t put pipes in a modular fashion – it does not work right.

Secondly, sign or partner with a reputable sponsor or sub developer (rather than an SPVs) and agree to be paid even if the customer is late. Thirdly, insist on upfront payments from customers, upon signing of the customer agreement. Ask for at least the one-time connection fee and, ideally, also the one year of capacity fee. Fourthly, start and put customers on temporary cooling and, then, once demand increases, bring permanent structures online. And fifthly, agree to automatic concession extension, in the event of delay.

Okay, are the returns attractive? Compared to power project returns, and US Treasury returns, with district cooling, we find 12-15% returns, so this is attractive. (I must add that without a reputable operator, like Dalkia, we might not have been able to command such returns.) Maybe there is a higher risk than a power project, where you have government off take, but still district cooling is attractive.

And are there enough opportunities? Roughly half of the projects are continuing, though at a slower pace. At a very high level, there is absolutely high demand for such projects in Saudi Arabia. And Kuwait is starting with district cooling, so yes, there are opportunities.

However, we must remember that the era of “please build first, the customers will come” is over. A more sophisticated, “just in time” project structuring is required

With this new more careful project structure, it is feasible to proceed on district cooling.

A report on SIPOS Aktorik’s presentation at the 2nd Annual District Cooling Summit 2010.

SIPOS Aktorik’s presentation was on actuation solutions for district cooling.

Steffen Koehler of Sipos Aktorik

The importance of protecting hydraulics was a key focus of the presentation, by Steffen Koehler, the International Sales Manager of the company.

In the course of the presentation, Koehler detailed the variable-speed capability of the system, including its soft-start-and-stop functionality, which addressed the issue of water hammer.

Recognising that power supply in some countries could be inconsistent, Koehler highlighted that the company’s actuators were immune to voltage fluctuations, providing reliable valve control in the harshest of environments.

Koehler said that the system was endowed with an integrated frequency converter and intelligent electronics. As a result, he added, voltage fluctuations from -30% to +20% were tolerated; the actuator’s electronics stay online and the DCS communication continued. Additionally, the torque produced by the actuator, Koehler said, was not affected while the output speed is automatically adjusted, according to the voltage level. These specialist features from the actuation solution, Koehler said, combine to make it attractive for district cooling solutions in challenging power environments.

Koehler said that SIPOS’ district cooling credentials were confirmed, thanks to a range of UAE installations, including at Dubai Metro, Yas Island and Al Raha Beach.

During the Fleming Gulf Summit, Climate Control Middle East interviewed Tarek El-Far of Ista Middle East, just days prior to Qatar’s successful 2022 bid. Excerpts…

How do you perceive Qatar as developing?

Tarek El-Far

The real estate is booming here in Qatar, and projects are coming up in a structured manner. Qatar reminds me of UAE, 10 years ago, but with stricter measures in place. If they get 2022, that will multiply business. I have learned that the country is planning to spend $140 billion on infrastructure over the next 10 years, which is good news.

And how is Ista planning to respond to the exciting developments?

Currently, we are supplying only hardware but want to highlight the importance of energy savings. Moreover, we will be setting up a full-fledged team in Qatar; currently, we are operating out of Dubai. If it is to be a community-scale development, our involvement and our presence will be significant.

Generally speaking, how do you see the sub metering side of things panning out in the market?

In Dubai, the new strata law has raised a question: how do we do it if not with sub-metering. Currently, though, the design and access to sub metering is not good in the UAE. We, as a company, bring 200 years of experience, and that’s why we are in the market. We have major success stories in the UAE. People have to realise that a meter is beyond good looks.

What specific solutions would you look to offer Qatar?

As Ista, we have wireless systems, and so access does not matter. Everything is handled remotely. We will provide O&M on monthly-contracting-basis fee. Qatar consultants are making use of wireless technology. They trust wireless. I have come across several specs that have wireless. Whatever said and done, if meters are there, you need good partners for reading and for billing.

A busier Big 5 Show gives shape to persistent talk of a looming recovery. Story and photographs: B Surendar

It was a Big 5 that struck a defiant pose in the midst of the lingering downturn. It was an event that tried to emerge from the inertia of a year earlier, and on quite a few counts, did succeed. For one, HH Sheikh Mohammed Bin Rashid Al Maktoum, the Prime Minister of the UAE and the Ruler of Dubai, himself chose to inaugurate the event, and in doing so, sent a positive message to the industry. For another, there was a visible increase in the number of visitors and a palpable return of the energy that was missing the last time around and even the year before. Many of the past exhibitors reposed their faith in the show by coming back to display and market their products this time around, as well, on the back of the reputation that Dubai enjoys as a commercial hub for the region. Said an exhibitor, “We are here, because Dubai is the centre of the Middle East. Our customers from Qatar and Saudi Arabia come here to meet us.”

Climate Control Middle East ambled through the aisles to get a feel for the mood and, in the course, met as many exhibitors as it possibly could in what were four hectic days of activity. Here, we bring to you the sights and sounds of the show that was…

A day before The Big 5 show, dmg :: events, the organisers of the show, hosted the Gaia Awards for 2010 (Climate Control Middle East listed the winners in the November issue). Several companies laid claim to the awards, which had responsibility towards the environment as a key criterion. The judges considered 125 entries, of which they short-listed 57 entries. Of that, they chose 23 finalists.

Seeley International of Australia walked away with the gold for Climate Wizard, a product that is based on indirect evaporative cooling technology.

Mario Seneviratne of Green Technologies, one of the judges, speaking to Climate Control Middle East, said that Seeley had taken a simple concept and made a machine out of it. What set them apart, Seneviratne added, was that Seeley had been able to quantify the power savings the machine made possible.

Electric motors are getting smart as they undergo a significant transformation, writes Jose Franco

Having greener qualities are definitely the future for electric motors. Not only do they represent 60-70% of a building’s power consumption, electric motors also make various industry vehicles and equipment realise their functions. The onboard drive systems for railways, for instance, act to accomplish a rail application that involves the pull chain, power supply, production of air and passenger comfort. An electric motor that reduces energy consumption and allows for easy maintenance will, therefore, help shape the world’s future.

Never mind that experts do not refer to the motor per se when talking about ongoing trend and future innovation in motor production; it’s the addition of variable speed drive that provides intelligent control of the motor. “The main purpose of this accurate control is to reduce the power to the exact cooling requirement, or exact water pressure required at each floor,” says Philippe Wesolowski, General Manager of Leroy Somer Middle East. “Using a variable speed drive on a fan or a pump can reduce its electric consumption by 30-50%.”

It is, in fact, more important to use low-energy-consumption products, such as smart motors, as part of energy conservation than to pursue massive and expensive renewable energy projects like wind or photovoltaic power plants, an East Asian expert says. And such a move would be good for the UAE, especially Dubai and Abu Dhabi, and Saudi Arabia, as these countries require huge supply of utilities to power their rapid economic development and rising populations.

“We are very interested to penetrate the Gulf and the whole Middle East market,” says James Jeung, President, Founder and Chief Science Officer of SN Tech Inc, in the US, and Chairman of South Korean-based SN Tech Co Ltd. “Based on our sales and production experience, we will be able to capture a significant market in the Middle East region. We are now growing over 500% annually in North America.” His company has invested more than $10 million on innovative technology since 2007, and is now planning to spend five per cent of its revenue for R&D.

SPEED DRIVES

At the European-based Leroy Somer, intelligent variable-speed drives are being integrated into the motors, which convert electrical energy into mechanical energy, to save on power and for better control of temperature, humidity and fresh air. A division of the diversified global manufacturing and technology company Emerson Electric, Leroy Somer also has a special offer of onboard drive systems for railways that reduce maintenance, increase component reliability and improve train service life.

Just the same, talking about highly efficient motors means using higher grade magnetic steel and more copper coils – which, in turn, jack up capital and prices. In Western countries, additional cost for higher efficiency means an ROI after 12 to 18 months of consumption whilst a payback in two to four years is estimated for the Middle East. “This makes it more difficult for governments to impose energy consumption caps on building owners,” Wesolowski stresses, referring to the Middle East, particularly the Gulf Arab states.

Philippe Wesolowski

And in a region where demand for HVAC&R products and services is tremendous, the market potential for electric motors is even bigger. Saudi Arabia and the emirate of Abu Dhabi are becoming the main focus of most companies engaged in the industry. Whilst 50% of its business came from the UAE for the past five to six years, Leroy Somer Middle East now sees “a clear shift” of the bulk of its business to Saudi Arabia, where 50% of its turnover will come from over the next two years.

“So far, Dubai companies have managed to keep the leadership in technology, project management and project execution, but the shift to Saudi Arabia is inevitable,” says Wesolowski, who thinks his company has an upper hand in the electric motor sector. “To sell in Saudi, you have to be based in Saudi. We have been present in Saudi Arabia for the past 25 years.”

Today, the company has a full sales and technical team in the biggest Gulf Arab economy, serving customers and helping them shift from one- or two-speed motor to one with variable speed and equipped with dedicated solutions for technical challenges.

For its part, SN Tech is looking for a partner that could distribute its products, particularly the electronically commutated motor (ECM), across the Middle East and help build a green HVAC&R market in the region. And since most HVAC&R manufacturers do not have much knowledge and experience yet about ECM, Jeung says, SN Tech is willing to provide free-of-charge product samples for the initial testing, as well as skills training on software to learn about the company’s smart motors.

The ECM technology has great potential to treat energy loss in the Gulf, Jeung says, and SN Tech is developing a motor that could well adapt to the Gulf environment. He adds that SN Tech has been successful in supplying high efficiency motors to such mature markets as North America, the EU and Australia since 2005.

MAJOR CHANGE

SN Tech’s double-shaft ECM , a green motor

Such moves by Leroy Somer and SN Tech are testament to the electric motor industry undergoing a significant transformation for the past years, owing to global market consolidation and the emergence of international competitors. Also, US-based AO Smith announced this month that it has agreed to sell its Electrical Products Company to Regal Beloit Corporation for about $875 million. The transaction, which involves $700 million in cash and about 2.83 million shares of Regal Beloit common stock, may close in the first half of next year.

“The consolidation in the marketplace, which has accelerated this year, prompted us to evaluate the potential sale of our motor business, with the expectation that we would reinvest the proceeds into high growth opportunities,” said Paul W Jones, Chairman and CEO of AO Smith, in a December 13 press statement. “We are very excited about the prospects of Electrical Products combining with Regal Beloit.”

AO Smith’s core business will now be manufacturing residential and commercial water heating and purification equipment, which posted sales of $1.1 billion between January and September. Its Electrical Products business, which manufactures an extensive line of fractional and integral horsepower and hermetic motors for residential and commercial applications, reported operating earnings of $61.9 million on sales of $539.4 million for the first nine months of the year.

Ranging in output from 1/100th to five horsepower, fractional horsepower motors are used in applications ranging from pumps, furnace fans and air conditioner fans and blowers to garage door openers and air compressors. Integral horsepower motors, on the other hand, range from one to 400 horsepower and are used in large commercial HVAC blowers, industrial agricultural ventilation, conveyors and overhead cranes.

The residential and commercial air conditioning compressors and commercial chillers use hermetic motors, which are precision rotor and stator kits with a 1.5 to 500 horsepower output.

GREEN MOTORS

SN Tech has brought motor production to a new level with its green motors. Called SN-ECM Motor, the product uses 80% less electricity than the other high-efficiency AC motors. This green motor operates in a wide range of linear step-less speed controls and is used for HVAC systems, A/C fans, blowers, air drying units, gate and door air curtains, transportation A/C systems and agricultural venting systems.

Jeung describes the product as providing “fun to HVAC&R manufacturers” the way LED (light emitting diode) lighting does, owing to its very low power consumption being realised through a high operating efficiency on variable speed. “The best solution to meet consumer demand in the green area is to use speed controllable high-efficiency motors, like SN Tech’s smart motor, to drive fans or compressors,” he says, stressing that governments could play a vital role by imposing tax deductions or rebate programmes to encourage the use of green products.

The trend in ECM, Jeung says, moves towards smart, green products for intelligent buildings and houses, and developing motors of 380-460V and high-powered ones of 2-5Hp for industrial application. “Also, an advanced ECM technology could be designed to enhance a network control or a smartgrid system with IP technology in the near future,” he adds.

Davidon Industries, which represents leading manufacturers of internationally recognised and approved electromechanical and electronic controls and related materials, claims that the SN-ECM motor reduces carbon emissions by 80%. And this says a lot about the product, considering that in the US, electric motors account for 24% of total US carbon emissions.

It also says that SN Tech’s green motors last twice as long as the other motors – thus, saving on costs – and minimise peak power with variable speed programming. It says on its website, “With fewer parts, solid, anisotropic ring magnets and no brushes, there is minimal vibration and, therefore, almost no noise factor, promoting a more comfortable and stress-free environment.”

Motors are, indeed, subjected to severe mechanical and electrical stress by various vehicles and equipment they help run. In a rail application, for instance, motors have to contend with vibrations, shocks, temperatures of between -30°C and 90°C and solid state converter (power supply) generating low-quality sine waves. These factors usually accelerate the ageing of motors, particularly those of lower quality.

Johnson Controls

Saying that it reduces the total cost of ownership while improving plant sustainability, Johnson Controls (NYSE: JCI), has announced the introduction of the York model YK-EP Energy Plus chiller.

Johnson Controls claims that with a capacity range of 2,500 to 3,200 TR (8,800 to 11,200 kW), the YK-EP chiller is suitable for large chilled water plants, and also delivers significant energy savings at off-design conditions, where 99% of chiller operating hours are spent. This, says the manufacturer, is due to the chiller’s ability to utilise entering condenser water temperatures (ECWT) as low as 550 Fahrenheit (130 Celsius). Lower ECWT reduces instantaneous energy consumption as much as 50% compared to chillers limited to a minimum ECWT of 750 Fahrenheit (240 Celsius).

Johnson Controls lists the following product features and advantages:

• It features a patent-pending, mechanical-compression economiser cycle, which provides increased capacity and improved efficiency. As a result, the unit delivers the industry’s highest design efficiency of any large-capacity centrifugal chiller.
• In central utility plants and district cooling facilities that use multiple chillers, additional energy savings can be achieved by piping the chillers in a series-counterflow arrangement. This reduces the compressor work on each chiller and cuts system energy use by as much as eight per cent at design conditions.
• Off-design performance can be further improved by adding a York OptiSpeed variable-speed drive, which can trim average annual energy consumption by 30% or more.
• • With the OptiSpeed drive, the unit reduces installed cost with its ability to accept medium or high-voltage power. Higher voltage power reduces distribution losses, voltage-transformer requirements, and power cable size, improving system efficiency and cutting installation costs. Thus, it reduces additional ownership costs.
• It ships in a disassembled arrangement, consisting of three pieces that are less expensive to ship, easy to move into place, and easily reassembled. Thus, installation costs can be reduced by the chiller’s shipping configuration.
• Maintenance costs are lower because the chiller’s compressor drivelines utilise open motors. If a motor failure occurs, the chiller can be brought back online quickly and cost-effectively, reducing downtime.
• Features like the alternate tube materials and thicknesses, as well as hinged water boxes, are features which increase the chiller’s reliability and further reduce maintenance costs.
• It improves plant sustainability by using refrigerant HFC-134a, which has zero ozone-depletion potential, low global-warming potential, and no phase-out date.
• The chiller’s high-efficiency performance helps buildings qualify for LEED points in the Energy and Atmosphere Credit 1 (EAc1): Optimise Energy Performance category.
• Because of reduction in refrigerant charge, buildings using the YK-EP chiller can qualify for the maximum LEED points in the Energy and Atmosphere Credit 4 (EAc4): Enhanced Refrigerant Management category.

E+E Elektronik

Highlighting that only by knowing the exact compressed air and process gas costs will it be possible to achieve significant savings potentials, irrespective of pressure and temperature, E+E Elektronik has introduced the EE771 flow meter. The manufacturer claims that it can measure with a high degree of accuracy mass flow or volumetric flow in a supply system. The flow meter can be used effectively to measure the consumption of compressed air, nitrogen, helium, argon, oxygen or other non-corrosive gases, the manufacturer claims.

According to E+E Elektronik, the design of the flow meter is based on the direct thermal mass flow measuring principle, and adds that at its heart is an E+E hot-film sensor element proven over several million installations in the automotive industry.

It lists the following product features and advantages:

• The large 400:1 measuring range ensures precise evaluation throughout the supply system. Even the smallest volumetric flow rates are accurately recorded – an essential prerequisite whether you are calculating usage fees or finding leaks.
• The mounting concept, in combination with a ball valve, permits rapid installation and removal of the device that remains operational at all times.
• The measuring head can be exchanged in seconds without disconnecting the measuring line, which is useful for periodic recalibration.
• The integrated USB interface allows the customer to easily adapt the flow meter to specific measuring tasks.
• The two outputs available can be configured either as analogue outputs (current or voltage), switching outputs or pulse outputs for measuring consumption. The flow meter requires 18-30VAC/DC power.

Raises questions that have far-reaching implications

According to an article, titled ‘Lawsuit Takes Aim At LEED Certification’ by Ariel Schwartz (article dated November 8, 2010, accessed on December 4, 2010 from the Fast Company magazine’s website link: http://www.fastcompany.com/1700968/is-the-us-green-building-councils-leed-certification-fraudulent), questions have been raised about the veracity and rationale behind the process of LEED certification.

While Schwartz, in his article, concedes that LEED has become the de facto certification system for green buildings, as it is internationally recognised, and its vast criteria is comprehensive, he alludes to a recent class action lawsuit filed by Henry Gifford, owner of Gifford Fuel Saving. Schwartz says in his article that Gifford has accused the USGBC of monopolising “the market through fraudulent and intentionally misleading representations in the marketing and promotion of their LEED product line.” (as quoted by Schwartz) The writer asks if Gifford’s claims have any merit, and examines its ramification of, by way of answering it.

Schwartz quotes Shari Shapiro, a LEED-accredited attorney with Obermayer Rebmann Maxwell & Hippel in Philadelphia: “What Henry Gifford is alleging is that the USGBC has defrauded the public. That is, “building owners, building professionals that have gotten LEED accreditation, taxpayers, consumers, and a variety of other people. He is saying that USGBC representations about the energy performance of buildings have harmed all of these classes of people in various ways.”

Schwartz elaborates: The representations in question include claims that LEED-certified properties use 25% less energy, offer CO2 reductions, and feature improved air quality and water efficiency compared to non-LEED-certified buildings. But Gifford has reportedly pointed out that verification of energy usage is not required for LEED-certified buildings, and that the USGBC does not require facility plans to be submitted or reviewed. This, points out Schwartz, in essence, allows building designers to “self-certify”.

Schwartz argues that though Gifford is neither LEED certified, nor owns any building that is LEED certified (which will make it difficult for him to prove that LEED has caused him to lose out on any business personally), the very fact that he has raised the issue deserves a serious thought by USGBC.

The lawsuit has, perhaps, reinforced complaint raised against LEED among green building professionals — that the rating system leaves much to be desired. As Schwartz puts it, “it is inexact, and it’s hard to measure ‘green’.” He adds, “Just because a building plan lives up to LEED’s requirements doesn’t mean its energy consumption will be lower once the building is in use.”

Schwartz, based on his conversation with Gifford, says that Gifford believes he has been harmed, because he is not LEED accredited, and that has unfairly lost him business. Whatever the outcome of the lawsuit may turn out to be, the questions raised by Schwartz have relevance and serious implications for not only the construction sector but also for the issue of sustainability in the Middle East region and beyond.