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Innovative Purchasing for Substitution of Fossile Heating in Schools in Oslo

Innovative Purchasing for Substitution of Fossile Heating in Schools in Oslo. Bjørn Antonsen, Head of Section for Energy and Environment, Undervisningsbygg Oslo KF September 19.-21. 2012, SCI-Network meeting/ EcoProcura , Malmö. Bjørn Antonsen.

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Innovative Purchasing for Substitution of Fossile Heating in Schools in Oslo

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  1. Innovative Purchasing for Substitution of Fossile Heating in Schools in Oslo Bjørn Antonsen, Head of Section for Energy and Environment, Undervisningsbygg Oslo KF September 19.-21. 2012, SCI-Network meeting/EcoProcura, Malmö

  2. Bjørn Antonsen - Head of Section for Energy and Environment - With the Undertaking since February 2008 • Engineering construction, civil engineering • Economic geography / environmental and resource geography • Didactics • Technology, innovation, environment • Competence and strategy development • Relations and confidence development

  3. Agenda: • Briefly about UBF • Project for supplier development, in cooperation with NHO and OREEC …and if time permits, which is not all that likely… • Presentation of the award winning contributions to our competition for innovative approaches to substitution of fossile fuels

  4. Undervisningsbygg Oslo KF – UBFMunicipal Undertaking for Educational Buildings and Property • Established January 1st, 2002 • Ownership and operational responsibility for all school buildings in Oslo • 1,4 million m2 • 177 schools (162 owned, 15 leased) • >770 buildings, approx. 46 000 rooms • Approx. 88 000 students and staff

  5. Project for Supplier Development,inCooperation with NHO, LuHo and OREECBeing a demanding customerAchieving green progress through innovative procurement

  6. Supplier Development Project In close and useful cooperation with: Confederation of Norwegian Enterprise Supplier Development Capital Region Oslo Renewable Energy and Environment Cluster

  7. Supplier Development – an Initiative to Promote Innovation • Supplier Development is an instrument for increasing innovation in and through public procurement • Supplier Development can be understood as an interaction between the public sector and its providers, which facilitates public procurement processes that challenge and develop suppliers' competitiveness, so they may become more able to meet the client's future needs and ensure better utilization of community resources

  8. Public Procurement and Innovation • As a large and important customer, municipal and government sectors are able to stimulate innovation among suppliers by being a demanding customer • This requires a progressive approach to procurement processes for goods as well as services. • The key word is "planning"

  9. UBF’s specific challenge • Ground heat pumps not functioning optimally • More than 3 million NOK spent on improvement measures • Decision in Oslo City Council to phase out fossile fuel for heating by end of 2011

  10. Identifying • Expectations for new and innovative ways of communicating with the supplier market in order to achieve better solutions technically and otherwise • UBF wished to focus on a wider and more open approach to the procurement process in order to access more progressive solutions to the matter at hand • UBF wanted and gained approval for inclusion as a pilot project in Supplier Development Capital Region (LuHo)

  11. Organizing • Target of the purchase, risk assessment, possible barriers and the financial side was approved by leaders to the highest level in the undertaking • Sufficient time, more time than one would normally reserve, and extra resources was incorporated into planning in order to make room for a more comprehensive dialogue with advisors/consultants and suppliers • In order to achieve a more open and comprehensive process, it was crucial for the City of Oslo to involve all relevant groups of academic, professional and commercial stakeholders, as well as leaders and maintenance technicians at the schools at an early stage

  12. Dialogue and Description, Dialogue part 1 • UBF wanted to establish dialogue with supplier market. • Open Dialogue Conference staged on March 10th, 2009 • Needs of UBF and specific challenge to supplier market was presented and there was an opportunity for questions and discussion • During discussion the idea of a competition between suppliers on innovative approaches was launched and generally accepted by suppliers

  13. Dialogue and Description, Dialogue part 2 • Competition on Innovative Approaches to Planning and Design was announced on “Doffin” on March 27th, 2009 • The purpose was to obtain innovative suggestions for over-all-solutions, both technically and otherwise to cover the total need for heating from non-fossile energy sources • Industry Cluster (OREEC) mobilized suppliers and staged a workshop for suppliers. • Twelve supplier companies contributed suggestions, some of them in cooperation with others. Four winners were chosen in June 2009, and awarded NOK 50 000,- each. • Financial support was made available from different sources for the development of the ideas/suggestions, and three of them were implemented in 2010 and 2011 and are working very well. The fourth will be implemented in near future.

  14. Criteria for evaluating innovative suggestions. • Competitiveness in a life cycle perspective • Investment cost • Cost of management, operation and maintenance • Lifetime expectations • Reliability • Degree of innovation • Positive gains for the environment • Possible implementation challenges and risks • Possible transferable value for other schools and other buildings

  15. Dialogue and Description, Description • UBF implemented all winning ideas fully or partially in later purchases for schools were fossile oil furnaces were being phased out • The challenge was to maintain and implement new knowledge and recognition gained through the dialogue conference, the competition for innovative approaches and the developing projects, in a way that did not exclude competition in the market, and at the same time respected the regulatory demands for equal opportunities for all suppliers

  16. Implementation and Evaluation, Implementation • Ideas from the competition, and results for the developing projects were implemented in many purchases for substituting fossile fuels at the schools in 2010 and 2011 • UBF was able to phase out all use of fossile fuel as base load for heating in schools in Oslo before the end of 2011

  17. Implementation and Evaluation, EvaluationConclusion from externally performed evaluation: • Early dialogue is crucial to creating new, innovative solutions • Access to technical solutions that would not likely have come out of an ordinary purchasing process • Competition for innovative approaches is a good and appropriate measure • Workshops organized by the industry itself made way for new and fertile constellations of cooperation and partnering between suppliers • Approval on highest level of leadership is important for changing current practice within the organization

  18. Presentation of Award Winning Contributions to ourCompetition for Innovative ApproachestoSubstitution of Fossile Fuels

  19. One Public Research and Development Contract • One project developed with financial support from Oslo Municipality Energy Saving Fund

  20. Main Elements to ContributionDeep well based energy storage and shallow ground heat collector The school always uses the heat source with favorable temperature - either deep well based energy storage or shallow ground collectorsDeep well based energy storage loaded with heat from shallow ground collector (soccer field) during summer Smart Skolevarme på Kringsjå/Nordberg skole

  21. Biogas for heating – Ris lower secondary school Delivering compressed biogas Sewage from Oslo Production and upgrading of biogas Happy and warm children Existing heat distribution Biogas burning in furnace

  22. Environmental Advantages related to Biogas • CO2 neutral. • Cleaner air, less NOx, no particles and only marginal SO2 emission. • Contributes to the development of infrastructure for biogas, and contributes to increased development of biogas production. • Eliminates methane emission, thus reducing greenhouse effect by at least 75 % from processed sewage.

  23. ….and the possibilities?

  24. Partners in project • Ivar Lærum AS: • Plumbing Company specialized towards creation and professional operation of heating systems. • SGP Varmeteknikk AS: • Leading supplier of medium-sized heating systems for wood, wood chips and pellets, and solar heating solutions. • Matene AS: • Entrepreneur Company that develops a unique silo / screw feeder technology that delivers better space utilization • Bio8 AS: • Supplier of bio-oil products

  25. 3-phased conversion Phase 2: Investment in future heat production system (2-4 months) Phase 3: Operation of facilities Phase 1: Convertion to Bio-oil (2-6 Weeks) • Operating contract to ensure optimal operation of the facility and reduce strain on the janitors. • The operating concept is different from heat delivery contracts in that the customer has ownership of the equipment. The customer maintains bargaining power and may continue to enjoy minimal energy costs in the future. A heat delivery contract will over time give away much of the gain to the heat provider. • Adequate operation is the most important success factor for any bio-heat facility. • Conversion of existing oil-fired boilers to bio-oil for swift conversion. • This involves a relatively small intervention in the current system (cleaning of oil tanks and replacement of oil burner) and can be completed in very short time. • Renovation of the boiler room establishing base-load based on pellets (and solar heat where relevant) to a large accumulator. • The project will utilize a newly developed screw feeder to ensure accessibility, and a new pellet silo for minimal disturbance to the school. • There will be installed one of the most advanced, automated pellet boilers to ensure low operating costs.

  26. Phase 2 – future heat production system Prepared for: Solar heat Heat pump New energy sources(i.e. fuel cells)

  27. What has been achieved? • Innovation • Phasing out of fossile fuel for heating in compliance to City Council decision • Improved competence in the industry

  28. http://www.undervisningsbygg.oslo.kommune.no/

  29. Thank you very muchfor yourattention!Maybe, we’ll meet in Oslo! http://www.undervisningsbygg.oslo.kommune.no/

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