American DG Energy, a leading On‑Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, has reached an agreement to supply clean energy to Governor Paterson Towers, a 225 unit, 30 story, residential high-rise, located in Paterson, New Jersey.

Under the terms of the agreement, Governor Paterson will soon receive a significant portion of its energy from a 75 kW combined heat and power (also called CHP or cogeneration) system, which will be owned and operated by American DG Energy. Governor Paterson will receive a discount on the energy produced by the CHP system and reduce its greenhouse gas emissions. The value of the agreement to the company is $1.9 million over the fifteen-year term.

Working with its partner, Peter Westerhoff, to develop this project, American DG Energy will produce clean energy in the form of electricity, space heat and domestic hot water at Governor Paterson Towers and sell it to the residential property at a price lower than the local energy utility rates. Having opted for the company’s On-Site Utility energy solution, Governor Paterson will pay only for the energy used by the property and will avoid all capital, installation and operating costs.

The energy will be produced with small-scale, combined heat and power equipment, located at the property site but owned and operated by American DG Energy. The company will also handle all service, maintenance and repair; therefore, Governor Paterson will not need to provide manpower to support the equipment.

CHP systems offer considerable environmental benefits when compared with purchased electricity and on-site-generated heat from a boiler. By capturing and utilizing heat that would otherwise be wasted from the production of electricity, CHP systems require less fuel than equivalent separate heat and power systems to produce the same amount of energy. Because less fuel is combusted, greenhouse gas emissions, such as carbon dioxide, as well as air pollutants like nitrogen oxides and sulfur dioxide, are reduced.

The CHP system planned for Governor Paterson Towers will be comprised of a CM-75 Ultra by Tecogen, which is equipped with a proprietary ultra-clean emissions technology and has recently been granted the new air emissions certification from the New Jersey Department of Environmental Protection (NJDEP).

This certification eliminates the process of applying for pre-construction operation certification and air permits prior to installation which will save time and money on implementation of this project. In addition, the CHP system is expected to reduce the residential property’s emissions by 252 tons of carbon dioxide annually, the equivalent of removing the carbon emissions of 42 cars each year.*

* Figures were calculated using the EPA CHP Partnership emissions calculator.

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