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www.expresshospitality.com FORTNIGHTLY INSIGHT FOR THE HOSPITALITY TRADE
16-31 July 2007  
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Home - Edge - Article

Tech Talk

Save the world, get rich

However unlikely this may sound, saving the environment now is a good opportunity for the trade and is expected to be a profitable business venture in the future, finds Sayoni Bhaduri

Even though the hospitality industry does not consume resources at the same rate as other heavy industries, Indian hospitality has taken a pioneering step in this direction by helping out to save energy. According to Rajul Berde, assistant manager (Environment) at The Orchid, in the hospitality industry the benchmark is set by calculating how much emission there would have been if other energy resources were used.

But hotels can now make a profit by using technology which will give optimum productivity and yet save unnecessary wastage of resources. ITC Sonar Bangla Sheraton Hotels & Towers has done it, and Kamat Group's The Orchid hotel and Lotus Suites are already on their way. They are the first hotels to be involved in Clean Development Mechanism (CDM) projects - Kamat being the first Ecotel and ISO-14000 certified in Asia, and ITC Sonar Bangla being the first hotel to receive ISO- 14000 certification in eastern India.

Unfortunately not many hoteliers are aware of the possibilities of CDM projects. According to a workshop on climate change and hotel industry, CDM opportunities conducted by the Integrated Research & Action for Development (IRADe) in 2005, it was seen that many hotel representatives were uninformed about the CDM potentials and were keen on knowing more.

In 1998, an agreement was negotiated under the United Nations Framework Convention on Climate Change. Most people know it as the Kyoto Protocol. As of December 2006, 169 nations have ratified the agreement and are following the rules and regulations laid down by them. The aim of the forum was to somehow control the carbon dioxide emissions in the atmosphere.

The basics

Under the Kyoto Protocol, India does not have any obligation of decreasing its greenhouse gases (GHG), because, one, it is a developing nation which is also least energy-intensive. But most developed nations forming the Annex I countries have obligations to reduce their carbon emissions. The reductions have to be an average of five per cent below their 1990 level by 2008-2012 thus providing India with an opportunity to be a part of these CDM projects.

Being part of these projects will allow India to earn Certified Emissions Reductions (CERs) or carbon credits, which can be sold to the developed nations who need help maintaining their emission levels. This is in return of capital and clean technology to implement projects that will help reduce GHG emissions. CER is the technical term used for the output of the CDM projects and can only be issued in accordance to the Article 12 of the Kyoto Protocol.

The technology

Kyoto Protocol is a climate change agreement signed under the United Nations Framework Convention on Climate Change (UNFCCC) to control the greenhouse gas (GHG) emissions. All countries who have signed the agreement have been given targets to cut down on GHG. The treaty came in full force on 16 February, 2005.

Countries have been separated as Annex I countries (developed countries) and non-Annex I countries (developing nations). Annex I countries have to reduce their GHG emissions by an average of five per cent from their 1990 levels by 2008-2012.

Clean Development Mechanism: It is a procedure where Annex I nations have to be involved in projects which will help reduction GHG. Most often Annex I countries have to take permission from the non-Annex I nations to host a project. Annex I nation will get the credit for meeting its GHG reduction targets, whereas the non-Annex nations would receive capital and clean technology.

The basic areas where a hotel can save up on energy are the wasted heat energy. ITC's project started in 2004 and ended in January 2007, whereas the Ecotel's project is supposed to last for an infinite period of time. To be eligible for carbon trading a hotel property basically has to bundle up its project with a few other similar projects, informs Berde. "ITC Sonar Bangla's project was taken up along with ITC Triveni and ITC Bhadrachalam," informs Ipsita Ganguli, sales manager of the hotel. The Orchid and the Lotus Suites in Mumbai are together working on earning CERs.

Few of the concepts which are used in other heavy industry and organisations can very well be implemented in the hotel industry:

• De-super heater is in simple terms a heat recovery system. It recovers the heat generated in the chiller plant during condensation. The recovered heat is then used to pre-heat water used in a property. The chemical used has the capacity to absorb heat.

• Eco-buttons are generally used in washing machines but it can also be used in air conditioning. The use of the button increases the temperature of the room from what is shown on the thermostat.

• Auto Power Factor Control (APFC) Panel has a capacitor bank installed to maintain the value of power factor. The kVAR (kilovolt-ampere-reactance) invested is less than the amount used in fixed capacitors making it a good value for investment.

• In large spaces, fresh air can be ozonised which reduces the load on the air-conditioning. It also has health benefits since it neutralises any impurities that might be in the air.

• Variable Speed Drive pumps used in a property can reduce the inflow of excess electricity. The pumps are put in a closed loop connected with Variable Speed Drive which will reduce the current demand with lower revolutions per minute. It has three parts - an AC motor, a controller and an operator interface.

ITC Sonar Bangla Sheraton Hotels & Towers has undertaken the CDM project with ITC Triveni and ITC Bhadrachalam. The project was part of ITC Corporate sustainability initiative. Registered in 2006 by the UNFCCC for 2,987 CER, it got certified for 1,886 CER. The project is valid for next 10 years.

The Kamat Hotel's Orchid hotel and the Lotus Suites are also on the verge of trading their CER. Their project began in 2001. Presently, it is to be verified by external agencies. They aim to reduce 3,959 tonnes of carbon dioxide.

• Compact Fluroscent Lamps and electronic chokes may seem common now, but they are still known for their ability to conserve energy - 10 CFL is equal to 60 watts tungsten filament lamp. Electronic chokes save 11 watts in comparison to copper chokes used in tube lights.

The process

India's 'developing nation' status has allowed it to take part in CDM projects without the baggage of carbon emissions. The hospitality industry of late has stepped in to the market of selling carbon credits.

There is an entire flow line which needs to be followed while registering for a DM project with the UNFCCC. It all begins with the identification of CDM opportunities and goes on to follow up work, establishment and working of the project, validation of the project, verification by a designated operating agency and finally issuance of CER. The seemingly long process, in the end will not only help the environment, but is a good investment for those looking for long term returns.

 


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