Greater than 1,500 HP New Miura Installation or a smaller New Miura Installation PLUS additional equipment for O&M (i.e. chillers, air compressors, etc.). Basically, we need to be able to justify at least 40 hours/week of operator technician time per site. The 1,500HP requirement can also be met if broken up into multiple New Miura Installations within close proximity that will go online at the same time (ex. three hospitals belonging to the same hospital chain within 100 miles of each other, all with 400-600HP steam plants).

15 years. The standard contract is written around 15 years; however, we will consider contracts ranging from 5-25 years to accommodate specific customer needs.

The standard contract and offering is flexible, and designed to accommodate varying steam loads ranging from ZERO-to-FULL capacity. The pricing model accommodates and remains valid for a plant that is running wide open at 100% capacity or is shut down for a month(s) with no steam load. Of course, we must remain onsite to “keep the lights on,” and be ready to operate when load returns.

Yes. We are planning to incorporate a clause into the Energy Services Agreement (ESA) that, in most cases, would make it very simple for the customer to add or remove a boiler(s) to/from their SaaS operation with a simple and preestablished contract adjustment. Of course, there would need to be physical space available to add boilers, should they wish to expand.

This is one of the primary benefits of using Miura’s modular design for the SaaS offering. This model will make it a very scalable solution for district energy plants, central steam distribution, and economic development projects.

Yes. The Alliance is willing to take over operation and maintenance for existing infrastructure in addition to the new Miura installation. Existing boilers and/or ancillaries can become part of the scope. Guarantees around performance, reliability, and efficiency for the existing infrastructure may or may not be provided — this will be determined on a case-by-case basis.

Yes. We can incorporate new buildings and/or major upgrades to existing facilities into the SaaS offering and contract. This will be amortized into the project, and the customer will not be required to provide any upfront capital.

We are promoting SaaS with performance, reliability, and efficiency guarantees as part of the standard offering — these are included in the package. We are also building them into all initial pricing proposals. This remains the suggested approach.

In practice, every project will be somewhat different in this regard and HSB will adjust the guarantees and pricing based upon the customer’s needs and operations. For instance, a hospital may primarily care about reliability and steam quality, but not as much about efficiency; so perhaps we remove coverage for efficiency to meet their price target (there is a cost associated with each item being insured). In addition, some customers may want to add additional guarantees for pain points they are having, such as condensate return percentage, and HSB is willing to add the specific KPIs and guarantees that each customer may desire.

SaaS is NOT limited to just steam systems. We will include financing, design, installation, and O&M for other equipment as part of SaaS contracts. Any equipment typically found in a Central Utility Plant (CUP) can be included. Armstrong International’s service team has decades of experience operating and maintaining a vast range of equipment — steam generation, hot water generation, chillers, cooling towers, air compressors, refrigeration, electrical generation, water/waste-water systems, nitrogen systems, etc. Including these items when able, and expanding the scope of the SaaS model, will make the return on investment more attractive to the customer and make it more efficient to maintain operators onsite. In addition, HSB is building out a robust financing model for a widespread “Equipment-as-a-Service” offering.