How Wells Fargo is slashing HVAC energy use more than 70% with a simple building retrofit

A know-how incubator program financially supported by the Wells Fargo Basis initially invested in early-stage startup Turntide Applied sciences seven years in the past, received over by the corporate’s marketing strategy to provide energy-saving motors that slash energy consumption for heating, air flow and air-conditioning techniques. 

Now the financial institution is a marquee consumer of Turntide’s know-how, which can be utilized as a drop-in motor alternative in HVAC tools that isn’t sufficiently old to exchange however wants an effectivity improve. Turntide’s motors can function at variable speeds, which allows constructing managers to automate adjustments to electrical energy consumption primarily based on real-time circumstances. 

“It’s a easy alternative that may drastically scale back vitality,” mentioned Robyn Luhning, chief sustainability officer at Wells Fargo. The system is suitable with most current HVAC tools, a vital metric for the financial institution’s company services and property group, she mentioned.

Wells Fargo’s area checks of Turntide’s know-how — facilitated via the Innovation Incubator program its basis manages in collaboration with the Nationwide Renewable Vitality Laboratory — resulted in vital reductions. In a financial institution department close to Englewood, Colorado, the lower was 70 %, which is able to scale back general energy consumption by an estimated 7,000 kilowatt-hours yearly. Energy consumption at its Charlotte, North Carolina, workplace, went down 80 %, which may save 29,000 kilowatt-hours per yr.

The case for a better motor

Turntide makes switched reluctance motors, traditionally utilized in clocks or phonographs. The motors run at variable speeds, permitting them to be adjusted in response to working circumstances resembling altering climate. That in flip allows constructing managers to automate adjustments to electrical energy consumption primarily based on real-time circumstances. Turntide’s motors additionally don’t require the uncommon earth metals utilized by magnet-powered techniques, making them extra sustainable from a supplies perspective.

The know-how is “easy, dependable and might deal with a variety of robust working circumstances,” mentioned Rushad Nanavatty, director of Third By-product, the local weather tech startup accelerator based by RMI and New Vitality Nexus.

The problem is controlling the motors, an issue Turntide has raised greater than $485 million to resolve via digital means. “As software program and digital controls turn into extra subtle, these challenges turn into extra tractable,” Nanavatty mentioned. “If Turntide has solved them, the potential market and purposes could possibly be actually huge and actually promising; rising effectivity in all the pieces from EVs and HVAC techniques to trade pumps, followers and conveyors.” 

Together with Wells Fargo, the Sunnyvale, California-based startup is backed by Amazon Local weather Pledge Fund, Breakthrough Vitality Companions and Robert Downey Jr.’s Footprint Coalition. Turntide had a valuation of greater than $1 billion in June 2022, however that quantity can be lowered when it declares one other fundraise in 2024, a spokeswoman mentioned.

Vitality effectivity essential for local weather targets

Vitality effectivity doesn’t generate as many headlines as renewable vitality, however enhancements in these measures must double between 2022 and 2030 for the world to satisfy the local weather targets set by the Paris Settlement, in response to the Worldwide Vitality Company. Whereas investments in effectivity have grown since 2020, they aren’t rising quick sufficient, the company mentioned.

“Maximizing effectivity will get us there years earlier and for trillions much less and vice versa,” mentioned Third By-product’s Nanavatty. “Not appearing ambitiously on effectivity makes world decarbonization means more durable.”    

Addressing air-conditioning is an “extremely necessary” a part of the equation, he mentioned, as a result of it accounts for an estimated 20 % of worldwide electrical energy consumption. Because the planet warms, that utilization may triple by 2050. Primarily based on present projections, the world would want 1 extra terawatt of recent electrical energy technology by 2050 simply to run air-conditioners — virtually twice of the overall used immediately within the U.S. 

“Air con load is particularly problematic as a result of it typically drives peak demand — demand that’s the most tough and costly to serve and is usually served by essentially the most polluting energy vegetation,” mentioned Nanavatty.

An easy improve

Turntide is concentrating on firms with massive actual property portfolios, resembling retailers, or firms managing massive warehouse networks the place local weather management is vital, mentioned Marti Ogram, head of strategic accounts. Different prospects embrace division retailer chain Canadian Tire (at 600 areas) and two huge U.S. mall operations, Macerich and Ivanhoe Cambridge. 

The variety of motors wanted for an set up varies broadly, relying on the variety of techniques concerned: two to 4 models for a financial institution department or as much as 60 for an enormous warehouse operation. “The secret is discovering an organization that has a dedication and vitality effectivity targets,” mentioned Ogram. 

Whereas Ogram declined to debate pricing, Turntide created a calculator to assist potential accounts mannequin the payback interval for deployment, normally two to 3 years.

For instance, Wells Fargo mentioned it would decide extra areas for the Turntide know-how primarily based on the age and situation of current techniques, native utility charges and the supply of utility vitality effectivity incentives that might assist cowl the prices.