Lindsay Park Housing Corporation in New York City has selected Hess Energy Solutions, part of Hess Corporation, to convert its 10 boilers from No. 6 heating oil to cleaner-burning natural gas.
Hess is managing the conversion from start to finish, providing turnkey project management and funding as part of a natural gas supply agreement, which eliminates the need for upfront capital or bank financing.
In 2011, New York City passed regulations that require building owners to discontinue use of heavy fuel oil to heat commercial and residential buildings and switch to cleaner-burning fuels with lower sulfur content.
In addition to managing the boiler conversion, Hess provided the documentation needed for Lindsay Park to take advantage of approximately $227,000 in NYSERDA incentives for converting from fuel oil to natural gas as well as a $200,000 rebate from National Grid, payable upon completion, for the installation of natural gas piping.
Once the project is completed in the second quarter of 2012, Lindsay Park plans to use natural gas supplied by Hess for its seven buildings, well ahead of local legislative requirements.
This project is expected to reduce Lindsay Park’s annual energy costs by approximately 30 percent after five years with no upfront capital expenditure.
“Lindsay Park’s boilers were more than 40 years old. Converting them to natural gas was an opportunity to make Lindsay Park more energy efficient while we met the new regulatory requirements,” said Cora D. Austin, president of the board of directors for Lindsay Park Housing Corporation, located in Brooklyn.
“We have a long relationship with Hess, so when they shared how we could convert to cleaner-burning natural gas without the need for an upfront capital investment, our board was definitely interested in acting now.”
“The combination of Hess’ scale and experience can offer unmatched customer value,” said Jim Connolly, director of origination for Hess Energy Solutions.
“We’re established enough to finance a project like this upfront so our customers don’t have to. Plus, we have the relationships, buying power and experience to deliver highly competitive prices and make the transition very easy for the customer.”
Hess will work with National Mechanical Services Inc., a leading mechanical contractor, to complete the Lindsay Park boiler conversion.
