Mount Vernon, NY – To a small business, cash is king, so when the decision to move forward with a major capital project is being discussed, up-front costs can often be the deciding issue. Imagine then how delighted a business owner would be to learn that a money-saving oil-to-gas conversion could be undertaken with no out-of-pocket outlay! Thanks to the Conversions Group at Hess Energy Marketing (HEM), this was exactly the case for the A&M Bronx Baking Company in Mount Vernon, New York.
At the time A&M Bronx owner Peter Andolino began investigating an oil-to-gas conversion for his baking ovens, his business had been producing their signature mouth-watering breads with traditional oil-fired ovens for nearly 20 years. As natural gas prices fell, the economic and environmental advantages of a conversion became too great to ignore. The only issue was pricing – an oil-to-gas conversion can easily cost several hundred thousand dollars! Fortunately, Andolino came into contact with Hess Energy Marketing’s Conversions Group, who explained the benefits of their conversion program to him. The Conversions Group was able to provide complete Project Management services as well as financing for the conversion, and also allowed the bakery to lock in their gas costs – below current market rates – with fixed pricing on a five year gas purchase contract. The conversions group was able to offer expertise related to the local utility to assist ETTER Engineering in facilitating the conversion.
At the same time, ETTER Engineering was contacted by the Maxon Corporation to provide combustion expertise and act as the General Contractor for the project. The ETTER team examined the facility, coordinated with HEM, and began the process of converting the bakery from #2 fuel oil to natural gas. ETTER developed a series of process and equipment upgrades to be completed over several weeks. While originally consulted to deal with the baking ovens only, during the process of converting the facility to natural gas, ETTER replaced and upgrade the burners for the building’s boilers as well. ETTER installed four Maxon natural gas burners in the baking ovens, along with new boiler burners to power the facility’s boilers. Additional work included the production and installation of natural gas fuel trains and custom controls. The ETTER team worked on one piece of equipment per week, allowing the bakery to operate during the transition. The bottom line – A&M Bronx Baking is saving tens of thousands of dollars per year in fuel costs while improving reliability and reducing greenhouse gas emissions.
Highlights of the HEM Deal for A&M Bronx Baking:
- No cash out of pocket
- No principle paid for Project Management until gas began flowing
- HEM acted as liaison between ETTER Engineering
- Ability to lock in fuel costs for five years
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