Dive Brief:
- Budderfly is launching a pilot program at UConn Health to help the healthcare system reduce energy costs and achieve a net-zero carbon footprint, Connecticut Gov. Ned Lamont announced Thursday.
- The 12-month pilot at UConn Health’s Child Care Center building in Farmington, Connecticut, will involve the installation, deployment and management of Budderfly’s proprietary HVAC system that the company says can lower energy costs by separating airflow management from heating and cooling systems.
- Budderfly says the pilot showcases the commercial viability and energy conservation capabilities of its all-electric HVAC system for government entities and agencies.
Dive Insight:
Decarbonization mandates and energy cost concerns are driving organizations, building owners and facility operators to examine current energy use and implement efficiency measures. HVAC systems, due to their high power demand, are becoming a key focus area, amid growing indoor air quality concerns. By optimizing HVAC systems and implementing displacement ventilation, hospitals can save energy and improve air quality, according to a fact sheet from the U.S. Department of Energy’s Hospital Energy Alliance, developed to guide hospital facility managers and operators on HVAC technologies and practices.
Connecticut Innovations, the state’s venture capital arm, is funding the pilot program through the Governor’s Innovation Lab and will cover the initial costs of equipment and installation, according to the release. Lamont said the pilot is the state’s latest initiative to support its goal of achieving a zero-carbon electric supply by 2040.
“In addition to achieving our broader carbon reduction goals, the successful execution of this pilot will lead the way to the creation of new sustainable infrastructure and renewable energy jobs across the state while deepening our commitment to addressing the climate crisis,” Lamont said in a statement. “One of the best parts about this pilot is that we’re able to launch it using technology developed by a company headquartered here in Connecticut.”
Shelton, Connecticut-based Budderfly has posted strong growth in the past year, adding 843 customer sites to its portfolio of sustainable restaurants and reporting a 200% year-over-year increase in bookings in the first half of 2023. The company has now expanded to more than 5,000 customer sites across the U.S., with Budderfly CEO Al Subbloie crediting the growth to the firm’s “energy efficiency-as-a-service” model.
Through that model, the company assumes responsibility for its clients’ utility spending and the capital risk of installing improvements that reduce energy consumption, earning revenue through a share of the energy cost savings generated by these upgrades, the Hartford Business Journal reported.
The pilot with UConn Health follows a $400 million debt facility secured by Budderfly from Vantage Infrastructure and Nuveen last month. The company said it will use that funding to support its next stage of growth, as it looks to expand its footprint across “small- and mid-sized commercial and non-industrial facilities,” which it says make up the vast majority of U.S businesses.
