The Millenium Hilton is a 54-story hotel in Lower Manhattan.
The hotel wanted to install cogeneneration and other energy efficiency measures to cut operating costs and improve building systems.
NYCEEC provided a $2.4M loan to fund a power purchase agreement, enabling the Millenium Hilton to install cogen and related measures at no upfront cost.
- Project type: Cogeneration
- Total project cost: $3.8M
- Financial product: Power purchase agreement
- NYCEEC role: $2.4M loan
THE CLIENT CHALLENGE
The Millenium Hilton is a large business-oriented hotel in Lower Manhattan. The hotel wanted to use a power purchase agreement, non-debt solution, to finance a new cogeneration system in order to save money and improve building systems.
Greenwood Energy, the project developer, sought flexible financing to fund its power purchase agreement for this project with the Millenium Hilton. Greenwood Energy sought financing that could match the project’s construction schedule and bridge the NYSERDA
THE NYCEEC SOLUTION
NYCEEC’s expertise was the key to structuring a financing strategy that made sense for the hotel. NYCEEC provided a $2.4M senior loan to fund the power purchase agreement, taking into account cashflow variations and timing of NYSERDA incentives. With the power purchase agreement, the Millenium Hilton installed the cogeneration system and related measures without incurring additional debt.
To facilitate other energy savings improvements, NYCEEC also sponsored the hotel’s energy audit ahead of its compliance deadline for Local Law 87: Energy Audits and Benchmarking.
500kW cogeneration units, 156 ton absorption chiller, domestic hot water and space heating heat exchangers, associated pumps and cooling tower
NYCEEC’s team helped this property achieve the following results:
- Begin construction at no initial cost
- Use a non-debt solution to install cogeneration and upgrade building systems
- Achieve significant cost savings
- Improve building performance and resiliency
“NYCEEC is great to work with — they’re commercial, flexible and extremely responsive.”
– Douglas Johnsen | Chief Financial Officer, Greenwood Energy (Project Developer)