Huge CO2 emissions reduction opportunity with commercial buildings retrofit finance
Retrofit for Purpose – a new insight study from Siemens Financial Services (SFS) – assesses the volume of carbon emissions buildings owners could save through energy-efficiency-as-a-service schemes. Specifically, the paper estimates emissions for the world’s four highest-volume emitter geographies – USA (71.35 MtCO2e), China (71.45), Europe (52.86), and India (14.91). Given these four areas are responsible for the majority of global CO2 emissions,[i] this equates to more than 8% of global annual CO2 emissions reduction targets, as defined by the International Panel on Climate Change (IPCC). Renovating existing building stock to a zero-carbon-ready level is a key priority for achieving the sector’s decarbonization targets. However, rising inflation, hardening interest rates, increased fuel costs, and supply chain disruption are all factors negatively impacting adoption rates. The report therefore evidences the enabling role of flexible private sector financing arrangements to maintain crucial investment momentum, drawing on many real-world examples of implementation from around the globe. Comprehensive retrofits of commercial buildings – including offices, hospitals, factories, warehouses, and educational establishments – can reduce their energy use by up to 40 percent but are not happening anywhere near the scale needed to meet climate goals, notes the report. This is likely due to the considerable investment required to retrofit new technologies. That’s where arrangements known as energy-efficiency-as-a-service are helping private and public sector organizations to retrofit the existing non-residential building stock in an affordable and cash-flow friendly way. These innovative financing schemes can secure operational cost reductions without putting pressure on capital resources, avoid putting capital at risk, and ensure expected savings are realized. At the technology component level, financing tools are available to help vendors and distributors add value with cash flow capabilities for their buyers. For larger installations or systems, smart financing arrangements can be flexed and tailored to align costs with the rate of benefit gained from the energy-efficient technology. “With climate targets looming large, it’s important we continue support and enable the decarbonization of buildings. Not only are they a serious contributor to global greenhouse gas emissions, if left unchecked these emissions are projected to double by 2050,” says Toby Horne, Siemens Infrastructure Financing Partner, Siemens Financial Services, UK. “Specialist finance solutions are intelligently designed to factor in savings, making them budget-friendly enablers of the green transition.” Methodology Data from national/regional statistical institutes on annual energy consumption by non-residential buildings built prior to 2010 was used to model CO2 emissions of buildings likely to benefit from deep retrofit for energy-efficiency. This was then reduced by highest likely implementation levels of such deep retrofit. Likely energy savings from deep retrofit were calculated using the lowest end of official average ranges. The resulting figures provide a highly conservative annual estimate of the energy savings achievable through deep retrofit, which can be financed through energy-efficiency-as-a-service financing techniques. Download a copy of the Whitepaper: www.siemens.com/smart-buildings-retrofit Visit for further information about SFS: www.siemens.com/finance Follow us on LinkedIn: www.linkedin.com/showcase/siemens-financial-services [i] https://www.visualcapitalist.com/carbon-emissions-by-country-2022/ Building, Design & Construction Magazine | The Choice of Industry Professionals
Make 2024 the year of the Retrofit, Says BESA
The Building Engineering Services Association (BESA) has urged the UK government to focus on ways to accelerate growth in the number of whole building retrofit projects carried out during 2024. The Association believes only “a holistic approach to building performance” will unlock the full potential of the building services industry to cut carbon emissions, improve energy security, and reduce consumers’ bills. BESA welcomed the allocation of an extra £1.5bn to the Boiler Upgrade Scheme (BUS), as part of a wider £6bn push to improve building energy efficiency but said the Future Homes and Buildings Standards, due to come into force next year, should be more focused on whole building solutions. The Association also sought to downplay the potential of hydrogen for heating buildings saying it only had “limited feasibility” due to a range of financial and technical difficulties. “There is a danger that hydrogen becomes a damaging distraction because of vested interests trying to keep it in the decarbonisation picture, but it will only play a very minor role in buildings long-term,” said BESA technical director Graeme Fox. “It certainly could play some part in industrial and transport sectors, but not home heating – the infrastructure issues are too complex and the costs too high,” he added. “We need to keep focused on full building retrofits that make best use of energy efficient design and existing low carbon heating and cooling solutions.” Uplift There was a surge of applications for heat pump installation grants in late 2023 following the uplift in the BUS scheme to £7,500 per installation. The Association also welcomed the addition of a £400m energy efficiency grant, set to launch in 2025, which is intended to help households in England make wider improvements to their homes including installing larger radiators and insulation. A total of £1.545bn was added to the BUS fund to run from 2025-2028, but BESA said this could be bolstered with some additional funding for 2024 to keep up the momentum in the heat pump market. Over 4,000 contractors are now certified to install heat pumps and manufacturers’ efforts to improve the effectiveness of the technology are bearing fruit with more high temperature models coming onto the market, the Association added. The government is also consulting until March 6th on proposals for the upcoming Future Homes and Buildings Standards, which would, in effect, outlaw the use of gas boilers in new homes from 2025 onwards. It is also inviting feedback on proposed changes to the Building Regulations and calculation methods. “The government consultation pretty much rules out hydrogen-ready boilers too, but there are a number of exciting developments with heat pumps, including new high temperature models that could unlock further potential in that market,” said Fox. “The new funding and standards are a great opportunity to cement whole building retrofit as the way forward. The debate needs to move beyond individual technologies to the holistic approaches that make the best of the practical solutions we already have.” BESA also believes that ESG (environmental, social and governance) reporting will have an impact on building energy efficiency this year as clients come under pressure to be fully transparent about their net zero strategies to bolster their corporate reputations. In addition, all newly leased commercial buildings will need to achieve EPC ratings of C or higher from 2025 – with existing leases required to meet the same target by 2028 – and the Association said this could unlock greater investment this year as landlords seek to meet the deadlines. “2024 could be a big year for accelerating whole building retrofits to drive better energy performance, and the consultation is another opportunity for the government to send positive and supportive signals to the market,” said Fox. “Let’s turn the Boiler Upgrade Scheme into the Building Upgrade Scheme.” Building, Design & Construction Magazine | The Choice of Industry Professionals
WJ marks position as environmental leader
WJ Group, the leading road marking and highway safety company, has been recognised for its commitment to the environment after winning a Green World Award. The business was awarded for its Driver Behaviour Scheme, which in the first year saw a 40% reduction in road incidents involving its team members. The scheme uses WJ’s vehicle telematics system to accurately review each driver’s performance, encouraging consistently high standards of driving. The company analyses team members’ acceleration, speed, braking, driving style and fuel consumption, with rewards for the safest and most improved drivers. Upon introduction, the average WJ driver performance increased from 87.58% to 95.15%. Notably, WJ recorded a 40% drop in road incidents, as well as a 7.75% reduction in emissions in these early stages. Even more significantly, they have seen a continued increase in MPG, with a yearly average improvement of 21.91%. Competing against more than 500 other nominations, WJ will discover which level of award they have won following the ceremony in Sao Paolo, Brazil, on 25 March. The company’s winning paper will then be published in The Green Book. The awards are organised by The Green Organisation – an international, independent, non-political, non-profit environment group dedicated to recognising, rewarding, and promoting environmental best practice around the world. They are supported by the Environment Agency, the Chartered Institute of Environmental Health, the Chartered Institution of Wastes Management, and other independent bodies. Scott Logan, WJ Group Fleet and Engineering Director at WJ Group said: “At WJ, we are always looking for ways to be more sustainable, whether through the services we provide or our collaboration with the wider supply chain. The team continues to push boundaries when it comes to thinking about our impact on the environment, so it is fantastic to be recognised by the Green World Awards. “Our Driver Behaviour Scheme is one of the many innovative programmes we have introduced to reduce our emissions. Being successful in the Green World Awards makes us hungrier to continue to find new ways for the UK’s highways industry to become more sustainable.” For more information, please visit www.wj.uk/sustainability. Building, Design & Construction Magazine | The Choice of Industry Professionals
Sheffield’s flagship office welcomes first occupant
DLA Piper has signed up to take the top two floors of Elshaw House, Sheffield City Council’s new zero carbon-ready office building. DLA Piper’s move into Elshaw House will see one of the world’s largest law firms, and a key employer in the city, maintain its presence in Sheffield City Centre. Fit out of the two-floors, as well as an adjoining private terrace on the top floor, will be completed in this spring. The space will span over 17,000 square feet in total. Having reached completion last month, Elshaw House is the flagship office development within Heart of the City – the £470m mixed-use development scheme led by Sheffield City Council and its Strategic Development Partner, Queensberry. Located on Carver Street, next to Pound’s Park, Elshaw House is the pinnacle of sustainability and will achieve a five-star BREEAM green energy rating, making it a key part of the Council’s green goals. Additionally, Elshaw House has also recently achieved an ‘excellent’ five-star NABERS UK rating due to its lean design, providing a structure with 40% lower than average carbon usage. This places it in the top 1% of office buildings in the UK for energy efficiency. Cllr Ben Miskell, Chair of the Transport, Regeneration and Climate Policy Committee at Sheffield City Council, said:“We are thrilled that DLA Piper has signed a lease on Elshaw House. It is one of the world’s largest law firms. For such an established business to reaffirm its commitment to the city shows a real confidence in everything we’re doing to drive Sheffield forwards and continue growing our economy. “Elshaw House represents the very best in office space and is delivering new headline rents for Sheffield. Alongside the world class Pound’s Park, Grosvenor House – home to HSBC and CMS – and Europe’s largest food hall, we’re creating a truly transformational new city centre district.” Andrew Davison, Project Direct at Queensberry, added: “In our opinion, DLA Piper has secured the best office space in South Yorkshire, with unrivalled sustainability, location and employee wellbeing benefits. World class commercial spaces like this are helping to take Sheffield to the next level on the national stage. “Interest in the other floors in Elshaw House is incredibly high and the ground floor retail and F&B spaces are also attracting potential occupants.” Elshaw House has six ground floor units suitable for retail or food and drink venues, complementing the seven storeys of quality workspace above. Access to Elshaw House connects directly to the new urban park, Pound’s Park, and is integrated into Sheffield’s active travel strategy which focuses on ease and accessibility, with the building featuring bike storage, service centre and showers to help keep the city moving. Building, Design & Construction Magazine | The Choice of Industry Professionals
LED-ing the Way: Leeds £22.5m LED lighting scheme completed
The scheme officially completed last week with the final light being installed at Edith Sykes Drive in east Leeds. Leeds City Council today announces the completion of its LED lighting scheme, an extensive project aimed at improving energy efficiency in street lighting throughout the city. Initiated in December 2018, the programme has successfully converted over 89,000 streetlights to new LED lamps, in partnership with street lighting partner Enerveo (subcontractor to Tay Valley Lighting). The completion of the LED Lighting Scheme is expected to bring significant annual savings of £3.4 million in electricity costs at current energy prices. Additionally, the conversion to LED lighting is projected to reduce street lighting energy consumption by approximately 62%, resulting in 7,050 tonnes of carbon savings, with savings already being made throughout the lamp replacement. The new LED lanterns offer increased durability and recyclability, leading to enhanced efficiency and reduced emissions from maintenance visits. Public consultation, conducted from November 2017 to January 2018, showed strong support for the upgrade, with over 80% of respondents endorsing the initiative. Councillor Helen Hayden, Executive Member for Sustainable Development and Infrastructure, attended the installation of the final LED light on Edith Sykes Drive in east Leeds this week, marking the conclusion of the project. Councillor Hayden said: “The completion of the LED Lighting Scheme represents a significant milestone in our efforts to enhance energy efficiency and sustainability in Leeds. This investment will deliver immediate cost savings and lay the groundwork for future advancements in smart technology” Tom Cunningham, Tay Valley Lighting (Leeds) Director, said: “We have been delighted to support Leeds City Council investment on the LED lantern works, the investment has provided many benefits, local employment opportunities during the period, reducing energy consumption and maintenance activities resulting in significant cost savings to Leeds City Council and carbon reduction impact from the project”. As Leeds continues its commitment to environmental stewardship and technological innovation, the completion of the LED Lighting Scheme underscores the council’s dedication to building a more sustainable future for the city and its residents. Building, Design & Construction Magazine | The Choice of Industry Professionals
New senior Aggreko appointment set to supercharge support for the energy transition in Europe
Following the appointment of a new President for Europe, Aggreko has formalised its plans for 2024 and beyond with the launch of Energising Change, its new sustainability framework which places supporting the energy transition front and centre. Robert Wells – former Managing Director of Aggreko’s businesses across Africa, Middle East, & Asia Pacific and head of global events– has been appointed by the business as European President as well as retaining responsibility for Global Events. With a focus on enabling European customers to access new, greener technologies to support with their decarbonisation process, Wells is set to embed the Energising Change framework in the region. Energising Change shapes how Aggreko works both internally and alongside its diverse portfolio of customers across the world. It allows Aggreko and the companies it works with – from a wide range of sectors with varying requirements – to embed low-carbon power and temperature control technologies and more efficient ways of working. The framework forms a core part of the business’s proposition in a time when clearer action is needed to balance energy resilience, economic viability and action on climate. Central to the framework is a series of major investments that give industry more immediate access to cleaner and greener energy sources, such as the expansion of its fleet of small, mid and large-size battery energy storage solutions (BESS). BESS, giving energy intensive sectors such as manufacturing, data centres and construction the opportunity to integrate cleaner power sources on site, in addition to providing vital resilience, an area that is increasing in importance for companies across Europe. They will also play a key role in decarbonising the European construction sector, which is typically reliant on diesel power, though hybridised applications. The latest investment is part of the over $140m earmarked in 2023 and 2024 to expand Aggreko’s Greener Upgrades™ fleet, which included new boilers, Stage V generation, batteries and chillers. Aggreko will use these investments to support the decarbonisation of many of its key sectors such as manufacturing, PCR. Events, construction and data centres. The approach is already being evidenced in projects across the continent including a refinery in Romania where using a Greener Upgrade solution has already reduced carbon emissions, waste and operating costs by a substantial amount. The hybrid solution of solar photovoltaic and combined heat and power recovers waste heat from exhaust gases and uses a gas byproduct from the company’s process and produces electricity for the grid and onsite operations. Energy resilience is another core driver of Energising Change, reflecting a world where high energy costs and grid limitations continue present a challenge to economic development. Supporting energy intensive sectors such as manufacturing, construction and data centres, the company is set to continue work with customers to introduce solutions which improve onsite resilience in addition to reducing environmental impact as they transition to a renewable energy model. Energising Change builds on Aggreko’s reputation as a provider of bridging energy solutions. The new framework commits to supporting the move to renewables by using temporary solutions to support the construction and commissioning of tomorrows energy systems. Working with key construction customers, Aggreko has been able to trial the use of BESS in conjunction with alternative fuels such as hydrotreated vegetable oil (HVO) to see emissions and fuel consumption reductions of 45%. Commitment to being energy efficiency also forms part of the framework, with the company expanding its approach to digitalisation via remote monitoring and data analysis services. This will ensure equipment is running optimally, no matter where it’s deployed. Robert Wells, Europe President at Aggreko, added: “Energising Change explains our vision, purpose and objectives. It sets targets and creates action for our business and signals to customers we are committed to positive change that’s delivered pragmatically. As the focus on building resilience and making the renewable energy transition intensifies, Aggreko is committed to continuing its support of customers across Europe.” For more information on Energising Change, click here. Building, Design & Construction Magazine | The Choice of Industry Professionals