When Biogen Idec
Inc. opens a sixth building at its
Kendall Square campus this winter,
there will be something unusual in
the basement: a power plant big
enough to light up 4,000 homes.
Two years ago, the electric utility
NStar infuriated environmentalists
by thwarting a similar off-grid power
plant project proposed by Boston
University, demanding enormous
fees for BU to keep a standby
NStar connection.
Now, Biogen Idec is the first
company to take advantage of new
state rules adopted since then, after
intense negotiations with NStar and
other utilities, to promote so-called
distributed generation projects.
"Green power" advocates
hope the prominent biotechnology
company will set a trend and assure
other businesses of the cost and
environmental benefits of distributed
generation. Biogen Idec's unit will
convert gas into steam for all six
buildings and generate up to 5,500
kilowatts of electricity, while also
powering air conditioning systems
in the summer.
Because the system operates at
80 percent efficiency, compared to
40 to 50 percent for conventional
generating stations, Biogen Idec
expects to save up to $4 million
annually on utility bills. Also, the
more efficient generators will keep
25,000 tons of carbon dioxide out of
the atmosphere every year, said Brian
Casey, chief executive of SourceOne
Inc. The Boston energy management
consulting firm is overseeing the
project for Biogen Idec.
But some environmentalists fear
other businesses and institutions
hoping to follow Biogen Idec will
face an uphill fight with NStar, which
could face increasing pressure on its
$3 billion annual revenues and $188
million annual profits if more and
more big customers defect to
distributed generation.
"I have no reason to believe
that NStar has seen the light on the
value and importance of distributed
generation, despite the clear and
obvious benefits it offers for everyone,"
said Seth Kaplan, a senior
attorney with the Conservation Law
Foundation who helped negotiate the
new rates and policies for distributed
generation. "NStar has not shown as
much receptivity as they should be
showing to the role DG can play."
NStar spokeswoman Caroline
Allen said that "our support for
distributed generation speaks for
itself." Across its system, NStar has
approved more than 186 off-grid
power projects, including 132 solar
installations. "This is a commitment
that we've made and that we're
excited about," Allen said.
But within NStar's service territory,
covering 1 million businesses
and homes in Greater Boston, Biogen
Idec's project is the only businessowned
distributed generation project
underway. Wind turbines are in the
works at Cape Cod Community
College in Barnstable and the
Massachusetts Maritime Academy
in Bourne, along with a New Bedford
project generating power from
landfill gas.
Under the new state rules, Biogen
projects will only have to pay NStar
$400,000 to $500,000 for a backup
connection to the utility grid when
its plant shuts down or requires
maintenance, plus the cost of
electricity it then uses.
NStar had opposed the BU project,
which would have included a tennis
court-size fuel cell and research facility,
because it said it feared that ratepayers
would be stuck with too much of
the cost of maintaining the local power
grid if BU switched to taking NStar
power only during emergencies.
"The new standby rate addressed
those concerns for us, Allen said,
referring to action by the state
Department of Telecommunications
and Energy.
Paul W. Gromer, Executive
Director of the Solar Energy Business
Association of New England, said
that "NStar and other utilities have
become increasingly comfortable
with DG since a separate negotiation
last year established firm standards
for how small off-grid power projects
can safely connect to the utility and
sell back surplus power."
Kate Warner, an architect and solar
energy proponent who founded the
Vineyard Energy Project on Martha's
Vineyard, said that eight years ago
homeowners installing solar panels
often had to meet three or four times
with utility engineers for approval.
"They definitely have made
progress by going to a standardized
application process, Warner
said, although advocates still chafe
at state rules restricting the size of
off-grid projects that schools and
businesses can connect to NStar. For
Biogen Idec, saving the planet has
only been an afterthought. Initially,
said company Facilities Director Ed
Dondero, Biogen only sought to take
over operations of the steam system
serving its buildings after the steam
utility spun through several owners
and Mirant Corp., which owns the
power plant that makes the steam,
went bankrupt.
"It wasn't a business that we
wanted to get into, but the further
we got into it, the more sense it
made, Dondero said. The locally
produced electricity promises to be,
compared to NStar, more reliable and
less volatile, a crucial consideration
for a biotech company relying on
high-tech computerized manufacturing
systems that can be damaged
by erratic currents. Also, unlike an
old-fashioned factory
where a one-hour outage would
only shut down one hour's worth
of production, at Biogen Idec a
one-hour power outage could
destroy hundreds of thousands of
dollars worth of biological medical
products that are made in 24- to
36-day batches.
To keep the gas-fired generating
unit from deafening and rattling
researchers and executives in the six
upper stories, Biogen Idec's architects
have designed the "Bio 6A" building
with features like a special steel skeleton
for the power gear structurally
separated from the main building
frame, and a first-floor slab that
effectively floats on a layer of noise and
vibration-absorbing neoprene.
Executives at the biotech company
have had to learn far more about
the world of energy production and
generator design than they ever
wanted, Dondero said, but added:
"Now that we're here, we're really
excited about it."