TAMC conversion on track to pay off in less than a year
PRESQUE ISLE — The state of Maine’s first facility — and only the second in the nation — to convert to heating with compressed natural gas (CNG) is on target to recover the project cost in less than one year. In just over three months of operation, TAMC’s A.R. Gould Memorial Hospital in Presque Isle has realized a total cost savings of $120,000 — one third of the total conversion cost.
Photo courtesy of TAMC
SYLVIA GETMAN, TAMC president and CEO, and Tim Doak, right, TAMC facility engineer, show Congressman Michael Michaud around the CNG decompression station located behind TAMC’s A.R. Gould Memorial Hospital.
TAMC officials have compared the cost of using CNG in the period of time since the new heating and cooling source went online in late April through the end of July. The cost, when compared to the equivalent number of gallons of oil that would have been utilized in the same period, showed savings on target with what was expected.
“These operational cost savings are especially significant as we look for every opportunity to save in the wake of cuts to programs at the state and federal level,” said TAMC President and CEO Sylvia Getman. “Efforts such as these to help offset the cuts will allow us to continue to provide essential services that people would otherwise have to leave The County to access.”
The total project cost for the conversion from heating and cooling with No. 2 fuel oil to CNG was $332,000. The $120,000 saved to date reflects 36 percent of that amount.
“We have been very pleased to date with what we have seen,” said James McKenney, TAMC vice president for diagnostic and support services. “The cost savings are in line with the annual projections we were provided of between $400,000 and $500,000 per year. This project should pay for itself by the early part of next year.”
That was the information shared with Maine’s Second District Congressman Michael Michaud, who visited TAMC and toured the CNG decompression station behind the health care facility recently. Michaud praised TAMC’s innovative efforts and the work of regional community and economic development leaders in northern Maine to bring this project online.
“I applaud the staff at TAMC — and all of the other organizations that had a hand in bringing this project to fruition — for having the vision and drive to see this conversion through. I am pleased that the savings achieved will help the hospital improve their bottom line, providing more resources to help deliver high quality health care in the county,” said Michaud. “You are to be commended for actively seeking innovative ways to improve your physical plant while looking after the physical well-being of area residents.”
Construction on the project got under way in the fall of 2012 on the south end of the hospital property in an area that until recently was used as a parking lot. Local contractor Soderberg Construction of Caribou prepared the site for the decompression station, where trailers filled with CNG connect to provide fuel to heat and cool the hospital.
The decompression station lowers the pressure and transfers the gas into an underground pipeline, which runs along the eastern boundary of the hospital property and crosses a parking lot to connect with and feed the boiler plant. The existing burners on TAMC’s boilers were converted to burn CNG with only minor modification. They can also burn No. 2 heating oil as a back-up fuel.
New England-based XNG (Xpress Natural Gas) is the first company in Maine to haul CNG for heating use, and provides the trailers, decompression station and CNG. TAMC’s supply of CNG comes from the northeastern United States. XNG trucks with tube trailers transport the fuel from a CNG compression station in Baileyville, located in Washington County.
When a truck arrives, it connects to the decompression station and the tube trailer remains onsite until the tank is close to empty. At that point, another trailer is trucked to the site to take its place.
“The trailer delivery has varied depending on the load placed on the heating and cooling equipment (how warm and humid or how cold the outdoor weather is),” said Tim Doak, TAMC facility engineer. “The time span between truck deliveries has ranged from as little as 18 hours to as much as 48 hours. Overall our average is pretty close to one trailer per day.”
