Photo By Jeffrey Hamlin | A Liquefied Natural Gas (LNG) tank for the Energy Savings Performance Contract arrives...... read more read more
Navy Region Southeast and Naval Facilities Engineering Systems Command (NAVFAC) Southeast received the 2020 Federal Energy and Water Management contracting award from The Federal Energy Management Program (FEMP) May 5.
The award recognized the $828.8 million dollar Energy Savings Performance Contract (ESPC) the Navy awarded to Siemens Government Technologies Inc. in July 2019. The contract was issued for 25 years to include construction and operation.
“The Federal Energy and Water Management contracting award highlights the tremendous work and coordination of five different commands,” Rear Adm. Wesley McCall, Commander, Navy Region Southeast said. “The team successfully awarded the largest Energy Savings Performance Contract in Navy history, which will enable Naval Station Guantanamo Bay to continue its vital national security missions long into the future.”
The FEMP sponsors the annual Federal Energy and Water Management Awards to recognize individuals and organizations for significant contributions to energy and water efficiency within the federal government.
The contracting awards category is for individuals or teams instrumental in supporting the award of energy performance contracts and/or making notable efforts to enhance procurement practices.
The commands recognized for this award include Naval Station Guantanamo Bay, Navy Region Southeast, NAVFAC Southeast, and NAVFAC Engineering and Expeditionary Warfare Center and Defense Logistics Agency.
"The remote location and logistical challenges at Naval Station Guantanamo Bay required NAVFAC Southeast to develop an innovative solution," said NAVFAC Southeast Operations Officer Capt. Brent Paul. "The result is a long term agreement that will produce reliable and efficient power for a critical installation while replacing aging infrastructure."
An ESPC is where the contracted company fronts the costs of the project and is paid back over the life of the contract using the savings generated. The overall project includes the construction of a new power generation facility as well as the operations and maintenance of the plant for more than 20 years. Additionally, a 13.7 Megawatt solar facility will be constructed while the existing diesel generators will be retained to provide electricity during outages or to augment during peak electrical usage.
The Naval Station’s remote location requires that it produce 100 percent of its own electrical energy and water. The completed effort will utilize liquefied natural gas to power a new dual fuel combined cycle power plant that will serve the entire installation.
This contract represents the Department of Defense’s largest procurement of LNG to date. The use of LNG will result in approximately $9 million in fuel cost savings annually when compared to the cost of using diesel fuel. LNG also burns much cleaner than diesel fuel producing lower emissions of sulfur, nitrogen and carbon dioxide.
The power plant and liquefied natural gas (LNG) storage facility, along with solar photovoltaic arrays, energy storage, efficient lighting, cooling, refrigeration, coupled with improved controls and water conservation measures, will result in greatly enhanced energy reliability, resiliency, and efficiency.
The project will decrease annual installation energy fuel consumption by about 27.4 percent, which equates to nearly a full percentage point decrease in facility energy consumption for the entire Navy.
Energy costs from the first year of the ESPC are expected to be approximately $19 million less than previous consumption, and the savings will be used to repay the cost of the contract. Savings are likely to increase in future years.
The project’s estimated completion date for construction is set for Feb. 2022.
| Date Taken: | 06.01.2021 |
| Date Posted: | 06.01.2021 14:02 |
| Story ID: | 397847 |
| Location: | JACKSONVILLE, FLORIDA, US |
| Web Views: | 458 |
| Downloads: | 2 |
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