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Pushing the “Nordic System” of Heating and Cooling In the U.S.

Defining the future of real estate

Propmodo Daily

By Franco Faraudo · Mar. 4, 2024

Greetings!

There are lots of great ways to lower a building’s energy usage, but few have as much potential as the “Nordic system.” By using water stored in insulated pipes underground in water source heat pumps smart buildings can move and store heat rather than just removing it from the building altogether. There is one high-profile project in NYC that is installing a Nordic system in a hundred-year-old building. In today's email, we look at if this could be the blueprint for other buildings to follow.

Also, major cities faced concerns about a decline after the pandemic shift to remote work. But, recent data suggests resilience, with populations staying put and cities exploring solutions like office conversions. Was the "urban doom loop" overblown? And this week, Propmodo Technology is taking a deep dive into Vertical Transportation. We explore elevator modernization as an alternative to replacement and, at the other end of the spectrum, some of the most cutting-edge elevator technologies being installed today.

The office landscape is evolving. After years of uncertainty, a new hybrid work model is emerging – and offices have a fresh purpose. They're becoming hubs of collaboration, demanding modern designs packed with amenities. Success in this new era depends on data-driven insights. Discover how to analyze building data for improved operations, higher revenue, and smarter upgrades in our latest Propmodo Research E-Book in collaboration with Cohesion.

Now, let's dig in!

Pushing the “Nordic System” of Heating and Cooling in the U.S.

With U.S. cities enacting stricter carbon emission regulations for commercial buildings, there's a growing need for energy-efficient heating and cooling solutions. One promising approach involves utilizing underground, insulated pipes to distribute heat throughout buildings with the help of stored water. This system nicknamed the Nordic system, draws inspiration from geothermal water source heat pump systems that have proven successful in Nordic countries known for their harsh winters.

While the traditional Nordic system offers a promising approach to energy-efficient heating and cooling, its reliance on deep underground drilling often presents challenges for retrofitting older buildings. A new project in New York City aims to address this limitation by developing an innovative approach that makes the Nordic system more adaptable for structures unsuitable for subsurface drilling, garnering significant attention for its potential.

The building, 345 Hudson Street, was once used for the printing and distribution of Macy’s mailorder catalogs. It was later converted to office space, but its age and gas boiler system have put it on the list of properties that will start incurring fines if it’s not made to be more efficient. The solution has been a massive project, spearheaded by Hines, that will install an intelligent water source heat pump system.

The new heating system will allow the building to move heat from one area to another rather than just trying to remove it altogether. This is useful for buildings with large floor plates like 345 Hudson that can suffer from the problem of overheating the building’s core while underheating the perimeter. It can also help store heat on sunny days to use when the temperature drops at night. All in all this new system is expected to help the building reduce its energy use by more then 50%.

So is this the winning gameplan that other buildings can follow? Unfortunately not. This project is a great example of what can be done with Nordic heating systems but isn’t applicable to most other buildings, at least not yet. The project was funded in part by NYSERDA, an authority that has been created to help lower the state’s carbon emissions. It was also made possible thanks to a few special features of 345 Hudson.

The first is the existing heating system, which already has pipes and radiators that extend throughout the building’s extra-thick concrete floors, designed to carry the weight of the printing presses. The existing infrastructure and extra insulation help make the system feasible. The project also uses the neighboring building, 555 Greenwich, by tapping into its already existing thermal network and using its geothermal heating system.

While the Nordic system holds a lot of potential, it's important to consider the broader context. Geothermal systems offer a great option for reducing building energy usage, but retrofitting them into existing structures presents challenges. Although innovative designs are emerging to facilitate installation in older buildings, these expensive projects likely require support from governments or utilities to become viable. District-level implementation might be more suitable, as individual buildings often lack the ability to connect to neighboring heating systems. The 345 Hudson Street project represents a step forward for adopting geothermal heating in North America. To achieve our long-term sustainability goals, though, we need to significantly scale up this technology.

Insider Insights

🤲 Share the Risk: The Biden Administration announced the extension of the Federal government’s Housing Finance Agency Risk-Sharing Initiative that provides funding to state agencies to help offset the cost of affordable housing refurbishment.

💸 Cashed out: Blackstone announced on Friday that it has fulfilled all of its repurchase requests, eliminating the backlog of investors who had been waiting to cash out.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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