Heat Recovery Project Development - Category 3 Demonstration

Description of goods to services to be bid:

Category 3: Heat Recovery Demonstration introduces implementation funding for heat recovery projects which feature solutions that are replicable and impactful in existing buildings in New York State. This assistance aims to validate the feasibility and effectiveness of heat recovery solutions that can provide substantial benefits in terms of the amount of energy recovered and reused, emissions reduced, and economics of the project. Implementation funding will be competitively awarded to heat recovery projects that meet PON 5547 requirements and can begin construction within 1 year from the time of award. NYSERDA will award up to $2,000,000 of implementation cost-share for each selected project.

Heat recovery projects that include the following solutions are eligible to apply:
Data Center Heat Recovery: A solution that recovers and reuses waste heat from data center operations, resulting in lower utility energy demands, such as using heat exchange systems or novel waste heat-to-power conversion methods.
High Temperature Heat Pumps: A solution that leverages waste heat recovery with commercially available high-temperature heat pumps to meet process heating requirements of up to 150°C/302°F, which results in improved process energy efficiency.
Packaged Exhaust Heat Recovery: A high-efficacy packaged wastewater or ventilation heat recovery solution without the complexity and costs of onsite stick-built heat exchangers.
Thermal Storage: A solution that allows heat to be recovered at one point in time and used at another, helping to downsize heating and cooling load and provide grid services. Targeted solutions, such as phase change material (PCM) will provide a higher energy density than water and ice. Water and ice storage systems will be considered where the system is planned for small commercial buildings, hospitals, and industrial facilities or to lower overall energy costs for tenants in Affordable Multifamily Housing.

Through Category 3, NYSERDA seeks projects that demonstrate the impact, scalability, and economic viability of at least one of these four heat recovery solutions. Proposals must include a Basis of Design (BOD) narrative and/or one-line concept diagrams with essential details to reasonably validate feasibility, procurement budgeting and construction timeline. Proposers must have completed due diligence, such as an opportunity assessment or equivalent study, before applying.

Category 3 will be open to all existing buildings, except for single family homes, in New York State who pay the electric SBC charge. Special consideration will be provided for projects benefiting disadvantaged communities as defined by the Climate Justice Working Group.
Proposals will compete based on the following criteria:
• Impact – The proposal demonstrates impact in the form of energy savings, emissions reductions, and reuse of waste heat. The Project Team has the capacity and expertise needed to implement the proposal.
• Scalability – The proposal demonstrates that the heat recovery solution has a strong potential for widespread adoption within the proposer’s portfolio or by the broader market.
• Cost Effectiveness – The proposal examines the costs and benefits of the project in terms of total investment relative to the energy and carbon intensity improvements. The Project Team demonstrates commitment by providing private investment.
Proposal Due Dates for Category 3: Round 1 due Thursday, November 7, 2024 by 3:00 PM ET. Subsequent rounds will be announced for 2025, subject to funding availability. 

If changes are made to this solicitation notification will be posted on NYSERDA’s website  at: www.nyserda.ny.gov/funding-opportunities

Eligibility/Qualifications Requirements/Preferences:

To qualify 3 of the Program, participating buildings must be located in New York State, served by a New York State Investor-Owned Electric Utility (such as Consolidated Edison, National Grid, NYSEG, Orange and Rockland, Central Hudson, or RG&E), and pay System Benefits Charges (SBC). An existing property of any size that falls under the classification of multifamily, commercial, industrial, and/or institutional buildings is eligible.