Steam Heat, Detroit Thermal, and Powering Greater Downtown Detroit
For more than 100 years, Detroit Thermal has served many of Detroit’s buildings, including GM Renaissance Center, Huntington Place, Fox Theatre, Detroit Medical Center, Ford Field, The Fisher Building, the City of Detroit, and Wayne State University. In 2021, the company enrolled in DTE’s MIGreenPower program. A voluntary renewable energy program, MIGreenPower enables DTE electric customers to attribute a greater percentage of their energy use to Michigan-made wind and solar beyond the 15% DTE already provides. Detroit Thermal’s goal is to gradually increase its MIGreenPower enrollment to attribute 100% of its electric usage to renewable resources by 2030. SBN Detroit spoke to Todd Grzech, Detroit Thermal CEO, to learn more about how both steam heat and the company’s enrollment in the program impacts Detroit. Q: Tell us more about Detroit Thermal. A: Detroit Thermal is the district energy heating system for the city of Detroit. We’ve been delivering clean steam energy to the greater downtown Detroit area and services through an extensive underground network of steam piping for over 100 years. Detroit Thermal was one of the original district energy systems in the country and is a critical piece of Detroit’s energy infrastructure and we currently provide energy services to more than 100 buildings. Q: Is Detroit Thermal considered an alternative utility to DTE? A: Typically, we don’t see ourselves as that. We are more of an alternative to property owners providing their own heat energy, and we utilize DTE electric and natural gas to provide steam heat. Q: What are the benefits of steam over electricity? A: Energy savings and cost savings. From A BTU conversion standpoint per dollar, steam beats electric by a lot. Electric heat is very expensive. An analogy I like to use is the comparison between an incandescent light bulb and an LED. The amount of energy and the process required to turn the electricity to heat is much more complicated than steam heat – and there is waste in that. Another thing with steam from a pressure perspective is that it finds its own lower pressure area so we don’t need mechanics or fans to move the heat. Think of a steam pot when you see the steam moving. Its energy alone transfers the heat. This is not the case with electric heat. Q: Are you serving both older buildings and new builds? A: Yes. In Detroit, older buildings like the Fisher and Cadillac Place are piped for steam and have radiators that are designed for steam heat. Newer buildings are using hot water to create steam. A great example is Bedrock’s new Hudson’s site. It is connected to our underground system. The building is piped to carry hot water throughout. Steam heats the water, and the water moves through the piping to heat the spaces. It’s a closed-loop system in that the same water continues to be heated, then moves through the pipes, which is very efficient. Q: What are the challenges/barriers to entry when it comes to using Detroit Thermal for steam heat? A: The main challenge is geography. Where a building is located in relationship to our underground system. If it’s close to the system, it’s usually relatively easy to connect. If the building is too far away, it might be cost-prohibitive to run a pipe to connect just one building. When it comes to our infrastructure it’s about density. The more buildings that can share a single line the more cost-effective it is. There is a cluster of density in the central business district. The underground piping system does a loop basically from Ford Field to Huntington Place around and back. The Hudson’s site is pretty close to that loop so we just needed to run about 100 feet of piping off of that system to connect it. When you get farther away from the central business district piping might not make sense. On the consumption side, steam heat gets interesting as well. When we look at office buildings where operators are looking to maintain a nice temperature for all workers, steam heat is very effective. On the multifamily and apartment side, it’s desirable to have a unit in each space that can be metered and billed. You can’t do that with steam heat. Q: Is the steam used for heat only, or are there other uses within the buildings and businesses? A: It is used largely for heat but, yes, there are other uses. Some entities use steam for pressure, such as breweries. Russell’s Pharmacy in the Fisher Building uses it for its pharmaceutical processes. Hospitals use it for the sterilization of equipment. Restaurants can use it to clean dishes. Q: In 2021, Detroit Thermal enrolled in DTE’s MIGreenPower program and is gradually increasing its MIGreenPower enrollment to attribute 100% of its electric usage to renewable resources by 2030. The company’s commitment is said to ultimately offset the carbon dioxide equivalent of greenhouse gas emissions from over 1,000 passenger vehicles driven for a year. Can you tell me how this works? A: Basically, we pay a premium today to support DTE’s development of solar energy and wind farms. With growth here, these sources become less expensive, and over time dollars are spread further to reach 100% of the electrical supply. Q: Is this an accelerator for Detroit Thermal toward your goals to reduce carbon footprint and or switch to 100% renewable energy? A: Yes, it is in line with our overall goals to reduce our carbon emissions footprint. We are on the path right path to do so as DTE defined the program. Q:How do you think this enrollment and the overall work you are doing make an energy impact on the City of Detroit and the overall region? A: I think, really, all companies in Detroit are working hard toward reducing energy consumption. From an energy consumption perspective, we consider ourselves to be like a co-op. if we are making energy improvements everybody gets the benefit – not only the company that is doing that locally. So, as we
Through Staffing, Cleaning, and Advocating for the Community, Business Owner is Working to Motivate Detroiters Toward Sustainable Growth
From social justice to getting Detroiters back to work, and even an emerging green dumpster business, Mario Kelly is following his passion for connecting those in the community to sustainable opportunities and inspiring others to follow their business dreams. To that end, Kelly started B3L1EV3 – a motivational-apparel company – several years ago to inspire Detroiters to go after what they believe in. Keeping that sentiment, he then launched Believe 313 Staffing, Believe 313 Cleaning, and soon-to-be Believe 313 Dumpsters. Born and raised in Detroit housing projects, he has been a community activist and liaison for years. Kelly started Believe 313 Staffing in 2017, following that with the launch of Believe 313 Cleaning in 2020, and now holds contracts to do post-event cleaning for Ford Field, Little Caesars Arena, Comerica Park, the Fox Theatre, and Pine Knob Music Theatre. His extended vision for Believe 313 Dumpsters is about diverting commercial and residential waste from landfills in the city of Detroit and beyond. Here he talks to SBND about his businesses, his inspiration, and his continued efforts across areas of sustainability in Detroit. Q: How did Believe 313 Staffing start? A: I grew up in a HUD neighborhood at I-75 and Canfield and nearby was the meat packing company Wolverine Packing. They had received a tax abatement from the city of Detroit to build a storage unit and a park in the neighborhood. Part of that tax abatement required them to hire 50 people from the surrounding area. Owners Jim and Jay Bonahoom came to the community to get insights on what people wanted and to start to talk about hiring. People in the neighborhood referred them to me because I was heavily involved in the community and knew a lot of people. They told me they need 50 people and I brought them 100 applicants. Jay and Jim then began urging me to start a staffing company to help connect people in the neighborhood to opportunities. I thought – what does a kid from the projects without a degree know about starting a business? But they kept advocating for me and supporting me, so I did it, and today it’s a seven-figure business. Q: You’ve been very involved in social justice and community. You started a program called Canfield 75, an effort that aimed to bridge the divide between housing projects in your community. You created a neighborhood Meet Up and Eat Up – a free summer lunch program for students – and you’ve coached and led youth groups in several capacities. Where does your passion come from? A: I’ve always felt that my purpose is helping people. And growing up where I did … you form strong bonds. We had to help each other in whatever we had going on. There is a real sense of community in underprivileged areas. I want to and can get people in the community to work. They are ready and willing to work, and I enjoy connecting people to local businesses and creating opportunities for people to get ahead. My purpose here is to help assist people on their journey to financial stability. It’s a win/win. Q: You grew your staffing company and added a cleaning company – Is that right? A: Yes. I had the concept and business cards – the start of the cleaning company. I was involved with the Detroit Youth Choir and they were invited to take a tour of Shinola that I attended. That was serendipitous because the individuals at Shinola happened to mention that they needed a new cleaning company. I wrote up a proposal and have been cleaning for them since. Eventually, I was referred to Comerica Park, and that opened the door to all of the arenas. I just held a two-day job fair to hire people to clean Ford Field on Thanksgiving. The pay is $22 per hour which is solid. I had 120 people come out for this opportunity. This helped folks earn money to buy Christmas gifts and fulfill other basic needs. Q: What sustainability practices do you follow regarding your work at the arenas? A: We use all eco-friendly cleaning products. All of the arenas have robust recycling practices, and we sort all plastics, cardboard, cans, and bottles for the arena’s recycling companies to then handle. I’m working to convert everything we do as a company to environmentally friendly – such as cleaning products – and a focus on waste diversion. That is the impetus behind the new dumpster company – Believe 313 Dumpsters. Q: Tell us about Believe 313 Dumpsters. A: Living and working in the city, and through the cleaning business, I’ve realized that between residents and businesses we have a lot of dumpster usage in the city. And most of the contents of those dumpsters is ending up in landfills. The goal behind Believe 313 Dumpsters is to recycle and divert as much of the contents of the dumpsters as possible. Q: What does the future look like for the Believe 313 companies? A: Motivating Detroiters in a way that moves people and the city forward in a sustainable way. Whether that’s from a financial and economic standpoint, a social justice standpoint, or an environmental standpoint, for me it’s about creating opportunities for people to thrive. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
