Harnessing the “Third Way”: How Commercial Laundries Can Boost Competitiveness and Help Hospitals Achieve Environmental Goals with Scope 3 Carbon Offsets

By Terry Bickham, Senior Vice President of Engineering Solutions, Green CHP

Environmental greenhouse gas (GHG) emission regulations and marketing considerations challenge every industry to innovate and reduce greenhouse gas (GHG) emissions. The commercial laundry sector, a crucial partner to healthcare operations, plays a pivotal role in this endeavor. While direct emissions (Scope 1 and 2) are increasingly managed through internal measures, the indirect emissions (Scope 3) from the supply chain remain significant. This article explores the transformative impact of commercial laundries using solar-based combined heat and power (CHP) systems on hospital sustainability, with a special focus on Scope 3 benefits and the strategic use of carbon offsets.

The Critical Role of Commercial Laundries in Hospital Sustainability Goals

Hospitals, given their role as 24/7 care facilities, require substantial energy resources, typically consuming about 31 kWh of electricity and 103,600 Btu of natural gas per square foot annually. This intense energy usage is essential to maintain a sterile, temperature-controlled environment crucial to patient care and recovery. Operational necessities have consequences beyond the costs of energy including environmental impact in the form of scope one and two emissions, controlled directly by the organization and scope three emissions, contributed by partners in patient care.

Beyond energy for managing the care environment, hospitals face another significant logistical and environmental challenge: managing vast amounts of laundry. A large hospital is estimated to process approximately 2.5 million pounds of laundry every year. This includes everything from bed sheets and patient gowns to scrubs and other uniforms worn by healthcare professionals. The scale of this operation highlights the crucial role of laundry services in hospital settings.

The laundry process in hospitals is not only about volume but also about the need for high standards of hygiene. Hospital linens must be washed at high temperatures coupled with specific chemicals and mechanical action to eliminate pathogens effectively. This requirement further increases the consumption of water and energy. For instance, it is estimated that an average-sized hospital may deal with about 15 to 25 pounds of laundry per bed per day, translating to thousands of pounds daily for larger facilities.

The environmental impact is considerable, given the water, energy, and detergents involved. Hospitals, therefore, are increasingly adopting more sustainable practices, such as using water-saving washers and energy-efficient dryers. Some are also exploring innovative laundering techniques, such as ozone laundering, which uses less hot water and fewer chemicals.

In response to these demands, many healthcare systems are turning to centralized laundry services that handle linens for multiple facilities, optimizing both energy and water use while ensuring that hygiene standards are met. This centralization can significantly reduce costs and environmental impacts compared to individual hospitals managing their own laundry operations.

Commercial laundry services play an indispensable role in the healthcare sector, particularly in managing the extensive and hygiene-sensitive laundry needs of hospitals. Commercial laundries have the capacity to handle vast quantities of hospital linens and uniforms daily. Commercial laundry services are equipped with advanced washing technologies and detergents capable of killing bacteria and viruses, which are crucial for preventing hospital-acquired infections. These facilities often adhere to stringent industry standards and regulations, such as those from the Healthcare Laundry Accreditation Council (HLAC), and the TRSA | Association for Linen, Uniform and Facility Services Industry's Hygienically Clean Certification program ensuring that all processed linens meet the necessary health and safety guidelines.

It is no surprise then that a primary customer of the commercial laundry industry are hospitals and other healthcare clients.

Hot Water and Energy Usage in Commercial Laundries

The typical commercial laundry hot water consumption rate is about 1.5 to 3 gallons per pound of laundry, which highlights the intensity of resource usage required to meet hygiene standards and operational demands.

The heating of water is the most energy-intensive part of the laundry process, accounting for approximately 70% of a commercial laundry's total energy use, as cited by Laundry and Cleaning News International. This high percentage is due to the need for hot water to effectively remove oils, stains, and various types of contaminants from fabrics, which is especially critical in settings requiring stringent hygiene standards. The temperature of the water needs to be sufficiently high not only to clean effectively but also to kill bacteria and other pathogens, which is crucial for preventing infections, particularly in healthcare settings.

The energy used in heating water is typically generated from natural gas or electricity. The choice between these two can affect the cost and environmental impact of the operations. Natural gas is often preferred for its cost-effectiveness and efficiency in heating water quickly, but it does involve the direct emission of greenhouse gases.

Given these substantial energy demands, commercial laundries are increasingly looking towards more sustainable and cost-effective practices. Innovations such as water recycling systems and heat recovery technologies are becoming more prevalent. Water recycling systems allow laundries to reuse a significant portion of the water, thus reducing the total volume needed and consequently the energy used in heating fresh water. Heat recovery systems capture the heat from wastewater, using it to preheat incoming cold water. In addition, boilers used to heat the incoming water can be fitted with Stack Economizers to recover waste heat from the hot flue gases that are typically discharged from the boiler stack. This heat would otherwise be lost to the atmosphere. This significantly reduces the energy required to bring water up to the necessary temperatures.

These technologies not only help in reducing operational costs but also contribute to environmental sustainability efforts, aligning with broader global initiatives to reduce energy consumption and minimize carbon footprints. TRSA offers a sustainable certification program that recognizes laundries as "Clean Green" for implementing Best Management Practices that meet the program's requirements.

Understanding Scope 3 Emissions from Commercial Laundries

Understanding the different categories of emissions associated with operations is crucial for any organization aiming to mitigate its environmental impact. These emissions are broadly classified into three scopes by the Greenhouse Gas Protocol, a global standardized framework to measure and manage greenhouse gas emissions.

Scope 1 emissions are the direct emissions from sources that are owned or controlled by the company, such as emissions from combustion in company-owned boilers and vehicles. Scope 2 emissions account for indirect emissions from the consumption of purchased electricity, steam, heating, and cooling. These emissions occur at the plant where the energy is generated but are passed through to the company using the energy.

Finally, Scope 3 emissions, often the most comprehensive and challenging to quantify, include all other indirect emissions that occur within a company's value chain. This category extends to emissions related to activities from the production of purchased goods and services, such as materials and fuel, to the end use of sold products and services. Each scope represents a different aspect of a company's environmental footprint, providing a clear framework for identifying and addressing carbon reduction opportunities.

Hospitals using commercial laundry services that have adopted sustainable practices can earn credits through the certification of clean energy production. When hospitals partner with laundries that have reduced their Scope 1 and 2 emissions, they can claim these reductions as part of their own Scope 3 sustainability efforts.

This arrangement works because when a hospital selects a laundry service that prioritizes sustainable practices, it indirectly contributes to reduced greenhouse gas emissions along its supply chain. For hospitals, particularly those in regions or under regulatory frameworks where carbon reporting and trading are applicable, this can be an attractive way to enhance their environmental credentials and possibly offset other emissions

Moreover, engaging in such practices helps the hospital align with corporate social responsibility goals, and comply with increasing environmental regulations. It also positions the hospital as a leader in the fight against climate change, which can be beneficial for community engagement.

Changes are also afoot at the regulatory level. The U.S. Securities and Exchange Commission is revising its stance on the mandatory Scope 3 reporting requirements, potentially making them optional based on their material relevance to investors. This adaptation could affect how companies report their emissions and use carbon offsets. Despite this regulatory relaxation, companies proactively managing and reporting on Scope 3 emissions, including the strategic use of carbon offsets, are better positioned to adapt to evolving regulatory landscapes and maintain a competitive advantage.

The Strategic Importance of Green CHP Systems

Green CHP is revolutionizing the energy landscape by merging traditional energy systems with cutting-edge renewable technologies. As a pioneer in the field, Green CHP specializes in transforming energy systems into efficient, cost-effective solutions that not only reduce dependence on conventional utilities but also turn energy expenses into valuable assets.

Green CHP integrates renewable energy sources with traditional CHP concepts, providing a dual benefit of heat and power, maximizing efficiency, and reducing both Scope 1 and 2 emissions. For commercial laundries, this technology not only cuts down operational costs, but also significantly reduces CO2 emissions reducing client Scope 3 emissions impact.

Green CHP’s innovative hybrid thermal-electric solar panels are designed to seamlessly integrate with existing infrastructure, ensuring a hassle-free transition to renewable energy solutions. This simple integration process allows businesses to maintain uninterrupted operations while upgrading their energy systems. The integration of solar PV and solar thermal technologies enhances the reliability, scalability, and sustainability of these systems, making them a robust solution for commercial settings, hydronic heating systems, and even green hydrogen production.

Reducing Energy Costs and Boosting Profitability

One of the core benefits of adopting Green CHP systems is the significant reduction in energy costs. These state-of-the-art hybrid panels substantially lower expenses associated with hot water and electricity. By converting energy spending into long-term assets, Green CHP not only boosts a company’s profitability but also enhances its operational efficiency.

Meeting Environmental Standards and Gaining Competitive Advantage

Green CHP systems help businesses meet stringent environmental and emissions goals. By achieving these standards, companies not only comply with current regulations but also position themselves as leaders in sustainability. This commitment to environmental stewardship enhances a company’s reputation, providing a competitive advantage in the market.

In an era where environmental regulations are becoming increasingly stringent, hospitals must meticulously manage every aspect of their operations, including their supply chains. Partnering with a commercial laundry that utilizes a zero-emission solar CHP system helps hospitals to surpass typical regulatory requirements.

In the healthcare sector, where the community's perception can directly influence a facility's success, being seen as a leader in sustainability can differentiate a hospital from its competitors. This reputation for environmental leadership can attract not only patients but also top-tier employees and partners who are committed to ecological responsibility.

This approach not only promotes decarbonization and reduces emissions but also provides a reliable and scalable energy solution that can be tailored to a wide range of commercial needs. The ability to produce hot water and generate electricity year-round, particularly in energy-intensive industries like commercial laundries, is a game-changer. This technology is especially effective in settings that require continuous hot water supply, such as hospitals, which benefit immensely through reduced Scope 3 emissions when their commercial laundry partners utilize such advanced systems.

Hypothetical Scenario: The Green Wave Laundry Service

Imagine a commercial laundry service, Green Wave Laundry, which services a network of major hospitals in a metropolitan area. Green Wave recently upgraded its facility to include a state-of-the-art solar-based CHP system. This system provides all the necessary heat and power for their operations, eliminating any reliance on non-renewable energy sources.

Financial Overview

With the initial net cost of the system installation pegged at about $1.3 million after incentives, Green Wave Laundry forecasts a break-even point within 9 years purely through energy savings. Beyond this period, the financial savings turn into profit, enhancing the economic stability of the laundry service.

Environmental Contributions

Over 20 years, Green Wave's solar-based CHP system is expected to reduce CO2 emissions by approximately 275,000 tons. The hospitals served by Green Wave include these figures in their annual sustainability reports, showcasing a significant contribution to environmental protection efforts. This not only helps the hospitals meet stringent environmental standards but also supports their applications for green certifications and funding, which are increasingly tied to demonstrable sustainability efforts.

Market and Community Impact

As news of Green Wave's innovative approach spreads, they receive support from environmental groups and increased business from health facilities eager to improve their own sustainability records. The hospitals affiliated with Green Wave are heralded as setting a new standard for how healthcare providers can influence their broader ecosystems towards sustainability and attract new businesses that are seeking to partner with “green” businesses and take advantage of Scope 3 emission offsets.

Toward a Cleaner Future: Embracing Net-Zero GHG Solutions in Commercial Laundries

The adoption of solar-based CHP systems in commercial laundries exemplifies a transformative approach to sustainability, marking a significant step towards reducing greenhouse gas emissions. By harnessing solar energy to generate both heat and electricity, these systems minimize reliance on fossil fuels, thereby lowering the carbon footprint of laundry operations. This integration not only contributes to the environmental goals of sectors like healthcare, which are increasingly committed to sustainable practices, but also underscores a proactive stride towards cleaner, more energy-efficient processes.

By partnering with commercial laundries to manage Scope 3 emissions, healthcare facilities can bolster their sustainability efforts. These laundries help track and reduce emissions across the entire value chain, allowing healthcare providers to significantly lessen their indirect environmental impacts while enhancing their overall sustainability credentials. Proactive reporting of these efforts helps healthcare facilities align with evolving regulatory requirements and adapt to increasing market demands for transparency and accountability in environmental matters.

By embracing net-zero GHG solutions like solar-based CHP systems, commercial laundries can significantly improve their operational efficiency and environmental impact. These initiatives position them favorably in a competitive market, where regulatory pressures and consumer preferences increasingly favor sustainable practices. For their customers, particularly in sectors like healthcare, partnering with such forward-thinking laundries aligns with broader environmental goals and compliance strategies, offering a clear win-win scenario. Through such comprehensive sustainability efforts, commercial laundries not only contribute positively to the environment but also enhance their market viability and customer satisfaction, proving that environmental responsibility and business success can go hand in hand.