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Service and Product Provider Success Story
Service and Product Provider Partner
H20 Applied Technologies, LLC
50 Federal Street, Boston, MA 02110
Business: Energy Management
Services/Consulting, Energy Services Company
(ESCO)
Alfred Scaramelli, President
Phone: 617-428-8634 / Fax: 617-422-0442
Email: AScaramelli@H20AppliedTech.com
Customer
Nazareth Hospital
2601 Holme Avenue, Philadelphia, PA 19152
Business: Hospital
Greg Doran, Director of Plant Operations
Phone: 215-335-6183
Email: GDoran@Mercvhealth.org
H20 Applied Technologies and Nazareth Hospital achieve the first ENERGY STAR Building Label for a
non-profit, private hospital in Pennsylvania.
Project Scope
H20 Applied Technologies (H20) and Nazareth Hospital, a member of Catholic Health East (CHE), have
partnered on a Utility Expense Reduction Program (UERP). The UERP reduces energy and other utility costs
by upgrading existing facility equipment using H20's unique off-balance sheet funding program that does not
require use of host facility capital funds or debt capacity. The Hospital is an award winning community hospital
providing high quality care in the northern Philadelphia area.
Project Summary
After a detailed energy and water engineering survey, H20 replaced inefficient equipment at the Hospital with
newer technology, including new chillers, HVAC variable frequency drives (VFDs) and controls, steam traps,
energy efficient lighting, and water conservation equipment. Project highlights include:
•	Energy Savings
Energy savings of 124.9 kBtu/ft2 per year and water savings of 1.8 million gallons per year resulted in
total cost savings of over $950,000 per year.
•	Investment
Under H20's off-balance sheet Utility Expense Reduction Program there was no out-of-pocket cost,
capital cost or debt repayment obligation to the Hospital. H20 used its own funds to design, procure
and install the entire scope of work.
•	Financial Return
The project uses shared savings and H20 expects to recover its investment over the 5 year contract
term. The hospital is receiving 25% of all utility cost savings from the project (about $250,000/yr), plus
any maintenance cost savings, all with no capital commitment or investment.
•	Other Benefits
The new electric chillers increased the hospital's cooling capacity by 50%, and comfort complaints have
dropped by over 60% as a result of the various HVAC system improvements. HVAC system
maintenance costs have also decreased. Hospital staff, visitors, and patients are very pleased with the
hospital's effort to reduce energy use, improve air quality and support sustainability. ENERGY STAR'S
Portfolio Manager tool calculated an emission reduction of over 3,000 metric tons of C02 per year and
an adjusted percent energy reduction of 24%.
Monitoring & Verifying Energy Savings
H20 provides all measurement and verification according to the International Performance Measurement and
Verification Protocol (IPMVP) guidelines for the life of the project.
Distinguishing Value
H20 Applied Technologies' off balance sheet financing provided a unique funding method for the replacement of
aged chillers and other HVAC equipment at Nazareth Hospital. The new chillers have provided a needed
increase in cooling capacity, a reduction in maintenance time, and greater patient comfort.
£EPA
United States
Environmental Protection
Agency
IH20 Applied Technologies Nazareth Hospital
A Beacon Company
A member of Mercy Health System

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