University of Florida, Siemens to engage in $30 million energy reduction project

by | Apr 4, 2023

  • The University of Florida plans a $29.6 million energy-saving project for its northeast campus
  • The project includes the replacement of various mechanical infrastructure items in order to reduce campus energy consumption.
  • Siemens was chosen as the energy performance-based contractor, and TD Equipment Finance is the third-party financing entity.
  • The project is projected to save approximately $5.2 million over a 20-year term.

The University of Florida (UF) is set to begin a $29.6 million project aimed at reducing energy consumption and lowering operational costs.

The project will focus on the northeast area of the university campus, which houses various educational, athletic, and housing buildings, including the Holland Law building. The project involves the construction of a new condensing boiler plant, renovation of an existing chilled water plant, installation of a hot water distribution pipe, and the replacement of various mechanical infrastructure items.

UF selected Siemens as the energy performance-based contractor, while TD Equipment Finance will be the third-party financing entity. Siemens performed the preliminary assessments and will be responsible for the project’s energy audit, design, engineering, and installation, while TD Finance will provide $19.6 million in tax-exempt financing, which, coupled with University resources of $10 million, will fund total project costs. The project is expected to save approximately $5.2 million in aggregate savings over the 20-year term of the agreement.

The University plans to initiate construction in April 2023 and be completed by September 2024. A guaranteed max price contract has been established at $29,577,352, including a contingency of $2,442,167, or 8 percent of the total budget).

The total project cost will be funded through a combination of university-generated funds and tax-exempt financing proceeds, with two-thirds of the total project cost funded through proceeds from third-party tax-exempt financing.

According to projections provided by the university, the project will result in guaranteed savings of approximately $260,000 annually or $5.2 million in total over a 20-year term.


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