Nec delozone case study

Hotel Renaissance Woodbridge Hts. COMMERCIAL OZONE LAUNDRY SAVINGS SUMMARY

Submitted by Matthew Reischer

COMMERCIAL OZONE LAUNDRY SAVINGS SUMMARY Customer:

November 14, 2012

Renaissance Woodbridge Hts.

ANNUAL OPERATING SYSTEM COST COMPARISON This section compares the Annual Operating cost of both systems Existing

Proposed

Savings

% Saved

Fuel*…………..……

Electric*…………….

Water and Sewer*….

Linen...…………….

Softener……………

$ $ $ $ $

18,104 10,483 14,568 24,365 2,303

$ $ $ $ $

10,909 9,203 13,257 21,929 -

$ $ $ $ $

7,195 1,279 1,311 2,437 2,303

40% 12% 9% 10% 100%

Total Cost…….………..

$

69,823

$

55,297

$

14,526

21%

TOTAL ANNUAL CUMULATIVE SAVINGS 1st Year

2nd Year

3rd Year

4th Year

5th Year

10th Year

Fuel…...……………….……

Electric……………...….

Water and Sewer………...

Linen...………………..….

Softener…………………..

$ $ $ $ $

7,195 1,279 1,311 2,437 2,303

$ $ $ $ $

14,391 2,559 2,622 4,873 4,607

$ $ $ $ $

21,586 3,838 3,933 7,310 6,910

$ $ $ $ $

28,781 5,118 5,244 9,746 9,214

$ 35,976 $ 6,397 $ 6,556 $ 12,183 $ 11,517

$ $ $ $ $

Total Savings..……….…..

$ 14,526

$

29,052

$

43,577

$

58,103

$ 72,629

$ 145,258

INVESTMENT SUMMARY Project Cost ………………..................………………

Potential Utility Incentive…………………..…...…...

Project Cost with Incentive ……………..……...……

Investment Recapture Period ………………...……

1st Year Return on Investment ………………….…

Total Monthly Savings…………...…………..………

Carbon Footprint Reduction …………………………

* Unit Price

Electric-kWhr

$0.134

$17,460 $8,730 $8,730 7.2 Months 166 % $1,210 61 Tons

Fuel -Therm

$0.848

Water/Sewer-k/gl

$6.00

71,953 12,794 13,111 24,365 23,034

SAVINGS SUMMARY Renaissance Woodbridge Hts. 515 Rte. 1 South Iselin, NJ. 08830 11/14/12 Annual Loads

Gross Project Cost

$

17,460

13,104 Percent Savings

Existing Monthly Costs

Proposed Monthly Costs

Monthly Savings

Annual Savings

Utility Costs Water Fuel, Boiler Fuel, Dryer Electric, Washer Electric, Dryer Linen Costs Softener Costs Total

9% $ 60% 20% 10% 20% 10% 100% 21%

$ $ $ $ $ $ $

1,214

$

1,105

$

109

$

1,311

745 764 681 193 2,030 192 5,819

$ $ $ $ $ $ $

298 611 613 154 1,827 4,608

$ $ $ $ $ $ $

447 153 68 39 203 192 1,210

$ $ $ $ $ $ $

5,362 1,834 817 462 2,437 2,303 14,526

Utility Savings $107

$109

$600 Water

Fuel

Electric Wash & Dryer

Chemical & Linen Savings $192 $203

Linen Cost

Utility Savings Percent

67%

Monthly

$ 815

Chemical Cost

C & L Savings Percent

33%

Monthly

$

395

Combined Pay Back 14.4 Months

DATA SHEET Renaissance Woodbridge Hts. 515 Rte. 1 South Iselin, NJ. 08830 Current Costs: Water & Sewer Fuel costs Linen replacment Electric costs Softener costs Production: Rooms Occupancy Average pounds per room per day Washer Fill Efficiency Washer/extractor #1 Milnor #2 Milnor #3 Milnor #4 Raytheon Average lbs per day processed

$ 6.00 $ 0.848 $ 2.00 $ 0.134 $ 15.00 310 66.0% 13.09 85.0% Size 165 55 55 75 2,678

Equipment: $ 17,460 $ 11/14/2012 Total: $ 17,460 Equipment: 2-4 Warranty: 2 Year per 1,000 gallons Phone#: per therm Fax#: per pound Salesman: Matthew Reischer per kWh $ 40.00 per dozen (20 lbs) per gal average $ 0.022 per pound Efficiency capacity Boiler temp 140 98% average Cold temp 55 85 Hours of Production per Day 0 Lbs. % Production days per Week 7 Fill City water/lb Hot water/lb Horsepower Wash time 85% 2.435 1.461 15.0 38.0 85% 2.541 1.525 5.5 38.0 85% 2.541 1.525 5.5 38.0 85% 2.541 1.525 7.5 38.0 974,610 Annual Total Pounds Processed

Cost per Load: Machine #1: 9.0 341 6 City water purchased 341.6 Boiler (hot water) 204.9 Softener 2.0 Linens 1.753 Electricity ( HP @ minutes) 8.334 Total Costs 9.0 Machine # 2 City water purchased 118.8 Boiler (hot water) 71.3 Softener 1.0 Linens 0.584 Electricity ( HP @ minutes) 3.056 Total Costs Machine #3: 9.0 City water purchased 118.8 Boiler (hot water) 71.3 Softener 1.0 Linens 0.584 Electricity ( HP @ minutes) 3.056 Total Costs Machine #4: 9.0 City water purchased 162.0 Boiler (hot water) 97.2 Softener 2.0 Linens 0.797 Electricity ( HP @ minutes) 4.167 Total Costs Total Costs Summary of costs: Units Machine # 1 9.0 Machine # 2 9.0 Machine # 3 9.0

loads gal per load gal per load Ounce per load pounds per load kWh per load loads gal per load gal per load Ounce per load pounds per load kWh per load loads gal per load gal per load Ounce per load pounds per load kWh per load loads gal per load gal per load Ounce per load pounds per load kWh per load

Costs/ Hr.

Cost/load 2 05 $ 2.05 $ 1.257 $ 0.234 $ 3.506 $ 1.117 $ 8.164 Cost/load $ 0.713 $ 0.437 $ 0.117 $ 1.169 $ 0.409 $ 2.845 Cost/load $ 0.713 $ 0.437 $ 0.117 $ 1.169 $ 0.409 $ 2.845 Cost/load $ 0.972 $ 0.596 $ 0.234 $ 1.594 $ 0.558 $ 3.955 $ 0.117 Cost/load $ 8.164 $ 2.845 $ 2.845

Cost/day 18 44 $ 18.44 $ 11.31 $ 2.11 $ 31.56 $ 10.05 $ 73.47 Cost/day $ 6.42 $ 3.94 $ 1.05 $ 10.52 $ 3.69 $ 25.61 Cost/day $ 6.42 $ 3.94 $ 1.05 $ 10.52 $ 3.69 $ 25.61 Cost/day $ 8.75 $ 5.37 $ 2.11 $ 14.34 $ 5.03 $ 35.59 $ Cost/day $ 73.47 $ 25.61 $ 25.61

Cost/month $ 559 $ 343 $ 64 $ 957 $ 305 $ 2,229 Cost/month $ 195 $ 119 $ 32 $ 319 $ 112 $ 777 Cost/month $195 $119 $32 $319 $112 $777 Cost/month $265 $163 $64 $435 $152 $1,080 $0 Cost/month $2,229 $777 $777

M hi # 4 Machine Total loads Dried Dryer(s) rating in BTU's per hour Dryer, time Avg in minutes Dryer, electric (hrs of drying time) Total Costs

90 9.0 36.0 220,000 45 27.00

100%

50% Cost $0.85

3 955 $ 35 59 $1 080 $ 3.955 35.59 $1,080 Percentage Dried in the Dryers Number of Dryers Dryer Motors 2.00 HP 2 Costs/Hr. Cost/load Cost/day Cost/month $ 0.933 $ 0.6996 $ 25.19 $ 764 0.47 $ 0.176 $ 6.35 $ 193 KwH $ 19.154 $ 191.82 $ 5,819

Renaissance Woodbridge Hts. Financial Summary Page We are pleased to provide the following proposal to reduce costs and improve your facility. For your convenience DEL Ozone has proposed a Cash Purchase Option and a Financing Option which will allow you to upgrade your property right away and enjoy the additional benefit of immediate positive cash flow!

PROJECT OVERVIEW: Project: Project Cost: Monthly Savings: Payback Period: ROI:

Ozone Laundry Program $17,460 $1,210 7.2 Months 166 %

Carbon Footprint Reduction 61 Tons

FUNDING OPTIONS Option 1: Cash Terms:

路

Net 30 days upon credit approval

路

Payment for services is due 30 days after completion of service visits

Monthly Laundry Expense Before OLS

Monthly Laundry Expense After OLS

Savings, $1,210

Monthly Expense Before OLS, $5,819

Monthly Expense After OLS, $4,608

Option 2: Financing Monthly Payment $568 $448 $376

Terms 36 month 48 month 60 month

Monthly Savings $1,210 $1,210 $1,210

Monthly Net Cash Flow $642 $763 $835

Cumulative Savings 5 Yrs $52,176 $56,513 $59,096

Cumulative Savings 10 Yrs $124,804 $129,141 $131,725

Monthly Laundry Expense After OLS

Monthly Laundry Expense Before OLS

Net Cash Flow, $763

Monthly Expense Before OLS, $5,819

125 1

Monthly Expense & Loan Payment After OLS, $5,056

****ALERT!**** Cost of Waiting Estimator Your Existing Conventional Laundry System: Operating Costs $69,823 per yr.

Cost of Doing Nothing (per Year)

$14,526

Proposed DEL Clean Laundry System System: Operating Costs per yr.

ROI in Months

$55,297 7.2

This is the annual amount of money being "washed down the drain" b postponing by t i the th DEL Cl Clean O Ozone L Laundry d P Program upgrade. d

$14,526

Not using a DEL Clean Ozone Laundry System is costing you money!