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News From Battelle Subsidiaries

November 30, 1999
NEW YORK CITY HOUSING AUTHORITY TO TEST BATTELLE'S ARTIFICIAL INTELLIGENCE SYSTEM FOR BOILERS TO YIELD ENERGY AND DOLLAR SAVINGS

The New York City Housing Authority (NYCHA) is teaming with Battelle to install an energy performance system designed to ensure the boiler system at Smith Houses, a 12-building public housing complex on New York's Lower East Side, is working at peak efficiency with a resultant cost savings.

The same Decision Support for Operations and Maintenance (DSOM) system, which was installed at a U.S. Marine complex, saving substantial amounts of money, will be installed in the Smith Houses boiler system to improve its operating efficiency. DSOM is expected to extend the operating life of the boiler by generating steam more efficiently and by using that steam to more efficiently heat living apartments.

"The potential savings in fuel, life of equipment, decreased need for maintenance-in all aspects of energy management-are of great interest to NYCHA," said John G. Martinez, Chairman, NYCHA. "We are very pleased to be partners with Battelle for this pilot program," he added.

DSOM has the capacity to identify problems before they arise. It anticipates the onset of potential breakdowns and notifies staff before malfunctioning equipment has an opportunity to cause a reduction in the performance of the system. The result is that the system extends the life of the heating plant beyond its design criteria.

DSOM relies on artificial intelligence to monitor central heating plant operations. Equipment installed on the plant's boilers and pipes relays real-time temperature and pressure data and other measurements to the DSOM computer. This "engineer in a box" allows a plant operator to receive the information at a central computer allowing the system to either "fix itself" or informing the operator as to possible repairs or replacement of parts.

"Over the life of this contract, we expect NYCHA to save well over $2 million in energy operations and maintenance costs at Smith Houses," said Henry Cialone, Vice President and General Manager of Battelle's Energy Services. "Furthermore, the Authority is expected to realize additional savings of about $1.5 million by not having to replace or overhaul boilers as frequently as it does now. Our contract guarantees that their savings will at least equal the cost they incur with us. We make no profit unless those costs are exceeded by the savings." DSOM was designed by scientists at the Pacific Northwest National Laboratory, which has been operated by Battelle for the Department of Energy for more than 30 years. Battelle is the world's largest private independent research and development organization.

The first system was installed at the U.S. Marine Corps' Twenty-nine Palms Air-Ground Combat Training Command Center in California. The 120 million Btu/hr pressurized hot water plant realized a 30 percent capacity increase and 17 percent decreased cost. In addition, training time is reduced and the system is considered safer.

The NYCHA agreement is a unique approach to energy performance contracting because the owner of the facility remains in control of the operation. Battelle will not be directly involved in the operation of the steam plant. The agreement is predicated on the actual realization of energy efficiency and boiler life extension, rather than replacing current staff with lower-cost, less experienced workers. NYCHA controls 2,990 buildings in 344 developments for more that 600,000 residents in New York.

Battelle, headquartered in Columbus, Ohio, focuses on technology development and commercialization and product development. With 7,500 employees at more than 60 locations, Battelle develops technologies and products for industry and government. Annual revenues are approximately $1 billion.

For more information regarding Battelle, visit Battelle's web site at www.battelle.org, or contact Katy Delaney, Media Relations manager, (614) 424-5544.



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