What is heating oil conversion?
Heating oil conversion is the process of switching dirty (residual) fuel oil in boilers to cleaner alternatives like No. 2 oil or natural gas, or both. New York City has adopted the NYC Clean Heat Initiative that requires buildings to convert to cleaner fuels over a set timeline.
By when will buildings switch to cleaner heating fuels according to the Clean Heat Initiative guidelines?
Buildings with boiler permits expiring between now and 2015 will have to switch to cleaner heating fuels like No. 4 oil by mid-2015. No. 6 fuel oil will be phased out by July 2015, after which all buildings would need to convert to cleaner No. 4 oil temporarily or directly to No. 2 heating oil and natural gas. By January 1, 2030, using No. 4 heating oil will be prohibited in boilers and buildings will have to switch to No. 2 heating oil or natural gas. Additionally, boilers in all new construction as of July 2012 are required to use either natural gas or No. 2 heating oil.
Oil to Gas Conversion
Fuel oil accounts for roughly 30% of a building’s operating expenses. Switching to cleaner and less costly natural gas can save building owners a significant amount of money. Gas boilers also require less maintenance and do not require on-site fuel tanks which are used to keep No. 4 and No. 6 fuel oils heated during low temperature months.
Therefore, even though the Clean Heat program guidelines allow for converting to No. 4 oil temporarily before switching to No. 2 heating oil and natural gas, over the long term it may be more economical to do an oil to gas conversion from the beginning. Historically low prices of natural gas have also made oil to gas conversion an attractive investment for property owners making the switch to cleaner fuels. A study by the Environmental Defense Fund (EDF) found that building owners switching from fuel oil to natural gas quickly recover their capital investment, and will continue to benefit from low natural gas prices even after the initial capital outlay has been recovered.
Associated Renewable is dedicated to reducing operating costs of buildings by making them energy efficient in a cost-effective manner. Our heating oil conversion services ensure that building owners will increase their energy savings while reducing harmful emissions citywide. Our dedicated Local Law 43 team provides full compliance with New York City’s law governing the use of cleaner heating fuels in boilers. We provide the full range of services from initial inspection of boilers, analyzing heating oil consumption, calculating the cost of conversion, applying for grants and implementing oil to gas conversion projects for full compliance with City mandates.