1. MECHANICAL INSULATION WEBINAR September 23 rd, 2014 1

2. Who are the Heat and Frost Insulators? 2 Nine affiliated Locals across Canada with over 5000 members, and 15,000 insulators across Canada All Journeyman members are Red Seal Certified Mandatory apprenticeship is for new entrants Founded over 100 years ago Experts in installation and maintenance of mechanical insulation systems Industry leaders in the health and safety of mechanical insulators

3. Insulation Overview Mechanical Insulation consists of materials or a combination of materials that will restrict heat loss or gain on mechanical systems. Efficiency is optimized through both proper installation, and the correct type and thickness of mechanical insulation. Increasing efficiency drastically reduces energy consumption and greenhouse gas emissions and saves money. 3

4. Energy Conservation 4 Properly installed and maintained insulation pays for itself. These systems save up to 500 times the energy and 750 times the emissions required in the production of materials. More cost effective than virtually any other effort designed to reduce energy use and operating costs.

5. Condensation 5 Improperly insulated cold work wastes energy and can lead to mold. This picture illustrates condensation problems on copper pipes where the insulation was removed to access the piping. Since mold has formed on the insulation, it now must be removed and replaced.

6. Firestop 6 Insulators are also trained in installation of firestop systems. These systems saves lives. They slow or stop the spread of fire through a building. Improves firefighter safety, reduces loss from fire damage, and can provide data to improve firefighter and building equipment standards.

7. Firestop 7 This picture illustrates a common scenario where workers installed additional data lines through a fire rated wall. Removing the insulation and firestop system has compromised the fire barrier, and instead of a 2 hour fire rating this wall now has no fire rating.

8. Safety 8 Mechanical Insulation is a component of a comprehensive safety program:  Personnel Protection Insulation protects workers from contact with hot or cold surfaces  Acoustic Insulation protects workers from excessive noise levels generated by mechanical systems  Grease duct insulation and firestop, are additional examples of how insulation is a vital component of building safety.

9. Hazardous Waste Remediation 9 Our apprenticeship program includes extensive training in the safe removal of hazardous waste. Our contractors provide services that enable facilities owners to meet regulatory obligations in the most efficient and cost-effective manner possible. Hazardous waste remediation consists of the safe removal of materials such as asbestos, mold and lead.

10. Removable and Replaceable Insulation 10 Journeymen Insulators fabricate custom removable covers and perform the first install to ensure proper fit and function. When workers have to access the valve for blinding, they can easily remove and re-install the insulation cover.

11. How do we start? 11 More than 4000 skilled mechanical workers in Alberta working on commercial/industrial projects. We offer energy audits of existing insulation systems. Provide detailed reports that identify cost of upgrades, energy savings achieved, return on investment, and the amount of greenhouse gases eliminated. Contact: Wade Logan, Business Manager Local 110 (780) 426-2874 ext 225 Heat and Frost Insulators & Allied Workers 9335-47 Street Edmonton AB T6B 2R7 | Phone: (780) 426-2874 or Calgary | Phone: (403) 243-1234

12. Return On Investment 12 COST EFFECTIVE Cost-recovery can be achieved in as little as 6 months. Modest updates to older buildings, including many government buildings, have the potential to realize substantial cost savings (short and long term). EFFICIENT AND ENVIRONMENTALLY SOUND Many private and public sector facility operators are not aware of the inefficiencies to be found in their buildings. Use of mechanical insulation saves energy and reduces greenhouse gas emissions.

13. Example 1 of Mechanical Room Savings 13

14. Example 1 of Mechanical Room Savings 14 75 mm (3 inch) piping carrying steam at 190°C Gate valve and strainer Estimated savings by insulating these 2 components with 75 mm of fiberglass pipe insulation covered with fabric jacketing Assumed NG at $12 / GJ; 80% combustion efficiency; 8760 hours / year operation Estimated cost to insulated these components: $550 (simple payback = 7.2 months)

15. Cost-Recovery Chart 15 Fluid (steam or hot water) Pipe Operating Temp, °C Insulation Thickness, mm Hours Operation per year Type of Energy for Heating Simple Payback, years Steam Heat1901278760Heating Oil0.1 Steam Heat1901278760Electricity0.1 Steam Heat1901278760Natural Gas0.3 Steam Heat1901274380Heating Oil0.2 Steam Heat1901274380Electricity0.2 Steam Heat1901274380Natural Gas0.6 Hot Water Heat80644380Heating Oil0.4 Hot Water Heat80644380Electricity0.4 Hot Water Heat80644380Natural Gas1.2 Dom Hot Water*50388760Heating Oil 0.4 Dom Hot Water*50388760Electricity0.4 Dom Hot Water*50388760Natural Gas1.2 *Does not account for water wasted when waiting for hot water to arrive

16. Municipal Cost Savings 16 Best management practices for municipalities:

17. Energy Efficiency Programs 17 The Heat & Frost Insulators and Allied workers have been advocating for: 1. The introduction of a tax credit for businesses that pursue the installation of mechanical insulation in new or existing (retrofit) commercial buildings or industrial facilities (federal and Alberta Governments). 2. The promotion of energy efficiency audits in government buildings, with the goal of finding energy and cost savings opportunities.

18. Case Study 1: University of Western Ontario 18 Energy savings audit and work on steam plant, medical sciences building, campus centre plus 3 other buildings. Results of the audit: Projected annual energy savings: $78,355.00 Projected CO2 Reductions: 1,640,939 lbs / year Projected NOx Reductions: 3,312 lbs / year Projected CE Reductions: 447,168 lbs / year Results of work completed because of audit: GHG Emission Reductions: 8,937 tons Payback Period: 0.87 years Cumulative Energy Savings: $1,259,374.00

19. Case Study 2: 25 Storey Residential Tower 19 10 – 10 years old, heated with natural gas and located near Vancouver, BC. Key findings:  Estimated energy savings amounted to 320,000 kWh / year from replaced pipe insulation  Overall payback period was just under 2.7 years.  CO2 emission reductions estimated at 59 Tonnes /year  Average energy savings per square meter were 24.6 kWh / year  Energy savings = 14.6% of total annual use

20. Case Study 3: Montana State Pilot Program 20 25 facilities (56 mechanical rooms) were selected by State personnel based on potential for energy savings. Key findings:  Estimated energy savings amounted to 1.76 million kWh / year  Overall payback period was just over 4 years, with an annualized rate of return of 24%.  CO2 emission reductions estimated at 300 Metric Tonnes /year  Average energy savings per square meter were 14.5 kWh / year, while energy cost savings averaged $0.463 per square meter.

21. Summary Audits. Size of job. Return on investment 21

22. WADE LOGAN, BUSINESS MANAGER WADEL@INSULATORS110.COM (780) 426-2874 EXT 225 HEAT AND FROST INSULATORS & ALLIED WORKERS (LOCAL 110) 9335-47 STREET EDMONTON AB T6B 2R7 PHONE: (780) 426-2874 OR CALGARY | PHONE: (403) 243-1234 22 Questions ?